What to Do When You've Been Misled by a Solar Company

If you've been misled by a solar company, either a solar sales company or a solar finance company, the realization often doesn't happen during the sales presentation. It happens weeks or months later, once the electric bill doesn't drop the way you were promised, the tax credit your installer guaranteed never materializes, or your first loan payment turns out to be far higher than expected.

If this sounds familiar, and you’re starting to believe all you received was a sales pitch and not a real deal, this article is for you.

While the situation is frustrating, you're not alone. Many homeowners face similar issues every year, and there are practical steps you can take to understand what happened, protect your rights, and decide what to do next.

How Do You Know if You Were Misled by a Solar Company?

Homeowners don’t usually immediately know they’ve been misled by a solar company. For many people, the warning signs only become clear after the installation is complete, the financing begins, or the first utility bill arrives. 

In fact, the Federal Trade Commission reported receiving more than 5,300 consumer complaints mentioning "solar panels" during the first nine months of 2023, a 746% increase compared to 2018, underscoring the growing prevalence of alleged solar panel scams. In the years since, this trend has continued.

If any of the following sound familiar, you may be a victim of fraudulent solar sales practices:

• It appears that the solar company lied about tax credit eligibility or guaranteed you would receive a federal tax credit that never materialized.
• The solar company promised free panels, but you later discovered you had signed a long-term loan or lease agreement.
• The solar company promised you’d have no electric bill, yet you're still paying your utility company in addition to your solar loan.
• You found signatures, initials, or application information on your paperwork that you don't recognize or authorize.
• You were never given a complete copy of the contract or financing documents before or after signing.
• You felt pressured into signing immediately through aggressive door-to-door sales tactics or "today only" offers.
• The written agreement contains terms that are different from what the salesperson promised verbally.

If you've answered "yes" to one or more of these situations, your experience may involve more than simple buyer's remorse. Understanding how fraudulent solar sales practices occur is an important first step in determining whether you may have been the victim of a misleading sales process.

What to Do Immediately if You Believe You're a Victim of Solar Fraud

If you believe you've been misled by a solar company, there are practical steps you can take. Acting promptly helps preserve evidence of solar fraud, and can better position you to understand your rights if the situation requires legal action.

Document Everything Before You Do Anything Else

Before contacting the solar company or disputing the transaction, gather and preserve every document related to your purchase. These records can help establish what you actually agreed to (as opposed to what you were promised), and whether important information was omitted or misrepresented.

As a starting point, collect:

• Your solar purchase agreement and any amendments
• Financing or loan documents, including Truth in Lending disclosures
• Sales proposals, quotes, and pricing estimates
• Emails, text messages, and voicemails with the salesperson or company
• Marketing materials, brochures, or advertisements you relied upon
• Utility bills from before and after the solar system was installed
• Warranty information and equipment specifications
• Permits, inspection reports, and installation records
• Photos of the installed system and equipment labels
• Notes documenting conversations, including dates and who was present

Store both digital and paper copies whenever possible, and avoid making changes or annotations to the original documents. For a complete checklist, review our guide on the most important documents to gather before pursuing a potential claim.

Don't Sign Anything New From the Company

Once concerns arise, some solar companies may attempt to resolve the situation by asking homeowners to sign revised contracts. While these offers are often presented as simple fixes, they can sometimes affect your legal rights or change the terms of the original transaction.

If you believe you signed a fraudulent solar agreement, avoid signing replacement documents before fully understanding how they could impact your ability to challenge the original transaction. It is generally advisable to have the proposed agreement reviewed by a qualified professional before accepting the company's resolution.

Write a Timeline of Events

A clear timeline can help organize the facts and identify where the sales process began to differ from what was ultimately delivered. Even if you don't remember every detail, documenting the sequence of events while it is still fresh can be extremely valuable, especially in cases involving suspected solar panel scams.

Your timeline might include:

• The date of the initial sales presentation
• What promises were made about savings, financing, or tax credits
• When you signed the contract and financing documents
• When the loan was approved
• Installation and inspection dates
• Dates of repair attempts, if applicable
• When you first noticed unexpected loan terms or utility bills
• Communications with the company after raising concerns
• Any attempts by the company to resolve the dispute

Supporting your timeline with evidence and documentation can make it even more useful.

Request a Case Review

If you believe you were misled by a solar company during the sales or financing process, speaking with an attorney can help you better understand your rights. A legal review can identify potential issues with the fraudulent solar agreement, and help determine whether you may have a viable claim. Covar Law Group assists homeowners in evaluating matters involving solar fraud and consumer protection claims.

