Fake Solar Deals: Who Are the Scammers and How Do We Protect Ourselves?

As it steadily advances, the solar movement will become less of a movement and more of a mainstream business. If historical precedent has taught us anything, it’s that with big business comes big scams, even those that crash or seriously damage an entire economy for years.

But because solar is such a competitive and highly publicized market, it’s difficult for potential scammers to get away with fraudulent claims and phony lures. Not that such claims aren’t made (and with great gusto), but protecting yourself from them is simple with a little free and easy defense lesson.

Photo Credit: Solar Power Rocks

If there are two points in a solar sales proposition that a salesman is likely to fabricate, it’s cost and efficiency – two components of the solar package that are inextricably linked.

Initial Costs Versus End Costs

When installed, residential solar systems go for roughly $7-10 per watt. Therefore, a 2,000-watt system (or 2-kilowatt) at $10 per watt will cost about $20,000. Now, local, state, federal or utility rebates and incentives can cut into this total significantly – as much as half or more depending on where you live.

Bear in mind that tax credits and rebates are often paid at tax time, so expect a hefty price tag initially (programs do vary and some states pay the contractor directly, thus reducing up-front costs).

So while it isn’t necessarily a lure of any kind, when you see pitches like, “Get over half your solar system paid for!” or “Get a $20,000 solar electric system for $8,000,” it’s probably true that you’ll ultimately pay only $8,000 for the system, but you may have to pay the large majority of that 20 grand to the installer up front.

How Low Can You Go?

That being said, any contractor claiming discounts significantly lower than the $7-10 range should be watched carefully. Solar is a very thirsty market at the moment, and most contractors are doing everything they can to bring costs down. You see, the contractor gets paid his or her earnings regardless of the end cost to the homeowner, so lowering costs and maximizing the use of incentives is a win-win for both customer & installer.

Photo Credit: Digerati Life

But just like other areas of home improvement, there will be contractors who undercut others’ bids or haphazardly underbid in order to get work. Watch out for these contractors. You get what you pay for, so the best way to avoid under-qualified contractors is to educate yourself; know and understand the going rates and use them as a guide to weed out the very high or very low. And always call references.

Fortunately for you and me, if contractors want to qualify for rebates and incentives (the number one driving force behind most installations, excluding environmental activism), they must be recognized by some state or federal institution. This both ensures the government that subsidized systems are properly installed and weeds out most people who don’t know what they’re doing.

The 3,000-Watt Solar Panel?

Just as homeowners should know better than to fall for unreasonably low or high bids, so investors should know not to trust technology that leaps well beyond current levels. Take, for example, the story of DBK Solar, a company that claims to have a 3′ x 5′ solar panel that can put out an amazing 3,000 watts of power, nearly 20 times that of standard high-wattage solar panels.

There are all kinds of problems with such a claim, especially when the laws of physics are applied. Nonetheless, this mysterious company lured many prospective “dealers” of their panels, for which they held amazing but dubious demonstrations – at a sizable fee, of course. There is no record of any product actually being delivered.

The DBK Solar dilemma has been going on for over two years. After several twists and turns, the final verdict is still out on this “groundbreaking” company. Their website is suspiciously under construction and was “scheduled” to be back online seven months ago. Here’s the best case against DBK Solar that I could find, although it doesn’t take an expert researcher to find loads of complaints about DBK.

Something To Be Afraid Of?

It’s easy to be lured into a phony solar deal. And it’s likely because of the very real promise and society’s emotional embrace of solar energy that scammers such as DBK Solar can succeed for as long as they do.

At the same time, solar scammers are really nothing to be afraid of. All it takes to fend them off is confidence in your own common sense and some cursory education in solar energy science & industry. Fortunately, news and information regarding solar power and other renewable energy sources is as easy to find as a crappy reality show on network TV. Spread the word.

Posted on August 10th in Solar Information by Dan.