Are solar panels a scam? How California solar scams work and how to avoid them

The red flags California regulators list

The CPUC’s California Solar Consumer Protection Guide (Version 4, published October 2025) tells homeowners to walk away from a provider who says things like:

• “You can get free solar energy at no cost to you.”
• “You will never pay an electricity bill ever again.”
• “Time is running out and you must quickly sign.”

It also warns that unscrupulous salespeople may “skip key parts of the contract and financial information, especially on a tablet.” CPUC·checked Sep 23, 2026 The Federal Trade Commission’s advice points the same way: never deal with a company that pressures you for a quick decision, tells you to sign without time to review, or asks you to pay in cash. FTC·checked Sep 23, 2026

How solar scams usually work

These aren’t hypothetical. In February 2026, five California district attorneys announced a $4.3 million stipulated judgment with Vivint Solar over allegations that its power purchase agreement sales mischaracterized ties to utilities, overstated savings and misrepresented cancellation rights; the company agreed without admitting liability. SF District Attorney·checked Sep 23, 2026 More on that case and others is in solar lawsuits in California.

Protections California law gives you

• A right to cancel. For contracts signed at home, Civil Code § 1689.7 lets most buyers cancel “at any time prior to midnight of the third business day,” and senior citizens until the fifth. The contract must be in the same language as the sales presentation. leginfo.legislature.ca.gov·checked Sep 23, 2026
• A cap on the down payment. Under Business and Professions Code § 7159.5, a down payment “shall not exceed one thousand dollars ($1,000) or 10 percent of the contract amount, whichever amount is less,” and after that the contractor may not take payment that exceeds the value of work done or materials delivered.
• A disclosure page up front. Section 7169 requires a solar energy system disclosure document on the front page of every solar contract, in 16-point bold type, showing the total cost and payments, how to complain, and your cancellation right.
• Registered salespeople. CSLB says solar sellers generally must be registered as home improvement salespersons. CSLB·checked Sep 23, 2026

The CPUC guide adds that you have the right to read it before signing without time pressure, to get the contract and financing documents in the language of the sales pitch, and to receive printed copies on request.

How to check a solar company before you sign

1. Look up the contractor’s license and the salesperson’s registration on the CSLB lookup, which also shows complaint disclosure.
2. Get “competing bids from at least three contractors,” as CSLB advises, priced on the same system.
3. Bring your last 12 months of bills and your rate per kWh, so the savings claim can be checked.
4. Make sure “the contract you sign spells out everything you were promised” (CSLB’s words), including production estimates and warranties.
5. Read the CPUC guide and the solar disclosure page before signing, not after.

Our contractor verification walkthrough shows each lookup, and solar contract red flags covers the clauses to question. If the pitch came to your door, read your rights with door-to-door solar sales.

If you think you’ve been scammed

1. If you are inside the cancellation window, cancel in writing today and keep proof of delivery.
2. Gather the contract, disclosure document, proposal, payment records and messages.
3. File with CSLB at 800-321-2752 for contractor problems. Utility billing issues go to the CPUC; PACE financing disputes go to the DFPI, as the CPUC guide directs.
4. You can also file a complaint with the California Attorney General and report fraud at ReportFraud.ftc.gov.
5. For money you want back, see what to do when a solar contractor took your money and when to hire an attorney.

If there is a lien or UCC-1 filing you didn’t expect, what a solar UCC-1 means explains it.

So is solar worth it?

Once the sales tactics are set aside, whether solar pays is a numbers question about your usage, your utility and how you pay for the system. Are solar panels worth it in California? works through it, and cash vs loan vs lease vs PPA compares the ways to pay. After installation, our maintenance guide covers what upkeep a system needs.