“Don’t get scammed on solar panels: 4 Financial Red Flags”
March 12, 2024 CNET
Some common traps could leave you stuck with a bad deal for decades when entering a contract for solar panels. Nationally recognized consumer protection attorney Andy Milz of Flitter Milz in Narberth, PA, was interviewed recently on CNET for an article and offered 4 Financial Red Flags to potential solar panel customers.
Red Flag #1.
Demand to see contract documents BEFORE signing.
Frequently solar customers never get the chance to review a solar financing contract before signing or whose signatures were forged without their knowledge. It can be easy for these things to happen when a solar sales person is seated at your dining room table, quickly tapping through terms on an iPad. “Solar customers are entitled to see a contract and take the time to review it. This ensures that the customer can read all the fine print, understand the payment terms, and avoid any financial surprises later,” says Milz.
Red Flag #2.
Talk to a tax professional about any promised tax incentives.
There are a lot of federal and state-level financial incentives for solar panels right now, promising thousands of dollars off the price of a solar system. But homeowners are eligible for those only if they’re buying (i.e. owning) the panels. “That’s something that’s confusing to the average consumer,” said Milz. If you’re leasing or getting panels through a power-purchase agreement, you won’t benefit from the incentives, so be wary of any solar installer who tells you otherwise.
Red Flag #3.
Beware of an arbitration clause in the loan or lease agreement
Many solar financing or lease contracts contain something called an “arbitration clause,” according to Milz. “When you sign this, you as the customer essentially give up your right to go to court in the event that the solar company rips you off. Any claims you make will instead be subject to a private “arbitration” system that usually benefits the solar company.”
It may not always be possible to avoid having this in your contract, but you should at least be aware of what you’re getting yourself into.
Red Flag #4.
Watch out for ‘Teaser Rates’
A common tactic by solar companies is to attract customers with a ‘teaser rate’ which promises low upfront payments that increase, sometimes drastically, over time. In some cases, the installer is assuming you’ll receive a chunk of money from a government incentive and put that toward the payment of your panels, otherwise the monthly payments will jack up. “Folks are often caught off guard by that, ” says Milz.
Escalator clauses, which gradually increase your payment by a small percentage each year, are quite common, but again you’ll want to be aware of what you’re getting into.
Most Important Tip: Slow Down!
Do your own research and comparison shop. There is no rush. The deal the salesman proposes today will still be there next week.
Seek Qualified Legal Help
Flitter Milz attorneys have helped hundreds of families who have been victimized by shady solar sales. If you have been defrauded in a solar sale, we may be able to help. Hidden contracts, forged signatures, illicit credit inquiries, suspicious email accounts, elder exploitation, and other bad acts can give rise for a case under the consumer protection laws. Contact us!
