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Solar Company Scam: Common Tactics, Warning Signs, Recovery

This page explains what a solar company scam is, common tactics, and when to consult with a lawyer from ContractsCounsel for help.

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Installing solar panels on your roof can help you save money and go greener with your electricity usage. While there are many solar companies that can help you achieve these goals, it’s important to know about solar company scams, such as fraudulent providers, so that you can protect yourself and your money.

Read the rest of this article to learn about the most common solar company scams, how to avoid them, what to do if you’re the victim of a scam, and how hiring a lawyer can help you recover your losses.

What are the Most Common Solar Company Scams?

Fraudulent solar companies tend to display these common behaviors to try to trick potential customers.

  • Exaggerated savings. This is a tactic used by a fraudulent company to make their services seem more appealing. A reputable solar company won’t pretend that you’ll make massive savings by installing solar panels. If it seems too good to be true, it probably is.
  • Not mentioning charges and fees. Some company reps might not mention the extra fees you’ll have to pay during solar panel installation.
  • Permitting fraud. This refers to fraudulent companies neglecting regulations and permits, which can land home owners in financial and legal troubles.
  • Fake loans. Solar companies might submit fake loan contracts without the homeowner’s consent.
  • Premature completion certificates. This is when a contractor wants you to sign a completion certificate even though they haven’t completed the work. It can result in low-quality, incomplete work.

How Can You Spot a Fraudulent Solar Company?

You can prevent becoming a victim of a fraudulent solar company by keeping an eye out for signs that you’re dealing with a company who isn’t reputable.

They Use Pressure Tactics

It’s common for scammers to put pressure on you to take action, such as signing a contract, paying the full amount upfront, or deciding on the spot if you’ll hire them. Approved solar companies will give you time to consider your options without being pushy.

They Make Unrealistic Claims

As mentioned earlier in this article, it’s common for fraudulent solar companies to exaggerate their claims. They might talk about the amount of money you’ll save by installing their solar panels, or make claims related to their promotions or limited-time offers.

Some companies tell you that their “offer” ends the next day, to further put pressure on you. These are completely fabricated to try to get you to hand over your money.

They Don’t Have the Necessary Documentation

An easy way to avoid getting conned by a solar company is to request their documentation right away. You want to view their contracts, licenses, certificates, and warranties. If they don’t have the documents to show you, it’s a red flag that they are not professional.

They Want You to Sign the Contract Immediately

Don’t be pressured by fraudulent companies to sign the contract. Take your time to review it. You want to check it for essential terms and clauses related to warranties, how to cancel the work or contract, and any hidden fees.

To ensure you’re not missing anything important in the document, have it reviewed by a lawyer on ContractsCounsel, an online legal network connecting vetted lawyers with clients. You can post a project for free on the platform. Vetted lawyers on the network will send you bids, so you can choose to have your contract reviewed by a lawyer who suits your requirements the best.

They Send You Incomplete Quotes

If you request a quote from a solar company, it should be detailed. Ask questions if it’s not so that you get all the information you need about supplies, extra charges, and equipment. If the company doesn’t get back to you about your concerns and tries to avoid sending you the information, this is an indication that they are not working in a transparent, honest way.

What Should You Do If A Solar Company is Scamming You?

If you suspect you’ve been scammed by a solar company, there are important things to do.

Stop Communicating with the Solar Company

Avoid reaching out to the company to fight with them, as this could cause legal trouble. It’s better to consult a lawyer who can deal with them on your behalf.

Collect Evidence of the Scam

Gather as much proof about the scam as you can, such as a vague contract or quote, emails, or screenshots of the company’s advertisements.

Report the Scam

You can report the company to the Better Business Bureau, which informs the public of scams. It’s also good to file a complaint with your state attorney general so they can investigate the scam and possibly even help you recover your losses.

Contact a Lawyer

One of the most important actions to take against a fraudulent solar company is to hire a lawyer. They’ll be able to assist you with various aspects of the process.

  • If you’ve signed a contract with the company, a lawyer will review it for any red flags or loopholes so that you can take legal action against them. They’ll help you get out of signed agreements while minimizing your risks.
  • They possess in-depth legal knowledge that can help you navigate the process and confirm the validity of your claims.
  • They can stop the fraudulent company from opening financing in your name. If it’s already happened, they’ll dispute it and force lenders not to take your money.
  • They can communicate with the company to force them to complete the work or refund you.
  • If you’re dealing with a serious case, such as fraud or property damage, your lawyer can help you to take the company to court.
  • They can send the company a cease and desist letter, such as if they are threatening or harassing you.
  • If the company has disappeared, your lawyer will file complaints, send demand letters, and/or take legal action to stop them.

Do you need a lawyer for a solar company scam?

If you’re the victim of a solar company scam, a lawyer from ContractsCounsel can help you to deal with the company and recover your losses. With their skill and expertise, they’ll be able to guide you through every step of the process so that it’s less stressful.


ContractsCounsel is not a law firm, and this post should not be considered and does not contain legal advice. To ensure the information and advice in this post are correct, sufficient, and appropriate for your situation, please consult a licensed attorney. Also, using or accessing ContractsCounsel's site does not create an attorney-client relationship between you and ContractsCounsel.


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