Protect yourself

Solar claims to walk away from

California's utility regulator prints four false claims right in the guide solar buyers sign. If you hear one, the CPUC's advice is to not do business with that company.

Checked October 26, 2026. Sources linked in the text.

By the Golden Hour Energy editorial team. How we research and check our guides

The California Public Utilities Commission names four false claims solar sellers make, and says that if you hear one, you shouldn't do business with that company. They're printed on page 3 of the CPUC's California Solar Consumer Protection Guide, the document SCE and SDG&E customers must sign before a solar system can connect to the grid. In the CPUC's words: “if a salesperson makes one of these false claims to you, do not do business with them.”

We publish this list because it's the most useful page a solar website can have. The CPUC notes that most solar providers are fair. These claims are how you spot the ones that aren't.

The CPUC's four false claims

Each claim below is quoted word for word from page 3 of the guide's PDF. The answer under it is our plain-English summary of the CPUC's response, not a quote. The CPUC's solar guide web page words some of these claims differently.

Claims to walk away from

If you hear
“You can get free solar energy at no cost to you.”
What's true
The CPUC says solar is rarely free, and a trustworthy company is upfront about every cost you'll pay over time. The narrow exceptions are programs for income-qualified homeowners and SGIP.
If you hear
“You will never pay an electricity bill again after a solar system is installed.”
What's true
Solar reduces your utility bill but doesn't eliminate it. With a loan, lease or PPA you also get a monthly bill from that company.
If you hear
“You must sign now to get solar.”
What's true
A real seller gives you time to review. California law requires the seller to show you the contract terms before you sign, and you can ask for a paper copy to sign by hand.
If you hear
“You can take advantage of solar business tax credits if you register yourself as an LLC.”
What's true
Solar on a home doesn't qualify for business tax credits. The CPUC says anyone telling you to form an LLC to go solar is pushing you toward something illegal.

Claims quoted from page 3 of the CPUC's California Solar Consumer Protection Guide (Version 4, marked 'Published October 2025'). Answers are our summary.Source: CPUC Solar Consumer Protection Guide (PDF)

Four more red flags we'd add

These aren't on the CPUC's list, but each one is backed by a regulator or reputable source.

"We're with the utility" or "This is a state program"
A legitimate installer won't claim to represent your utility. Ads that frame solar as a government or state plan that pays for your panels are a documented scam pattern.
Source: Colorado Public Radio
"You still get the federal tax credit"
The homeowner credit ended for systems placed in service after December 31, 2025. Only lease and PPA providers can still claim a federal credit.
Source: SEIA
A price from someone who isn't licensed
Under CSLB guidance, lead generators and referral services can't give you prices or proposals for a solar system. Only a licensed contractor or its registered salesperson can.
Source: CSLB
No disclosure document
A real installer must give you a completed Solar Energy System Disclosure Document showing total costs. If they won't, stop.
Source: CPUC

Your rights before you sign

The CPUC guide spells out rights every California solar buyer should know:

You can read the whole guide first. Don't feel pressured to read it while the salesperson waits. Ask them to come back.
You get the contract in your language. If the seller spoke with you in a language other than English, they must give you the contract in that language.
You get a Solar Energy System Disclosure Document showing total costs and other financial details.
You can cancel. You have at least three business days after you receive a signed, dated copy of the contract, or five if you're 65 or older (AB 2471). Different rules may apply to contracts negotiated at a company's place of business.

A short checklist before you sign

Get bids from at least three providers. The cheapest isn't always the best, and a very low bid can mean cut corners.
Look up the contractor's license with the CSLB. A residential solar installer should hold a C-46, C-10 or B classification.
If you were contacted by phone or at your door, ask for the salesperson's HIS registration number and check it too.
Check the CPUC's public list of non-compliant solar providers.
Ask for three customer references and call them.
Save copies of everything. You'll want them if you sell the house or replace the roof.

How we hold ourselves to this

Golden Hour Energy is a referral service, not an installer. California's contractor board says lead generators can refer homeowners and set appointments, but can't give prices or proposals for a solar system (CSLB advisory). So we don't. What you see at the end of our check is a general estimate range, labeled as an estimate. Real pricing comes from a licensed installer after a site review.

We also keep a list of things we won't say anywhere on this site:

That solar is free, or that it will wipe out your electric bill.
That you need to decide today.
That we work for, or with, SCE, SDG&E, LADWP or any government agency.
That a homeowner can still claim the federal solar credit in 2026.
That savings are certain. Every home is different.

If you ever see us break one of these, email us at the address on our about page.

Where to report a problem

The CPUC guide points to the Contractors State License Board for complaints about a contractor or salesperson: call 800-321-CSLB (2752) or visit cslb.ca.gov/consumers. For financial fraud, including loans and leases, contact the Department of Financial Protection and Innovation.

Common questions

Will the state pay for my solar panels?

Almost certainly not. The CPUC lists the no-cost pitch as a false claim and says solar energy is rarely free. There are limited programs for income-qualified homeowners, which the CPUC lists at cpuc.ca.gov/solarguide/lowincomesolar.

How long do I have to cancel a solar contract in California?

At least three business days after you receive a signed, dated copy of the contract, or five days if you're 65 or older. Different rules may apply to contracts negotiated at a company's place of business.