1. Hidden dealer fees
The single biggest predatory tactic in solar. Lenders offer "0.99% APR" or "1.99% APR" loans, but they bake a 20–35% "dealer fee" into the cash price to compensate. A system that should cost $24,000 cash gets sold at $32,000 financed. The "low APR" is real, but you're paying it on an inflated principal.
How to spot it: Always ask for both the cash price and the financed price in writing. Anything more than a 2–3% difference is a dealer fee. Compare the all-in financed cost to a credit union solar loan or HELOC.
2. Re-amortizing loans tied to expired tax credits
Older solar loans were structured around the assumption you'd pay 30% of principal in month 18 (using your tax credit). If you didn't, the loan would re-amortize and your payment would increase substantially. With the credit gone in 2026, this is now a guaranteed payment shock for anyone signing one of these legacy-structure loans.
How to spot it: Look for any clause saying "payment may adjust" or "re-amortization at month 18." Ask explicitly: "Does my payment increase if I don't make a $X payment in year 1?"
3. Escalator clauses on leases and PPAs
2.9–3.9% annual price increases that compound over 20–25 years. By year 20, your "savings" turn into losses — you're paying more for solar than you would have paid the utility. Salespeople bury this in fine print or downplay it as "small."
How to spot it: Search the contract for "escalator," "annual increase," or "rate adjustment." Demand 0% escalator or walk away.
4. Inflated production estimates
Production is the input that drives every savings calculation. If a salesperson promises 1,800 kWh/kW/year in a state where 1,300 kWh/kW is realistic, the entire payback math is fiction. They're betting you won't notice — and most homeowners don't, until year 2 when actual production data comes in.
How to spot it: Validate against PVWatts. See production estimates for full validation steps.
5. "$0 down forever" framing
"$0 down" sounds great until you realize it's just a loan or lease. There is no free solar. Every system gets paid for somehow — through cash, interest, lease payments, or PPA energy charges. The "$0 down" framing distracts from the lifetime cost.
How to spot it: Ignore "$0 down" entirely. Ask: "What's the total amount I'll pay over 25 years?"
6. Door-to-door high-pressure tactics
"This pricing is only available if you sign tonight" is the oldest trick in the book. Legitimate solar pricing is good for at least 7–14 days. Door-knockers and high-pressure closers know that the longer you have to think, the less likely you are to sign — because the math falls apart on inspection.
How to spot it: Refuse to sign during the first visit. If pricing isn't valid for at least a week, walk away.
7. Production guarantees with weather exclusions
Some installers offer a "production guarantee" that's so riddled with exclusions it's worthless. Read carefully — many guarantees exclude shading changes, weather variability, panel soiling, snow, or "force majeure" so broadly defined it covers everything.
How to spot it: Ask: "If I produce 15% less than estimated in year 1, what specifically do you owe me?" Get the answer in writing.
8. Lease buyout traps
Some lease contracts include buyout clauses that look reasonable on paper but are calculated to make buyout impossible. "Fair market value at year 7" can be 60% of the original system cost — making buyout uneconomical and locking you in for the full term.
How to spot it: Ask for the buyout schedule for years 5, 7, 10, 15, and 20 in writing before signing.
9. Misrepresented warranties
"25-year warranty" can mean panels only, not labor. "Bumper-to-bumper" warranties may be voided if the installer goes out of business. Some warranties are insurance-backed (good); some are just installer promises (worthless if the company folds).
How to spot it: Ask: "Who pays if you're out of business in year 10?" Look for third-party warranty insurance like SolarInsure.
10. Fake "limited time" state incentive deadlines
"This state rebate ends Friday — sign now or miss out." Real state programs have publicly published deadlines. If your salesperson claims a deadline you can't verify on the state energy office website, it's a closing tactic, not a real deadline.
How to spot it: Verify any incentive deadline directly on the state agency or DSIRE website before signing.
Get a second opinion before you sign
Upload your solar proposal — the analyzer flags every predatory tactic in this guide automatically: dealer fees, escalators, re-amortization, inflated production, expired credit assumptions.
Analyze My Solar Bid →What to do if you've already signed
Most states have a 3-day right of rescission for home sales contracts. Check your contract for the specific cancellation clause and act fast — typically within 72 hours of signing. After that window, your options narrow but are not zero. File complaints with: your state attorney general, the FTC (ftc.gov/complaint), the BBB, and your state's Department of Consumer Affairs. If financing was misrepresented, the CFPB also accepts complaints (consumerfinance.gov).
Frequently asked questions
Are all solar loans predatory?
No. Many credit unions, banks, and reputable solar lenders offer fair-rate loans without dealer fees. The predatory products are a subset of the industry.
Is door-to-door solar always a scam?
Not always, but the high-pressure tactics often used in door-to-door sales correlate strongly with bad financing terms. Always take time to compare bids before signing.
What's a fair solar APR in 2026?
For prime credit (740+), 6.99–8.99% APR with minimal dealer fees. Below 5% APR almost always means dealer fees of 25%+.
Should I report predatory solar tactics?
Yes. State AGs, FTC, BBB, and CFPB all accept complaints. Documented complaints help future homeowners and can sometimes result in enforcement.