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May 9, 2026The solar industry has a sales problem. For every honest installer there are several aggressive ones using misleading tactics. I’ve been installing in New Jersey for over 15 years and I see these plays used on NJ homeowners every week. Some are outright deception. Some are legal but designed to make you think the deal is better than it is. Here’s a field guide to every one of them, with specific language to use when you call them out.
For New Jersey homeowners: New Jersey has more solar companies operating in it than most states — because the economics are genuinely good here. That also means more bad actors competing for your signature. The scams below are not hypothetical. I’ve reviewed quotes and contracts from NJ homeowners that contained every one of these tactics.
1. The “Expiring Offer” Pressure
This is the most common one. The salesperson tells you the price is only good today, or the incentive expires at midnight, or there’s only one slot left in your area this quarter. The goal is to stop you from comparing quotes or thinking clearly.
No legitimate solar incentive expires at midnight. NJ’s SuSI (Successor Solar Incentive) program has defined enrollment periods and scheduled BPU reviews — not same-day deadlines that appear and vanish at the end of a kitchen-table pitch. The quote you’re being given today will be essentially the same quote you’ll get in three days after you’ve done your homework.
What to say: “I need 48 hours to review this with my spouse and get a second quote. If the price changes, I’ll know this isn’t a company I want to do business with.” A legitimate installer will respect that. A bad one will escalate the pressure — which tells you everything you need to know.
2. The “Free Solar” Promise
“Go solar for $0 down, $0 a month.” Always means a lease or PPA where someone else owns the panels on your roof. You get electricity at a discounted rate — usually 10–15% less than your current utility bill — for the next 20 or 25 years. The company that owns the panels gets the SuSI SREC-II income. They also get any available tax incentives. You get a paper-thin discount and a long-term contract.
In NJ, that SuSI giveaway is substantial. A 10kW system earns roughly 12 SREC-IIs per year at $85 each — about $1,020/year you’re handing to the leasing company for 15 years. That’s around $15,300 in income you’ll never see.
Worse: leases follow your house. When you sell, the buyer has to either take over the lease or the lease has to be bought out. I’ve seen home sales in Toms River and Edison fall through because the buyer’s lender wouldn’t close with a leased solar system still attached. Own your system. Cash or loan.
3. The Inflated Utility Bill Projection
Every solar proposal includes a projection of your future electric bills without solar, usually going out 25 years. The chart looks dramatic — your utility bill climbing to $400, $500, $600 a month by year 20. The solar savings look enormous by comparison.
That chart is only as honest as the rate-increase assumption used to build it. Some companies use 5–7% annual rate increases. NJ utility rates have historically increased about 3–4% per year on average. A company using 6% is overstating your future savings by a material amount.
Ask specifically: “What annual utility rate increase are you assuming in this model?” Then compare it to your utility’s actual historical rate changes — PSE&G, JCP&L, and ACE all publish rate history publicly. If the assumption is more than 1–2 percentage points above historical average, the savings projection is inflated.
4. The Handshake Roof Warranty
Solar installation requires drilling through your roof to mount the racking. If those penetrations aren’t properly sealed, you get water intrusion — sometimes immediately, sometimes years later when the sealant degrades. A workmanship warranty covers those penetrations if they cause a leak.
Every reputable installer provides this warranty in writing. The term should be at minimum 5 years, ideally 10. If the warranty isn’t in your written contract, it doesn’t exist legally. “We stand behind our work” is not a warranty. Ask for the written workmanship warranty clause before you sign, and read it specifically to see what it covers and for how long.
I’m a GAF-certified roofer in addition to a solar installer. I carry both licenses because I care about what the roof looks like under those panels five years from now. Ask what your installer’s roofing experience is and whether they hold a roofing license in NJ.
5. Unlicensed Subcontractors
Large national solar companies often have their own sales staff and customer service team, but subcontract the actual installation to local crews. On paper this isn’t always wrong, but it creates accountability gaps. When something goes wrong post-install, the national company points at the subcontractor, and the subcontractor may be dissolved by then.
In NJ, solar installation requires an EEA (Electrical Contractor) license issued by the NJ Division of Consumer Affairs, plus a Home Improvement Contractor registration. Ask your installer: “Are your installation crews your employees or subcontractors? Can you give me the names and NJ license numbers of the people who will physically install my system?” A legitimate installer answers that question without hesitation.
Also: if you’re quoted through a large national company, ask who provides your post-install service and monitoring support. If the answer is “a local service partner,” ask who that is before you sign.
