The Solar Three-Step Fraud
Why Some Solar Companies Are More Like Wasps Than Bees
By Charles Moster
The Moster Law Firm, P.C.
Texans are being victimized by what I call the Solar Three-Step Fraud.
Unlike a bee, which stings only once, fraudulent solar companies—or those working together in a cycle of deception—can sting homeowners three separate times. Each new promise is presented as the solution to the last disaster. In reality, it often creates an even bigger financial nightmare.
Here’s how it works.
Fraud #1 – The Door Knock
It usually begins with a knock at your front door.
My first piece of advice is simple:
Don’t answer the door for unsolicited solar salespeople.
The sales pitch is polished, rehearsed, and designed to create excitement and urgency. We’ve heard virtually every version imaginable.
They promise dramatic reductions in electric bills.
They show impressive-looking algorithms on an iPad predicting enormous savings.
They talk about saving trees, reducing your carbon footprint, and “doing your part.”
They tell you the government is paying for most of the system.
They promise lucrative tax credits that many homeowners either don’t qualify for or cannot fully use.
They claim you’ll easily sell your home because buyers love solar.
They tell you you’ll become “off the grid.”
They promise that the monthly savings will completely pay for the loan.
In our experience representing homeowners, these promises frequently fail to match reality.
Many homeowners discover they now have:
- Their regular electric bill;
- A new 20- to 25-year solar loan;
- Panels that produce far less electricity than promised;
- A lien or financing obligation that complicates selling their home; and
- No meaningful financial savings.
One of the most troubling practices is selling these long-term loans to homeowners in their 70s and 80s.
Think about it.
A 25-year financing obligation sold to someone in their 80s deserves serious scrutiny.
Fraud #2 – The “Rescue” Company
Then comes another knock on the door.
A different solar company.
This salesperson is sympathetic.
They tell you they know exactly what happened.
They agree you were lied to.
They explain that your original system was poorly designed.
Then comes the promise.
“We can fix everything.”
They say they’ll eliminate the first loan.
Or reduce it.
Or pay it off.
Or replace the old panels with newer, better technology.
The homeowner understandably wants to believe someone is finally being honest.
Instead, many end up signing another financing agreement.
Now they have:
- Two solar systems—or two sets of obligations;
- Two loans;
- Two companies pointing fingers at each other; and
- The same disappointing electric bills.
Fraud #3 – The Consolidation Trap
Unfortunately, it doesn’t always end there.
A third company appears.
Their pitch is familiar.
“We know you’ve been cheated.”
“We’re different.”
“We’ll consolidate everything.”
“We’ll finally build the system that actually works.”
They promise one payment.
One loan.
One solution.
Instead, many homeowners sign yet another financing agreement.
Now they have been trapped three separate times.
Three promises.
Three contracts.
Three financing obligations.
And still no meaningful savings.
Protect Yourself
If someone knocks on your door offering solar, remember:
- Never make a same-day decision.
- Never rely solely on a salesperson’s savings calculations.
- Never assume you qualify for tax credits simply because you’re told you do.
- Never believe financing “just disappears.”
- Never sign electronic documents without reading every page.
- Always obtain independent advice before signing a 20- or 25-year obligation.
If You’ve Already Been Victimized
Texas homeowners have important legal protections.
Depending upon the facts, claims may exist under the Texas Deceptive Trade Practices Act (DTPA), common-law fraud, breach of contract, negligent misrepresentation, and other consumer protection laws. In appropriate cases, homeowners may also have claims against finance companies under the Federal Trade Commission’s Holder Rule, allowing consumers to assert certain claims and defenses against lenders that financed the transaction.
Every case is different, but the sooner you investigate your legal rights, the better.
If you believe you’ve been caught in the Solar Three-Step Fraud, don’t assume you’re trapped forever.
The law may provide a way out.
The Moster Law Firm, P.C. has represented homeowners throughout Texas in solar fraud and consumer protection cases. If you believe you’ve been misled by a solar company or financing company, contact us for an evaluation of your potential claims.
214.623.5627
www.themosterlawfirm.com
