Solar Panel Scams in Colorado: How to Spot, Avoid, and Fight Back
Solar energy has taken off across Colorado, promising homeowners lower electric bills and energy independence. But as the solar industry has grown, so has the number of solar panel scams and deceptive installation practices. From bait-and-switch tactics to predatory financing and hidden leases, many Colorado homeowners are discovering that their solar deal wasn’t what it seemed.
At Hollington Law Firm, we represent homeowners across Colorado who have been misled or financially harmed by solar companies. If you’re wondering how to cancel a solar contract, sue a solar company, or hold a contractor accountable for a bad solar installation — this guide is for you.
Why Are Solar Panel Scams on the Rise in Colorado?
With more than 100,000 residential solar systems installed statewide, Colorado is a leader in solar adoption. The state supports solar energy through net metering, sales tax exemptions, and prohibitions against HOA restrictions (source).
Unfortunately, many solar companies now rely on high-commission salespeople, out-of-state marketing firms, and third-party financing partners. These entities often use aggressive sales tactics, misleading claims, or even fraudulent contracts to close deals quickly — often at the homeowner’s expense.
Common Solar Panel Scams and Deceptive Tactics
“Free Solar Panels” or “Government Solar Program” Claims
One of the most common scams is the false promise of free solar or zero-cost solar panels. Sales reps may claim:
The system is “fully paid for by the government”
There are “limited rebates” you must act on immediately
“You’ll never pay an electric bill again”
These offers are usually tied to solar leases or power purchase agreements (PPAs) that lock you into 20+ years of payments without owning the system. Worse, you may lose access to the federal solar tax credit if the leasing company claims it instead.
The Federal Trade Commission has warned consumers that there is no such thing as a “free solar program” — and that deceptive claims like these may violate consumer protection laws.
Bait-and-Switch on Solar Equipment or Financing Terms
In many solar fraud cases, the homeowner is promised one thing — but receives another. Examples include:
Quoting premium equipment (like LG or Panasonic panels) but installing cheaper models
Changing inverter types without notice
Promising fixed financing terms, then adding hidden fees or escalating payments
Failing to disclose that the financing is a credit card or revolving credit line
These tactics can give rise to claims for misrepresentation, fraud, or violation of the Colorado Consumer Protection Act (CCPA) (C.R.S. § 6-1-105).
High-Pressure In-Home Solar Sales
Many scams start with a knock at the door. Sales reps may offer:
“Same-day discounts” if you sign immediately
Tablet-based contracts with no paper copies
Promises that you can cancel “anytime” — which turn out to be false
Under the Home Solicitation Sales Act (C.R.S. § 5-3-401), any solar contract signed at your home must include a three-day right to cancel — and the company is required to give you written notice of this right. If they don’t, you may still be able to cancel the contract even after installation begins.
Hidden Solar Financing or Credit Cards
We’ve seen cases where homeowners unknowingly sign up for:
High-interest credit cards through companies like Mosaic or GoodLeap
Secured loans that allow the lender to place a lien on the property
“Promotional” rates that skyrocket after 12 months
If the solar company failed to provide full financing disclosures as required by the Truth in Lending Act (TILA) or Colorado law, you may have a right to cancel or challenge the contract.
Unlicensed or Defective Solar Installation
Colorado law requires that solar installations under 300 kW be supervised by a NABCEP-certified installer or a licensed electrician, with a 1:3 supervisor-to-helper ratio (C.R.S. § 40-2-128).
When installers cut corners, it can lead to:
Electrical fires
Water intrusion or roof leaks
Noncompliance with building code
Loss of homeowners insurance coverage
These issues may fall under Colorado’s Construction Defect Action Reform Act (CDARA) (C.R.S. § 13-20-801 et seq.), which provides a process for homeowners to seek repair costs and damages.
Your Legal Rights as a Homeowner
If you’ve been misled, pressured, or harmed by a solar company, you may have legal options. In Colorado, you can pursue claims for:
Fraud and misrepresentation
Breach of contract or warranty
Violations of the Colorado Consumer Protection Act
Cancellation under the Home Solicitation Sales Act
Construction defect liability
Improper mechanic’s liens or UCC filings
You may be entitled to rescission (contract cancellation), monetary damages, and attorney fees under state law.
How to Protect Yourself Before Signing a Solar Contract
To avoid becoming a victim of solar fraud, follow these five steps:
1. Get multiple quotes from local installers
Use vetted sources like EnergySage or COSSA to compare offers and avoid pushy national brands with poor reputations.
2. Request a copy of the full contract in advance
Ensure it includes:
Specific panel/inverter models
Total cost and payment schedule
Cancellation rights
Warranty and maintenance terms
3. Check the company’s license and complaint history
Verify Colorado electrical licenses at DORA and search for complaints with the Colorado Attorney General.
4. Avoid signing anything during a high-pressure sales pitch
Take time to review the contract with a trusted advisor or attorney. If the deal won’t last 24 hours, it’s probably not a good one.
5. Save all documentation and communications
If you need to file a complaint or take legal action, you’ll need proof of what was promised and what was delivered.
What to Do If You’ve Been Scammed by a Solar Company in Colorado
If your solar installer misled you, failed to honor the contract, or caused damage to your home, you are not without recourse. Depending on your situation, you may be able to:
Cancel the solar contract
Recover out-of-pocket losses
Remove liens or UCC filings
Pursue legal action for fraud or construction defects
At Hollington Law Firm, we represent homeowners across Colorado in claims involving solar fraud, contract disputes, construction defects, and consumer protection violations. Whether you're looking to sue a solar company, cancel a solar lease, or recover damages, we’re here to help.
Speak with a Colorado Solar Fraud Attorney Today
You have the right to honest, competent service — and the law is on your side when that right is violated. If you suspect you’ve been scammed by a solar company in Colorado, don’t wait to take action.
Schedule a free screening call today to discuss your legal options.
The information provided on this website is for general informational purposes only and should not be construed as legal advice or legal opinion. You should not act or refrain from acting on the basis of any information provided on this website without seeking legal advice from an attorney.