Consumer Alert – Federal Trade Commission – Consumer Advice
How to avoid getting burned by solar or clean energy scams
By: Larissa Bungo, Senior Attorney, August 7, 2024
When temperatures rise, utility costs do, too. While reputable companies can help you save money
with clean or solar energy improvements, scammers offer more than they can deliver. The scams
vary, but here’s the gist: someone claiming to be with the government or your utility company
promises big savings on your utility bills from solar energy or other home improvements designed to
increase energy efficiency. If you agree to the scammer’s offer, it could cost you tens of thousands of
dollars.
These scams start with an unexpected phone call, message on social media, or even an in-person
visit. The so-called official offers you an “energy audit” to reduce your utility costs. Or they might try
to sign you up for a “free” program to make your home more energy efficient with solar energy. While
they might say they’re from your utility company or the government, they’re not. And while they
promise free or low-cost solar panels, or offer you huge rebates, tax credits, or utility incentives to
pay for those solar panels, those are lies. Some so-called officials even say your utility company
already signed you up for the program, so now you need to pay. That is, of course, also a scam.
To protect yourself from clean energy scams:
- Know that “free” or “no cost” solar panel offers are scams. The federal government
does not install solar systems in homes for free. If you’re considering whether solar
energy is right for you, check out the Department of Energy’s guide for homeowners
and learn more. Or check out the Department of Treasury’s guidance on clean
energy. - Take your time. Anyone who pressures you into a contract or demands up-front or
immediate payment is a scammer. Legitimate businesses and government agencies
don’t pressure you to act immediately and won’t tell you to pay with cash, gift card,
wire transfer, payment app, or cryptocurrency. But imposters will. Learn more at
ftc.gov/imposters - Protect your personal information. Don’t respond to unexpected requests on line or
on social media for your name, address, or other personal information to “see if you
qualify.” At best, this is someone generating leads to sell, not actual solar
businesses. At worst, they’re scammers trying to steal your identity.
If you spot a scam, tell the Federal Trade Commission at ReportFraud.ftc.gov
