Beware of too good to be true solar panel sales offers, BBB advises

SPRINGFIELD, Mo. (Edited News Release/KY3) – Solar salesperson at your door? The Better Business Bureau recommends that homeowners carefully weigh unsolicited offers from solar energy companies.

Reputable companies can install solar panels or help you make other clean energy improvements to your home. Still, some scammers use misleading sales tactics to trick homeowners out of money or personal information.

The scam starts when someone pretending to be a salesperson or a government representative contacts you through email, social media, or at your door and offers to install residential solar panels for low or no cost. They might also offer an “energy audit” to reduce your energy costs or guarantee huge rebates or incentives. From there, the scam can take several turns – the “salesperson” may ask you to fill out forms with personal information or pay a deposit upfront. Disreputable companies may also install the panels poorly or not finish the job and disappear with your money.

In 2023, consumers filed more than 13,000 complaints with BBB about solar energy companies including contractors, equipment dealers and installers. The St. Louis Consumer Fraud Task Force warned about misleading solar sales last year.

A Rockford, Il. consumer received a postcard in spring 2023 from a solar company that claimed it would host a catered dinner presentation at a nearby hotel. He signed up to attend, giving the company his personal information. When he arrived at the hotel, the staff informed him that there was no dinner and that he had received a false advertisement.

“Well-intentioned solar companies will give you time to consider their offer,” said Michelle L. Corey, BBB St. Louis president and CEO. “If a company is pressuring you to make an immediate decision, consider it a red flag.”

How to avoid solar panel sales scams:

• Do your research. If you’re thinking about solar, be proactive and research trusted companies in advance at BBB.org. Don’t accept an unsolicited offer on the spot; instead, research the company to learn more about its reputation and business practices. Ask for a list of satisfied customers and look at customer reviews online.
• Know that the government won’t offer you free solar. The federal government does not install residential solar panels for free; if someone is claiming otherwise, it’s likely a scam.
• If it seems too good to be true, it probably is. If someone is promising that you’ll save huge amounts of money by installing solar panels, they might be exaggerating to make a sale. Don’t make a snap decision – research in advance to find out how much the panels will likely cost and how much they will realistically save you in energy costs. Request substantiation of the company’s claims.
• Don’t give in to high-pressure sales tactics. Scammers want you to make a snap decision without thinking it through. Remember that a reputable company would be happy to give you time to decide. If someone uses aggressive sales tactics on you, it’s best to decline the offer and cut contact.
• Get multiple quotes. Ask at least three companies for quotes based on the same requirements – BBB’s Get a Quote service can help you get quotes from BBB Accredited Businesses. The lowest bid might not be the best bid; extra-low prices could mean the contractor is cutting corners or doesn’t fully understand your needs.
• Ask questions. Ask for details about any aspect of a contract or proposal you don’t understand. If the company gets upset about your questions, refuses to answer them or is vague with their answers, consider it a red flag.
• Ask about a warranty. Ask the company if there is a warranty on the products and a guarantee on the installation in case of leaks, damage or other problems.
• Don’t pay in full before work is done. BBB frequently receives reports from customers who paid a large deposit or paid in full upfront, only for the contractor to disappear. In some cases, a contractor may need a down payment to cover materials, but the bulk of the money should not be due until the work is completed.
• Report bad actors. If someone uses high-pressure tactics on you or you suspect a scam, report it to BBB Scam TrackerSM, the FTC or your state’s attorney general.

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