Continue Payments—For Now

If your solar system was financed through a loan, do not assume that discovering potential misconduct automatically allows you to stop making payments. Missing scheduled payments without a legal basis could have consequences, including additional fees or damage to your credit.

If you believe your financing was obtained through fraud or misrepresentation, continue making payments until you receive legal advice that says otherwise. A solar fraud lawyer can look at your situation and tell you whether you have grounds to challenge the loan agreement or take other action.

Can You Get Out of a Bad Solar Panel Contract?

In many cases, homeowners who were misled by a solar company can get out of a bad contract, but there’s no single answer that applies to everyone. Whether it's possible depends on the specific facts of your situation, the contract’s language, how the sale occurred, and the laws of your state.

If you’re trying to figure out how to get out of a bad solar panel contract, consider how the following apply to your situation:

• Where the sale occurred: In some cases, such as when the sale occurred at your home or at a trade show, certain state laws or the FTC’s Cooling Off Rule enforce a limited right to cancel the sale. These windows are time-sensitive and vary by state, so never assume a deadline without confirming it with a solar fraud attorney or the right government agency.
• Suspected fraudulent solar agreements: A contract obtained through lies, forged signatures, or other fraud may be open to challenge. Some disputes can also be resolved by negotiating directly with the installer, without going to court.
• Deceptive solar financing: If hidden loan terms or missing disclosures were involved, it's worth checking whether your loan involved potential TILA violations.

Every contract and situation is different, so don't rely on general information alone to figure out if you can cancel or how long you have to do it.

Can I Sue My Solar Company?

Whether or not you can sue your solar company depends on your specific situation and state laws.

While not every dispute results in legal action, potential legal claims for homeowners may include:

• Fraud or Misrepresentation: If a salesperson made false statements—intentionally or not—or concealed important facts that influenced your decision to purchase solar.
• Breach of Contract: If the company failed to perform its obligations under the agreement or delivered something materially different from what was promised.
• Consumer Protection Law Violations: Many states have laws that prohibit unfair or deceptive business practices. Some solar panel scams may fall within these consumer protection statutes.
• Truth in Lending Act (TILA) Violations: When financing is involved, lenders and creditors may be required to provide specific disclosures.

Caught in a Solar Sales Scam? You Have Options

Discovering you've been misled by a solar company is unsettling, but it doesn't necessarily mean you're stuck. Comparing what was promised against what's actually in your contract is the first step toward understanding what happened, and what legal rights might apply to your situation.

If this guide rings true to your experience, a solar fraud attorney can review your specific contract and walk you through what's actually available to you. Request a free solar fraud case review from Covar Law Group.

Frequently Asked Questions

Can I sue a solar company for property damage?

You may be able to sue a solar company for property damage if its work caused issues such as roof leaks, electrical damage, or structural problems. These claims are generally separate from solar fraud or misrepresentation claims.

Should I file a complaint with the FTC, my state attorney general, or the CFPB?

Yes, and in many cases you may wish to file with more than one agency. The FTC generally handles deceptive sales practices, the CFPB focuses on financing and lending concerns, and your state attorney general investigates potential violations of state consumer protection laws involving deceptive business practices.

Can I still pursue legal action if the solar company has gone out of business?

Yes, you may still have legal options even if the original sales company has closed. Depending on the facts, claims related to solar fraud may involve financing companies, installers, insurers, or other responsible parties. A case review from a solar fraud lawyer can help identify who may still be legally accountable.

How long do I have to act after discovering I was misled by a solar company?

The amount of time you have to act depends on the type of claim and the state where the transaction occurred. Because legal deadlines can expire sooner than many homeowners expect, anyone who has been misled by a solar company should preserve their records and seek legal guidance as soon as possible.

What are the warning signs a solar company lied about the tax credit?

One warning sign that a solar company lied about tax credit eligibility is when a salesperson guarantees the exact amount you'll receive without discussing your individual tax situation. Be cautious if the representative is not a tax professional or fails to explain that eligibility depends on sufficient tax liability and other IRS requirements.

Can a solar company legally promise free panels or a $0 electric bill?

A solar company cannot legally promise free panels or a $0 electric bill without clearly explaining what those claims actually mean. If a solar company promised free panels, they may have been financed through a loan or lease, and if a solar company promised no electric bill, those savings were likely estimates rather than guarantees. Any important limitations should be clearly disclosed in writing.