Installing Solar Panels (How to Avoid a Dodgy Company)

Solar power is more popular than ever, but like any industry on the rise, the potential for people to make money attracts both bad actors as well as those with genuinely altruistic intentions. Solar panel scams involve anything from promises of “free solar,” to suggestions that the government will pay for the panels for you. This is a good opportunity to remember the old adage: If it seems too good to be true it probably is.  

At the end of the day, the solar company you choose is the most important component of your solar system. They’re the ones who will help you choose the best products, customize a design just for you, install the system, and be your ongoing source of support before, during and long after installation. If someone is being deceptive from the start, it’s better to walk away early rather than forge a relationship with a dishonest solar partner. After all, solar panel warranties generally last 25-30 years, so the selection of a reputable solar partner begins a relationship that will last for decades. 

The good news is that, if you know what to look out for, you can easily avoid dodgy companies and find a reliable and trustworthy solar company that will be there for you long-term. In this article, we’ll discuss the most common scams in the solar industry, 6 red flags to look out for when selecting a solar company, and how to protect yourself from dodgy solar scams. 

Solar panel scams to look out for

As solar power becomes more popular, solar panel scams are becoming more common. These are the most popular solar scams to look out for: 

• Free Solar: We see these ads all the time on social media. It usually goes something like: “Don’t pay for solar panels, the government will pay for them if you live in a qualifying zip code.” This is usually followed by an online form where you’re prompted to give up your personal information to determine if you qualify.  

This is false advertising. Solar is not free and the government is not giving away solar panels. The government DOES offer a 30% tax credit for installing solar panels. This tax credit can be claimed when you do your income taxes at the end of the year. It is not a rebate. This tax credit is not limited to certain zip codes, that line is simply part of the deception to make you think it’s limited to just your area. 

Sometimes these offers refer to a special financing package that includes a “0-down” option that makes it look like you’re getting the installation for free. In reality, the install costs are simply folded into your monthly payment. Yes, you will make a monthly payment when you finance your solar system through one of these “Free Solar” offers. 

• Fake solar companies: Many online solar ads are actually designed to collect your personal information in order to sell it as a lead to actual solar companies. You’ll get a call eventually, probably dozens of calls from many different solar providers who have purchased your data. But these calls will not be from the company that placed the ad, and the solar provider contacting you will not have any idea what the ad said or what was promised. Lead aggregators are particularly active on social media platforms. 

• Solar lease scams: Solar leases or power purchase agreements (PPA) are not necessarily scams, but many people find themselves entering unfavorable contracts that are difficult to break. Leases are an easy way for dishonest solar providers to hide critical contract and financing details. After all, most leases don’t require any out-of-pocket cash. The installation and equipment costs are simply folded into the monthly lease payment. In this way, the buyer has less visibility to actual system costs. What’s more, lease contracts last between 20-25 years, so once you’ve signed, you’re locked into that program for more than two decades. Finally, leased systems are not owned. As such, you cannot claim any government tax incentives and if you sell your home, the new buyer has to apply to take over your remaining lease terms, which can somewhat complicate a home sale. Leasing is a fantastic option for certain customers, but if you are considering a lease, be sure to study the terms and transfer details (in case you decide to sell your home) very closely. 

• Misleading contracts: In some cases, dodgy solar companies will install solar panels on your home but include stipulations in the contract that absolves them of any responsibility if your system doesn’t work properly. Usually, these scams will involve low-efficiency, poor-quality solar panels that, when broken, are your responsibility to fix.

6 red flags to look out for in a solar company

Now that we’ve covered the most common solar scams, let’s take a look at signs that a solar company might be fraudulent or illegitimate. If you spot any of these, it may be best to take your business elsewhere. 

1. High-pressure sales & limited-time offers

Pushy sales tactics are a major red flag when it comes to solar companies. Limited-time offers’, incessant calling, or dodging direct questions are all signs that a company is trying to pressure you into signing a contract quickly.

If you hear the words ‘today only’ or ‘limited-time offer’, be very cautious and do your research. Solar is a big purchase, anyone trying to stop you from doing due diligence likely has a poor reputation. If they are pressuring you to “sign today,” they simply don’t have your best interests in mind. 

Some scammers will also tell you that solar incentives are ending. This may or may not be true.  The biggest and most popular solar incentive is the federal solar tax credit which covers 30% of installation costs. The federal tax credit was renewed under the Inflation Reduction Act and will remain in place until 2032 before dropping to slightly lower levels in 2032 and 2034. While there may be some smaller local incentives that are retiring, or a favorable utility rate program that is coming to an end, it’s always best to do your own research rather than simply taking the word of a solar sales representative. If the sales representative is citing a specific incentive, ask them to provide you with an independent, 3rd party reference to validate their claim. 

