As the residential solar industry continues to boom in the United States, with 15% of homes forecasted to have solar by 2030, federal agencies are taking action to protect consumers from unfair and deceptive practices. The U.S. Department of the Treasury, Consumer Financial Protection Bureau (CFPB), and Federal Trade Commission (FTC) have announced a joint effort to educate homeowners and prevent scams in the rapidly growing solar energy market, as reported by Pv-Magazine.
This collaborative initiative comes at a crucial time, as consumer complaints about solar companies filed with the FTC and CFPB have significantly increased over the past year. The agencies aim to combat common deceptive practices, such as pressuring consumers into predatory contracts, offering unfair financing, and failing to install or activate solar systems as promised.
To help consumers navigate the complex world of residential solar, the Treasury, CFPB, and FTC have released consumer advisories. These resources provide valuable information on the different types of solar power options available and how to distinguish between genuine and fraudulent offers. They also include key questions to ask before making purchases or signing agreements and instructions on filing complaints if you encounter suspicious behavior.
The interagency partnership, which includes the Department of Energy (DOE) and Department of Housing and Urban Development (HUD), seeks to foster greater communication and collaboration between agencies. By working together, they can more effectively protect consumers from bad actors and ensure that those who want to lower their utility bills through solar energy can do so successfully.
As the residential solar industry continues to grow, consumers nationwide can expect to see lower costs and increased savings. However, it’s crucial to stay informed and vigilant to avoid falling victim to scams. If you suspect any suspicious practices, don’t hesitate to report them to the appropriate agencies.
By joining forces, these federal agencies are taking a significant step towards safeguarding homeowners and promoting a thriving, transparent solar industry. As a consumer, you can play a vital role in this effort by educating yourself, asking the right questions, and speaking up when something doesn’t seem right.
Common Deceptive Practices in the Residential Solar Industry
As reported by CNet, the solar industry booms, some companies are using shady tactics to make a quick buck. The FTC and CFPB have seen a spike in complaints about solar scams in the past year.
Here are some of the most common tricks to watch out for:
- High-pressure sales tactics that push you into signing a contract on the spot
- Promises of “free” solar panels that actually come with hidden costs or long-term contracts
- Unfair financing options with sky-high interest rates or balloon payments
- Failure to install or activate your solar system as promised, leaving you stuck with the bill
Don’t let yourself get burned by a solar scam. If a deal seems too good to be true, it probably is. Take your time, read the fine print, and don’t sign anything until you fully understand the terms.
Consumer Advisories and Resources
The Treasury, CFPB, and FTC have released consumer advisories to help you navigate the residential solar market safely. These advisories provide key questions to ask before making purchases or signing agreements.
Some important questions to consider include:
- What is the total cost of the solar system, including installation and maintenance?
- Are there any hidden fees or escalating payments?
- What are the terms of the warranty, and what does it cover?
- How much energy will the system generate, and how much will you save on your utility bills?
If you encounter suspicious behavior or believe you have been a victim of a solar scam, you can file a complaint with the FTC or CFPB. The agencies have made it easy to report complaints online or by phone.
By staying informed and knowing your rights, you can protect yourself from falling victim to deceptive practices in the residential solar industry. Don’t hesitate to contact the appropriate agencies if something doesn’t seem right.
