In honor of my Caught Dead in Wyoming mystery series, my assistant Gabriella Samuels is writing for my newsletter and blog a series of consumer tips inspired by TV reporter Elizabeth Margaret Danniher.
With the growing adoption of renewable energy, solar panels have become a favored option for homeowners wanting to save on energy expenses and reduce their environmental impact. This rising interest has also exposed unsuspecting consumers to a plethora of scams. Understanding these scams is essential for a safe transition to solar energy.
Illegitimate solar companies frequently use deceptive sales tactics. Scammers may offer impossibly high energy savings, pushing you to make quick decisions. It’s possible for them to advertise low-cost installations but include hidden fees or deceive you into signing contracts with high cancellation penalties. In certain situations, illegitimate companies may pocket your money and never finish the installation, leaving you with nothing.
Here are some of the warning signs to watch out for:
- Unrealistic Promises and Savings: Exercise caution when encountering “no down payments” or “free” installations, as they may not be realistic. Most of the time, there are fees that are not disclosed upfront. Scammers may assert that you will save a notable sum of money without providing explicit calculations or data.
- High-Pressure Sales Tactics: Trustworthy companies will give you the opportunity to review contracts and consider alternative choices. Feeling rushed or pressured is a red flag.
- Lack of Credentials: Verify that the company possesses the necessary licenses and insurance. Scammers frequently operate without the required accreditation. Check the North American Board of Certified Energy Practitioners (NABCEP) for certifications and credentials.
- Exaggerated Tax Credit Claims: Illegitimate solar companies often overstate the tax credit they promise you. Remember, rather than receiving a check, solar tax credit applies to your year-end taxes. The tax credit varies from state to state. To learn about solar tax credits, visit IRS.gov.
When done safely, solar energy is a great choice. But, before you decide on a solar panel installation, it’s important to do thorough research. Look at reviews, talk to multiple providers, and confirm their credentials. A trustworthy company should communicate openly about renewable energy costs and benefits.
Report any scams or fraudulent companies to the FTC.