Minnesota Homeowners Beware: Hidden Costs and Solar Scams on the Rise
When it comes to solar energy, not all that glitters is green. While many Minnesota homeowners look to solar panels as a way to save money and reduce their carbon footprint, some are finding themselves trapped in financial headaches instead. A Minnesota attorney general investigation recently uncovered troubling practices in the rooftop solar industry, with homeowners blindsided by massive hidden fees buried in the fine print of contracts.
Adding to the urgency, the Department of the Treasury has issued a consumer advisory warning of rising solar scams, urging homeowners nationwide to be vigilant against high-pressure tactics and deceptive offers. This spotlight on industry pitfalls serves as a wake-up call for Minnesotans eager to go solar.
The Reality of Solar Scams
The promise of clean energy can make some sales pitches sound too good to be true — and unfortunately, they often are. Many companies advertise solar as a way to “eliminate” your electric bill, but customers frequently find that’s not the case. Others exaggerate the ease of securing tax credits and rebates or downplay the long-term costs associated with financing.
The Minnesota attorney general’s findings also reveal another common problem: undisclosed fees that saddle homeowners with unexpected financial burdens after installation. These practices don’t just cost money — they can erode trust in an industry that’s vital to a sustainable energy future.
Protect Yourself Before You Install
Fortunately, Minnesotans can take steps to avoid falling victim to solar scams or hidden costs. Start by contacting your electric cooperative or other electric utility before installation. They can provide impartial advice about the feasibility of solar for your property, as well as information on interconnection requirements and local incentives.
Here are additional steps to protect yourself:
- Do Your Research: Investigate the company’s reputation. Look for reviews, check their standing with the Better Business Bureau, and ask for references from previous customers.
- Scrutinize the Contract: Read contracts thoroughly. Pay close attention to financing terms, interest rates and potential fees. Confirm the availability of any promised tax credits or rebates with your utility or government agencies.
- Avoid Pressure Tactics: A reputable company will give you time to evaluate your options and won’t rely on scare tactics to rush your decision.
What to Do If You’ve Been Scammed
If you believe you’ve fallen victim to a solar scam, it’s important to report it. Contact the Minnesota Attorney General’s Office at (651) 296-3353 or file a complaint online. You can also report fraud to the Federal Trade Commission at ReportFraud.FTC.gov, which offers additional resources for consumers.
The Bright Side — With Caution
Despite these risks, solar energy remains a valuable tool for reducing energy costs and protecting the environment. But as the Department of the Treasury’s advisory reminds us, due diligence is critical. By staying informed, choosing a contractor with a proven track record, and asking questions until you’re confident about the investment, Minnesotans can embrace solar energy’s benefits while avoiding costly pitfalls.
Let’s use this moment to ensure that the transition to clean energy is as positive and empowering as it’s meant to be — for every family and every community.
Written by Darrick Moe, President & CEO at Minnesota Rural Electric Association (MREA).