Avoid solar scams

Consumers should be aware of potential solar-panel-installation scams to avoid being burned.

Melanie Bedwell, who is a spokesperson for California’s Contractors State License Board (CSLB), says solar-power systems are more prevalent these days, so complaints and cases against scammers have become as common as those against bad players in other contracting fields. CSLB has reports of contractors, for example, who made consumers pay for systems upfront in return for no product and who failed to connect the systems to electricity grids after taking customers’ money.

Monique Hanis, who is a spokesperson for Solar Energy Industries Association (SEIA), which represents manufacturers of solar-power systems, says an offer of free installation doesn’t always signal a scam, because legitimate installers will design, install and maintain solar panels in exchange for long-term energy contracts.

However, Bedwell says consumers should remain alert to such deals that arrive under the guise of being beneficial to consumers. 

“You want to be very careful about those kinds of contracts and not only what you’re getting yourself into, but how long you’ll be tied to it,” she says.

SEIA says leasing contracts should include options to purchase the system and options for incoming owners if you should decide to sell your home before the contract is up. It also says there should be a guaranteed rate and a time frame for selling excess solar power to the local utility.