So, you’re thinking about going solar. That’s great for the planet and one would assume it’s great for your wallet too. Well, that depends on whether you can avoid the landmines hiding in solar sales pitches. The Consumer Financial Protection Bureau (CFPB) dug into this last year and flagged four major traps that continue to trip up unsuspecting homeowners. And right at the start, remember that if it sounds too good to be true, it probably is.

Solar scams can be more dangerous than say, pest control scams, because having solar installed is no simple feat. It is a complex process from the sales contract to getting the system approved to be turned on. It’s not cheap either, so if a scammer can succeed, it’s quite the payday for him or her and leaves a big burn on you.

According to Ira Rheingold, the executive director at the National Association of Consumer Advocates (NACA), “This is just the latest version of home contractor fraud, but a much more lucrative one.” He continued that, “We’re seeing people sold a bill of goods—financing that’s unfair, products that are defective, and installations that are poor.”

So, what are some of these scams?

1. The “No More Electric Bills!” Lie

Sales reps love to claim your energy bill will vanish and that the panels will “pay for themselves.” Sometimes, at least part of that’s true, but rarely and only in just-the-right situations. Factors like where you live and how much sun your roof gets matter. A lot. As do the politics in your municipality. Sometimes the ROI changes after they are installed. A reputable company would not make blanket guarantees.

2. Hidden Markups in Plain Sight

Some installers get fat referral fees from lenders, and guess who pays for that? Yep—you. Those “fees” get baked into the loan, making the system seem cheaper than it really is. Read the fine print to make sure you know what you’re paying for.

3. The Tax Credit or Rebate Trap

A 30% federal tax credit sounds nice, but it’s not guaranteed. In fact, it’s very likely those tax credits will soon be eliminated. Some lenders will use it anyway to make the loan seem lower than it actually is—leaving you stuck with a big bill if you don’t qualify. Make sure you know what rebates and credits are actually available to you at the time you’re looking to install and put into service solar energy. That’s when the credits and rebates kick in; not when you sign the contract.

4. Balloon Payments You Weren’t Ready For

Watch for contracts that sneak in a big one-time payment after a few months. If your tax credit falls through, you're on the hook—fast. Again, make sure to read and understand the fine print. If you don’t understand it and the salesperson cannot explain it to your satisfaction, say no. A legitimate company would allow you time to do your research and you should take it.

As always, if they’re too pushy, you should be very wary of signing any deals.

Bottom Line:

Beware of claims the government will pay for installation. Per the U.S. Department of Energy, “the federal government does not offer any programs for free home solar panel installations.”

Never fully trust door-to-door pitches either. You just don’t know who they really are. We’re not saying all of them are shady, but some certainly are. And it’s not limited to solar installation. Do your own research, get multiple quotes, and never hand over personal info or money on the spot.