Distributed solar power can save on electricity and increase income in the long run. However, many unscrupulous businesses prey on individual investors' lack of industry knowledge, devising elaborate schemes. These can range from reduced returns and leaky roofs to serious debts and damaged credit scores. Families planning to install solar power should carefully check against these scams to avoid them.
Scam 1: Free Installation (Zero Cost)
Predatory Loans
Salespeople promise no up-front cost while tricking homeowners into showing ID, undergoing facial recognition, and signing financial leases under the pretext of grid connection registration.
How to Avoid: Pure rooftop rental models never require personal loans. Refuse any face scans or dynamic financial agreements.
Scam 2: Dual Contracts & Verbal Promises
Contradictory Terms
Homeowners sign standard visual sheets while hidden contracts put liability for roof leaks, high penalties for house renovations, and cleaning costs back onto the farmer.
How to Avoid: Never sign blank contracts. Ensure all verbal terms regarding maintenance and demolition are written in paper copies.
Scam 3: Exaggerating Power Yields
False Advertising
Using ideal lab lighting data to promise 3-4 year paybacks or fake "national subsidies." Real returns depend on shading, dust, degradation, and local grid policies.
How to Avoid: Check local solar irradiance and grid connect prices independently. Compare data with nearby working installations.
Scam 4: Low-Priced Second-Hand Modules
Safety Hazard
Mobile teams win bids via cheap, refurbished panels. Power generation halves in 2-3 years, plus poor insulation poses severe fire and short-circuit risks.
How to Avoid: Confirm exact component models. Always request official product certificates and brand warranty cards.
Scam 5: Shoddy Structural Construction
Leaky Roofs
Outsourced teams rush setup by drilling holes without water tightness, loosening brackets under typhoons, or overloading old structures without testing.
How to Avoid: Enforce explicit waterproofing standards in writing. Always test watertightness before releasing final payments.
Scam 6: Fake Long-Term Maintenance
Vanishing Providers
Promising 25 years of free service, but small shell companies fold and disappear within a couple of years, leaving families with unhandled equipment errors.
How to Avoid: Prioritize reputable, local manufacturers with established brick-and-mortar storefronts and physical track records.
Scam 7: Impersonating Government Staff
Fake Quotas
Scammers exploit official policies, claiming an exclusive "Rural Revitalization Project" with limited slots to rush signups without giving homeowners time to think.
How to Avoid: Verify claims directly with your village committee or power grid station. True connections must be processed via transparent public channels.
Scam 8: PV Investment Pyramid Schemes
Ponzi Structure
Platforms focus on selling virtual power station dividends and offering commissions for recruiting downstream members. Capital vanishes when the model collapses.
How to Avoid: Stay away from projects requiring downstream member recruitment. Normal solar returns come purely from physical electricity sales.