BBB St. Louis: Consumer Fraud Task Force alerts consumers to be cautious with solar power opportunities
With rising utility bills, homeowners are looking for ways to save money. The St. Louis Consumer Fraud Task Force (CFTF) urges consumers to use caution when installing solar panels at their residences.
Some consumers report they were subjected to misleading sales presentations, delays in starting the installation service, and that systems produce fewer energy savings than promised by the company. Consumers also report that some companies needed to be more communicative and slow to act on complaints and were uncommunicative.
Last year, consumers filed more than 10,600 complaints with the Better Business Bureau (BBB) about solar companies.
In September 2022, the Missouri Attorney General’s Office filed suit against Pink Energy, formerly Powerhome Solar. In its petition, the state alleges the company made false promises and representations, used deception, and concealed material facts from consumers.
“Consumers thus are at risk not only of making double payments (on both their loans and their electricity bill), they are at risk of Defendant’s systems burning their houses to the ground and killing them and their families,” the petition reads.
The case is pending.
The Task Force recommends these tips when considering solar power for your residence:
- Do your research. Before accepting an offer, research solar companies in your area. Investigate their reputation and business practices before you sign a contract. Talk to neighbors and friends who have gone solar, and ask them about their experiences and any recommendations.
- Understand financing options. Any offers claiming free solar panels should be looked at closely. The federal government has no programs that install solar panels on homes for free. There are legitimate federal and state-level incentive programs and loans that can lower the up-front costs of the system.
- Don’t give in to high-pressure sales tactics. Bad actors will want to provoke an emotional reaction that may cause you to purchase without thinking about it. Take time to make an informed decision.
- Get more than one bid. Contact several companies to get bids if you plan on using solar power. If someone is not being honest, it will be easier to spot.
- Ask questions. Make sure you understand all aspects of a contract or proposal. If the company gets upset about your questions, refuses to answer you, or is vague with its answers, that might be a red flag.
- Report the bad actors. You can report bad actors to BBB, the FTC, and your state’s attorney general.
The Task Force, formed in October 2002, is a coalition of local, state, and federal government agencies and nonprofit business and consumer groups in Missouri and Illinois that work together to protect consumer and donor rights and guard against fraud. The group has tackled predatory payday loan offers, tax scams, timeshare fraud, credit repair and foreclosure scams, bogus sweepstakes, internet sweetheart scams, phony grant scams, home remodeling, elder fraud, payment scams, and a variety of other issues.
For information or to report a scam, contact members of the Task Force:
- Better Business Bureau Serving Eastern and Southwest Missouri and Southern Illinois – (888) 996-3887; www.bbb.org
- Federal Trade Commission – (877) FTC-HELP (382-4357); www.ftc.gov
- Federal Bureau of Investigations - (314) 589-2500
- Illinois Attorney General – (800) 243-0618; www.illinoisattorneygeneral.gov
- Illinois Secretary of State - Securities Department - 800-628-7937
- Missouri Attorney General – (800) 392-8222; www.ago.mo.gov
- St. Louis Metropolitan Police Department - (314) 231-1212; www.slmpd.org
- U.S. Attorney, Eastern District of Missouri – (314) 539-2200; www.usdoj.gov/usao/moe
- U.S. Postal Inspection Service – (877) 876-2455; postalinspectors.uspis.gov
- U.S. Secret Service – (314) 539-2238; www.secretservice.gov
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