The solar industry's explosive growth has attracted a wave of predatory installers and outright scammers. Consumer complaints to the FTC about solar fraud increased 38% in 2024. Before you sign anything, know these warning signs.

1. High-Pressure Same-Day Signing

"This price is only good today." Any installer who won't give you time to compare quotes is a red flag. Good solar is a $15,000–$30,000 purchase — you deserve as much time as buying a car.

2. "Government Program" or "Free Solar" Claims

There is no government program that provides free solar panels to homeowners. The 30% federal tax credit is a credit, not a giveaway. Any door-to-door salesperson claiming otherwise is lying.

3. Suspiciously Low Quotes

If one quote is $8,000 when others are $18,000 for the same system, something is wrong. Low-ball quotes typically involve substandard equipment, missing warranties, or undisclosed financing costs.

4. No Physical Address or License Number

Every solar installer must be licensed by your state. Ask for their state contractor license number and verify it on your state licensing board's website. If they can't provide a physical business address and license number — walk away.

5. Cash Payment Demands

Legitimate solar companies accept credit cards, checks, or direct ACH transfers. Requests for cash, wire transfers, or cryptocurrency are universally a scam signal.

6. Inflated "Before Incentives" Pricing

Some installers artificially inflate the pre-incentive price to make the federal tax credit look more impressive. Always compare the net-of-incentives price across competitors, not the gross price.

7. Unlicensed Subcontractors

Ask who will physically install your system. Many national companies subcontract installations to local crews. That's okay — but confirm the subcontractor is also licensed and insured.

8. Lease Presented as "No Cost" Ownership

Some sales reps present leases as if you'll own the system. The distinction matters enormously — you don't get the tax credit, and you'll have a financial encumbrance on your home for 20–25 years.

9. Unrealistic Production Guarantees

No honest installer can guarantee exact kWh production. Weather varies. Shading changes. Any installer guaranteeing specific dollar savings is either naive or manipulative.

10. No Permitting Included

In most jurisdictions, solar installation requires permits. If your quote doesn't include permit costs, ask specifically. Some budget installers quote without permits and add costs later.

✅ Safe Solar Checklist: Verify state contractor license · Check BBB rating · Confirm NABCEP certification · Get 3+ quotes · Never pay full amount upfront · Read every word of the contract

How to Verify a Legitimate Installer