Solar power is booming and that helps the country meet its climate goals by replacing fossil fuels. The part of the industry that installs solar panels on homes has grown more than 5,000% in just the last 15 years, according to the Solar Energy Industries Association.
But in recent years, customer complaints have increased even more. Across the country, prosecutors are investigating high-pressure sales tactics and misleading financing arrangements. Some customers say they were victims of fraud and forgery. The Consumer Financial Protection Bureau recently warned solar customers about hidden fees and deceptive statements about the financial benefits of solar.
All this threatens the residential rooftop solar industry’s impressive momentum, and some are working to repair its reputation. But what if you want to go solar now? Here are some things to consider first.
Prepare for high-pressure sales tactics
One reason the residential rooftop solar industry has grown so fast is that companies, especially the large ones, have deployed legions of salespeople. Some use high-pressure sales tactics, and you’ll need to be ready for that.
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Tiffani Krieg of Mesa, Ariz., knows this firsthand. For a couple of months, she put off a salesperson who calls herself Solar Sandy. Then one evening, Krieg’s family was backing their car down the driveway, headed to see a movie.
“My husband looks at the rearview and he's like, ‘Oh, Sandy's here,’” Krieg told NPR. “She's got her Range Rover parked, like making a T, so we can't get out of our driveway.” Then, Krieg says, Sandy jumped into the backseat with her kids.
The salesperson had a new solar proposal that would install enough panels to meet nearly all their electricity consumption, but they had to act now to secure a low interest rate. Creating urgency is a common sales tactic.
Krieg says Sandy wanted an electronic signature so a crew could check the roof and make sure that was possible. But, it turns out, the signature was for a purchase contract. The next morning, Krieg says, the crew was actually installing panels and the family was on the hook for a loan of nearly $134,000.
Almost two years later, Krieg says the panels aren’t producing electricity, and she’s still fighting with the companies involved.
“Solar Sandy” is actually Sandra Cordero, a 63-year-old grandmother who says she used to be a nurse. Her business is a sales-only enterprise. Other companies actually install the solar panels she sells.
In a statement to NPR, Cordero disputes some of Krieg’s story but also confirms much of it. “If they had not actually wanted to go forward with solar, the day that the installation company was there to install the panels, they could’ve refused the installation and that would’ve been the end of it,” Cordero writes. She says the Krieg situation is unique, “I have helped hundreds of families with their solar solution, and I have never ever experienced anything like this in almost 10 years.”
Cordero pays a local talk radio station to air a show about her business — that’s how the Kriegs first made contact with her. Other solar sales companies advertise on social media, often with misleading and false claims. Door-to-door sales have been a particular source of consumer complaints, often with salespeople claiming they’re with the local utility.
Consumer advocates say you should be skeptical of anyone who knocks on your door selling solar.
“I wouldn't sign up for something based solely on a door to door marketer,” says Jenifer Bosco, senior attorney with the National Consumer Law Center. She suggests taking time away from the salesperson to consider information they offer, do your own research and then make a decision on your own time.
The Energy Trust of Oregon has collected lines that high-pressure door-to-door salespeople often use and steps you can take to protect yourself from scams.
Finding a reputable installer
It’ll take some work on your part to find a good solar installer. You probably want to avoid the solar companies that find you — at your front door or at a local big-box store. They are more likely to practice high-pressure sales tactics. Many of these companies only do sales — like Solar Sandy — and their workers have been called “solar bros.”
Most experts NPR consulted for this story say it’s better to work directly with an installation company. They suggest finding one that’s been in business in your community for years. A lot of these installers survive on word-of-mouth advertising, so ask neighbors and friends who already have solar panels for recommendations.
You also can check rating sites such as Solar Reviews, where President and CEO Andrew Sendy is accustomed to doling out advice for finding a good installer. He suggests taking this choice very seriously.
“I often tell people the average solar system lasts longer than the average marriage,” Sendy jokes. Then he seriously advises that a solar company could be in your life for decades. Panels installed today should still generate electricity in 20 to 30 years.
The number of bad company reviews is rising. Solar Reviews data shows one-star reviews on its website have grown much faster than the residential rooftop solar industry itself.
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“I think it shows that the marketing machines of some of the worst solar companies in America are succeeding at getting a lot of clients, but not necessarily succeeding in improving their customer service,” Sendy says.
When a solar company sells you a system, they need to set aside enough money to service for the next few decades. Sendy says not all companies do that.
