Going solar is an exciting decision for any homeowner in Tennessee. You get to generate your own clean power and slash your monthly electricity bills. But as solar energy grows in popularity, so do the opportunities for dishonest people to take advantage of you through solar scams.
You’ve probably seen the ads or had someone knock on your door with a huge promise. These clean energy scams often sound too good to be true. This guide will show you how to spot the warning signs and steer clear of common bad business practices.
Let’s get one thing straight: solar panel technology isn’t a scam. Solar panels absolutely work, producing electricity from sunlight and saving homeowners real money. Millions of people are happily using this solar power right now.
The problem comes from certain solar sales companies. They use aggressive or misleading tactics to get you to sign on the dotted line. The issue is with the people and their business practices involving clean energy, not the product itself.
When you start talking with a solar energy company, you need to know what to watch for. Some tactics are easy to spot if you’re prepared.
You may have seen the ads promising “free solar panels” for your home. This is one of the most common and misleading claims out there. What they’re usually talking about is a solar lease or a power purchase agreement (PPA).
With these deals, a company installs panels on your roof at no up-front cost. However, you don’t own the system. Instead, you enter into a long-term agreement, often paying a monthly fee for the solar energy equipment or the power it generates for the next 20–25 years.
This is different from a standard purchase agreement, where you own the equipment. While leasing solar panels works for some, calling it “free” isn’t honest. A trustworthy company will be clear about ownership and your payment obligations.
| Agreement Type | How It Works | Key Consideration |
|---|---|---|
| Solar Loan/Purchase | You buy and own the system, often financed with a loan. | You’re eligible for tax credits and incentives. |
| Solar Lease | You pay a fixed monthly fee to use the panels. | The solar company owns the system and gets the tax credits. |
| PPA | You pay a set price per kilowatt-hour for the solar power generated. | The rate may increase over time, and the company owns the system. |
Have you ever had a salesperson say you must sign today to get a special deal? This is a giant red flag. It’s a classic high-pressure tactic designed to stop you from thinking clearly or comparing offers from different solar companies.
To install solar is a major financial decision that impacts your home for decades. You should never feel rushed into it. A professional company will respect your need to take time and consider your options carefully.
Scammers love creating a false sense of urgency by mentioning special programs that are about to expire. They might claim that federal programs support free solar panel installations to pressure you to act fast before you miss out on savings.
The biggest federal incentive is the Residential Clean Energy Credit, and it’s not expiring soon. A reputable installer can name any state or local program it mentions and point you to an official government website for proof. You can also check with your state’s utility consumer advocate for information on legitimate programs.
The federal solar tax credit is a fantastic benefit, but it’s often misunderstood and misrepresented. Dishonest salespeople might tell you that you’ll get a big check back from the government, which is rarely how tax credits work.
It’s a credit, not a rebate, meaning it reduces the amount of federal income tax you owe. To get the full value, your tax liability must be at least as large as the credit. Also, be wary of any company asking for sensitive personal information early on, as this can create a risk of identity theft.
If you’re financing your system, many solar loans expect you to apply your tax credit to the loan balance within 18 months. Be sure you fully understand your loan terms and tax situation.
Part of a good solar quote includes a projection of your savings over 25 years. These savings depend on how much your utility’s electricity rates will increase. Some companies wildly overestimate these increases to make the deal look better than it is.
Ask what annual rate of increase the company is using in its calculations. If it’s much higher than 3% or 4%, it should have data to back it up. You can check your state’s historical data on the U.S. Energy Information Administration website.
This is a particularly sneaky tactic. A door-to-door salesperson might use careful wording to make you think they represent your local utility company. They might say they’re “working with” the power company to promote a new solar initiative.
Your utility company is in the business of selling you power, not helping you achieve energy efficiency to get off the grid. Representatives won’t come to your house to sell you solar panels. This is almost always a third-party salesperson trying to make a sale.
When you get a quote, it should be detailed. A vague proposal from a company is a warning sign. The document should clearly list the brand and exact model numbers for the solar panels and inverters.
Simply listing a brand name isn’t enough information. You need to know the specific model to research its efficiency, warranty, and reviews. A complete quote shows professionalism and transparency, which is vital when choosing between companies serving consumers.
Now you know what to watch out for. But how do you proactively find a great company? Taking a few extra steps will give you peace of mind and protect you from bad business practices involving clean energy.
Knowledge is your best defense against getting ripped off. Before you talk to any companies, spend some time learning the basics of solar power. Understand what a kilowatt-hour is, how solar loans work, and the difference between rooftop solar and community solar energy.
When you have a baseline understanding, you can ask intelligent questions. It makes it much harder for someone to mislead you with false information. The Federal Trade Commission offers many resources on consumer protection to help you prepare.
Before you sign a contract, do some digging on the company. Read online reviews and check its rating with the Better Business Bureau. See what past customers say about their experience in the residential solar energy industry.
Also, verify credentials. A top-tier installer will have certifications from groups like the North American Board of Certified Energy Practitioners (NABCEP). You can also file a complaint online with consumer protection offices if you encounter issues.
This might seem obvious, but it’s critical. Read every word of your contract or power purchase agreement before signing. Make sure everything the salesperson promised is written down clearly.
If you’re getting a loan, review the terms carefully. Understand the interest rate, monthly payments, and any fees. If you have questions about the financial product, consider speaking with a trusted advisor or contacting nonprofit legal services for guidance.
Solar energy is an amazing investment for your home and your wallet. The goal is to find a reputable partner you can trust. By knowing how to identify the warning signs, you can confidently avoid solar scams and protect yourself.
You’re now prepared to ask the right questions and spot dishonest tactics. You have the power to make a smart choice, save money on your energy bills, and join the clean energy movement with total confidence. We want to help you avoid bad actors and fix your energy problems for good.
Address: 231 W Rutherford Blvd
Murfreesboro, TN 37130
Phone: 615-237-1737
Business Hours:
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Sat & Sun: Closed
