Misleading claims of no electric bills. False promises of free solar panels or tax rebate checks. Posing as an electric co-op representative or co-op partner. These are some of the deceptive practices that co-ops and the federal government are warning consumers about under a growing number of residential solar scams.
On Aug. 7, the Treasury Department issued an advisory noting a rise in consumer complaints about such practices as rooftop solar installations surge, emphasizing that scams are against the law.
The complaints involve “a small number of unscrupulous solar companies” that consumers say deceived them on the costs and savings of the systems and relied on aggressive sales and marketing tactics, the advisory stated.
Electric co-ops are also sounding the alarm, saying the incidents have climbed in recent years with devastating consequences for some members. Some companies are not honestly or accurately presenting the benefits and costs to individual households, stranding them with uneconomic or unproductive panels.
The Treasury’s advisory listed several ways to avoid scams. It urged consumers to gather and compare several quotes or bids if they are interested in adding solar to their homes. Homeowners should also check a contractor’s history with state consumer agencies and licensing boards; make sure the advertised cost savings are guaranteed; and consult a lawyer, if possible, to help understand contract terms and lengths.
If a business doesn’t make good on its promises or cheats consumers out of money, the Treasury encourages the fraud to be reported to the Federal Trade Commission at ReportFraud.FTC.gov. The advisory also included links to state consumer protection offices, utility consumer advocates and nonprofit legal services for challenging fraud, abuse and deception.
The advisory was one of several new actions announced by the Treasury Department, the Consumer Financial Protection Bureau and the Federal Trade Commission to address unfair and deceptive consumer practices in the residential solar power sector. The agencies also announced a new partnership with the Department of Energy and Department of Housing and Urban Development to help prevent predatory practices.
Communication between members and their local co-op is key, said Tolu Omotoso, director of energy solutions at the National Rural Electric Cooperative Association. “A lot of co-ops have energy advisers or member service professionals who are knowledgeable about these assets, this technology and also the companies.”
Be sure to contact your electric cooperative before signing a contract for solar panels. Use your co-op as a resource to decide on residential solar projects and what questions to ask rooftop solar providers.
