From hidden fees to increasing payments, non-ownership, and roof damage, these are hidden pitfalls you may experience if you get into a shady solar contract. Instead of lowering your carbon footprint, reducing energy bills, and saving money, you may experience a financial nightmare.
It's not uncommon, either. Many homeowners have become victims of a misrepresented residential solar service agreement.
The National Public Radio (NPR), for instance, says there's been a dramatic increase in customer complaints against the solar rooftop industry. Some customers say they're victims of fraud, forgery, high-pressure sales tactics, and misleading solar financing arrangements.
Is a Solar Panel Installation Contract Ever Worth It?
Yes. A solar installation can be worth it if you want to reduce your carbon footprint and reliance on the grid. Lowering your carbon footprint is an excellent move for everyone, as this means you're contributing fewer greenhouse gases (GHGs) to the atmosphere.
As the National Oceanic and Atmospheric Administration explains, the human addition of GHGs into the atmosphere is making the average global temperature rise at unprecedented rates. The planet has warmed up by around 2°F in total since 1850.
A solar panel installation is also worth it if:
- You live in a state with good solar incentives (e.g., multiple rebates, robust net metering policies, and high-value Renewable Energy Certificates)
- Your house is in an area that receives a lot of sunlight
- You have high electricity bills
- You have the funds to pay for the entire system in cash (instead of taking on a solar lease or loan)
Can You Cancel a Solar Contract?
Yes. Depending on the circumstances surrounding your decision to get out of your contract, you may be eligible for a penalty-free solar cancellation.
An example is during the cooling-off period (also known as the Federal Trade Commission's "Cooling-Off Rule"). Under this law, you can cancel a contract three days after signing (and before the solar panel installation).
Some states provide longer periods to help combat the growing problem of misleading solar claims. A report from KXAN.com, for instance, states that in Texas, a new rule now provides consumers up to five business days to cancel solar contracts after signing.
What Are the Hidden Pitfalls of Shady Solar Contract Deals?
Hidden fees are among the biggest problems with shady solar contract deals. In many cases, unscrupulous salespeople or contractors inflate the total cost of ownership while presenting the initial deal as an attractive cost-saver.
Increasing payments as part of an "escalator" clause in a solar lease or Power Purchase Agreement (PPA) can also be a nightmare to deal with. Bad actors often don't explain them thoroughly to consumers, and they don't clarify that leases and PPAs mean non-ownership, either.
Roof damage is another hidden pitfall of the "dark side" of solar. It can occur as a result of poor or subpar solar panel installation.
Don't Let a Shady Solar Contract Deal Become a Long-Term Burden
A shady solar contract deal can result in a financial nightmare instead of helping you save money (and the environment). You should, therefore, always do your due diligence and remember that there are situations wherein you can cancel the contract legally and penalty-free.
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