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Solar Contract & Installation Issues

 Solar energy systems are marketed as a way to reduce or eliminate electric bills, lock in predictable energy costs, and take advantage of tax incentives. While many installations are legitimate and beneficial, some consumers report concerns after signing contracts or completing installations.

Common issues include higher-than-expected energy bills, financing confusion, aggressive sales tactics, system underperformance, and difficulty canceling or modifying contracts once installation has begun.

This page is designed to help you understand how solar agreements typically work, where misunderstandings often occur, and what steps may be available if your system or contract does not match what was promised.

Common Solar Consumer Issues

 1. Misleading Savings Promises

Many solar contracts include projected savings estimates based on ideal conditions. These projections may not reflect real-world usage, weather patterns, roof orientation, or utility rate changes.

Some consumers report that actual savings are significantly lower than what was presented during the sales process.


2. High-Interest or Complex Financing

Solar systems are often financed through third-party lenders. In some cases:

  • Interest rates may be higher than expected 
  • Loan payments may increase over time 
  • Terms may be longer than the expected savings period 
  • Consumers may not fully understand lease vs. loan structures 


3. Solar Lease vs. Ownership Confusion

A major source of confusion is whether the system is owned or leased.

  • Ownership: You typically own the panels and may qualify for incentives 
  • Lease/PPA: You pay for the power produced, but do not own the system 

Some consumers report believing they were purchasing the system when they were actually entering a long-term lease agreement.


4. System Underperformance

Solar systems may underperform due to:

  • Incorrect system sizing 
  • Installation errors 
  • Roof shading or positioning issues 
  • Equipment malfunction 
  • Degraded panels or inverters 

If production is lower than estimated, expected savings may not be achieved.


5. Contract Cancellation Difficulties

Solar contracts can be difficult to cancel once installation begins. Some agreements include:

  • Strict cancellation deadlines 
  • Restocking or removal fees 
  • Financing obligations that remain even if service is canceled 


6. Roof Damage or Installation Concerns

Some consumers report concerns about roof leaks or damage following installation. These situations often depend on:

  • Installation quality 
  • Warranty coverage 
  • Contractor responsibility agreements

Solar Contract FAQs

 Q: Why is my electric bill still high after going solar?
A: Bills may still include utility connection fees, usage above system output, or inaccurate savings estimates provided during sales.


Q: Can I cancel my solar contract after signing?
A: Cancellation rights depend on timing and contract terms. Some agreements allow a short cancellation window before installation begins.


Q: Why does my system produce less power than promised?
A: Production estimates are based on ideal conditions. Real-world factors like weather, shading, and system placement can reduce output.


Q: What is the difference between solar leasing and buying?
A: Leasing means you pay for the energy produced without owning the equipment. Buying means you own the system and may be responsible for maintenance.


Q: Can solar companies guarantee savings?
A: Most “savings guarantees” are based on projections, not fixed outcomes. Actual savings depend on energy usage and utility rates.


Q: What if my roof was damaged during installation?
A: Responsibility depends on the installer’s contract and warranty terms. Documentation and inspection reports are important for disputes.


Q: Can I transfer my solar contract if I sell my home?
A: Some contracts allow transfer to a new homeowner, but approval may be required and can complicate home sales.

 

What to Do If You Have a Solar Dispute

If you believe your solar contract or installation was misrepresented or is not performing as promised:

  1. Review your signed contract and financing documents 
  2. Compare promised savings vs. actual performance 
  3. Document billing statements and production reports 
  4. Take photos of installation and any roof concerns 
  5. Contact the solar provider in writing for explanation 
  6. Complete the Complaint Intake Form and upload any supporting documents.


Solar energy systems involve long-term contracts, financing agreements, and third-party installation providers. Outcomes may vary depending on contract terms, system design, and usage patterns. Always review all documents carefully before signing and retain copies of all communications.

Start Complaint Intake

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Disclaimer: Consumer Advocacy Group does not provide legal advice.


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