Solar panels have become a popular choice for American homeowners looking to reduce their carbon footprint and lower their monthly utility bills.
Many customers finance their solar panels with loans — often counting on federal tax credits to cover part of the upfront cost — and expect to see years of lower energy bills. But that equation can quickly be thrown off course if the installer turns out to be unlicensed, inexperienced or downright fraudulent.
New York City is grappling with this problem in its latest lawsuit against Radiant Solar, a local installation company that the city claims ripped off hundreds of homeowners who tried to join the renewable revolution (1).
Prompted by a CBS News New York investigation, the city’s Department of Consumer and Worker Protection (DCWP) found that customers who buy solar panels from Radiant Solar aren’t seeing the savings promised by the installer.
“We have identified several hundred victims of the scheme,” DCWP Commissioner Samuel Levin told CBS. “We think there are more.”
The suits are seeking homeowners’ money back, but some may be locked into installation loans and are now unsure whether they will be cancelled. Lawyers for Radiant Solar told CBS that even though the company is no longer in business, it remains committed to quality service and clear, transparent pricing about potential savings.
However, former customers tell a different story. Many say the promised savings never materialized and transparency was hard to find. One customer even claimed that the panels were installed with the wrong orientation – away from optimal sunlight exposure.
“The south exposure is where we get the sunlight, and I’m pointing out that he’s setting the panels in the wrong direction,” homeowner Arthur Klein told CBS. “It really upset me.”
Other homeowners have reported roof damage, leaks and unauthorized drilling by installers. A homeowner said Radiant Solar won’t cover damages when his roof collapses after installation.
The most troubling issue, according to customers, was the promise of dramatic energy savings — even $0 electric bills. Instead, some homeowners say they’ve taken out loans to install solar while they avoid high monthly costs.
One homeowner, Lorna Winter, told CBS she was shocked to learn she signed up for financing and that her electric bills have since reached $900, despite having solar panels on the roof.
“There was no discussion about paying for my solar panels. I didn’t know I was getting a loan until I got the welcome letter,” Winter said. “I’m waiting for some relief. I’m waiting for some answers.”
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Renewable energy and solar power are increasing in demand, and many homeowners are researching their options and looking into installation costs. Unfortunately, solar schemes are also on the rise.
A study by American Prospect found that elderly homeowners are increasingly being preyed upon by door-to-door solar scammers, who convince friendly but unsuspecting older Americans to sign up for installation loans (2). Most of the time, these loans are effected before the installation is complete and functional.
“The consumer has no control over when the contractor is paid or whether the contractor has completed the project before they are paid,” Audrey Thornton, a housing and economic rights advocate for the California policy group, told America’s Prospect. “So often, in many cases, the lender will release the loan amount to the contractor before the project is finished.”
Thornton said these arrangements frequently leave homeowners with poorly performing panels, zero savings interest and expensive debt.
Legitimate solar loan programs exist and provide significant savings over time, but there are many that homeowners should avoid (3). Some may promise “free” solar panels or even offer bogus government programs that “pay you” to install panels, specifically targeting homeowners on fixed incomes.
Installation sales pitches that rush for signatures or contracts can take advantage of uninformed and older homeowners, as well as offers of “zero-down” deals that actually get buyers into a long-term loan schedule. Consumers should also be wary of in-home sellers who offer “free” onsite inspections.
Solar panels may be a great option for your home and your energy bill, but not every installation company is legal or has sustainability in mind. If you’re interested in solar panels, be sure to check for common warning signs:
The state program offers: There is currently no federal home solar program, only tax incentives that expire in early 2026 (4).
Free Solar or Zero Dollar Energy Bill Claims: Promises of “free electricity” can come with strings attached. Homeowners may find themselves locked into long-term purchase agreements or solar leases, still responsible for grid connection fees, or charged extra for using energy beyond a certain limit. What seems simple on the surface can turn into a complex and expensive undertaking.
Pressure to act now: As with many financial schemes, a salesperson will often pressure a consumer to agree to a deal in a hurry. Before signing a contract with any installer, check their reviews, manufacturer certifications and verify their license.
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CBS News (1); American Prospect (2); Dutch Law Firm (3); IRS (4).
This article provides information only and should not be used as advice. It is provided without warranty of any kind.
