Solar Scams

There are a number of green energy scams going around the Las Vegas valley. Keep these recommendations in mind based on some common issues we've encountered in the world of solar panel sales.

Consumer Tips

Never Sign the Same Day You Hear a Presentation

Purchasing a solar panel system is a big decision; there's no rush. Take your time, shop around, and research the companies that are trying to sell you solar. Be skeptical of anyone who's rushing you to sign such a big contract quickly. Ask for a hard copy to review before you sign, and review the details when you're not rushed. 

Don’t Trust Door-to-Door Sales Companies

They're highly skilled at deception. Remember that the salesperson wants you to sign up with them so they can get paid a commission.

Don’t Sign on an iPad or Other Devices

Your electronic signature can be falsely placed on documents without your permission. The salesperson might claim this will be used for a home inspection, to determine if you qualify for a special program, or to reserve your place—this is a scam!

Beware of:

• exaggerated promises of savings, claims that your bill will be $0, and claims of "free" products or special government programs for seniors—this is a scam!
• anyone who claims the federal government will pay for your solar system—this is a scam!
• anyone who claims you can use tax credits to reduce the cost of the panels without verifying your tax liability. If you don't pay taxes, the tax credits won't help you—you won't receive cash.
• monthly payments that increase if you don’t give them your tax credit money.

Do Your Homework Before Signing Anything

• Read online reviews from multiple sites, including Google Reviews, Yelp, SolarReviews.com, and Better Business Bureau.
• Take the time to read the negative reviews on every website. This is a good way to see what other customers experienced.
• Get comparison quotes to ensure they propose the right-sized system (in kW), accurately predict the output (in kWh), and offer a reasonable monthly payment or return on your investment.
• Investigate the product brands they’re proposing. The quality of different solar panels and inverters can vary greatly.

Remember Not Every Home Is Suitable for Panels

Some rooftops may not work due to the age of the home, the roof's orientation, or tree cover. If trees near your house create excessive shade on your roof, rooftop panels may not be the ideal option. The available roof space, shape, direction (azimuth), and slope of your roof are also important factors that impact the performance. Typically, solar panels perform best on south-facing roofs with a slope between 15 and 40 degrees; however, other roofs may also be suitable.

Consider the Age and Condition of Your Roof

If you expect that your roof will need replacement within the next 10 years, it's better to do so before installing solar panels. This avoids the costly expense of removing and replacing the panels.

Gather Your Last 12 Months of Energy Bills

Your past NV Energy bills can help you determine whether the monthly payment with the solar finance company is less than what you're currently paying. You can obtain these bills online at nvenergy.com. Remember, if you get solar, you'll still be making some payments to NV Energy, plus a monthly amount to a finance company to buy or lease the panels.

Know the Difference Between a Purchase, Lease, and PPA

• Purchasing (cash or loan): You own the panels and get to keep any tax credits—if you're eligible.
• Leasing: This is like renting for a long time. You don't own the panels and you don't get to keep any tax credits.
• PPA (Power Purchase Agreement): You pay for the electricity the panels produce. Like a lease, you don't own the panels and you don't get to keep any tax credits.

With a lease or PPA, when you go to sell your home, there will be conditions. Make sure you know how easily a new buyer can take over the panels or if you may have to pay fees. If you're paying cash or purchasing the system, you may need to talk with an accountant or tax professional to see if you can use the tax credits. Not everyone can take advantage of the tax credits.

Confirm Your Payments in the Contract

Does the agreement have an "escalator" clause, or does the payment remain the same throughout the agreement term? If the contract includes language about an "escalator," your monthly payments will increase over time. This could make your solar panel system more expensive than electricity with NV Energy.

Ensure the Contract Says Exactly What You Were Told

If you were told you would have a $0 NV Energy payment, or thought you would have a certain monthly payment, or the panels would produce a certain amount of electricity, make sure it's written down. Verbal promises mean nothing!

If You Don't "Get It" Don't Sign It

If you don’t understand something in the agreement, then consult a family member, friend, or attorney who can explain it clearly. Don't sign without a thorough understanding of all the terms. Take the time to slow down the process and make an educated and informed decision. Remember that your signature will bind you to legal and financial obligations, so if you're not ready, don't sign. 

Cancel the Transaction if You Change Your Mind

You have a three-day right of cancellation of the transaction after signing the contract. If you're having second thoughts, make sure to take advantage of your three-day right of cancellation before it expires.

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Law & Caution Episode

Our Consumer Rights Project attorneys discussed these issues in an episode of our Law & Caution podcast, "Solar Panel Pitfalls: Don't Get Burned."

Segmento de Univision Nevada

Uno de nuestros abogados especialistas en derechos del consumidor también discutió estos temas en un segmento de noticias de Univision Nevada.