The solar industry is booming, driven by growing environmental awareness and government incentives. However, not all solar companies provide the quality, reliability, and transparency that customers expect. Whether it’s deceptive sales tactics, poor customer service, or subpar product performance, choosing the wrong solar panel company can lead to frustration, unexpected costs, and even legal trouble. This article exposes some red flags and names companies that have drawn significant complaints, helping you make an informed decision.
Warning Signs to Watch Out For When Selecting a Solar Company
Not every solar provider delivers the value they promise. Here are some crucial indicators that suggest a company may not be the right fit:
- Aggressive Sales Tactics: Some companies employ door-to-door salespeople who pressure homeowners into signing contracts without fully understanding the terms.
- Overpromising Savings: If a company promises 100% offset on energy bills or guarantees savings that sound too good to be true, be skeptical.
- Long Contracts with Hidden Fees: Solar leases and power purchase agreements (PPAs) often come with multi-decade commitments and hidden costs, leaving customers trapped.
- Limited Warranties: A reliable solar provider offers at least 20 to 25 years of product warranty. Companies with weak warranties may signal poor product quality.
- Subcontractor Issues: Companies that outsource installations to third-party contractors may not have full control over the quality of the installation, leading to mistakes and delays.
Companies with Questionable Practices You Should Avoid
Here’s a breakdown of some solar companies that have gained a bad reputation in the industry based on customer reviews, lawsuits, and complaints.
1. Pace Energy & Loan Providers: Misleading Financing Models
Pace financing companies have faced backlash for locking homeowners into loans tied to their property tax bills. Many homeowners report that the loan terms were not clearly explained during the sign-up process, leaving them with large debts they weren’t prepared for. Additionally, customers often find it challenging to sell their homes because these loans stay attached to the property.
Common Complaints:
- Poor disclosure of loan terms
- Difficulty refinancing or selling homes
- Confusing application processes
2. Vivint Solar (Now Part of Sunrun): High-Pressure Sales & Legal Issues
Vivint Solar has a long track record of complaints regarding deceptive sales tactics and poor customer service. Before being acquired by Sunrun, the company faced lawsuits for misleading customers about savings. Even now, some homeowners continue to report issues with their systems, including hidden fees and poor communication.
Issues Highlighted:
- Door-to-door sales complaints
- Lawsuits for misleading advertising
- Billing discrepancies after installation
3. Sunrun: Service Gaps and Billing Problems
Sunrun, one of the largest residential solar providers in the U.S., has earned both praise and criticism. However, numerous customers complain about long wait times for service requests, faulty installations, and inaccurate billing. Despite its size, Sunrun’s service quality varies significantly depending on the region.
Red Flags:
- Delayed installations and slow maintenance
- Complicated lease agreements
- Billing errors and customer support issues
4. Tesla Solar: Mixed Reviews on Solar Roof and Panels
Tesla’s solar division offers innovative solutions like the Solar Roof, but it hasn’t been free from complaints. Many customers report significant delays, installation issues, and poor communication. Tesla’s transition from SolarCity also left some customers with unresolved service and warranty claims.
Customer Feedback:
- Long installation lead times
- Poor customer service after installation
- Inconsistent warranty support
Hidden Costs and Contract Traps to Avoid in Solar Deals
Even with reputable companies, solar contracts can be riddled with hidden fees and unfavorable terms. Here’s what to look for:
- Escalating Payments in PPAs and Leases: Some agreements come with annual payment increases that can offset the savings you expect.
- Transfer Fees on Home Sale: If you sell your home, transferring the solar contract to the new owner can be difficult, sometimes involving extra fees.
- Early Termination Penalties: Exiting a solar lease or PPA before the contract term ends often involves hefty penalties, locking you into unfavorable conditions.
- Maintenance and Monitoring Fees: Some companies charge extra for system monitoring or maintenance, even when the initial quote claimed these services were included.
The Importance of Reading Solar Reviews and BBB Ratings
Customer reviews and ratings from platforms like the Better Business Bureau (BBB) are valuable resources to gauge a company’s reputation. Companies with unresolved complaints, poor reviews, or low BBB ratings are generally not worth the risk. Always cross-reference multiple review platforms, including Trustpilot and Google Reviews, to get a well-rounded view of a company’s performance.
Steps to Avoid Problematic Solar Companies
Follow these practical steps to avoid companies with poor reputations:
- Compare Multiple Quotes: Never sign a contract with the first company you talk to. Comparing quotes helps you understand industry-standard pricing and terms.
- Request a Detailed System Proposal: Make sure the proposal includes expected energy production, warranty details, and a breakdown of costs.
- Check for Certification and Licenses: Reputable installers are certified by organizations like NABCEP (North American Board of Certified Energy Practitioners).
- Read the Fine Print: Go through every clause in your contract to avoid surprises, especially regarding warranties and maintenance services.
- Ask About Subcontractors: Ensure that the installation will be done by in-house professionals or vetted contractors.
Trustworthy Alternatives in the Solar Industry
If you’re looking for reliable solar companies, here are some that have built a reputation for quality products and excellent customer service:
- SunPower: Known for high-efficiency panels and industry-leading warranties.
- LG Solar: Offers premium solar panels with excellent reliability.
- REC Group: Provides strong warranties and has a good reputation for customer satisfaction.
While these companies aren’t perfect, they have far fewer complaints compared to those listed earlier. Doing thorough research and choosing a provider with a solid track record will save you from unnecessary headaches down the road.
Do Your Research Before Signing a Contract
The solar industry offers plenty of great opportunities for savings, but it’s not without its pitfalls. Companies with aggressive sales practices, hidden fees, and poor customer service can turn your solar experience into a nightmare. Use this guide to avoid problematic solar providers and focus on those that prioritize transparency, quality, and customer satisfaction.
Taking the time to research, compare, and ask the right questions will ensure you make an informed choice—one that brings long-term savings and peace of mind.
