Electric co-ops in the US have issued a warning to their members after an increasing number of rooftop solar scams in the country.
This follows an advisory note from the US Treasury following a rise in consumer complaints about such practices. “People complain that they were deceived about costs and savings, misled about loans and tax credits, and pressured by aggressive sales and marketing tactics,” it said.
The department says it is working with other federal agencies, including the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC) “to spread the word about shutting down scams and bad business practices involving clean energy”.
According to the Treasury, common sales pitches used by scammers include pretending their offer is government-endorsed and promising free solar panels, limited-time offers, and other pressure tactics that urge consumers to sign up without examining the details. Other common lies are promising tax credits or tax rebates.
The department also warns of scams in customer service, such as making no meaningful effort to find out whether customers can afford the loan or financing they are offered; providing documents or contracts in languages different from the language used in the sales pitch; and not giving customers a chance to see the full terms of the contract before signing.
Similarly, customers have complained about scams in costs and payments, including excessive and unnecessary fees, no information about the cost to remove or transfer solar panels, and large upfront deposits.
Co-op customers have not been immune to such scams. According to Sheena Lankford, vice president of member engagement and communications at Southside Electric Cooperative in Crewe, Virginia, several of her co-op’s members have been deceptively sold solar, including those in homes that are financially struggling.
“Many of the solar companies have gone under, and our members have no one to service their panels when needed,” she told the National Rural Electric Cooperative Association (Nreca).
Brittney Davis, communications supervisor at Tri-County Electric Cooperative based in Hooker, Oklahoma, also warned that some members who fall victim to such schemes are unable to get out of their contracts. Davis told Nreca that members are initially frustrated with their co-operative, not realising they have been scammed.
The Treasury has given further advice to consumers to avoid being ripped off. “Before you sign, take the time to shop around for different companies, products, costs, and obligations,” it said. “Then you have enough information to decide if the solar energy system being offered is right for you.”
Customers are also advised to consult a lawyer to understand their contractual obligations, check the contractor’s history with state consumer agencies and state licensing boards, and make sure they know whether cost savings they have seen in advertising are guaranteed.
According to Nreca, electric co-ops are already actively trying to prevent scams and raise awareness.
Co-ops are being proactive on several fronts, including Seco Energy in Sumterville, Florida, which sent out a newsletter in July to raise awareness of scam warnings.
Nreca said communication between members and co-ops is key to addressing the issue. The apex encourages customers to contact their co-ops for advice from energy advisers or member service professionals.
