Most solar companies are legitimate. The minority that are not have made “solar scam” a search term in all 50 states, and their tactics are consistent enough to list. Every red flag below comes from patterns we screen for when we verify installers, and any one of them is reason to slow a deal down.
The Five Tactics That Should End a Conversation
The dead tax credit pitch. The 25D federal residential credit is $0 for homeowner-purchased systems completed after December 31, 2025. A salesperson promising you a 30% federal credit on a system you own in 2026 is either years out of date or counting on you being. Some financed and third-party arrangements involve credits claimed by the owning company, but that is their credit, not a discount you should be promised personally.
“Free solar panels” as a headline. No program puts free panels on your roof. What exists is $0-down financing, leases and PPAs, all of which get paid back through your payments or per-kWh rate. Legitimate companies say so; our free-solar state guides exist because the phrase is the industry’s favorite bait.
The utility impersonation. Door knockers implying they are from your power company, or that you must act before a program “closes tonight.” Utilities do not sell rooftop solar door to door. Real program deadlines are published by the state, not whispered on a porch.
The unverifiable savings promise. Savings claims built on rate-escalator assumptions of 5%+ every year, production estimates no one will put in writing, or crediting your state does not actually pay. Ask for the production estimate, the assumed rates and the crediting math in the written proposal; refusal is your answer.
The unlicensed crew. Every state that licenses contractors publishes a lookup. A company that will not hand you its license number, or whose number does not match its name in the state registry, has told you what you need to know.
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The 10-Minute Vetting Routine
Look up the license in the state registry. Read the company’s own website for a real address and real service claims. Check how long the domain and the business have existed. Confirm the exact legal entity name on the contract matches the license. Then get a second quote regardless: honest pricing survives comparison, and the pressure to skip comparison is itself the tell. Start the comparison with our vetted solar company lists, state by state.
If You Already Signed
Federal rules give consumers a 3-business-day right to cancel most door-to-door sales, and several states extend that for residential solar contracts specifically. Past the window, document everything, involve your state attorney general’s consumer division and your contractor licensing board, and if financing was misrepresented, the lender has a complaint path too. Speed matters more than embarrassment; these offices act on patterns.
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Solar Scam FAQs
How do I check if a solar company is legitimate?
License lookup in your state registry, a real published address, verifiable warranty terms on the company’s own site, and a contract entity that matches the license. Ten minutes covers all four.
Is the 30% federal solar tax credit still available?
Not for homeowner-purchased residential systems completed after December 31, 2025. Several states still run their own credits and programs, which is where legitimate incentive math now lives; our state incentive guides track them.
Can I cancel a solar contract after signing?
Within 3 business days for most door-to-door sales under the federal cooling-off rule, longer in some states for solar specifically. Cancel in writing, keep proof of delivery, and notify any attached lender the same day.
How do I avoid solar panel scams?
Slow the sale down and verify independently: look up the contractor license on your state board, get at least two other quotes, read the contract for the total financed price rather than the monthly payment, and never sign on a first visit. The 10-minute vetting routine in this guide walks through each check.
Why is my electric bill still high when I have solar panels?
The common reasons: the system was sized to a sales promise instead of your actual usage, your utility credits exported power below the retail rate, or your usage grew after installation. A guaranteed $0 bill was the red flag; utilities still charge fixed fees and bill for any power the panels do not cover.
References & Research Sources
- Federal Trade Commission, Cooling-Off Rule consumer guidance (3-business-day cancellation). Accessed September 2026.
- Internal Revenue Code Section 25D as amended through 2025, residential credit expiration. Accessed September 2026.
- State contractor licensing registries, license lookup per state board. Accessed September 2026.
- EcoGen America installer verification records, sales-tactic screening patterns. Accessed September 2026.
