Attorney General Brian L. Schwalb has issued a Consumer Alert warning District residents about predatory practices in the home solar sales and loan industry, as federal tax credits for residential solar systems are set to expire at the end of 2025.
With that deadline approaching, officials say aggressive sales tactics are increasing, particularly in Wards 4, 5, 7 and 8. Low- to moderate-income homeowners, seniors, and residents who do not speak English as their first language have been among the main targets.
“District residents should be on high alert that some home solar system companies use misleading, high-pressure sales tactics to get them to sign predatory contracts,” Schwalb said. “While adding solar panels can be the right decision for some homeowners, they are a major financial commitment and do not always deliver promised savings. Sometimes homeowners get stuck paying off a loan for decades without seeing energy savings — and in the worst-case scenarios, can lose their homes if they can’t make loan payments.”
The Attorney General’s Office (OAG) reports that many companies use misleading sales pitches to lure residents into signing contracts on the spot. These pitches may falsely claim a system is “free” or that federal tax credits will cover the cost.
Solar installations often cost tens of thousands of dollars, and loans to finance them may last decades. When payments cannot be met, homeowners face the risk of foreclosure or bankruptcy.
Complaints have also surfaced about deceptive installers who pressure consumers into paying for unnecessary roof or electrical upgrades before panels are installed. In some cases, poor workmanship and hidden dealer fees have left homeowners paying far more than expected. Even when families can keep up with payments, the promised energy savings often fall short, meaning they never recoup their costs through reduced bills or tax credits.
According to the OAG, an average solar system in D.C. should cost about $3,000 per kilowatt of power. A 10-kilowatt system, for example, should cost around $30,000. Prices far higher than that may indicate that hidden fees are inflating the bill.
Schwalb’s office is advising residents to take time to understand the full scope of any contract before signing.
Contracts should always be provided in a language the consumer understands, and residents are encouraged to review them carefully with a trusted family member or friend.
Homeowners should verify contractors and installers through the District’s SCOUT licensing database and request a written breakdown of total costs, interest rates, dealer fees, and projected savings.
Officials also warn residents not to take salespeople at their word when told they qualify for a “free” system.
“While solar is an important part of the country’s energy future, predatory home solar salespeople often deploy deceptive tactics to lock (often low-income or elderly) homeowners into hefty contracts that may be financially perilous to them,” Campaign for Accountability wrote on X, formerly known as Twitter.
Those interested in legitimate opportunities can contact the D.C. Department of Energy and Environment’s Solar for All program at (202) 299-5271 or solarforall@dc.gov to check eligibility.
Residents who believe they have been misled or pressured into unfair agreements can call the Consumer Protection Hotline at (202) 442-9828.
Complaints can also be submitted online at oag.dc.gov/complaint or by emailing consumer.protection@dc.gov. Calls are returned the same business day and can be handled in any language.
“I encourage D.C. residents to report any deceptive or misleading sales tactics or other issues with home solar companies to our Office of Consumer Protection,” Schwalb said.
