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Solar Panel Installation Fraud: How to Protect Yourself

February 27, 2025 by Chuck Panzarella

When a Green Dream Turns into a Nightmare

Switching to solar energy is a great decision for your wallet and the planet, until it’s not. For many homeowners and businesses, promises of cost savings and environmental benefits are overshadowed by shady practices, faulty installations, and deceptive contracts.

If you’ve been a victim of solar panel installation fraud, you’re not alone. This guide will help you understand how fraud happens, what signs to watch for, and how to take legal action with the help of a skilled attorney.

What Is Solar Panel Installation Fraud?

Solar panel installation fraud occurs when companies or contractors engage in deceptive or unethical practices during the sale, financing, or installation of solar energy systems. These fraudulent actions often leave customers with defective systems, unexpected costs, and unfulfilled promises.

Common Types of Solar Installation Fraud

  1. Misleading Marketing Claims
    Companies exaggerate savings or promise unrealistic reductions in energy bills to entice customers into contracts.
  2. Faulty or Incomplete Installations
    Panels are installed incorrectly, in poor locations, or with substandard equipment, leading to reduced efficiency or system failure.
  3. Hidden Fees and Costs
    Customers are hit with unexpected fees for installation, maintenance, or financing not disclosed upfront.
  4. Fake Incentives or Rebates
    Companies promise tax credits, rebates, or other incentives that don’t exist or aren’t applied for on the customer’s behalf.
  5. Unauthorized Contracts
    Contractors forge signatures or alter contracts without the customer’s knowledge.
  6. Pressure Tactics
    High-pressure sales tactics are used to rush customers into signing contracts without fully understanding the terms.

The Impact of Solar Installation Fraud

Fraudulent practices not only cause financial loss but also undermine trust in renewable energy. Victims often experience:

  • Financial Stress: Unexpected costs or loans tied to nonfunctional systems.
  • Home Damage: Poor installation can lead to roof leaks, structural damage, or even fire hazards.
  • Loss of Savings: Promised energy savings fail to materialize, leaving homeowners with higher bills than before.

Real-Life Examples of Solar Panel Installation Fraud

Case 1: Faulty Installation Leads to Roof Damage

A homeowner paid $20,000 for a solar system, only to discover leaks caused by improper installation. The contractor refused to fix the damage, leaving the homeowner with repair costs. Their attorney sued the contractor, recovering $35,000 for damages and legal fees.

Case 2: Fake Incentives Scam

A company promised a small business $10,000 in rebates for switching to solar. After installation, the business learned the rebates didn’t exist. With the help of an attorney, they secured a full refund and punitive damages.

Case 3: Hidden Financing Costs

A family signed a financing agreement believing their payments would be $100/month. Later, they found hidden fees that raised their monthly payment to $300. Their fraud attorney canceled the agreement and negotiated a new, fair contract.

How to Spot Solar Installation Fraud

Protect yourself by watching for these red flags:

  • Overly Aggressive Sales Tactics: Sales reps pushing you to sign immediately without allowing time for research.
  • Vague Contracts: Contracts that lack detailed terms, warranties, or financing agreements.
  • Unlicensed Installers: Always verify the company’s licensing and certifications before signing a contract.
  • Poor Reviews: Check online reviews and ratings for patterns of customer complaints.
  • Promises That Seem Too Good to Be True: Unrealistic energy savings, “free” installations, or guaranteed incentives are often warning signs.

Steps to Take If You’ve Been Defrauded

If you suspect you’ve been a victim of solar panel installation fraud, follow these steps to protect yourself and build a case:

  1. Document Everything
    Save all contracts, emails, text messages, and receipts related to the solar company. Take photos of the installation if there are visible issues.
  2. Stop Payments
    If you’re still making payments on a fraudulent contract, pause them and consult an attorney for advice.
  3. File a Complaint
    Report the company to the Better Business Bureau (BBB), your state’s attorney general, or the Federal Trade Commission (FTC).
  4. Consult a Fraud Attorney
    An experienced attorney can help evaluate your case, cancel fraudulent contracts, and recover financial damages.

How a Solar Installation Fraud Attorney Can Help

A solar panel installation fraud attorney specializes in holding deceptive companies accountable. Here’s how they can assist:

Investigating the Fraud

Attorneys analyze your contract and communication with the solar company to identify fraudulent practices and gather evidence for your case.

Canceling Fraudulent Contracts

If the contract was signed under false pretenses, your attorney can help void the agreement, freeing you from financial obligations.

Recovering Damages

Victims may be entitled to compensation for financial losses, repair costs, and emotional distress caused by the fraud.

Taking Legal Action

In cases of severe fraud, attorneys file lawsuits to recover damages and hold the company accountable, sometimes resulting in punitive damages to deter future misconduct.

How to Choose the Right Attorney for Your Case

Finding the right attorney is critical to resolving your case. Look for these qualities:

  1. Experience with Solar Fraud Cases: Choose an attorney with a proven track record in consumer fraud or solar panel disputes.
  2. Clear Communication: Your attorney should explain legal processes in simple terms and keep you updated throughout the case.
  3. Proven Results: Ask about their history of recovering damages or voiding fraudulent contracts.

FAQs About Solar Panel Installation Fraud

Can I sue for faulty installation?

Yes. If the installation was subpar or caused damage to your property, you may be entitled to compensation for repairs and system replacement.

What if I signed the contract?

Signing a contract doesn’t waive your rights. Fraudulent or deceptive agreements can still be challenged in court.

How long does it take to resolve a fraud case?

The timeline varies depending on the complexity of the case. Some cases are resolved in months, while others may take longer if they go to court.

Can I recover my money?

Yes. Victims of fraud are often entitled to reimbursement for financial losses, including installation costs, repair fees, and hidden charges.

Key Takeaways: Fighting Back Against Solar Installation Fraud

  1. Fraud is More Common Than You Think: Solar panel fraud is a growing problem as the industry expands.
  2. Victims Have Legal Options: You can recover damages, cancel fraudulent contracts, and hold companies accountable with the help of an attorney.
  3. Act Quickly: The sooner you consult an attorney, the better your chances of resolving your case successfully.

Contact Consumer Action Law Group Today

If you’ve fallen victim to solar panel installation fraud, you don’t have to face it alone. At Consumer Action Law Group, we specialize in fighting fraud and protecting consumer rights. Our experienced attorneys can help you cancel fraudulent contracts, recover damages, and prevent others from falling victim.

Contact us today for a free consultation. Let us evaluate your case, guide you through the legal process, and fight for the justice you deserve. Call now to take the first step toward reclaiming your peace of mind.

 

Filed Under: Blog Tagged With: solar panel fraud

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