In short: before signing up with a solar installer, always take the time to go away and do your own research. Get several quotes from a few different companies and avoid falling for the cheapest option. Finally, never sign up on the spot, no matter how much pressure the salesperson puts on you or how many promises they make. 

See More: Are Solar Panels Worth It? A Complete Guide To Help You Decide

2. Quoting systems without visiting your home

Some solar companies will quote you the price of a solar power system over the phone or via email. This doesn’t necessarily mean that the company is dodgy, but it can be a red flag for a few different reasons. 

Firstly, a pre-installation solar panel inspection should involve seeing how much sunlight your house receives, assessing the structural integrity of your roof, reviewing your electrical system to ensure it's compatible with solar panels, and finding the best layout for solar panels according to your unique location and property. 

This kind of thorough inspection means that when you get an upfront price estimate, everything has already been taken into account and it’s more than likely accurate.Companies that don’t visit your home are giving you a quote without taking into consideration essential factors that can dramatically impact the overall cost of your solar system. When it comes time to design and install the system, you might find yourself paying a lot more than you were initially quoted.  

Similar Reading: 4 Key Reasons to Prioritize Quality Roofing for Solar Installations

3. Exaggerating results

Some solar companies will exaggerate the results of solar panels and make claims that you won’t have to pay your electricity bill ever again. While solar power will certainly help you save money on energy costs, most systems reduce the bill rather than eliminate it. It’s an even bigger red flag if the solar salesperson is making these promises without having completed a thorough examination of your energy use and property.  

A reputable solar company will first evaluate your home and electricity usage before telling you whether solar power is right for you. The evaluation should include more than just one bill, because how much power you use will differ dramatically between seasons - especially in Arizona. If the solar representative doesn’t think solar energy is worth it in your case (for example, if your roof is shaded or too small), then they should be honest and explain why.  A reputable solar company will also show you the cost and savings breakdown, so you know exactly how much you will pay for the panels, and whether you will still have energy bills after installation. In short, if the ROI isn’t clear to you, ask for details. If the rep can’t answer, or dodges the question, make a different choice. 

4. Suspiciously low prices

If it sounds too good to be true, it probably is. When it comes to solar panels, you get what you pay for, and you definitely want to avoid paying too little. 

Some solar companies can offer you incredibly cheap deals on solar panels. This usually means: 

• Low-quality products: Cheap prices mean low-quality products or shortcuts taken during the installation. For you, this means having to deal with lower performance, inferior quality, poor warranties, and shoddy, unlicensed workmanship. 
• Subcontracting installation: Solar companies that subcontract installations are usually selecting the lowest bidder to boost their profit margins. This can mean  a shoddy solar installation that might cause trouble down the line. In addition, since the sale and installation are handled by two different companies, how do you assess accountability if the system performance is lower than promised? If installation is subcontracted, be sure to find out who is doing the work, what their workmanship warranty covers, and if they have a good reputation. 

While we’re at it, there’s definitely no such thing as ‘free solar panels’ no matter what you might see on an advertisement. Yes, you may have to pay a bit more to get a good-quality installation from a reputable company, but you’ll also have the peace of mind that your solar panels are properly installed and you’ll get ongoing support if and when you need it. 

Keep Reading: Do Solar Panels Increase Home Value?

5. Not enough years in business

We always recommend choosing a solar installation company that has been in business for at least a decade. This not only means they've been around long enough to have solid experience and a good reputation, but it also means they’re less likely to go bust and leave you hanging when you need them the most. Companies with a history of responsibly managing their own business affairs will be much more likely to deliver a quality product and be there for you long term. 

While not all new solar companies are dodgy, most dodgy solar companies are new. These companies are in it for the short-term, luring in customers with sales tactics and cheap prices then closing down and running with the money. This leaves their customers as ‘solar orphans’, with no support and invalid warranties. 

Before signing up to a solar company, take the time to see how long they've been in business. If the company is new, it just means you’ll have to be extra careful about spotting other red flags before proceeding with a contract.  

6. Vague warranty coverage or no workmanship warranty

When you get a quotation from a solar company, it should include specific details about the brand and model number of the solar panels, inverter, or battery they intend to use. Most solar panels are warrantied for 25-30 years, while inverters are generally 10-15 years and batteries are typically 10 years. Sometimes the quote will only highlight the best warranty among the group, and by omission you may assume that timeframe applies to the whole system when in actuality it doesn't. If warranty  information is vague or missing, it’s a huge red flag. 

