Maryland Solar Fraud: Common Scams & How to Report
Maryland homeowners lost millions to solar scams. Learn the most common Maryland solar fraud tactics, your rights under Maryland consumer protection laws, and where to report.
Maryland Solar Fraud 2026: Common Scams, Consumer Laws & How to Report
Maryland punches above its weight in solar, with over 70,000 residential installations concentrated in the densely populated Baltimore-Washington corridor. The state's Renewable Portfolio Standard (RPS) with a solar carve-out, strong Solar Renewable Energy Credit (SREC) market, generous residential clean energy grant program, and BGE/Pepco/Potomac Edison/Delmarva Power territories serving millions of homeowners make Maryland an attractive — and fraud-heavy — solar market.
Maryland Solar Market at a Glance
| Metric | Maryland Data |
|---|---|
| Residential installations | 70,000+ statewide |
| Key utilities | BGE, Pepco, Potomac Edison, Delmarva Power, SMECO |
| Key incentives | MD Residential Clean Energy Grant ($1,000); strong SREC market; property tax exemption |
| Net metering | Strong retail net metering for systems up to 2 MW |
| Fraud hotspot | Baltimore metro and Prince George's County — highest complaint volume |
| AG enforcement | MD AG's Consumer Protection Division has pursued multiple solar fraud cases |
Top 3 Solar Scam Types in Maryland
1. Maryland SREC "Buyout" Lowball Schemes
Maryland's SREC market is one of the strongest in PJM territory, with SRECs typically trading at $50–$70+. Scammers offer to "buy out" the homeowner's future SREC revenue for a flat upfront payment — often $500–$1,000 — when the 15-year SREC value could exceed $15,000. Homeowners who accept the buyout unknowingly hand over a major revenue stream for pennies on the dollar.
2. Baltimore Senior Neighborhood Targeted Canvassing
Baltimore City and Baltimore County's dense neighborhoods of older homeowners are aggressively canvassed by solar sales teams. Scammers use high-pressure, same-day-sign techniques to get seniors into 25-year solar PPAs and leases without family consultation. The Maryland AG's office has flagged elder-targeted solar fraud as a priority enforcement area, with thousands of complaints received annually from Baltimore alone.
3. BGE/Pepco "Aggregator" Scams
Scammers claim to be a "BGE/Pepco approved solar aggregator" that can "bundle" neighborhood installations for bulk pricing. They collect deposits from multiple homeowners and either disappear or install substandard equipment at non-discounted prices. Legitimate group-buy programs exist (like Solar United Neighbors co-ops) but require no upfront "aggregation fees."
Your Rights Under Maryland Law
Maryland protects homeowners through the Maryland Consumer Protection Act (Md. Code, Com. Law § 13-101).
| Protection | Detail |
|---|---|
| Statute of limitations | 3 years from discovery (MCPA); 3 years for breach of contract |
| Damages | Actual damages + attorney fees |
| Door-to-door cancellation | 3 business days (FTC rule + Maryland Door-to-Door Sales Act) |
| MD contractor licensing | MHIC (Maryland Home Improvement Commission) license required for all home improvement contractors |
| MHIC Guaranty Fund | Up to $30,000 recovery for consumers harmed by licensed contractors |
Maryland Reporting Agencies
| Agency | Contact | What to Report |
|---|---|---|
| Maryland Attorney General (Anthony Brown) | marylandattorneygeneral.gov / 1-888-743-0023 | MCPA violations, consumer fraud |
| Maryland Public Service Commission | psc.state.md.us | BGE/Pepco/utility complaints |
| Maryland Home Improvement Commission | mhic.dllr.state.md.us | Contractor licensing complaints |
| FTC | ReportFraud.ftc.gov | Interstate fraud |
| CFPB | consumerfinance.gov/complaint | Financing complaints |
Red Flags for Maryland Homeowners
- SREC buyout offers for a flat fee — compare against the 15-year SREC revenue stream
- Aggressive same-day-sign pressure on seniors in Baltimore neighborhoods
- "BGE/Pepco aggregation program" requiring upfront deposits
- No MHIC license number on the contract — check at mhic.dllr.state.md.us
- "Free solar panels through Maryland state grant" — the $1,000 grant is modest, not a system-buyer
What to Do Next
- Evaluate SREC buyouts independently: Calculate the potential 15-year SREC revenue before accepting any buyout. A $500 buyout vs. $15,000+ in lifetime SRECs is a massive wealth transfer to the installer.
- Verify MHIC license: Every Maryland home improvement contractor must hold an MHIC license. Verify it at mhic.dllr.state.md.us. Licensed contractors are backed by the Guaranty Fund.
- Join a solar co-op instead: Solar United Neighbors operates legitimate group-buy programs that don't require upfront fees.
- Contact the Maryland AG: File a complaint with the Consumer Protection Division
- Get family involved: For seniors, bring a trusted family member into any solar sales conversation
FAQ
Should I sell my SRECs to my installer?
Almost never at the prices installers offer. Maryland SRECs are typically worth $50–$70+ each, and a typical residential system produces 10–14 SRECs per year. Over 15 years, that can total $10,000–$15,000+. Many installers offer flat buyout payments of $500–$1,000 — pocketing 90%+ of the value. Keep your SRECs, or negotiate a fair split.
What is the Maryland Home Improvement Commission Guaranty Fund?
The MHIC Guaranty Fund protects Maryland homeowners who hire licensed contractors. If a licensed contractor performs defective work, abandons the project, or commits fraud, you may be eligible for up to $30,000 in compensation. This protection only applies if the contractor was MHIC-licensed — unlicensed contractors are not covered.
Do I need an MHIC license to install solar in Maryland?
Yes. Any contractor performing home improvement work — including solar installation — in Maryland must hold a valid MHIC license. This is one of the most important checks a Maryland homeowner can make. Verify at mhic.dllr.state.md.us.
What if I already signed a bad solar deal in Maryland?
Contact the Maryland AG's Consumer Protection Division immediately. You have 3 years from discovering the fraud to bring a claim under the Maryland Consumer Protection Act. If your contractor was MHIC-licensed, you may also have a claim against the Guaranty Fund for up to $30,000.
Maryland's SRECs are worth real money — don't let an installer convince you to sign them away for pennies. Know the value before you negotiate.