FTC solar complaints surge 746% as attorney warns homeowners to read the fine print

Federal Trade Commission complaints tied to solar sales and financing have jumped 746% since 2018, and attorney Richard Fonbuena says many homeowners are being caught by liens, cancellation terms and underperforming systems they did not understand when they signed. The warning comes as federal regulators intensify scrutiny and consumers report a growing number of disputes over solar contracts.

Why it matters: - Solar contracts can affect a homeowner’s ability to refinance or sell if financing terms include a lien or UCC filing. - Misleading sales promises can leave families paying for systems that do not produce the expected savings. - Federal scrutiny is rising as complaints tied to solar sales and financing keep climbing.

What happened: - Federal Trade Commission complaints over solar panel sales and financing have increased 746% since 2018, based on an FTC data analysis obtained through a Freedom of Information Act request. - The FTC recorded 5,331 solar-related complaints in the first nine months of 2023. - That total was 31% higher than all solar-related complaints filed during 2022. - Richard Fonbuena, CEO and managing partner of Consumer Advocacy Law Group, said the firm sees homeowners sign solar agreements without fully understanding the terms.

The details: - Fonbuena said many homeowners did not know they had signed a solar contract that included a UCC-1 filing against the solar system attached to their home. - Some homeowners do not discover the filing until they try to sell or refinance. - Fonbuena said sales pitches often emphasize savings while financing structure, cancellation windows and underperformance terms get less attention. - Consumer Advocacy Law Group represents homeowners nationwide in disputes over long-term solar installation and financing agreements. - The firm seeks contract rescission, negotiated settlements, arbitration and system repair for some clients. - Fonbuena identified recurring red flags from the firm’s casework: - Undisclosed liens can attach to the solar system and may make refinancing or selling harder. - Financing terms, including interest rates, total repayment amounts and escalator clauses, may be downplayed verbally. - Door-to-door sales tactics can pressure homeowners to sign the same day. - Some systems underperform and never deliver the promised energy savings. - Cancellation can be difficult because contracts may have narrow windows or costly exit provisions. - Fonbuena said the three-day cooling-off period many consumers expect does not always apply as they assume.

Between the lines: - The complaint surge suggests a broader trust problem in solar sales, not just isolated contract disputes. - The recurring issues point to a gap between what is promised in sales conversations and what is locked into the paperwork. - The biggest consumer risk appears to be hidden consequences that surface only after installation, when reversing the deal can become harder and more expensive.

What's next: - Fonbuena is urging homeowners to request the full contract in writing before signing and to read every page. - Homeowners should confirm whether an agreement includes a lien, UCC filing or any claim against the solar system. - Homeowners should ask about the cancellation window in writing and keep records of all sales communications. - Fonbuena recommends consulting a consumer protection attorney quickly if a contract does not match the sales pitch. - Through Solar Cancellation Resource Center, homeowners can speak with an intake specialist and receive a free case review from the law firm.

The bottom line: - Solar can still make sense for some households, but the contract terms can matter as much as the equipment itself. Homeowners are being told to slow down before signing and verify every promise on paper.