Colorado Solar Fraud: Common Scams & How to Report
Colorado homeowners lost millions to solar scams. Learn the most common Colorado solar fraud tactics, your rights under Colorado consumer protection laws, and where to report.
Colorado Solar Fraud 2026: Common Scams, Consumer Laws & How to Report
Colorado consistently ranks among the top 15 states for solar adoption, with over 100,000 residential installations and 300+ days of sunshine annually. Xcel Energy serves the majority of the Front Range, while rural cooperatives and municipal utilities cover the rest. Strong net metering, the Colorado RENU loan program, and rising electricity rates have created a booming solar market — and a parallel fraud market.
Colorado Solar Market at a Glance
| Metric | Colorado Data |
|---|---|
| Residential installations | 100,000+ statewide |
| Dominant utility | Xcel Energy (~60% of CO) |
| Key incentives | Net metering; Colorado RENU loan program; local rebates (Denver, Boulder, Fort Collins) |
| Sun exposure | 300+ sunny days/year — among highest nationally |
| Fraud hotspots | Denver metro, Colorado Springs, Fort Collins, Pueblo |
| AG enforcement | Active solar fraud task force since 2023 |
Top 3 Solar Scam Types in Colorado
1. Xcel Energy "Net Metering Buyout" Scams
Colorado is phasing down net metering compensation as part of its transition to time-of-use rates under Xcel's 2024 rate case. Scammers tell homeowners Xcel is "buying out" existing net metering customers at a loss or that "net metering ends this month." In reality, existing net metering customers are grandfathered, and the transition is gradual. This manufactured urgency drives panic-signing.
2. Colorado RENU Loan "Approval" Fraud
The Colorado RENU loan program offers low-interest financing for energy improvements including solar. Scammers tell homeowners they are "pre-approved" for RENU financing at the lowest rate, collect personal information for a "credit check," and either steal identities or lock homeowners into high-interest private loans disguised as RENU loans.
3. Hail-Damage Solar-Roof Combo Scams
Colorado's Front Range experiences some of the nation's worst hailstorms. Scammers target homeowners with recent hail damage: "Your insurance will pay for the roof, and we'll add solar for free." They promise to handle the insurance claim, inflate the damage estimate, and stick the homeowner with a financed solar system they didn't want — often with a lien on the property.
Your Rights Under Colorado Law
Colorado protects homeowners through the Colorado Consumer Protection Act (C.R.S. § 6-1-101).
| Protection | Detail |
|---|---|
| Statute of limitations | 3 years from discovery |
| Damages | Actual damages; treble damages for bad faith conduct; attorney fees |
| Door-to-door cancellation | 3 business days (FTC rule + Colorado specific provisions) |
| CO contractor licensing | No state-level general contractor license required, but electrical and plumbing licenses are required and enforced locally |
| Colorado senior law | Enhanced penalties for targeting consumers 60+ |
Colorado Reporting Agencies
| Agency | Contact | What to Report |
|---|---|---|
| Colorado Attorney General (Phil Weiser) | coag.gov / 1-800-222-4444 | CCPA violations, consumer fraud |
| Colorado Public Utilities Commission | puc.colorado.gov | Xcel Energy/utility complaints |
| Colorado Department of Regulatory Agencies (DORA) | dora.colorado.gov | Electrical/plumbing licensing |
| FTC | ReportFraud.ftc.gov | Interstate fraud |
| CFPB | consumerfinance.gov/complaint | Financing complaints |
Red Flags for Colorado Homeowners
- "Net metering is ending — sign today or lose your rates" — existing customers are grandfathered
- "You're pre-approved for a Colorado RENU loan at 1.9%" — verify directly with the RENU program
- Door-to-door sales coupled with hail damage roof offers — a classic combo scam
- No electrical license for the installer — verify through DORA
- "We'll handle your insurance claim" — never let a contractor negotiate your insurance
What to Do Next
- Verify net metering status: Visit Xcel Energy's website or puc.colorado.gov for accurate net metering information
- Check RENU eligibility directly: Visit colorado.gov/energyoffice/reno-loan-program before accepting any "pre-approval"
- Verify contractor licenses: Check electrical licenses through DORA at dora.colorado.gov
- Keep insurance claims separate: Never let a solar contractor handle or influence your insurance claim
- Contact the Colorado AG: Colorado has an active solar fraud task force — file a complaint
FAQ
Is Colorado really phasing out net metering?
Colorado is transitioning net metering compensation under Xcel Energy's 2024 rate case, but existing customers are grandfathered at their original terms. New customers may receive a different compensation rate, but net metering itself is not being "eliminated." Any salesperson claiming otherwise is misrepresenting the facts.
What is the Colorado RENU loan program?
The Residential Energy Upgrade (RENU) Loan Program offers low-interest, unsecured loans for energy improvements including solar. Loans are originated through participating credit unions and local governments. You must apply directly — no installer can "pre-approve" you without a full application. Visit the Colorado Energy Office website for details.
Do solar installers need a license in Colorado?
Colorado does not have a state-level general contractor license requirement, but all electrical work must be performed by a licensed electrician registered with DORA. Many municipalities have additional licensing requirements. Always verify electrical licensing through DORA at dora.colorado.gov.
What if a solar company used my hail damage to pressure me into signing?
This is one of the most common solar fraud patterns in Colorado. If a contractor coupled a roof insurance claim with a solar sale, review all documents for misrepresentations. Contact the Colorado AG's office and your insurance company's fraud investigation unit. You may have claims under the Colorado Consumer Protection Act.
Colorado's 300 days of sunshine should be an asset — not a gateway for fraud. Know your rights before a salesperson knocks on your door.