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8 warning signs every Massachusetts homeowner must know before signing a solar contract. The #1 scam in 2026: companies claiming a 30% federal tax credit that expired in December 2025.
Critical 2026 Fact
The federal 25D residential solar tax credit is $0. It expired December 31, 2025. Any solar company quoting a 30% federal credit for a cash or loan purchase is either misinformed or deliberately misleading you.
Massachusetts is one of the best states for solar in 2026. High electricity rates, SMART 3.0 production payments, strong net metering, and property tax exemptions create a genuine 6.5-8 year payback. But the same economics that make solar attractive also attract unscrupulous companies looking to profit from uninformed homeowners.
The biggest risk in 2026 is the expired federal tax credit. For nearly two decades, homeowners could claim 26-30% of their solar system cost as a federal tax credit. That ended December 31, 2025 when the OBBBA (One Big Beautiful Bill Act) killed Section 25D. Companies still using old marketing materials — or deliberately misleading customers — are the #1 source of solar complaints in Massachusetts.
8
Red Flags to Watch
$0
Federal 25D ITC in 2026
3 Days
MA Contract Cancel Window
The single biggest solar lie in 2026. The residential 25D ITC expired December 31, 2025. Any company claiming you get a 30% federal credit on a cash or loan purchase is either lying or dangerously uninformed.
Salespeople show you a quote with a 30% "federal incentive" deducted, making the system appear $10,000+ cheaper. When tax season comes, you discover the credit does not exist and you owe the full amount.
A Framingham homeowner reported a door-to-door salesperson in February 2026 who showed a proposal with "$10,440 federal tax credit" on a $34,800 system. The homeowner called NuWatt for a second opinion and learned the credit was expired.
Aggressive door-to-door salespeople who pressure you to sign a contract on the spot. "This price is only available today." "We have one slot left in your neighborhood." "Your neighbor already signed."
National solar companies hire commission-based canvassers who go door-to-door. They use scripted urgency tactics to get signatures before you can compare quotes. Many are not licensed in Massachusetts.
Multiple communities in Greater Boston have reported door-to-door solar salespeople claiming limited-time offers that must be signed immediately. Newton and Brookline police departments have issued warnings.
The quote shows premium equipment (REC, SunPower, Enphase) but the contract has "or equivalent" language that lets the installer substitute cheaper products at installation.
The sales team quotes high-end panels to win your business. The contract includes small print allowing substitution with "equivalent" equipment. At installation, you get lower-tier panels that cost the installer 30-50% less.
A Cambridge homeowner was quoted REC Alpha 470W panels but the contract said "REC Alpha 470W or equivalent 400W+ panel." The installed system used 400W panels from a manufacturer with no US warranty support.
Nothing is free. "Free solar" always means a lease or PPA where you do not own the system. You pay for the electricity it produces. The company owns your roof real estate for 20-25 years.
The company installs panels at no upfront cost. They own the system and charge you for electricity at a rate slightly below your current utility rate. They claim the Section 48 ITC and SMART incentives. Your savings are modest and you have no ownership stake.
A Quincy homeowner signed a "free solar" lease in 2024 and now wants to sell their home. The lease company requires the buyer to either assume the 20-year lease or the seller pays $18,000 to buy out the contract. The home sale is delayed by 3 months.
Solar leases with annual payment increases that can exceed electricity rate growth. By year 15, you may be paying more for solar than grid electricity.
A lease starts at an attractive rate ($0.15/kWh or $120/month). A 2.9% annual escalator is buried in the contract. After 10 years: $160/month. After 20 years: $215/month. After 25 years: $247/month. If utility rates rise slower, you lose money.
Massachusetts utility rates have risen ~4.8% per year historically — but that includes supply charge spikes that may not persist. A 2.9% escalator could actually exceed rate growth in a period of stable energy costs.
Solar installers operating in Massachusetts without a Home Improvement Contractor (HIC) license. If something goes wrong, you have no legal recourse through the state guaranty fund.
Out-of-state companies or subcontractors begin work without proper MA licensing. If the installation is defective, causes roof damage, or the company disappears, you cannot file a claim with the state. Your warranty is unenforceable.
The MA Attorney General has taken action against solar companies operating without HIC licenses. In 2024, a company based in Connecticut was fined for performing installations in MA without proper licensing.
Overestimating how much electricity your system will produce to make the payback look shorter. When reality falls short, your savings disappear.
The sales team uses best-case numbers: perfect south-facing roof, no shade, no snow, no degradation. They estimate 1,400 kWh/kW when the MA average is 1,200 kWh/kW. Your 11 kW system is quoted to produce 15,400 kWh/year but actually produces 12,500 kWh.
