How to Avoid Solar Scams and Choose a Reputable Installer to Protect Your Investment in Colorado
Switching to solar is one of the smartest decisions you can make — not just for the environment, but for your home’s value and your future energy bills. But here’s the catch: the rise in solar popularity has also attracted shady players and scams that prey on well-meaning homeowners.
According to the U.S. Federal Trade Commission, complaints involving solar companies jumped by nearly 250% over the past five years. Some companies overpromise savings, install poor-quality equipment, or disappear after receiving deposits — leaving homeowners to deal with expensive consequences.
In this blog, we’ll help you confidently navigate the Colorado solar market, spot scams before it’s too late, and choose Energy Advantage Roofing & Solar to ensure your system is built to last.
The Rise of Solar Scams in the U.S.
Why Are Scams Increasing?
The solar boom means big opportunities — for both legitimate companies and dishonest ones. Between federal tax credits (up to 30%), state rebates, and reduced utility bills, many homeowners are jumping in without fully vetting who they’re working with.
Unfortunately, this rush has opened the door to:
Aggressive door-to-door salespeople
Bankrupt national installers leaving customers stranded
Overpromising on ROI without disclosing system limitations
Unauthorized subcontractors doing subpar installations
Did you know? In 2023 alone, over 100 solar companies shut down or filed for bankruptcy, including major national names like Pink Energy, impacting thousands of homeowners. (source)
10 Red Flags of a Solar Panel Scam
Watch out for these common warning signs:
Red Flag | What It Really Means |
---|---|
“Free solar panels” | Often tied to confusing lease or PPA contracts with hidden fees |
No physical address | Hard to track down if problems arise |
“Today-only deal” pressure | Pushy tactics to prevent research or comparison |
Lack of licensing info | May be operating illegally or unqualified |
Refusal to provide a written contract | No proof of what you agreed to |
Vague system specs | Cheap, unreliable components often used |
No reviews or terrible ones | Tells you everything you need to know |
Poor BBB rating | Indicates unresolved complaints |
Asking for large deposits upfront | May disappear with your money |
Avoiding permit discussions | May cut corners or skip local codes |
How to Choose a Reputable Solar Installer in Colorado
Choosing the right installer is just as important as choosing the right solar panel brand. Here's how to make a smart choice:
1. Verify Licensing and Certifications
In Colorado, a legitimate installer should:
Hold a valid electrical contractor’s license
Employ NABCEP-certified professionals (North American Board of Certified Energy Practitioners)
Be insured and bonded
Verify licenses here via the Colorado Department of Regulatory Agencies
2. Check Their Track Record
Look for local experience — they should understand Colorado's weather, building codes, and permitting process
Read Google, Yelp, and BBB reviews
Ask for a portfolio of previous installations in your area
Request 2-3 customer references — and call them!
3. Request a Detailed, Written Quote
Any reputable company will give you:
Panel brand and wattage details
Inverter types
Mounting system info
Roof compatibility assessment
Estimated energy savings
Cost breakdown and timeline
Warranty and maintenance terms
Pro Tip: If a company says, “Don’t worry about that technical stuff,” it’s time to walk away.
4. Evaluate Their Communication Style
Are they responsive?
Do they explain things in plain English?
Do they answer your tough questions without dodging?
Transparent communication is a sign of a company that won’t ghost you after installation.
5. Get Multiple Quotes
You don’t have to go with the first company you meet. Compare at least 3 different quotes, and be wary of anyone whose price is significantly lower than others.
What Should Be in Your Solar Contract?
Before signing anything, make sure your contract includes:
Full scope of work and specs
Start and completion dates
Total cost and payment schedule
Warranties: Panel (25+ yrs), inverter (10+ yrs), workmanship (10+ yrs)
Removal & reinstallation terms for roof repairs
Who’s responsible for permits and inspections
Ask for time to review the contract and consider having a lawyer review it too — especially for lease or PPA agreements.
Don’t Forget About Maintenance and Repairs
Even the best solar panels need occasional care. Choose a company that offers:
Annual inspections and cleaning
Inverter monitoring and diagnostics
Detach and reset services for reroofing or renovations
A company that sticks around to help after installation is the one you want on your side.
Solar in Colorado – Key Stats
Fact | Details |
---|---|
Avg. Colorado solar payback period | 9–11 years |
Federal tax credit | 30% (available through 2032) |
State ranking for solar potential | Top 10 in the U.S. |
Cost to install solar in CO (avg.) | $12,000–$20,000 before incentives |
% of CO homes powered by solar | Over 5% and growing fast |
(Source: SEIA – Solar Energy Industries Association)
Final Thoughts
Investing in solar energy is a wise decision, but it's essential to navigate the process carefully. By staying informed and choosing a reputable installer, you can enjoy the benefits of solar power without falling victim to scams.
Working with Energy Advantage Roofing & Solar, you can avoid common pitfalls and protect your investment for decades to come.
Frequently Asked Questions
Q: What’s the difference between a solar lease and a purchase?
A lease means you don’t own the system and may save less over time. Purchasing gives you full ownership and the biggest long-term returns.
Q: Can I trust national solar companies?
Some are reputable, but many go bankrupt or subcontract without oversight. We recommend going local for better accountability.
Q: Do I need to clean my solar panels?
In Colorado, snow and dust can reduce output. We recommend a yearly inspection and cleaning.
Q: What happens if I need to replace my roof later?
Choose a company that offers professional solar panel detach and reset services, like we do at Energy Advantage.
Q: Will solar panels increase my home’s value?
Yes! Studies show homes with solar sell faster and for more — especially when the system is owned, not leased.