Check out backroom sales tactics to avoid a shady solar panel deal © CNET WichienTep/Getty ImagesExperts expect solar installations to grow by 21% every year from 2023. While many of these will be utility-scale installations, inflation-linked incentives recently rolled out under the Cutback Act could encourage homeowners to go more solar. This means more people can navigate an unfamiliar industry to save money on energy.
Considering the 30% tax rebate and other benefits , now is the time to buy solar panels. Solar panels usually have a 25-year warranty , and you can save on payments in less time, sometimes as little as 10 years .
While it's a great opportunity to save money and get clean energy, solar buyers can be exposed to dishonest sales tactics, as a Fox News crew in Detroit demonstrated last year. Pink Solar, then called Powerhome Solar and now bankrupt, found itself making promises its solar panels could not deliver. He sold expensive solar panels that produced far less energy than promised.
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If that doesn't prove that shoddy sales tactics are widespread (and that customer satisfaction data isn't publicly available), dishonesty does. The good news is that a little education can help you find the best solar panel for your situation .
Best Solar Companies of 2023: Check Out CnetWhat you need to know before buying solar panels
Competition is fierce in the growing residential solar energy industry. Companies use different sales tactics from internal sales teams or third-party companies. Tesla's solar arm is based solely on online searches. While there are industry guidelines to protect consumers, strategies vary from company to company and, as the Detroit report shows, can border on dishonesty. A good understanding of several important factors related to solar panels will help you understand when the seller is violating these rules.
Sellers will likely advertise a federal solar tax credit. When you install solar panels (and other related technology), you get back a portion of the cost of your taxes. In the 2022 tax year, the portion you get back is 30% and will remain there until 2031, as stated in the Inflation Suppression Act .
A tax credit is not a check or bonus that the government sends you. Rather, it is a loan that you can deduct from the taxes you pay each year. To take full advantage of this, you must pay federal income tax and pay enough to match 30% of the cost of your system.
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If the seller says that your electricity bill will disappear after installing solar power and you can turn off the electricity supply, that too may be an exaggeration. Your bill will vary based on your net metering contract with your utility, your electricity consumption, and the base rate that utility customers pay to maintain their grid infrastructure. Properly installed and functioning solar panels will reduce your electricity usage and save you a lot of money, but the impact on your bill will be different.
Make sure you understand how your utility compensates you for the electricity you generate before switching to solar. These rates are not necessarily fixed. In California, regulators are trying to change the state's net metering, though proposals so far have included provisions to keep existing customers on pre-agreed net metering rates.
If you see an ad that says you can install solar panels on your home for free, make sure you understand what "free" means. This means that the advertised product is probably a power purchase contract or lease. While this means you won't be paying a large upfront fee for the panels, you'll be making monthly payments to the company that owns it. These are legitimate services and have been one of the reasons residential solar has exploded in the last decade. You are likely to save more money on a purchase than on a lease or PPA. However, the low upfront costs of both of these options can make solar more affordable and save you money in the long run, even if solar isn't completely free.
With leases and PPAs, you save money when costs don't rise faster than the cost of your utility's electricity. You can check online how much your electricity has gone up in recent history.
Installing solar panels on the roof is another potential problem. In the Northern Hemisphere, south-facing panels generate the most electricity, although east- and west-facing panels also work. West-facing panels can be useful on hourly rates, where daytime and evening solar generation can offset more expensive electricity.
© Courtesy of CNET If a tree covers your solar panels, they'll generate less electricity schmidt-z/Getty ImagesIf your roof is shaded, make sure the installer has a plan on how to fix it. For solar power to work well, you may need to plant trees or install panels somewhere other than your roof. Your roof should also be in good condition. Removing panels for roof repair may incur additional costs. It is important to resolve these issues before the contract is finalized and the roof panels are installed.
Any installer should give you clear answers to these questions. Installers who force you to sign a contract before reading the contract or answering all your questions is a wake-up call. According to the Federal Trade Commission, if you sign something you later regret, you legally have three days to cancel most door-to-door sales.
Avoid red flags in solar sales
Here's a short list of additional red flags and claims from Solar United Neighbors and the Department of Energy that will prompt you to do some research.
Resources for getting a fair solar contract
There are many organizations, including industry groups and governments, committed to providing the best experience possible to help people transition to solar energy.
The Department of Energy's Solar Conversion Guide has a long list of things to consider before choosing an installer. Many states have consumer protection offices that provide state-specific advice, sometimes on solar energy.
There are national groups that help people and communities use solar energy.
Requesting quotes through the Solar Energy Marketplace lets you know that installers are competing for your business and review your options without the need for a face-to-face meeting. It is always better to get quotes from several companies.
The Better Business Bureau ranks companies based on their responsiveness and honesty to complaints. If possible, it's a good idea to check the business through the Better Business Bureau and talk to neighbors or friends who have experience with them.
You can find certified installers by checking with the North American Council of Certified Energy Professionals.
Since many people have no experience with solar energy, choosing an installer can seem like a daunting task. But you can switch to solar power and start saving on energy costs. From 2016 to 2019, one million solar installations were installed (not just in residential areas). If you plan to increase this number with a little effort, you can be sure that it will be a positive experience.
Correction, 12 p.m. ET, January 31 : An earlier version of this article stated that companies pay a fee to receive a rating from the Better Business Bureau. Companies receive ratings from the Better Business Bureau based on whether or not they have paid to go through the accreditation process.