A Weston homeowner received a proposal estimating 16,000 kWh/year from a 10 kW system (1,600 kWh/kW). After installation, Year 1 production was 11,200 kWh (1,120 kWh/kW) due to significant afternoon shade the installer did not account for.
Financing companies add 15-30% "dealer fees" to the loan amount. A $35,000 system becomes a $45,000 loan. The fee is hidden in the APR, not shown as a line item.
The quote shows $35,000 at 1.49% APR. Sounds great. But the actual loan amount is $43,750 (25% dealer fee added). The true cost is $4.38/W, not $3.50/W. You pay $8,750 extra over the loan term that goes straight to the financing company.
A Burlington homeowner compared two quotes. Quote A: $34,000 at 1.49% APR. Quote B: $34,500 at 6.99% APR. Quote B was actually $5,000 cheaper because Quote A had a 27% dealer fee hidden in the loan.
Home Improvement Contractor (HIC)
mass.gov/hic
Required for any home improvement project over $1,000. Solar installs always exceed this.
Massachusetts Electrician License
mass.gov/electrician-license-lookup
Required for the electrician performing the wiring. Can be held by a subcontractor.
Construction Supervisor License
mass.gov/csl
Required if structural work is involved (roof reinforcement, ground mount foundations).
Check rating and complaint history at bbb.org
Look for 4.5+ stars with 50+ reviews. Read the negative ones carefully.
Request Certificate of Insurance. Minimum $1M general liability + workers' comp.
Prefer 3+ years. Ask for MA installations completed in the past 12 months.
Gold standard for solar installation professionals. Not required but a strong signal.
Search mass.gov/ago for enforcement actions against the company.
Massachusetts law (MGL Ch. 93 Sec. 48) gives you 3 business days to cancel any home solicitation contract. Send cancellation in writing via certified mail.
Save all contracts, proposals, emails, texts, and marketing materials. Take screenshots of any online claims that conflict with what you were told.
Consumer Protection Division at mass.gov/ago handles solar complaints. They have actively pursued solar companies making false claims.
Call (617) 973-8787. They oversee HIC licensing and can revoke licenses of bad actors.
BBB complaints create a public record that warns other consumers. File at bbb.org.
Massachusetts Chapter 93A allows treble (3x) damages for unfair and deceptive business practices. Many consumer attorneys take these cases on contingency.
No. The federal 25D residential solar tax credit expired December 31, 2025. If a solar company tells you that you can claim a 30% federal tax credit on a cash or loan purchase in 2026, they are either misinformed or lying. The only way to access federal tax credits is through a lease or PPA where the third-party owner (financing company) claims the Section 48 commercial ITC.
Massachusetts requires solar installers to hold a Home Improvement Contractor (HIC) license. Verify it at mass.gov/hic or call the Office of Consumer Affairs at (617) 973-8787. Also check that the electrician holds a valid Massachusetts electrical license. You can search the electrical license database at mass.gov/electrician-license-lookup.
Some are, many are not. Door-to-door salespeople in Massachusetts must carry a Transient Vendor license and their company must hold an HIC license. Ask for their HIC number and verify it. Legitimate companies do not require you to sign a contract on the spot. Any company that pressures you to sign immediately is a red flag.
A lease escalator is a clause that increases your monthly lease payment by 1-3% each year for 20-25 years. A lease starting at $120/month with a 2.9% escalator reaches $231/month by year 25. If electricity rates rise slower than the escalator, you end up paying more for solar than you would for grid electricity. Always calculate the total cost over the full lease term.
There is no such thing as free solar panels. "Free solar" always means a lease or PPA where a company installs panels on your roof and charges you for the electricity they produce. You do not own the panels, cannot claim incentives, and the contract lasts 20-25 years. The company profits from the Section 48 ITC and sells you electricity at a rate that may or may not be lower than your utility.
Look for the words "or equivalent" next to panel or inverter models. This lets the installer substitute cheaper equipment at installation. Also watch for quotes that show a low price upfront but add charges at contract signing. Insist on a final contract that specifies exact equipment make and model with no substitution clause.
File a complaint with the Massachusetts Attorney General Consumer Protection Division at mass.gov/ago. Also file with the Better Business Bureau (bbb.org) and the MA Office of Consumer Affairs. If you signed a contract within the last 3 business days, you may exercise your right to cancel under Massachusetts consumer protection law (MGL Ch. 93 Sec. 48).
NuWatt is HIC-licensed, NABCEP-certified, and will never claim a tax credit that does not exist. Every quote shows real numbers based on real data.
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