6. The Missing Permit
Every solar installation in NJ requires a building permit from your municipality and an interconnection application with your utility. The permit inspection is what guarantees your system was installed to electrical code. The utility interconnection approval is what legally allows your system to put power onto the grid.
An installer who suggests skipping permits to move faster or save money is either not licensed properly, trying to avoid an inspector catching a code violation, or both. Don’t agree to this under any circumstances. An unpermitted system can create liability when you sell your home, may void your homeowner’s insurance, and definitely voids manufacturer warranties if they learn the system wasn’t inspected.
Permits add a few weeks to the timeline. That’s the cost of doing it correctly. Any reputable installer handles permit applications and inspection coordination as part of the job — it should be in your contract.
7. The Unregistered SuSI Account
This one costs NJ homeowners real money and nobody talks about it. To earn SREC-IIs under NJ’s SuSI program, your system must be registered in GATS — the PJM Generation Attribute Tracking System. Registration is not automatic. It requires documentation from your install and must be submitted deliberately.
Some installers — particularly national companies with high volume and loose administrative processes — complete the physical installation but never file the GATS registration. The homeowner assumes their system is enrolled and earning certificates. It’s not. SREC-IIs cannot be retroactively claimed for periods before registration. Every month that passes without registration is income permanently lost.
Before you sign a contract, ask explicitly: “Does your price include SuSI registration in GATS, and who at your company handles that filing after installation?” Get the answer in writing in the contract. I handle GATS registration for every homeowner I install for, and I follow up until I have confirmation of enrollment.
8. The Oversized System Bait-and-Switch
Less common than undersizing, but it happens: a salesperson quotes you a larger system than you need because a higher system price means higher commission. A 12kW system for a home that only uses 10,000 kWh per year means you’re buying 2kW worth of equipment you don’t need — roughly $5,000–$7,000 extra.
NJ utilities cap net metering systems at 110% of your annual usage. If your system is sized beyond that, the excess production doesn’t earn credits. An installer who sizes your system at 130% of usage is either not doing their homework or doesn’t care about your financial return. Ask your installer to show you the annual production calculation — kWh per year — and compare it to 12 months of your actual utility bills.
9. The “No Money Down” With a Hidden Balloon Payment
Some solar loan products advertise a low or zero payment for the first 12–18 months, then require a large balloon payment the homeowner is expected to refinance or pay down. If that balloon isn’t paid, the interest rate resets to a much higher rate. This structure is sometimes marketed as “18 months same as cash.”
Ask any solar loan offer these three questions: (1) What is the total repayment amount over the loan term? (2) Is there a balloon payment, and when? (3) What happens to the interest rate if I don’t pay the balloon? Read every number before signing. The loan document governs — not what the salesperson tells you verbally.
How to Protect Yourself
The best protection is time. Take at least 48 hours after any solar presentation before signing anything. Get two or three quotes from different installers and compare them line by line on price per watt, system size, panel brand, inverter type, and warranty terms. Verify NJ contractor licenses at the NJ Division of Consumer Affairs website. Get SuSI GATS registration in the contract in writing.
And if you get a quote you’re not sure about, call me. I’ll review any NJ solar quote for free — no strings attached. I’d rather spend 15 minutes on the phone helping you avoid a bad deal than watch another homeowner get taken advantage of in an industry I’ve spent 15 years working to do right.
Frequently Asked Questions
How do I know if a solar company is legitimate in NJ?
Check the NJ Division of Consumer Affairs for an active Electrical Contractor (EEA) license and a Home Improvement Contractor registration. Ask for the license numbers and verify them online — it takes two minutes. Also ask for three NJ references from completed installations in the last 12 months, and call them.
What should a solar contract include in NJ?
Itemized price breakdown (equipment, labor, permits), written workmanship warranty covering roof penetrations (minimum 5 years), panel manufacturer warranty terms, inverter warranty, permit and interconnection handling, SuSI GATS registration, expected installation timeline, and a clear scope of what’s included and excluded.
Is the “free solar” offer a scam?
Not technically a scam, but it’s structured to benefit the solar company far more than you. Lease and PPA agreements take the SuSI SREC-II income, any applicable tax incentives, and system ownership — leaving you with a modest discount on electricity and a 25-year commitment. In NJ, where SuSI income is particularly meaningful, the “free” offer costs you far more than ownership does over the life of the system.
What NJ licenses does a solar installer need?
An NJ Electrical Contractor (EEA) license is required to connect a solar system to your electrical panel and grid. A Home Improvement Contractor registration is required for residential work. If the installer is also doing roofing work, they need a separate NJ roofing contractor license. Ask to see all applicable license numbers before signing.
