If you’ve been researching solar, you may have gotten frustrated at one point or another. Solar is a Wild West. The market can feel lawless, and there’s all sorts of prospectors out there trying to strike it rich. So how can you tell who’s an honest player, and who’s in it for themselves? Here’s the red flags to watch out for so you can detect solar scams and choose a reputable company.
Red Flags To Help You Spot Solar Scams
Offering You Super Low Interest Rates
If someone’s offering you an interest rate that seems too good to be true, it probably is. If the interest rate is lower than the Federal Reserve’s, there are likely fees tacked on to make up for it. (You can check the current rate at this website; under the Federal Funds Effective Rate, you’ll see a date and then the current rate in bold.)
With a super low interest rate, you’ll effectively be paying the interest up front — and especially in DC, this doesn’t make sense because you’ll be able to pay your loan back rapidly thanks to the federal solar tax credit and the thriving Solar Renewable Energy Credits (SRECs) market. You don’t want to pay interest up front if you’ll be able to pay back your loan quickly and not end up owing much interest! Look for full transparency in what your loan payment will look like.
Overpromising How Much Solar Will Save You
Many shady solar salespeople overpromise how much a solar system will help you save on your power bills. For example, they might tell you solar will cover 100% of your bill. But if they haven’t actually done a solar calculation, they’re likely exaggerating.
At Uprise, we tell potential customers they’ll save 50 to 80% on their power bills. But we know the final number all depends on factors like how big your roof is or if any trees are shading your roof, which is why we provide a range before doing a solar calculation for you. In your first meeting with Patrick or Maris, our sales representatives, they’ll show you your Solargraf solar calculation (we also refer to this as your design) so you’ll be able to see how much of your energy bill solar will cover. Without that solar calculation, be wary of anyone who’s making large promises about how much you’ll save with solar.
Telling You Solar Will Be Free, Or That The Government Will Pay
The word ‘free’ probably already makes you suspicious — and you’re right to be. If someone’s offering you free solar, ask who’s paying for it.
Scammers may tell you the government will pay for free solar. But the federal government does not offer free solar installations. The federal solar tax credit will help you pay for a system, but it only covers 30% of the system cost, not 100%.
If the salesperson says it’s a local government program instead, double check what they’re telling you. DC’s Solar for All program does pay for solar, but only for income qualified homeowners. Go directly to your local government website rather than using any link a salesperson provides, and see if you can find mention of the program.
And if anyone implies Pepco is installing free solar panels, that’s simply not true. Pepco does not install solar systems. Your system will be connected to Pepco so you can receive power at night and on stormy days, but they do not install residential solar systems.
DC’s solar incentives are so good that Uprise can offer our no-cost solar program — but we pay for it because we count as the system owner, so we receive those incentives. If you want the federal solar tax credit and SRECs, you should purchase a system. But if you’re more interested in electric bill savings, our no-cost program may be a great option for you.
Pressuring You To Sign A Contract Immediately
If any solar salesperson is telling you an offer is time-sensitive, or pressuring you to sign right away, that is a big red flag. Simply put: do not ever sign a solar contract if you feel pressured to do so. You should feel free to take your time to think about it, research, and ask questions of the solar company or neighbors who have gone solar.
Look For A Licensed And Insured Solar Company
Watch out for sales fronts. There are solar salespeople out there who get homeowners to sign contracts, but they don’t have an install team behind them or even work for a solar company. They sell the contracts to shady solar businesses willing to take them, and the system ends up costing the homeowner more because the price includes a large commission for the salesperson.
Ask a solar salesperson which company they work for, and if they can give you a name, look up that company before signing anything. Look for a licensed and insured solar company who will handle every step of the process. These companies are typically full EPCs, which stands for engineering, procurement, and construction.
Your solar company should submit all the permits and paperwork to your utility company and local jurisdiction, and handle inspection, besides installing your system to high standards. And importantly, the company should stick around after the system is installed, and be available for maintenance, warranty claims, or any support you may need. Look for a solar company who will be a partner for the life of your system.
Uprise is a full EPC, and customer service is important to us — not just when we’re selling you a system, but through interconnection and beyond. We monitor all the systems we’ve installed, so if there ever is an issue with your equipment, we may catch it before you do. We are always here for questions or support you need post-installation.
When you’ve identified the legitimate players and dodged solar scams, here are the 10 questions we recommend you ask any solar company you’re considering for your project.
Meet The People Behind Your Project
As a final note, look to see who the owner of the solar company is. Uprise’s owner is Chris Sewell, who’s called DC home for 16 years and has been in solar since 2010. Get to know him, his husband, and their son in this blog post.
And meet our other team members here! Look for an ‘About’ or ‘Team’ page on the website of any solar company you’re researching, to see if you can meet real people behind the company.
We’ve also posted videos of our team members on social media, so you can meet employees like Jesus, who handles permitting, or Kyle, our outreach team lead who you may meet when he knocks on your door to tell you about solar in DC.
What Should Change In The Solar Industry To Stamp Out Solar Scams?
At Uprise, we don’t want solar to remain a Wild West. We want better regulation for the solar industry, and better protections in place for consumers.
We want a well-regulated system for licensing. Local jurisdictions don’t need to come up with anything new; they can simply apply standard processes of licensing and insurance to solar companies. Uprise has a Home Improvement Contractor license, a sales license, a business license, and multiple types of insurance.
We also want integrity in solar sales. Solar bros, aka shady solar salespeople working on their own and not employed by a licensed company, are bad for consumers, and bad for the solar industry as a whole. The salesperson you speak with should have a license.
It can be intimidating to read about the solar scams out there. If you’ve made it all the way through this article and you’re feeling overwhelmed, here’s the bottom line for how to navigate the solar industry as it is today and find a trustworthy installer: ask if they’re licensed and insured, ask if they handle the entire process from sales to maintenance post-installation, and look for full transparency in the company’s processes and financing options.
Please reach out to us with any questions! And feel free to schedule a consultation with us to receive your solar calculation and more information about financing. We look forward to helping you navigate the Wild West of solar scams today as we advocate for better practices tomorrow.