Thinking about going solar should feel exciting — not like stepping into a legal trap.
Yet for many homeowners, a solar contract that promised savings instead delivers stress, surprise bills, or fights with unresponsive companies.
Does any of this sound familiar?
- Your “fixed” monthly payment has started creeping up.
- You’re unsure how to get out of a contract if you need to sell your home.
- You’ve started to wonder if the company can change the terms after you’ve signed.
The truth is, whether you lease or buy your solar panels, you can be exposed to scams that drain your finances and create headaches you never saw coming. The good news? Once you know how each option works, and understand the protections the law gives you, you can make choices that fit your home, your budget, and your long‑term plans.
Understanding Your Solar Options
| Feature | Leasing | Buying |
| Ownership | Company | You |
| Upfront Cost | Low to moderate | High unless financed |
| Tax Incentives | Company claims them | You claim them |
| Flexibility | Limited | High |
| Maintenance | Company responsibility | Your responsibility |
Leasing Solar Panels
When you lease, the solar company owns the panels. You pay monthly to use the power they generate, often for 15–25 years. Maintenance is usually included, but the company — not you — takes any tax credits or rebates.
- Impact on you: Lower upfront cost, but less flexibility and possible restrictions when selling your home.
Buying Solar Panels
When you buy, you own the system outright or through financing. You’re responsible for upkeep, but you keep all tax incentives and have complete control.
- Impact on you: Potentially larger long‑term savings and more freedom, but more responsibility for repairs and system performance.
How the Law Protects You: Lease vs Buy
In the event of any unfortunate scam, knowing your legal rights as an individual is instrumental in pursuing legal recourse and mitigating your losses.
If You Lease: How the Law Protects You
Leases are regulated by federal consumer protection laws, including the FTC Act, which prohibits deceptive marketing, and by state‑level disclosure requirements that vary across the country.
Examples:
- California: Mandatory Solar Consumer Protection Guide before signing.
- New York: Requires clear, prominent disclosure of total costs and payment increases.
- Arizona: Limits certain annual escalators in lease agreements.
Questions to ask before leasing:
- How much will my payment be in year 10?
- Will I owe a buy‑out fee if I move?
- Who pays if the system underperforms?
If You Buy: How the Law Protects You
Solar purchases are often covered by the Uniform Commercial Code (for sales of goods), the Magnuson‑Moss Warranty Act, and state‑specific consumer protections.
Examples of strong protections:
- California: Home improvement contract laws with cooling‑off periods.
- Florida: Solar Rights Act protects your installation rights against HOA bans.
- Texas: Treble damages under the Deceptive Trade Practices Act for proven deception.
Questions to ask before buying:
- What warranties apply, and who backs them?
- Is the financing tied to my home?
- What happens if the installer goes out of business?
Solar Leasing: Scams to Watch For
A homeowner was told their monthly lease payment would never change. By year four, it had risen by nearly 20% due to an escalation clause buried on page seven of the contract. Imagine the horror!
Other risks include:
- Overstated savings not backed by your actual utility usage.
- Escalation clauses hidden in small print, raising costs over time.
- Home sale complications if buyers won’t assume your lease.
How you can prevent it:
- Get the lifetime cost in writing.
- Review every clause on payment changes.
- Make sure transfer terms are clearly spelled out.
Solar Purchases: Scams to Watch For
A contractor promised “lifetime system coverage” but delivered panels without any manufacturer warranty, leaving the homeowner responsible for repairs within three years. A fine example of scam when it comes to solar purchases.
Other risks include:
- Charging inflated prices for low‑quality equipment.
- False claims about tax credit or rebate eligibility.
- Using unlicensed installers, risking code violations and warranty voids.
How you can prevent it:
- Verify licenses with your state contractor board.
- Confirm incentives directly with the IRS or your state energy office.
- Compare quotes from multiple vetted installers.
How Leasing and Buying Stack Up on Scam Risk
| Risk Type | Leasing Risk Level | Buying Risk Level | Why It Matters to You | Remedy if Misled |
| Misrepresented savings | High | Medium | Years of unexpected costs | Contract rescission; state deceptive trade claims |
| Contract transfer problems | High | Low | May block or delay home sale | Cancellation under state disclosure laws |
| Warranty or service disputes | Medium | Medium | Out‑of‑pocket repair costs | Breach of warranty claims; legal fee recovery in some states |
| Financing fraud | Low | Medium to High | Risk to your home if secured loan | Truth in Lending Act remedies; loan cancellation |
Have You Been Misled? Don’t Worry! Next Steps to Take
- Collect All Paperwork: Have your contract, sales materials, and all communications in one place.
- Verify Incentives: Check the IRS site and state agency listings yourself.
- Document Every Interaction: Keep a log with dates, times, names, and a summary of calls or emails.
- Contact Your Attorney General: State AG offices can launch investigations into deceptive practices.
- Speak to Legal Counsel: A lawyer who handles solar contract disputes can explain your options; including cancelling the contract or seeking damages — and help you act quickly.
State Highlights: Consumer Protections
- California: Requires plain‑language disclosures and the Solar Consumer Protection Guide.
- Texas: DTPA allows up to triple damages plus legal fees for deceptive sales.
- New Jersey: CFA enables treble damages if hidden clauses make a contract unenforceable.
FAQs
Q: Which is safer— leasing or buying a solar panel?
Leasing carries higher risk for hidden payment increases and transfer restrictions; buying carries higher risk around financing and warranty disputes.
Q: How can I check if savings claims are accurate?
Ask how the figure was calculated and confirm with your utility bills and an independent energy audit.
Q: What are the biggest red flags?
Pressure to sign quickly, unwillingness to provide a full contract, vague answers on costs, and promises of “guaranteed” savings.
A Closing Note For You
Has your “affordable” solar plan turned into a mounting pile of surprise bills?
Are you feeling trapped in a contract you never truly understood — or pressured to agree to terms you know aren’t fair?
Do you worry the company has all the power and you have none?
You’re not powerless. And you’re not alone.
At Bennett Legal, we fight for homeowners who have been misled, trapped, or taken advantage of by solar companies that put profit before people. We don’t just review paperwork — we go after abusive contracts, stop wrongful collections in their tracks, and hold deceptive companies accountable.
We see every case as more than a file number.
To us, it’s your home, your credit, your peace of mind; and we approach it like it’s our own. That means moving quickly, standing firm, and using the law as your armor.
If you’re dealing with hidden fees, false promises, aggressive sales tactics, or threats to your credit, we’re ready to fight back for you. Whether it’s cancelling a toxic contract, recovering damages, or stopping harassment, we’ll work relentlessly to protect what’s yours.
Don’t give another day to stress or uncertainty. Let us be the ones in your corner.
Contact us today for a confidential case review, and let us help you take back control of your home, your investment, and your future.
