7 Tips to Avoid Solar Scams

Most people get a phone call, text, or email every week, or in some cases every day, for some sort of scam. Solar is unfortunately no different. As the number of people interested in solar and the savings it can bring increases, so does the number of scammers. Being the victim of a scam is the last thing you want when paying thousands of dollars to save money on your electricity and reduce your carbon footprint. Avoiding solar scams does not need to be difficult, but it does require asking questions, doing research, and being suspicious of deals that seem too good to be true.

1. Ask For Licenses, Certifications, and Reviews

Credible companies will have no problem showing you their credentials for solar energy installation. They will encourage you to check them out online, through sources like the Better Business Bureau and verified reviews. Don’t underestimate the value of doing your own online investigation to check out the company’s track record. Look for information like where their office is, how long they have been in business, and how many projects they have installed.

2. Understand What You Are Signing

Before you sign anything, make sure to take the time to read through the contract and supporting documents. Don’t be afraid to ask questions so you understand all parts of the documents. Quality contractors will not have a problem taking the time to address your concerns. Remember: Follow your instincts. If you are not comfortable, don’t sign anything. Instead, take a step back to reevaluate your contractor. Doing so can help you avoid solar scams.

3. Don’t Start The Project Without A Contract

Starting a project without a contract is very risky for the client. There is nothing to say the job will ever be completed — or even started. Without a contract, you could be liable for worksite injuries. You also have no guarantee that anything from the array size to the equipment used will match what was promised. That is why you should make sure there is a legally binding contract signed by both parties before any solar installation starts on your property. A reputable company will insist on a contract before starting a project.

4. Don’t Cave To High-Pressure Sales Tactics

Solar panels are a large investment, whether you pay out of pocket or take out a loan. You should take all the time you need to make sure you are ready to move forward. If the salesman pressures you to commit the same day or gives you a fast and hard deadline, that is a big red flag. The sun isn’t going to stop shining on your property if you choose to sleep on it and do what is best for you. Someone running solar scams, however, could want to ensure you commit before you have time to investigate their company and claims.

5. Know There Is No Such Thing As No-Cost Or Free Solar

Many companies offer “no-cost” or “free” solar as a marketing tactic, promising you’ll pay nothing but receive all the benefits of solar. The question becomes, if you aren’t paying anything, how are they making their money? Ask the installer directly how they benefit from you committing. Often, it is because you won’t actually own the solar panels. Instead you will either be leasing the panels or entering into a power purchase agreement where you agree to purchase the power they produce. You will be paying, even if it isn’t for the panels themselves. Also, because you do not own the solar panels, you are not eligible for any tax credits or incentives on the system. It also will not add any value to your home if you do not own the system. Additionally, a good salesperson could also position there is no cost for the system because the loan payment is offsetting your monthly electric bill payment, therefore the system doesn’t add any more monthly expense to your household budget. While this essentially is correct, it should not be positioned as free or no-cost to lure you into a contract.

Although directly purchasing panels generally results in greater savings for the homeowner, there are times when solar leasing makes sense for both parties. And reputable companies do offer solar leasing options. The difference between them and the solar scams, however, is they are upfront that their proposal is a lease or power purchase agreement. If a company tries to hide this fact, it should set off alarm bells in your mind.

Read more about why there is no such thing as free solar.

6. Know Tax Credit Rules

Tax credits can help defray the cost of solar power equipment and installation. The amount of the credits, however, varies state to state and year to year. It is best practice to have your tax preparer verify both your eligibility to receive the credits and how much they would be before you sign a contract to go solar.

7. Look At Their Resources

A quality  solar company will give you multiple resources to help you make the best decision for you. Look for a company who will work with you and wants you to succeed at achieving your solar goals. At Eagle Point Solar, we take the time up front to educate you as well as provide a robust website of resources and an expanding library of our own blogs and content. We want our clients to make a well-educated decision, understand their options, and have accurate expectations.

The company you choose to install your system will become your partner for many years to come. Do your research and avoid snap decisions. Choose a company which will be with you for the long haul. Contact Eagle Point Solar for a pressure-free, no-commitment Free Solar Analysis consultation.