Considering solar energy can be a great step. It can reduce your environmental impact. It can also lower long-term energy costs.
Consumers should be aware of key factors that can influence whether a solar system is truly a good fit. Solar companies’ incentives or savings may sound appealing. But each household’s situation is different.
Do your homework so you can make an informed decision.
- Research solar companies before signing a contract. Check trustworthy sources like the Better Business Bureau. Other reliable sources include Consumer Reports or review platforms. Look for information on customer experiences. Verify the company’s licensing status with the state. Read about complaints. This due diligence can help you avoid companies that overpromise and underdeliver. Some companies even pressure residents into contracts that are not in their best interest.
- Be cautious of sales pitches that include guaranteed tax breaks or credits. Eligibility for federal or state benefits varies based on individual circumstances. Always verify these claims with a tax professional before relying on them in your financial calculations. People who don’t pay taxes are not likely to qualify for tax credits. Compare the long‑term cost of financing a solar system to your current monthly utility bill. Financing payments can sometimes exceed what you currently spend. That means the system may not be cost-effective for your home.
- Be wary of companies that do not give you time to review contracts before signing. Many solar companies use tablet computers. These tablets generate the contract to install the solar system and any paperwork to finance the purchase. The customer is required to sign on the tablet. But you have the right to request and review the contract in full before signing it. Consult an attorney of you do not understand any contract terms.
- Be sure you understand how your solar panel system works with your utility company. You may still receive an electric bill even with panels installed. This might occur if your system does not produce enough energy to meet your needs year‑round. Contact your utility provider. Ask about credits for the excess power your solar power system generates. This is often called “buyback” or “net metering.” Ask about buyback rates and terms. These details can affect the value you receive from your system over time. The rate you pay to the utility company for power may be smaller than the rate of the utility company credits. This could lower your utility bills.
- Gain an understanding of the expected lifespan of the equipment before committing. Find out how it compares to your loan or financing period. Solar panels and system parts will wear out and require replacement one day. Ask about product durability, warranties, and replacement costs. Knowing these details can help you avoid being left with payments for a system that no longer performs as promised. Solar panel elements like charge controllers, inverters, and certain batteries have an average lifespan of around 10 years. The panels themselves and racking structures have an average lifespan of about 20-30 years.
Contact the Attorney General’s Office:
To file a complaint with the Attorney General, contact:
Consumer Protection Team
P.O. Box 30213
Lansing, MI 48909
517-335-7599
Fax: 517-241-3771
Toll-free: 877-765-8388
Online complaint form