His company has collected company reviews for more than a decade, and Sendy suggests looking for a midsize company that serves a specific area. Then he says search for excellent reviews where customers tell a variety of stories. He says some companies flood sites with good reviews. Ones where customers are talking about a variety of issues that were successfully addressed are more likely to be authentic.
Another option for finding a good installer is to enlist the help of experts. The nonprofit group Solar United Neighbors (SUN) operates in 11 states, Puerto Rico and Washington, D.C. It uses a cooperative model — bringing together 50 to 100 households who all install solar panels at the same time.
“Part of it is saving folks money. The goal is to save about 15% by doing a bulk purchase with their neighbors,” says Roger Horowitz with SUN. Another benefit is that co-op members share research. “They can go solar with their neighbors and get information about installers in the area,” he says.
Horowitz’s group has a solar help desk where people can get answers to common questions and feedback on solar proposals. SUN also suggests reviewing the list of installers certified by the North American Board of Certified Energy Practitioners.
Once you get serious about installing solar panels, SUN has developed resources, such as questions to ask an installer, how to read a solar proposal and how to read a solar contract.
Financing a solar power system
Most people can’t afford to pay more than $20,000 cash for solar panels, so about 85% of these systems are financed, according to the Department of Energy.
Experts NPR talked with suggest you should get at least three quotes and ask each company to give you quotes for both financing and paying cash. You want to compare those numbers, because some companies include hidden fees in the cost of a financed system, so they can offer a cheap interest rate.
“It's just like a mortgage, where you can buy down the interest rate,” says Micah Gold-Markel with Solar States, an installation company in Philadelphia. Comparing the cash to the financed price often reveals the fees, which are usually rolled into the price of the system for financed deals.
Gold-Markel’s company stopped offering loans with these hidden fees, because in most cases, customers aren’t told that the price of the panels has been increased to pay for the lower interest rate loan. “That's a discussion you have to have with the client,” he says. “You can't just make decisions on behalf of the client without their full informed consent.”
These hidden fees are significant too. Statistics from EnergySage, which conducts renewable energy research and runs a solar marketplace, show that for the most popular loan — 3.99% for 25 years — fees average 47% for the last half of 2023. That adds thousands of dollars in cost, even if the interest rate you get is relatively low.
Some solar companies also offer power purchase agreements or leases. Horowitz, with Solar United Neighbors, says you’ll want to scrutinize these agreements closely before signing. “Those can diminish the value of your home,” he says. “If you're selling your home, it's one more item that the buyer needs to agree to — they need to agree to take over your solar lease.”
In a 2014 NPR story a California homeowner with leased panels learned this. Just as he was about to close on the sale of his house, the buyer negotiated a $10,000 price reduction to compensate for taking over a solar lease.
“A more traditional loan, and using that to purchase panels and paying off the loan, seems like the safest way as opposed to this kind of more creative financing models,” says Bosco with the National Consumer Law Center. Some banks and credit unions specialize in this lending, including Clean Energy Credit Union in Colorado and Community 1st Credit Union in Washington state.
There also are federal and some state subsidies to help pay for solar panels. The federal government offers a 30% tax credit, and some states have incentives on top of that. But one thing about tax credits — you need to owe taxes to take advantage of them. Not all salespeople will tell you that.
Cameron Holly of North Richland Hills, Texas, expected a check from the IRS for about $14,000. That’s what the salesperson told him was coming. But his family didn’t owe that much in taxes, so they only got about $2,500 back.
“Honestly, I do feel deceived. Because the way it was always worded, in our conversations with the salespeople, was that we would get this tax credit on our next filing,” he says — adding that he planned to use the money to pay off credit cards and take a family vacation.
He learned it’s better to get tax advice from a tax person rather than a salesperson.
What if solar isn’t right for me?
There are a lot of good reasons to install solar panels on your house. If your state generates most of its electricity from fossil fuels, producing your own power from the sun will reduce your contribution to climate change. And solar panels can save money on utility bills. But they aren’t for everyone.
If your house is shaded by trees, solar panels may not make sense. You can check how much sun your house gets here. And if you rent your home, installing solar panels likely isn’t an option.
You can still help with climate change and save money by using less energy in the first place.
“Maybe the first and most important step a family could take, if they're trying to reduce their energy bills, is actually focusing on energy efficiency and trying to improve insulation and air sealing in the household and efficient appliances,” Bosco says.
The American Council for an Energy-Efficient Economy has helpful resources. Many utilities have conservation programs and will evaluate your home at low or no cost. And if promoting solar is a big goal, some utilities also offer programs that add more solar to the grid.
And keep checking your options. The energy world is changing fast, and if cleaner alternatives aren’t available to you now, they might be soon.
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