How to Avoid Solar Scams
| November 13
The solar industry is full of excellent companies run by people who want to make the world a better place by accelerating our transition to renewable energy.
It’s also a rapidly growing industry with a large market still waiting to be tapped. That means there are some companies out there trying to take advantage of that opportunity — and even some that are just solar scams.
To help your nonprofit avoid the scams, we’ve compiled a list of things to do when embarking on a solar project.
If this seems overwhelming, just skip to Step 4 — getting help from CollectiveSun! We can simplify your solar journey while ensuring that you avoid any solar scams.
1. Learn to spot the scams
You can’t avoid what you can’t see! Here are some red flags to look for that will help you spot solar scams.
- Claims of free solar. Just as there’s no free lunch, there’s no free solar! Any claims of free solar — or getting paid to go solar — are a major red flag. What is true is that you can lease solar or enter into a power purchase agreement or “solar subscription”— often with no money down — and start saving money on Day 1. But you’ll still make monthly payments for your solar, just as you now make monthly payments for your electric bill.
- Exact savings guarantees. When you get quotes from solar installers, they’ll estimate how much your panels will produce and how much you’ll save over your system’s lifetime. These are just estimates, as they rely on difficult-to-predict factors like future electricity prices; be wary of claims of guaranteed savings.
- Tax credit guarantees. While the 30% investment tax credit is now available for nonprofits — and can go even higher in some cases — you have to qualify for it by filing with the IRS, and you’ll have to wait until the next tax year to get it.
- Posing as a utility company. If a salesperson approaches your nonprofit with claims of being from a utility company and offers to lower your bill, ask them for documentation and research any claims they make. It’s best to avoid these salespeople.
- Robocalls. Avoid following up on any robocalls or phishing emails about solar. There are plenty of good, legitimate installers to work with, and they don’t make robocalls.
- Limited-time offers. While it’s true that some incentives are around for a limited time, you should be wary of any solar salesperson who pushes you to rush into an agreement because of a limited-time offer.
- Overly aggressive sales tactics. Be wary of pushy salespeople. Going solar is a big decision for your nonprofit; while it makes sense for many, it’s a decision to consider carefully.
2. Vet potential installers
As the solar industry has grown, so has the number of solar installers. Some are more reputable than others. So how do you find the good ones?
You can start by getting recommendations from other nonprofits who have gone solar in your area, and checking online reviews on services like Yelp.
Ask solar installers how long they’ve been in business, and how many other installations they’ve done. You might even be able to see solar projects an installer has done and talk to solar customers about their experience. You should go with a solar installer who’s done business in your area, because they will be familiar with local regulations and permitting processes, which can vary quite a bit from place to place.
The Solar Energy Industries Association (SEIA) is working to help avoid scams. They’re developing a solar business code with standards that their member companies agree to follow, which will include rules about disclosing information and presenting costs and savings estimates. The standards will help consumers make informed decisions about solar installers.
3. Get multiple quotes and review them thoroughly
Don’t limit your search to just one solar installer. Just like you would for any other major building project, it’s a good practice to get a few quotes that you can compare.
The quotes you get are likely to contain many pages of marketing and details about your system. The good news is that it’s relatively simple to get to the meat of the quotes and compare the crucial information. We’ll explain in a future article how to compare solar quotes.
4. Get help from CollectiveSun
With help from CollectiveSun, you can be confident you’ll avoid any solar scams. We have over a decade of experience helping hundreds of nonprofits go solar, and we’re here to ensure that your project succeeds.
If your nonprofit chooses our Easy Button Solar Power Agreement option, we’ll take care of the project for you — including selecting a trusted, vetted installer. If your nonprofit prefers to purchase your solar with a CollectiveSun Solar Loan, we will need to vet any installers you select.
For help with your nonprofit’s solar project, don’t hesitate to reach out to us.
