Solar Panel Companies to Avoid in Chicago: 10 Red Flags to Consider

Solar energy has become the new norm among U.S. homeowners, with more than 4.2 million single-family homes adopting solar systems, representing about 5% of all single-family homes nationwide. Meanwhile, this popularity increases the possibility of meeting scammers who can leave you high and dry.

Source: Statista

 

To protect your investment, it’s essential to recognize common red flags in solar installers. Since shady companies often rebrand and flood review sites with fake feedback, relying on outdated “blacklists” won’t help. The smartest move? Carefully vet every installer you consider.

We’ve created this guide to help you pinpoint solar panel companies to avoid in Chicago. While the names of non-reputable companies may change, the red flags stay the same. So, let us save you from illegitimate solar operators and help you find the reliable ones.

Are Solar Panels a Scam?

No, solar panels aren’t a scam. If installed properly, they provide you with green electricity for decades. It helps you lower your power bills and even earn some money in the process. However, it’s possible only if you choose a reliable contractor. And here is the catch and the answer to your question, “Is solar a scam?”.

The growing demand for green energy has drawn opportunistic businesses more focused on profit than performance. Misleading contracts, exaggerated savings claims, and poor-quality installations have left many homeowners feeling scammed, not by solar technology itself, but by the companies selling it.

Is the No-Cost Solar Program Legit?

“No-cost” solar might sound like a dream, but you should definitely read between the lines. These deals usually involve leases or power purchase agreements that lock you into paying a solar provider for 20 to 25 years.

While they are not a “solar scam” since you’ll still get green power, these programs are clearly deceptive. Reputable companies will explain everything, provide official documentation, and avoid making exaggerated promises. If someone’s trying to dazzle you with talk of “free power” or “government-backed” giveaways, consider it a red flag and steer clear.

How to Spot Illegitimate Solar Companies: 10 Red Flags

The solar industry has seen explosive growth over the past decade, making the process of going green more accessible. But with that growth comes a dark side: a surge of energy company scams looking to cash in on the green energy boom.

While solar itself is a good investment when done right, choosing the wrong company can turn your home improvement dream into a nightmare. To help you dodge poor service, we’ve gathered a list of common signs of solar panel companies to avoid in Chicago. 

While fraudulent companies may change names to avoid getting caught, these 10 red flags of clean energy scams spill all their beans:

• High-pressure or aggressive sales tactics
• Promises of “free” solar without clear terms
• Lack of transparency about system ownership (lease vs. purchase)
• Overpromising savings or system performance
• Claiming government affiliation or limited-time federal programs
• Hidden fees or unclear contract language
• Poor or inconsistent online reviews
• No valid licensing or insurance
• Unwillingness to provide references or past projects
• Rushed installation timelines without a proper site assessment

High-Pressure or Aggressive Sales Tactics

One of the most common red flags in illegitimate solar dealings is the use of high-pressure sales tactics. If a sales clerk rushes your decision, it’s not because they’re offering a one-time-only deal; it’s likely because they don’t want you to do your homework and find real information about their deals. Tactics to watch out for include:

• CTAs like “Sign today to lock in your rate”: False urgency is often used to discourage comparison or reading the fine print.
• Uninvited phone calls or door-to-door solar panel sales scams: Reputable companies don’t need to chase you down, as you can find and study information about them at your own pace.
• Fear-based language: Phrases like “your utility bills are about to explode” or “you’re losing money every day you wait” are meant to scare, not inform. If you want to avoid such energy bill scams
• Pushing incomplete or blank contracts: If you’re told to “just sign now and we’ll fill in the details later,” walk away immediately.

Legitimate solar providers understand that investing in solar is a big decision. They’ll welcome your questions, provide all documentation, and encourage you to take the time you need. If someone is pressuring you to act before you’re ready, it’s most likely one of the solar panel companies to avoid in Chicago.

Promises of “Free” Solar Without Clear Terms

“No-cost solar” sounds great, but in most cases, it’s far from reality. These offers often refer to solar leases or power purchase agreements (PPAs), where a third-party company installs the panels on your roof at no upfront cost. However, with the “no-cost solar scam”, you don’t own the panels, even if the operator states it.

If you pay no upfront cost, it’s most likely that you sign a PPA or solar lease where the company owns the panels, and you pay them monthly for the next 20+ years.

Don’t rush to sign any papers. Thoroughly read your contract to understand every word in it.

Those bills are slightly lower than traditional energy bills, but these panels are still not free. Since you won’t own the system, you can’t claim federal tax credits or incentives. It also becomes more complicated to sell your house since buyers must agree to take over your lease or PPA.

Lack of Transparency About System Ownership

As you understand from the previous point, it is crucial to know who owns your solar system. A reputable installer will take the time to clearly explain the difference between purchasing, leasing, signing a PPA, and other solar financing options. 

Avoid companies that use vague language like “you’re covered” or “it’s all included,” ignoring your questions about tax credits, warranties, and what happens if you sell your home. Keep in mind that whoever owns the system gets all financial perks.

Overpromising Savings or System Performance

If a solar company guarantees that you’ll wipe out your electric bill entirely or recoup your investment in just a few years, take it as a red flag. These promises sound great, but they’re usually too good to be true. It especially relates to Chicago and its long winters.

