10 solar quote red flags every homeowner should know in 2026

The solar industry produces great installations and bad ones. The difference is often visible in the quote, if you know what to look for. Here are the ten red flags we see most often in 2026 — in quotes, contracts, and sales pitches across every state we cover.

Red flag 1: A 30% federal tax credit on a 2026 quote

The federal Residential Clean Energy Credit (the 30% federal solar tax credit) expired at the end of 2025. It does not apply to solar systems installed in 2026. The most common deceptive practice in solar quotes today is a quote that deducts 30% of the system cost as an "incentive" or shows a dramatically lower "net cost" based on a federal credit that no longer exists for residential customers. This single trick inflates apparent savings by tens of thousands of dollars on a large system. Any quote that applies a federal credit to a 2026 installation is either using stale numbers or is deliberately misleading. Ask the salesperson directly: "Does the 30% federal credit still apply in 2026?" The correct answer is no. If they say yes, walk away.

Red flag 2: Production estimates far above your usage

Solar production estimates should be tied to your actual electricity consumption. A well-sized system produces roughly 90 to 110 percent of your annual usage — enough to zero out your bill, with modest surplus. If a quote estimates production that is 150 or 200 percent of your usage, the system is deliberately oversized to inflate the gross cost (and the installer's revenue). Ask to see the energy consumption data they used to size the system. If they sized it without ever looking at your actual bills, that is a problem.

Red flag 3: Hidden dealer fees in solar loans

Many installers arrange financing through third-party solar lenders. Some of those lenders charge a "dealer fee" — typically 10 to 30 percent of the loan amount — that is paid to the lender and often rolled invisibly into your loan principal. On a $25,000 system, a 25% dealer fee adds $6,250 to your loan principal without appearing clearly in the per-watt price. Ask explicitly: "Is there a dealer fee on this loan, and what is it?" Read the loan documents, not just the summary. Compare the all-in system cost across quotes in per-watt terms.

Red flag 4: Same-day signing pressure

"This price is only good today." "I can only hold this slot if you sign now." These are sales tactics, not real constraints. No reputable installer will pull a competitive quote because you took a week to think it over and get a second opinion. Signing same-day on a $25,000 purchase without comparison shopping or legal review is almost always a mistake. Take your time.

Red flag 5: No local references or online reviews

Before signing with any solar installer, search for reviews on Google, the Better Business Bureau, and state contractor licensing sites. Ask for references from customers who have had their systems installed at least a year ago — not just recent installs. Installers who cannot provide references or have significant complaint histories are worth avoiding regardless of quoted price.

Red flag 6: Vague or missing warranty terms

A good solar installation comes with: a 25-year manufacturer's warranty on panels, a 10-to-25-year manufacturer's warranty on the inverter, and an installer workmanship warranty of at least 10 years on the installation itself. If a quote is vague about warranty terms or the workmanship warranty is less than 5 years, that is a red flag about the installer's confidence in their own work.

Red flag 7: "We'll handle everything" with no detail

Vague promises without specifics are a red flag. A credible quote will specify the exact panel model, inverter model, racking system, system size, estimated annual production (in kWh, not just in dollar savings), the interconnection timeline, the permit process, and who handles the utility interconnection application. If the salesperson cannot or will not answer these questions, the company may not have the operational depth to deliver on what they are promising.

Red flag 8: Guaranteed savings promises

No solar company can guarantee what your utility's electricity rates will be in 10 years, what your panel production will be in year 15, or what your home's energy consumption will be. Promises of "guaranteed savings of $X over 25 years" are not legally or practically enforceable. What a credible installer can provide is a realistic production estimate based on your roof, location, and system size, combined with transparent assumptions about what those savings represent at current rates. Extrapolated savings over 25 years are projections, not guarantees.

Red flag 9: Lease or PPA presented as better than ownership

Leases and PPAs are legitimate financing options for some homeowners. But a salesperson who presents a lease or PPA as categorically better than owning is steering you away from ownership for the company's benefit, not yours. The company keeps the tax credit on a leased system. In states with significant solar tax credits — Puerto Rico (25% up to $6,000), New York (25% up to $5,000) — a homeowner who leases instead of owns is giving up real money. Full comparison of all solar financing options.

Red flag 10: Door-to-door pitch with no business address or license

Some door-to-door solar sales operations are thin on substance. Before you let anyone access your electric bill information or discuss your roof, verify: the company has a real physical address, a valid state contractor's license in your state, and real online reviews. Ask for a license number and verify it with your state's contractor licensing board. This takes five minutes and filters out fly-by-night operations before you invest time in their pitch.

The SolarClarity standard

When we send you a free estimate, we do it with current 2026 incentives, your actual consumption data, no dealer fees baked into a loan we are pushing, and a real person reviewing it before you hear from us. If solar does not fit your situation, we will tell you that instead of pushing you forward. How we work.