Solar Contract Fraud: Forgeries and Scams

As solar energy adoption rises, so do solar scams within the industry. Unfortunately, some homeowners discover their names appear on solar leases or installation contracts they never signed. 

Forged documents and deceptive sales tactics have led to financial burdens and legal disputes for unsuspecting consumers. If you suspect a solar contract has been fraudulently created in your name, understanding the warning signs and your legal rights is the way forward.

How Solar Contract Fraud Occurs

Fraudulent solar contracts typically stem from high-pressure sales tactics and deceptive practices by bad actors/solar installer frauds. In many cases, sales representatives falsify documents to fast-track approvals and commissions. These forgeries often include:

• Fake Signatures – Some consumers find their names forged on contracts they never agreed to.
• Altered Terms – Contracts may be modified after a consumer has initially signed, changing key details such as pricing and contract duration.
• Unauthorized Applications – Scammers may submit loan or financing applications under a consumer’s name without consent.
• Unauthorized Credit Pulls – Scammers pull people’s credit reports without their knowledge or consent.
• Misrepresentation of Terms – Door-to-door solar scammers may verbally promise terms that do not match what is written in the contract, leaving the consumer with unexpected obligations.

How Solar Contract Fraud Ties into Identity Theft

Fraudulent solar contracts are not just financial scams but also a direct violation of identity theft laws. When a scammer forges a signature or submits unauthorized applications in a consumer’s name, they commit identity theft by using personal information without consent. 

At the federal and state levels, identity theft laws protect individuals from such fraudulent activities, and victims have the right to pursue legal action against perpetrators. In many cases, fraudulent solar contracts result in unauthorized credit inquiries, financial obligations, and credit reporting errors. Understanding these connections can help victims take swift legal action and prevent further harm.

The Consequences of Fraudulent Solar Contracts

The consumer may face severe financial and legal repercussions when a forged or deceptive solar contract is processed. Homeowners may be locked into long-term payment plans for systems they never authorized, impacting their credit scores and ability to sell their homes. Additionally, disputing fraudulent contracts can be time-consuming, requiring legal intervention to void agreements based on forgery or misrepresentation.

How to Protect Yourself from Solar Contract Fraud

The first rule is to avoid all door-to-door salespeople. There is a reason most states have a “Door to Door Sales Act” – because of a history of scams. If you want solar, research and find a reputable company that does not use door-to-door salespeople. Always review contract documents thoroughly before signing to safeguard yourself from solar contract fraud. Ensure that all signatures and details match what was agreed upon, and request copies of every document when you sign it. If a sales representative is rushing you or refuses to answer your questions in written terms, it’s a red flag. Verify any financing applications submitted in your name and monitor your credit report for unauthorized inquiries.

What to Do If You’re a Victim of Solar Contract Fraud

Take immediate action if you discover a fraudulent solar contract in your name. Seek legal assistance to formally dispute the contract and explore options for cancellation or compensation. Solar energy for your home should not be a source of financial distress. Need help? Our experienced in-house solar attorney can help provide guidance and a path forward.