Why States Are Warning Homeowners About Misleading Solar Sales

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Maddie H

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helping homeowners understand their rights and avoid misleading contracts.

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We’re proud to share that our COO and VP of Client Services, Josie Garcia, authored a guest article for Motherhood Moment titled “Money Matters – Why States Are Warning Homeowners About Misleading Solar Sales.”

With electricity prices climbing nationwide, solar has never looked more appealing to homeowners. But as Garcia explains, a growing number of state officials are sounding the alarm on the sales practices behind some of those promises.

States Are Taking Action

The article highlights just how widespread the concern has become:

  • In late 2025, the District of Columbia’s Attorney General issued a consumer alert warning of predatory practices in the home solar sales and loan industry.
  • In April 2026, the Texas Attorney General launched a major initiative targeting solar energy scams, including investigations into potential violations of the state’s Deceptive Trade Practices–Consumer Protection Act.
  • Florida’s Attorney General published a dedicated homeowner guide called “Scams at a Glance: The Dark Side of Solar.”

As NPR has also reported, prosecutors across the country are digging into misleading financing structures and high-pressure sales tactics used to push consumers into costly, long-term solar contracts.

What Every Solar Contract Should Include

One of the most useful parts of Garcia’s article is a breakdown of the elements homeowners should look for before signing anything:

  • A detailed system overview — panel and inverter brands, system size in kilowatts, and expected output.
  • Clear warranty terms — performance coverage, installation coverage, and maintenance responsibilities.
  • Full financial transparency — total cost after incentives, escalator clauses, and monthly payment terms, along with what happens if you want to terminate early or sell your home.

Garcia’s advice is simple but important: never rush the process, get everything in writing, and make sure every line of the contract is fully understood before signing.

Red Flags That Lead to Contract Disputes

The article also outlines warning signs homeowners often miss until it’s too late:

  • Vague savings estimates with no clear baseline for comparison
  • Performance guarantees without enforcement mechanisms — if a contract promises a certain percentage of savings, there should be real recourse if that promise isn’t met
  • Annual escalators that can raise payments 3% to 5% every year
  • Early termination fees that can exceed $15,000
  • Transfer penalties that make it difficult to sell a home with an existing solar contract

As Garcia notes, most homeowners don’t discover these issues until two or three years in, once the promised savings haven’t materialized and payments keep climbing.

What to Do if You Believe You Were Misled

For homeowners who suspect they were misled, the article lays out a clear starting point: gather your original contract, payment history, system output records, and any marketing materials, emails, or texts exchanged during the sales process. Comparing that paper trail against what was actually delivered is often the first step toward holding a company accountable.

Read the full article on Motherhood Moment: Money Matters – Why States Are Warning Homeowners About Misleading Solar Sales