How to Spot a Fake Solar Companies

As the solar industry grows, so does the number of fake companies looking to exploit unsuspecting consumers. These solar scams can result in significant financial losses and leave homeowners with poorly installed solar systems that fail to meet expectations. Spotting a fake solar company is critical to protecting your investment and ensuring you receive the quality and reliability you deserve. By recognizing the warning signs and taking proactive measures, you can confidently navigate the solar market and avoid falling victim to the deceptive practices of fake solar companies.

This article dives deep into the warning signs, financial red flags, and actionable steps you can take to identify and steer clear of fake solar companies. Whether you’re new to solar energy or exploring your options, these insights will help you make informed and confident decisions.

In This Article:

• Common Red Flags
• Financial Warning Signs
• Researching the Solar Company
• Questions to Ask During Solar Consultation
• Protecting Yourself from Fake Solar Companies

Common Red Flags

Recognizing the red flags of a fake solar company is one of the most effective ways to protect yourself and your investment. These solar companies often use deceptive practices to lure in customers, making it essential to understand their tactics. By identifying these warning signs early, you can avoid wasting time and money on unreliable providers.

Fake solar companies often share similar traits that make them stand out if you know what to look for. Here are some warning signs to watch out for:

• Unrealistic Promises: Be wary of solar companies that guarantee “free solar panels” or claim your energy bills will completely disappear overnight. There is no such thing as free solar panels. When a solar company offers you “free” solar panels, they are often offering to set up a solar lease or power purchasing agreement (PPA) that allow you to receive the benefits of solar energy without owning or maintaining the system. With no upfront costs, the solar company installs panels on your roof and charges you a reduced rate for electricity throughout the agreement. This arrangement is often referred to as “free” solar panels, as you don’t purchase the system outright, but this arrangement can have significant downsides. Learn more about “free solar” offers and the pros and cons of solar leases and PPAs.
  
  Also be aware of solar companies claiming that solar will totally eliminate your power bill. While solar panels can significantly reduce energy costs, credible solar companies will provide realistic expectations and explain the factors that affect savings, such as system size, energy consumption, and local weather patterns. Claims that seem too good to be true usually are.
  
  The reality is, if your home or business is connected to the utility grid, you will still get a bill. Utility companies often charge a basic connection fee that means you will always have at least a nominal charge on your power bill each month, even if your solar panels produce 100% of our energy needs. Learn more about whether solar panels can eliminate your power bill, and use or Solar Calculator to see how much you could save with solar.

• Pressure Tactics: High-pressure sales techniques are a hallmark of fraudulent or fake solar companies. If a solar representative insists that you must sign a contract immediately to secure a special deal, it’s a red flag. Even more concerning is a solar representative who won’t take no for an answer and that they won’t leave your property or leave you alone until you sign a contract. These are both signs you are dealing with a solar company or solar representative that cannot be trusted.
  
  Reputable solar companies provide the time and space for you to make an informed decision. They will take the time to go over all the details of your project, financing options, and answer all your questions. Your solar consultant if your partner throughout the solar process, so they should be patient and willing to answer your questions and address concerns without rushing you.

• Lack of Licensing or Certification: Legitimate solar companies have the necessary licenses and certifications to operate in your area. They’re also often affiliated with professional organizations like the North American Board of Certified Energy Practitioners (NABCEP). Failure to provide proof of these credentials is a clear sign of trouble.
  
  If the solar company you are talking with does not provide their licensing and certification details, it is a clear sign they might not be legitimate or a good company to work with. To double-check if a solar company is licensed, check with your state and local government to verify if the company has the proper, updated licenses required. You can also verify if a solar company’s certification is legitimate by checking the directory of the institution or organization that grants those certificates, such as NABCEP’s Associate Directory.

• No Physical Address: Solar companies that can’t provide a verifiable office or operational base may not be legitimate. Most legitimate solar companies will have a base of operation where their salespeople, consultants, designers, engineers, install crew, electricians, and/or owners work out of. Always check the solar company’s contact details and ensure their office exists. A quick online search or even a visit to their location can confirm their credibility.
  
  Making sure a solar company has a physical address not only allows you to verify they are in-fact a real-life, physical company, it also ensures you have a place to go if you ever have questions or concerns about your solar project. It can be nearly impossible to hold a company accountable through phone calls and emails. Being able to physically show up and speak with a company’s representatives is a huge step in getting answers to your questions and concerns.
  
  Making sure a solar company has a physical location is also vital to understanding its longevity and commitment to its community and customers. A solar company that has a physical address is a good sign that is has made the commitment to stick around, as opposed to a solar company that works remotely through phone and email only. Having a physical location is also a strong sign a solar company is dedicated to its community and its customers for the long term. A solar company that has physical roots in a community and a region is taking a big step needed in establishing itself as a part of the community and showing it is confident in the future of the company and its relationship with its customers.

Financial Warning Signs

Fraudulent solar companies often exploit financial arrangements to deceive their customers. From unclear payment demands to shady pricing practices, these companies rely on misleading tactics to extract money. By understanding the financial red flags, you can better evaluate offers and protect your hard-earned investment.

