Federal government takes steps to combat shady practices in solar home market
Adding solar panels to your home is a big commitment and a new experience for many buyers. Now, a “small number” of solar panel companies that engage in overly aggressive sales tactics or outright rip-offs are being monitored by the federal government.
The U.S. Treasury Department, the Consumer Financial Protection Bureau and the Federal Trade Commission, among other agencies, said they are working to protect consumers from unfair and deceptive sales practices in a U.S. solar industry that is expected to grow significantly nationwide in the coming yearsGovernment agencies launch an information offensive and create web pages dedicated to training solar buyers And providing resources where consumers can file complaints about scams and other bad business practices.
As solar has become more popular, the agencies say, some companies have taken advantage of consumers by offering predatory and expensive loans. Some of the red flags include not giving buyers access to their solar installation contracts, promising incentives that homeowners don’t qualify for, or offering loan rates that skyrocket over time. CNET and other websites have published stories warning consumers about solar scams that threatened to take down the entire industry. bad reputation.
Read more: Best Solar Companies of August 2024
“After the Supreme Court ruled in favor of the financing structure in May, the CFPB appears to have become more confident in its power to protect consumers from what it sees as unfair practices,” CNET senior editor Tiffany Connors wrote. “Compared to the first half of the year, the agency has issued more rulings on a wide range of topics, including buy-now-pay-later services, mortgage servicing and paycheck advances.”
Misleading lending became so widespread that HBO’s Last Week Tonight With John Oliver in 2021 an entire episode dedicated to the property assessed clean energy programa program designed to pay for environmentally friendly home renovations, and how fraudulent loans for clean energy improvements put homeowners at risk.
The industry itself has tried to combat bad actors with new standards. The Solar Energy Industries Association has proposed standards designed to protect homeowners and small businesses from solar scams and misleading offers, as well as shoddy workmanship during the installations themselves.
The steps federal agencies are taking to crack down on solar fraud suggest the government is addressing a widespread problem that has long plagued the growing solar market.
CNET has a vetted list of some of the best solar companies in the country. But no matter which company you choose, it’s always wise to get multiple quotes before choosing an installer and researching their company.
