Preventing “solar scams”

Beware of deals that sound too good to be true

With more Kentucky consumers considering solar panels, state agencies are working to protect their interests.

Between 2014 and 2021, the amount of solar energy tied directly to the state’s power grid rose from about 12 megawatts of power to more than 60 MW. Most of that has been from residential installations. 

State and federal subsidies, primarily tax credits, are among the marketing incentives frequently mentioned in sales presentations, but it pays to understand their limitations. 

Any tax incentives offered are based upon the actual tax liabilities of the buyer, according to the office of Kentucky Attorney General Russell Coleman. They cannot exceed the actual amounts owed in taxes and are often paid out over several years. 

“We have taken public action in federal and state court against three entities on behalf of Kentuckians,” says Kevin Grout, a spokesman for the AG’s office. One of the companies involved, Solar Titan, has been barred from doing business in Kentucky. A second, Power Home Solar, is in bankruptcy, and the third was compelled by court order to cooperate with the state’s investigation into residential solar complaints. 

The attorney general’s office is focusing on consumer education to arm Kentuckians with good advice aimed at preventing what they describe as “solar scams.” The office has developed a nearly 20-point plan addressing many of the issues consumers should consider before they buy. 

“Kentucky, like many states around the country, has seen a high number of complaints related to residential solar installers and affiliated entities,” says Grout, adding that he can’t discuss any active investigations. 

The Kentucky Office of Energy Policy has also developed informative and easy to understand materials for consumers, designed to address consumer motivations and individual circumstances for considering residential solar. 

“Do you just want to reduce your energy bills or are you looking to be energy independent and prepared for emergency disasters? Or do you just want to support solar growth?” says John Mura, an agency spokesman. “Answers to these questions will guide you and your contractor.”