Financial practices are another area where fake solar companies reveal themselves. Be cautious of the following:

• Upfront Payment Demands: Fraudulent solar companies often require large upfront payments before beginning work. While many legitimate solar companies ask for a deposit to secure materials and labor, excessive upfront costs are a warning sign. Fake solar companies might ask for a large upfront payment and then disappear with your money, with little or no way to find them afterwards. Always verify the payment terms and ensure they’re aligned with industry standards.
• No Clear Pricing or Contracts: If the solar company is vague about pricing, refuses to provide a detailed quote, or presents an incomplete contract, it’s a major concern. A trustworthy solar company will offer transparent pricing and comprehensive contract terms that outline all costs, timelines, and responsibilities. If you do not receive these details, it is a strong sign you may be working with an illegitimate or fake solar company.
• Avoidance of Incentive Transparency: Solar incentives like tax credits and rebates are important for the affordability of a solar panel system. If a solar company misrepresents these incentives or avoids discussing them, proceed with caution. Reputable solar companies will have a a strong understanding of the solar incentives available to homeowners and businesses. Often, the solar company will also track down the solar incentives you qualify for and guide you through the process of claiming available incentives and provide accurate information.
  
  Learn more about solar incentives you might qualify for, including details about the 30% solar tax credit.

Researching the Solar Company

Taking the time to research a solar company can save you from potential scams and ensure you work with a credible provider. A little diligence goes a long way in verifying a solar company’s legitimacy, from checking their licensing to reviewing customer feedback. Being informed about their track record and credentials can provide peace of mind and confidence in your choice.

Doing your homework is one of the best ways to avoid falling victim to a fake solar company. Here’s how:

• Verify Licensing and Accreditation: Check with your state’s licensing board to confirm that the solar company is licensed to operate. Certifications from reputable organizations like NABCEP indicate professionalism and expertise. Also, confirm that the company is insured to cover potential damages or liabilities during installation. If a solar company is not licensed, insured, and/or accredited, you might be working with a fake solar company or one that is risky to install solar panels on your property.
• Read Reviews and Testimonials: Customer reviews are one of the best ways to verify the reputation and legitimacy of a solar company. It is difficult to fake good reviews, so be sure to check trusted review platforms like Google Reviews, Better Business Bureau (BBB), and Trustpilot to verify the reputation of a solar company. Be wary of solar companies with overwhelmingly negative reviews or a suspicious lack of online presence. A mix of reviews provides a more realistic picture of the solar company’s performance. And better yet, ask the solar company if they have former customers you can call to ask about their experience.
• Ask Around Your Community: Another great way to check the reputation and legitimacy of a solar company is to ask around your community. If a solar company is wishing to do business with you, it is likely they have also worked with other members of your community. Speak with friends and neighbors if they know about the solar company and whether they have installed solar with them. It’s also a good idea to ask local online communities such as Nextdoor and Facebook groups about their experiences with the solar company. If people in your community haven’t heard about the solar company or have had bad experiences, it might be a good idea to avoid doing business with that solar company.

Questions to Ask During Solar Consultation

Engaging in a consultation with a solar company is your opportunity to evaluate their credibility and professionalism. Asking the right questions can uncover hidden issues and ensure you’re working with a legitimate provider. A company’s willingness to provide clear answers is a strong indicator of their transparency and reliability.

Asking the right questions during your consultation can help you evaluate a solar company’s credibility:

• Who Will Perform the Installation?: Determine whether the solar company employs in-house installation teams or relies on subcontractors. In-house crews are typically easier to manage and align with company standards. It is often much better to work with in-house install teams since the company has better control over quality and accountability for their crew and their work.
  
  On the other hand, subcontractors are not as directly tied to the solar company they work for. Subcontractors can sometimes provide subpar service and lower quality work since they are not under the solar company’s control. If the solar company does work with subcontractors, they should have clear qualifications and a strong track record. Transparency about who will handle the installation is crucial.
• What Is the Warranty Coverage?: Warranties protect your solar investment, so it’s essential to ask about both product and workmanship coverage. A reputable solar company will offer substantial warranties, demonstrating confidence in their quality of work and reliability of the equipment they use.
  
  Solar panels today often come with 10- to 25-year product warranties that guarantee their equipment will function as intended, be without defects, and stand up to certain physical and environmental conditions. On top of product warranties, solar panels often come with 25- to 30-year production guarantees (also known as linear output warranties). Solar production guarantees ensure the solar panels will produce a certain percentage of their original power output after so many years.
  
  Most solar companies also provide a workmanship warranty. Workmanship warranties guarantee the design, assembly, and installation of your solar panels by the solar company. If something is designed poorly, damaged, or installed improperly, the workmanship warranty guarantees the solar company will fix the issue at no cost to you.
  
