Â鶹´«Ã½

Skip to main content

Solar energy and other high efficiency home improvements can help reduce energy consumption and lower utility costs for homeowners. As going solar or using clean or renewable energy gets more popular, bad actors have joined the movement, too. Be aware of solar energy scams – everything from scammers pretending to be affiliated with the government or utility company to businesses misrepresenting the cost of improvements, savings, and financing options. If your company offers solar energy, remember that claims must not only be truthful, but also comply with established consumer protection laws, including the FTC Act and the FTC’s newÌýImpersonation Rule.

Be truthful. Every clean energy company has a responsibility to be honest and upfront with consumers. Be transparent about what you’re offering. Disclose the total cost for your product or service, be clear about financing options, and don’t overpromise cost savings that might come through tax credits, rebates, or incentives. Legitimate businesses help consumers make informed decisions about whether powering with solar or clean energy is right for them. So shareÌý about protecting against deceptive practices, point people to the Department of Energy’sÌý, or share the Department of Treasury’s . Remind prospective customers that while tax credits, rebates, and incentives might be available for solar purchasers who qualify, offers for “free†or “no cost†solar panels are scams.

Comply with the law: old and new. Reputable companies know the importance of being honest about what they’re offering – and how much it costs. It’s not only good business, it’s the law. That’s one lesson from the case the FTC and the state of California brought againstÌýYgrene Energy Fund,Ìýa company providing home improvement financingÌýthrough Property Assessed Clean Energy (PACE) loans. The FTC and California alleged Ygrene deceived homeowners about financing home improvements, trapping them with liens that made it hard to sell their homes.ÌýThe settlement required Ygrene to dedicate $3 million dollars to help remove those liens placed on without consumers’ consent and provide monetary relief to the people impacted. That’s a reminder to all businesses selling clean energy systems and offering related financing: violations come with a price. And, in addition to existing laws, pay attention to new regulations and initiatives likeÌýthe CFPB’sÌý to ensure sensible safeguards apply for consumers seeking PACE and other clean energy loans.

Report solar and clean energy imposters. The FTC’sÌýImpersonation RuleÌýis good news for legitimate businesses and consumers, alike. The rule applies not only to government imposters – like those who misrepresent their affiliation with the government and tell tall tales about free or no cost solar energy to make sales – but also to those who misrepresent that they’re affiliated with, endorsed, or sponsored by legitimate businesses. If you spot imposters like these, or scams of any kind related to clean energy systems,Ìý.Ìý

Image
image of electric plug, house, sun, solar panels and wind turbines

Ìý

It is your choice whether to submit a comment. If you do, you must create a user name, or we will not post your comment. The Â鶹´«Ã½ Trade Commission Act authorizes this information collection for purposes of managing online comments. Comments and user names are part of the Â鶹´«Ã½ Trade Commission’s (FTC) system, and user names also are part of the FTC’sÌýÌýsystem. We may routinely use these records as described in the FTC’sÌýPrivacy Act system notices. For more information on how the FTC handles information that we collect, please read our privacy policy.

The purpose of this blog and its comments section is to inform readers about Â鶹´«Ã½ Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

  • We won’t post off-topic comments, repeated identical comments, or comments that include sales pitches or promotions.
  • We won’t post comments that include vulgar messages, personal attacks by name, or offensive terms that target specific people or groups.
  • We won’t post threats, defamatory statements, or suggestions or encouragement of illegal activity.
  • We won’t post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. To file a detailed report about a scam, go to

We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. The comments posted on this blog become part of the public domain. To protect your privacy and the privacy of other people, please do not include personal information. Opinions in comments that appear in this blog belong to the individuals who expressed them. They do not belong to or represent views of the Â鶹´«Ã½ Trade Commission.

More from the Business Blog

Get Business Blog updates