Solar Scams and Red Flags: How to Protect Yourself

1. "Free" solar. The federal government does not install solar systems in homes for free^[1]. "No-cost" offers are usually leases or loans.
2. Claiming to be from your utility or the government. Utilities do not sell rooftop solar door to door. Hang up and call the number on your bill.
3. Pressure to sign today. A real offer will still be there after you have compared quotes.
4. Tax credit promises. For systems installed after December 31, 2025, homeowners who buy get no federal credit; see the Federal Residential Clean Energy Credit (25D)^[2]. A seller who promises one is wrong or lying.
5. A tablet signature without a full contract. Ask for the complete contract, including financing documents, before you sign anything.
6. No license number. Every state we cover requires a licensed contractor for the electrical work; check it with the official lookup on our installer pages.
7. A loan payment with no cash price. That is how dealer fees hide; see solar financing.
8. Savings that assume net metering your utility no longer offers. Check your utility's export rules on our net metering pages.

Federal law gives you time to change your mind about many sales made at your home. Under the FTC Cooling-Off Rule, you can cancel until midnight of the third business day after the sale (Saturdays count) for sales of $25 or more made at your home.^[3] States add their own rights for solar contracts:

• Arizona: A.R.S. 44-1763(A)(3): the sale or lease agreement must include a separately acknowledged provision giving the buyer or lessee at least three business days after signing, and before installation, to rescind.^[4]
• California: CSLB says California law lets homeowners cancel a solar contract without penalty within three business days. It advises not letting construction start during that period.^[5]
• Texas: Occ. Code 1806.156: the buyer or lessee may cancel without penalty by written notice on or before the 5th business day after signing. The agreement must state the last calendar date to cancel and a mailing or e-mail address for the notice. If the address is missing, any reasonable method of notice works.^[6]

Cancel in writing, keep a copy and use the method the contract specifies.

• Get at least three written quotes for the same system size, with the price per watt.
• Look up the company's license and any complaints.
• Read the financing documents as carefully as the solar contract.
• Ask what your utility will pay for exported power and check it yourself.

Report fraud to the FTC at ReportFraud.ftc.gov and to your state attorney general's consumer protection office. In Texas, residential solar retailers must now be registered with TDLR, which also takes complaints: Since Sept 1, 2026, residential solar retailers and salespersons must be registered with TDLR. Prohibited acts (false statements, implying utility or government affiliation, ignoring no-soliciting signs) are enforceable. Civil penalties are up to $2,500 per violation, or up to $10,000 if a person over 65 was harmed.^[7]