Washington, D.C. — District of Columbia Attorney General Brian L. Schwalb has issued a public alert to residents regarding predatory practices in the home solar sector, encouraging consumers to stay alert amidst a rise in aggressive sales tactics and misleading contracts.
This warning is timely as federal tax credits for residential solar systems are set to expire at the end of 2025, leading to an increase in aggressive sales efforts aimed at vulnerable homeowners, especially in Wards 4, 5, 7, and 8. Schwalb’s office has received numerous reports of deceptive sales pitches, poor construction quality, and exploitative financing related to solar panel installations.
“District residents should be on high alert that some home solar system companies use misleading, high-pressure sales tactics to get them to sign predatory contracts,” said AG Schwalb. “In the worst-case scenarios, people can even lose their homes if they can’t keep up with loan payments.”
A Growing Concern in Underserved Communities
The Office of the Attorney General (OAG) reports that low-to-moderate income homeowners, seniors, and non-English speaking residents are being disproportionately targeted. Sales representatives often advertise solar systems as “free” or entirely covered by tax credits—claims that are often misleading.
The alert clarifies that while solar energy systems can provide long-term savings, the initial costs can reach tens of thousands of dollars, typically financed through high-interest loans with concealed fees. Some homeowners have reported being misled about energy savings and ending up with decades-long debt without receiving the promised benefits.
Common Issues Reported
The OAG has highlighted several recurring issues in consumer complaints:
- Misleading, high-pressure sales: Door-to-door salespeople urge homeowners to sign contracts on the spot, falsely claim systems are free, or warn of one-day-only deals.
- Subpar installations: Some companies upsell unnecessary roof or electrical upgrades and perform poor-quality work using unlicensed contractors.
- Deceptive financing: Contracts may include undisclosed “dealer fees”, high interest rates, or predatory terms that put homeowners at risk of foreclosure or bankruptcy if they fall behind on payments.
The OAG is urging residents to exercise caution before entering into any solar contracts. Here are some helpful tips:
- Never feel rushed to sign a contract. Take your time to go over all documents with a trusted advisor or family member.
- Request contracts in your preferred language and make sure to get written proof of all promised savings and fees.
- Check that all contractors are licensed in D.C. by using the city’s SCOUT online system.
Be cautious of claims regarding “free” solar systems. Although D.C. has a Solar for All Program, it comes with strict eligibility criteria. To verify your eligibility, reach out to the Department of Energy and Environment (DOEE) at (202) 299-5271 or solarforall@dc.gov.
Understand the Costs
On average, a solar system in the District should cost around $3,000 per kilowatt of power. For example, a 10-kilowatt system should be approximately $30,000. If the price is significantly higher, it may include unnecessary dealer fees or hidden charges. Consumers can utilize tools like the PVWatts Calculator to estimate the right system size and potential savings for their home.
Reporting Fraud or Misconduct
Residents who suspect they have been misled or exploited by a solar company are encouraged to report their concerns to the OAG’s Office of Consumer Protection:
- Phone: (202) 442-9828 (available in any language; same-day callbacks)
- Online: Submit a complaint
- Email: consumer.protection@dc.gov
AG Schwalb highlighted that while solar energy can be a wise investment for some, residents need to be fully informed before making any long-term financial commitments. “Solar panels may look like a path to savings,” he said, “but without proper information, they can lead to serious financial harm.”
