Solar Panel Fraud
Solar panel companies should not misrepresent the benefits of solar energy to make money.
Unfortunately, many people have been tricked into contracts based on misrepresentations concerning the benefits of solar panels.
Whether it was a cold-call solicitation offer, or a door-to-door salesperson, many Texans have been lured into purchase contracts and loan agreements to purchase solar panels after being misled into believing these solar panel systems (sometimes referred to as “photovoltaic systems”) will guarantee a lower electric bill or generate a surplus in energy.
The reality is that solar panel systems have limitations. These limitations are often glossed over by commission-based salespeople. For example, some companies will guarantee their potential customers will be on an “independent electric grid,” without explaining the additional expenses or hurdles required to be off-grid.
In some cases, companies will outright lie about the benefits of solar panel systems, including guaranteed “tax refunds,” or guaranteeing a low, fixed electric bill.
Alternative energy sources such as solar energy are an integral part of our lives. The current issue facing residential consumers is ensuring you don’t fall for “the pitch.” To help navigate the negotiation process, here are some red flags to be aware of:
Be cautious if a solar panel company guarantees you a “tax refund” – this is often a sales tactic companies use to promise “money in your pocket,” when in reality it refers to a federal tax credit that is based on your taxable income.
Watch out for companies that promise you a low, fixed-rate electric bill – companies will ask you what your current electric bill is. You say, “$400 per month,” and they reply, “How does $50 per month sound?” The panels get installed, and you’re still paying roughly the same amount for electricity.
Solar “buyback programs” – companies may tell you that your solar panel system will generate so much electricity that you will have a surplus of energy in some months, and that your energy provider will “buy back” that surplus. Their promise: you receive a check in the mail for every month that happens. This is often a misrepresentation based on a solar credit system that varies with each provider. Instead of you getting a check in the mail, what happens is you receive a small credit to your monthly bill.
Independent electric grid – some companies will promise that your lights will stay on while your neighbor’s lights go out during the next storm because you will be on an independent electric grid if you purchase their solar panel system. The reality is that you need batteries and other equipment to store and convert that extra energy to be off-grid.
If you purchased solar panels after a company misrepresented the benefits of solar energy, fill out our solar intake form to see if we can help you.