How to Identify Solar Panel Scams

The clearest solar scam warning signs are pressure to sign the same day, claims that panels are "free" or government-funded, refusal to leave a written contract, false claims of representing your utility, and guaranteed savings the salesperson will not put in writing.

Any one of these is reason to stop and verify before signing. The Federal Trade Commission warns that offers of "free" or no-cost solar panels are a recurring scam pattern, and the Consumer Financial Protection Bureau has documented how solar financing terms are misrepresented at the point of sale. Last updated: July 27, 2026.

High-pressure sales tactics

Financial misrepresentation

How to verify a solar company before signing

What to do if you already signed

The FTC Cooling-Off Rule (16 CFR Part 429) generally gives you until midnight of the third business day to cancel a sale of $25 or more made at your home. Cancel in writing, keep proof of delivery, and preserve every document and message. Deadlines and options vary by state and contract type. See the three-day door-to-door cancellation guide and how to report solar fraud.

Frequently asked questions

What are the most common solar panel scam warning signs?

The most common warning signs are pressure to sign the same day, claims that panels are "free" or government-funded, refusal to leave a written contract for review, false claims of being sent by your utility or the state, and guaranteed savings figures the salesperson will not put in writing.

Are solar panels themselves a scam?

No. Solar panels are working technology and many installers are legitimate. The fraud almost always sits in the sales pitch and the financing: inflated savings estimates, undisclosed dealer fees added to the loan, forged paperwork, and 25-year agreements presented as no-cost programs.

How do I verify a solar company is legitimate before signing?

Verify the contractor license with your state licensing board, confirm any rebate or incentive directly with your utility or state energy office rather than with the salesperson, require the full contract in writing, and check complaint records before you sign anything.

What can I do if I already signed a solar contract?

The FTC Cooling-Off Rule generally gives you until midnight of the third business day to cancel a sale of $25 or more made at your home. Cancel in writing, keep proof of delivery, and preserve every document and message. Deadlines and options vary by state and contract type.

This page is educational information from Solar Panel Scam Center, a consumer-education company, not a law firm. It is not legal advice.

Solar Panel Scams Resource Center

Solar panel scams usually involve more than a single bad sales call. Homeowners often need to connect misleading savings promises, financing disclosures, installer performance, lien filings, warranty failures, and state complaint options before they know what happened. This resource center is organized so a visitor can move from symptom to evidence to next step without relying on JavaScript navigation.

Use the guides below to compare your situation against common solar fraud patterns, understand federal and state consumer-protection rights, prepare a complaint record, and decide whether an eligibility review makes sense. Keep copies of contracts, loan statements, utility bills, screenshots, emails, inspection notes, and any sales materials that promised tax credits, no electric bill, or guaranteed savings.