Feb 28, 2026
A recent lawsuit from NYC’s Department of Consumer and Worker Protection (DCWP) is shining a light on predatory practices in the booming solar panel industry (1).
According to DCWP’s legal action, Radiant Solar used deceptive tactics to secure over $18 million in illegal solar power loans for 370 customers over the past five years. DCWP also estimates that $3 million of these loans were for kickbacks to preferred lenders (called “dealer fees”) that residents didn’t know about until after they paid.
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Besides hiding these shady financing practices, Radiant Solar allegedly operated without a license and performed shoddy work.
Here’s why the rising popularity of solar panels is also coming with an increase in related scams, and what you can do to vet contractors before you sign the paperwork.
What the courts are asking for
CBS News New York reported one Radiant Solar customer complained that these panels caused their ceiling to collapse after a rainstorm. Despite repeated attempts for help from Radiant Solar, the company denied responsibility, instead blaming other pre-existing structural issues like “rotting exposed wood (2).”
DCWP said it first learned of complaints related to Radiant Solar in 2021 and launched a formal investigation in 2024.
To make customers whole, DCWP wants to secure $1.75 million in civil penalties and $18 million in restitution. The city also wants this company to stop operations and for its president, William James Bushell, to face personal charges.
If DCWP succeeds, this would be the largest win in NYC’s history for a home improvement contractor (HIC) case.
In a press release, DCWP Commissioner Sam Levine said, “Our lawsuit aims to shut down this scheme, recover $20 million for consumers and taxpayers, and send a clear message that preying on New Yorkers will come with serious consequences (1).”
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The dark side of the solar boom
Unfortunately, the solar industry’s success has made it incredibly attractive for scammers.
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Statistics from the Solar Energy Industries Association (SEIA) show that solar power is now a leader in America’s energy infrastructure, accounting for 85% of new annual capacity (3).
On average, the solar industry has experienced a 28% yearly growth rate in deployments, and solar’s total share of U.S. energy went from 0.1% to 8% between 2010 and 2025.
Considering the cost-saving benefits solar panels promise, it’s no wonder so many people are making the switch to green energy. Researchers at Stanford claim that 60% of residents who install a solar energy system could save 15% on their energy bills (4).
Plus, tax incentives like the Residential Clean Energy Credit make solar energy even more cost-competitive (5).
The bad news is that more scammers are exploiting the solar market’s expansion and swindling innocent customers.
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Between 2018 and 2024, NPR found that the number of one-star ratings on the website Solar Reviews grew by 1,000%, showing a lot of customers didn’t have a smooth switch to this energy source (6).
And it’s not just reviews online that highlight this problem. Nevada’s State Contractors Board said in 2024 that one-third of homeowner complaints each year have to do with solar panels (7). According to SEIA, over 20% of Nevada's total energy production comes from solar, making it one of the largest solar markets in the nation.
How to go solar without getting scammed
The FTC’s first tip is to avoid any solar company that claims to offer “zero cost” solar panel installation. Although there are legitimate tax credits for solar, customers will never get a free ride, so this kind of marketing is a dead giveaway for something fishy (8).
It’s also important to steer clear of any messages claiming to be from the Department of Energy or a solar panel business who claim to be affiliated with a government agency. Only work with solar companies that have an official license that’s easy to find online through a state’s official contractor license lookup tool. Third-party review sites like the Better Business Bureau (BBB) and Trustpilot can also help gauge a solar company's trustworthiness before making a decision.
Another common tactic solar scammers use is to demand a steep up-front payment and promise savings down the line. It’s also common for these fraudulent schemes to create a sense of urgency, encouraging you to sign up immediately without going over the full details.
For those who believe they’ve already been scammed, there are ways to get help. Start by filing a complaint with the FTC at ReportFraud.ftc.gov and contacting the state attorney general’s office (9). Extra steps could include reporting the company to a local contractor licensing board and the BBB.
Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
NYC Consumer and Worker Protection (1); CBS News (2); SEIA (3); Stanford Energy (4); IRS (5); NPR (6); Nevada State Contractors Board (7); FTC Consumer Advice (8); FTC (9)
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Eric Esposito is a freelance contributor on MoneyWise who loves making financial topics accessible and understandable to readers. In addition to MoneyWise, Eric’s work can be found in publications such as WallStreetZen and CoinDesk.