To get enough energy to power your house for 13 hours of cold winter nights, you need to have a capacious system and batteries. This setup may cost more than $15,000 without installation, and you can easily calculate the approximate system’s price on your own. Such systems require at least 8-10 years to recoup their costs.

Keep your budget expectations real. Solar electricity is a long-term investment with all that it implies, so take your time.

So, suppose the solar provider promises to deliver a cheap system (less than $10,000) that covers ALL your electricity needs. In that case, it’s a clear sign of solar panel companies to avoid in Chicago. A trustworthy installer will run the numbers, present different scenarios, and explain both the best-case and realistic outcomes. 

Claiming Government Affiliation or Limited-Time Federal Programs in Chicago

One of the most deceptive tricks in the solar scam playbook is falsely claiming government affiliation. It is especially relevant to populated areas like Chicago, where local incentives can change several times a year. Solar companies to avoid in Chicago may use phrases like this:

• “Government-backed solar program”
• “Limited-time federal rebate”
• “This is part of the Illinois clean energy initiative.”

These statements are crafted to sound official and urgent, pressuring you into quick decisions. In reality, the federal government does not endorse specific solar companies, nor does it send out contractors to install panels “for free.” The Federal Solar Tax Credit (ITC) is a real solar incentive, but you must own the system to claim it and you apply for it yourself after installation when you file your taxes.

Hidden Fees or Unclear Contract Language

A trustworthy solar contract should lay everything out in plain language. Unfortunately, potential green energy scams use vague or overly complex contracts to sneak in hidden fees and unfavorable terms.

When reviewing a contract, look for potential escalator clauses and unexplained charges for permitting inspection or equipment upgrades. If a company can’t walk you through the contract line by line and explain every cost in simple terms, that’s a major red flag.

Worse yet, if they discourage you from getting a second opinion or reviewing the contract with a lawyer, walk away immediately.

Poor or Inconsistent Online Reviews

Before signing, take time to dig into a solar company’s online reputation. One or two negative reviews aren’t a dealbreaker. Remember that every company has off days or complex clients, but a pattern of similar complaints is a clear warning. There are plenty of organizations aiming for you to go solar safely:

• The Department of Energy: The DOE offers a guide to going solar that outlines a comprehensive list of factors to evaluate before choosing an installer. 
• The Federal Trade Commission: The FTC offers guidance on how to get a fair solar deal.
• Advocacy groups: Groups like Solar United Neighbors and GRID Alternatives can help people go green. If you qualify for their programs, they provide you with a consultation along the way.
• Certifying boards: You can discover certified installers by studying the North American Board of Certified Energy Practitioners.
• Review platforms: Sometimes, websites like Better Business Bureau (BBB), Trustpilot, or Yelp can provide you with fair reviews about a potential operator.
• Your neighbors: If you have friends, family, or neighbors who recently installed panels, ask them about their experience with their installer.

Pay close attention to recurring themes in reviews, such as bait-and-switch tactics, ghosting after installation, misleading financing terms, delays, and poor workmanship. Also, note whether positive reviews feel genuine or suspiciously scripted. If all the 5-star reviews were posted in the same week or sounded like marketing copy (even with typos), they may not be trustworthy.

No Valid Licensing or Insurance

Installing solar panels requires proper licensing and insurance to be done legally and safely. If a company can’t show proof of these, that’s a serious red flag.

Licensing ensures that the company meets your state’s technical and safety standards. In most states, solar installers need a contractor’s license and specific electrical certifications. Shady companies might claim that they are “covered” without showing documents, use subcontractors who aren’t licensed or insured, and refuse to answer direct questions about licensing status.

Unwillingness to Provide References or Past Projects

Reputable solar companies show their work. If a company hesitates or outright refuses to provide references, project photos, or customer testimonials, that’s a major red flag.

Look for real proof, such as photos and videos from previous customers. Talking to other customers gives you insights into how the company handles everything, from communication and scheduling to installation and follow-up.

Rushed Installation Timelines Without Proper Site Assessment

A quality solar installation starts with a detailed site assessment, not a rush to get panels on your roof. If a company is pushing to install your system immediately, with little to no inspection, you should be very skeptical since you may face green energy scams.

Solar isn’t a plug-and-play solution. A legitimate provider will conduct an on-site evaluation, check the roof’s integrity, and assess tree coverage, nearby buildings, and seasonal shading. They will discuss potential upgrades (like a panel replacement or roof repairs) before installation.

How to Safeguard Yourself from Solar Panel Scams 

Before diving into solar, learn the basics about this electricity generation approach by using beginner-friendly guides. This knowledge gives you the power to spot solar power scams.

You should always get multiple quotes from different installers. Compare pricing, system specs, warranties, and financing options. Read reviews on Google, local groups, and solar-specific platforms. Watch for red flags like vague proposals or unrealistic savings promises that look like a solar pyramid scheme.

Solar is a long-term investment, so you should clearly understand your financial future. When in doubt, consult a financial and tax advisor to avoid locking yourself into unfavorable terms. Keep in mind that it’s better to be extra cautious than scammed.

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