Another thing to look out for in a solar quote is a solid workmanship warranty. This is the warranty provided by the installer for the installation itself, including roof penetrations and leaks. The workmanship warranty will also typically detail how the company will execute manufacturer warranties. Do they outsource it or do they handle the manufacturer's warranty on your behalf? Solar installers with a workmanship warranty will almost always have their own in-house service department, rather than outsourcing service work to a third party. If you’re buying from a solar sales team that outsources their installation work, be sure to find out who is installing the system and ask for details about their workmanship warranty. 

If there's no mention of the product or workmanship warranties, be sure to ask for a detailed list of each product’s warranty, as well as the workmanship warranty provided by the installer. If there’s any hesitation in providing these details, better yet, go elsewhere. A reputable solar installer shouldn't hesitate to provide complete warranty details. 

See More: How Long Do Solar Panels Last?

How to protect yourself from dodgy solar companies

Now that you’re aware of the different red flags to look out for, it’s worth understanding how to protect yourself from illegitimate solar companies. 

Spend some time researching solar 

If you’re new to the world of solar energy, it’s easy to get lured in by advertising tactics and big promises. While it can be exciting to dive right in, we recommend starting your solar journey with a bit of research. Take the time to learn a bit about solar power, including how many panels you might need, expected ROI, and if solar panels are worth it for you. 

We have plenty of articles on our blog that can help you explore the world of solar power and build up a bit of a knowledge-base before you begin searching for an installer. 

Get at least three different quotes

Now that you’ve got a bit of solar know-how, you can start approaching companies and getting quotes. It’s generally a good idea to get three different quotes from competing companies. This will not only give you a good idea of expected costs but you’ll also get an insight into how different companies work, their inclusions, and which one suits you best. 

When comparing solar quotes from different companies, look at: 

• Specific details about system components, such as the brand, capacity, and warranty
• Total system cost and size 
• Expected annual energy production in kWh
• Expected savings based on your electric rate plan and its expected increase in electricity prices 
• Satellite or drone shot of your roof with the proposed solar panel system
• List of incentives you qualify for
• Warranty information, including product, performance, and workmanship warranties 
• Schedule for starting and finishing the installation
• Extras, such as monitoring systems or ongoing support. 

With all this information from three different companies, you can compare and choose the best one for you. Don’t be afraid to ask any questions. The more confident you feel, the better. 

Check the company’s certifications 

Solar energy systems are complex high-voltage devices that interact with the utility grid as well as your home’s appliances. It’s essential that the solar company you choose is licensed, trained, and certified to install these systems. The last thing you want is an inexperienced contractor messing around with your home’s electrical systems. 

In Arizona, all contractors must be licensed by the Arizona Arizona Registrar of Contractors (AZROC). Their ROC number should be visible on all public facing materials, including business cards, brochures, and websites. To double check, you can search the company’s name on www.roc.az.gov. This database will also show you when their license was issued, so you’ll know how long the company has been in business. If there is no ROC record, find a different partner. 

Arizona’s two biggest power utilities, APS and SRP, also certify solar installers. These certifications demonstrate the company has the required training for safe and reliable grid integration. To find out if a solar company has these certifications, search for the company’s names on the following links:

• SRP Preferred Solar Installer 
• APS Qualified Technology Installer

Another solar-specific certification to look for is NABCEP, issued by the North American Board of Certified Energy Practitioners. A NABCEP certification requires course work, a rigorous exam, and ongoing education. When you see a solar company is NABCEP certified, you’ll know they have invested in training and safety and are kept up-to-date with the latest solar technologies. 

Read online reviews 

Always look up a company’s customer reviews before signing the contract. This will give you an insight into how they've performed in the past and whether customers are happy with the results. Be sure to use third party websites, such as Google or SolarReviews, to ensure there’s no conflict of interest. Solar companies that have a high volume of positive reviews are likely to be trustworthy and reliable. 

Your trusted partner for solar energy

When done right, solar power is one of the best improvements you can make for your home. By harnessing the clean, renewable, and abundant energy of the sun, you’ll be making a decision that not only saves you money but also contributes to a greener future for the earth. While it’s unfortunate that certain companies out there are practicing deceptive  tactics, it’s a comfort to know that there are more than enough reputable and trustworthy solar companies who have your best interests at heart. 

At Sun Valley Solar Solutions, we’re committed to installing high-quality, dependable solar panels that last long into the future. With +220 MW of solar panels installed and +30 combined years of experience, we have the expertise to create customized solutions that meet your unique needs and energy goals. As Arizona locals, we pride ourselves on delivering personalized service with customer satisfaction as a priority. We’ll be with you every step of the way for the entire lifespan of your solar panels. 

Get in touch with us now for a free, no-obligation quote and let’s see how solar can benefit you today.