  It’s important to ask your solar consultant about these three warranties and guarantees. You want to make sure your solar panels will perform as expected and that your solar company will provide a quality level of service and workmanship.
• What Are the System Specs?: It’s important to know the system specs of your solar install, including equipment and production information. A reputable solar company will provide high-quality equipment for you solar install, such as top-tier solar panels and inverters. Be sure the solar company provides a details list of the equipment to be used to install your system, including the brands and specifications of solar panels, inverters, power optimizers, racking/mounting, and/or batteries. Research these products to confirm their performance and durability and ensure you are getting good quality products for your solar install.
  
  It’s also important to know the production estimates of your solar installation. Most homeowners and businesses aim to offset 100% of their energy needs when installing solar. To do this, a solar company will ask for recent power bills or a history of your energy usage in kWh. The solar company will use that data to design a solar panel system that produces as much power as you want or need, or comes as close to is as possible. If 100% coverage isn’t feasible, ask about strategies to maximize savings, such as incorporating energy efficiency upgrades or battery backups. Also ask how net metering policies in your area can credit or compensate you for excess energy production if your solar panels produce more than 100% of your energy needs in a given month.
• What Financing Options Are Available?: When discussing solar with your solar consultant, ask about financing plans, including loans, leases, or power purchase agreements (PPAs). Understanding the financial terms and implications will help you choose a plan that fits your budget and long-term goals. There are range of pros and cons when deciding whether to pay cash or finance your solar system. Be sure to ask your solar consultant to run all the numbers for you and to discuss which options best fit your budget and needs. Learn more about the benefits and downsides of paying cash versus getting a solar loan.
• What Is the Installation Timeline?: Installing solar isn’t an overnight situation. It takes times to find the right solar company, design your system, inspect and analyze your property, get permits, apply for incentives, gather supplies, and finally install your solar panel system. That’s why it’s important to ask a solar company to clarify the expected project timeline, from permitting and approvals to final installation. This will give you a realistic idea of how long the process will take and help you identify potential delays.
• Will you provide service after installation?: Post-installation support is crucial for the long-term performance of your solar system. Confirm that the company offers ongoing services like maintenance, monitoring, and repairs. Ask about their customer support process, including response times for service calls. Some companies also provide monitoring apps or software to help you track your system’s performance. You want a solar company that is going to be there for you long-term, so make sure you understand the solar company’s post-installation customer service policies.
• Why Should I Install Solar with Your Company?: This sound like a softball question, but it can really tell you a lot about a solar company and the solar consultant you are working with. You might get a snigger, you might get a blank stare, but you might also get the answer that clenches your decision whether to work with that solar company or not. Listen closely to what your solar consultant has to say and think critically about the values you hold and the priorities that are forefront in your mind. Their answers will speak differently to each person. It all depends on who you are, what priorities you have, what values you hold, and what you ultimately seek to achieve in your solar journey.
  
  Read more about the Top 6 Questions to Ask Your Solar Consultant.

Protecting Yourself from Fake Solar Companies

Preventing fraud starts with proactive measures. By staying vigilant and following best practices, you can safeguard yourself from fake solar companies. From using trusted referral sources to insisting on written agreements, these steps are essential to ensure your investment in solar energy is secure and beneficial.

Taking proactive steps can protect you from falling prey to a fake solar company:

• Use Reputable Referral Sources: When researching a solar company, seek recommendations from friends, family, or trusted industry organizations. Word-of-mouth referrals can be one of the most reliable ways to find credible solar companies. Additionally, look for companies that have been recognized by local or national solar energy associations, as these affiliations often signify a commitment to industry standards. For added assurance, research the company’s reviews online and consider reaching out to past customers for firsthand feedback.
• Insist on Written Agreements: Contracts are a critical safeguard in any business transaction, and solar installations are no exception. Always ensure you receive detailed contracts that outline pricing, project timelines, and all agreed-upon terms. Avoid working with solar companies that rely solely on verbal agreements, as this leaves you vulnerable to disputes. Written agreements not only protect your interests but also provide a point of reference in case of misunderstandings or legal issues.
• Consult with Third-Party Experts: If you’re unsure about the legitimacy of a company’s offer, don’t hesitate to consult with an independent solar expert or professional. Third-party opinions can provide valuable insights and help you identify inconsistencies in pricing, equipment specifications, or installation practices. This step is especially useful for comparing multiple offers and ensuring you make an informed decision.

Beware of Fake Solar Companies

The surge in demand for solar energy has brought many reputable companies into the market, but it has also created opportunities for fraudulent operators to take advantage of unsuspecting consumers. These bad actors often rely on deceptive tactics and misinformation, leaving homeowners with financial losses, subpar installations, or systems that fail to perform as promised.

Protecting your investment requires vigilance and a proactive approach. By understanding the key warning signs of fake solar companies and asking the right questions, you can navigate the market confidently and make informed decisions. Working with a trusted provider like Green Ridge Solar ensures you’re partnering with a company committed to transparency, quality, and your long-term satisfaction. Let us help you avoid the pitfalls and guide you on a reliable path to clean energy success.

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