Latest Information on Solar Scams (as of December 2025)

Solar panel and clean energy scams remain a significant issue in the US (and to a lesser extent in other countries like Australia and the UK), fueled by growing interest in renewable energy, federal tax credits, and rising utility costs. Complaints have surged in recent years, with the FTC reporting thousands of cases involving deceptive sales tactics. As of late 2025, warnings from government agencies like the FTC, Treasury Department, and CFPB continue to highlight these problems, and some states (e.g., Texas) have introduced laws to crack down on predatory practices.

Common Types of Solar Scams

Here are the most frequently reported scams based on recent reports:

• “Free” or “No-Cost” Solar Panels — Scammers promise free installations through “government programs” or utility partnerships, but these are often leases or power purchase agreements (PPAs) with hidden fees, long-term contracts (20-25+ years), and escalating payments. Homeowners don’t own the panels and may miss out on tax credits.

• Impersonation of Government/Utility Officials — Door-to-door or phone solicitors claim to be from the government, utility company, or a “special program” offering rebates/tax credits that cover costs. They pressure quick sign-ups and may collect personal info for identity theft.

• High-Pressure Sales Tactics — Urgent “limited-time” offers, claims of expiring incentives (e.g., the 30% federal tax credit), or exaggerated savings (e.g., “zero electricity bills forever”). Salespeople may forge signatures or push electronic contracts without full disclosure.

• Misleading Financing/Loans — Hidden loans disguised as “zero-down” deals, leading to high-interest debt, liens on homes, or poor-quality installations. Some involve PACE financing, which can place tax liens on properties.

• Fake Rebates or Tax Credit Schemes — Promises of huge rebates/checks from the government, or claims of inflated credits (e.g., beyond the legitimate 30% ITC through 2032).

• Poor-Quality or Non-Existent Installations — Companies take payments upfront and disappear, or install substandard equipment that fails quickly.

These scams often target vulnerable groups like seniors, with aggressive door-to-door sales in states with high solar adoption (e.g., California, Florida, Texas).

Recent Developments (2025)

• US Government Warnings: The FTC, Treasury, and CFPB issued joint advisories in 2024-2025 emphasizing that “free solar” claims are fraudulent. The FTC’s rule against deceptive practices applies to these tactics.

• State-Level Actions: Texas passed laws criminalizing bad sales practices. Missouri and Illinois utilities (e.g., Ameren) warned of impersonation scams in September 2025. Entergy Mississippi highlighted ongoing issues in November 2025.

• Complaints Surge: FTC complaints about solar have risen dramatically (e.g., over 5,000 annually in recent years). Reports include shoddy work, debt burdens, and companies vanishing.

• International: In Australia, scams involve fake government rebates and door-knockers; the Clean Energy Council promotes verified sellers. In the UK, similar issues exist but are less prominent in 2025 reports.

How to Avoid Solar Scams

1. Research Thoroughly — Get multiple quotes from licensed, certified installers (check NABCEP certification or state licensing). Use reputable platforms like EnergySage.

2. Verify Claims — No government program installs solar for free. Check incentives on official sites (e.g., energy.gov or irs.gov for the 30% ITC).

3. Avoid Pressure — Never sign on the spot. Take time to review contracts (you often have a 3-day cooling-off period for door-to-door sales).

4. Check Reviews — Look at BBB ratings, state consumer agencies, and independent reviews.

5. No Upfront Fees — Legitimate companies don’t demand large deposits before work.

6. Consult Experts — Get an independent energy audit and review financing with a trusted advisor.

If you suspect a scam, report it to the FTC at ReportFraud.ftc.gov, your state Attorney General, or CFPB.

Solar energy itself is legitimate and beneficial for many homeowners, offering real savings via tax credits and lower bills. The key is dealing with reputable companies—scams exploit enthusiasm for green energy, but awareness can protect you. If you’re considering solar, start with trusted local installers and official resources.