Solar scams and red flags to watch for

Most solar companies in Canada are legitimate. A few rely on pressure, confusion about government programs and contracts that are hard to get out of. Knowing the common patterns makes them easy to spot, and the protections you already have under consumer law are stronger than many people realize.

Pressure at the door

The most common complaint pattern starts with an unexpected knock or call. The salesperson says your neighbours are signing up, a program ends this week, or the price is only good today.

A real installer will give you a written quote and let you take time to compare it. Any offer that disappears if you don't sign tonight is designed to stop you from checking it.

In Ontario, door-to-door sales of some home products, such as furnaces, air conditioners and water heaters, are restricted unless you invite the business. Solar panels are not on that restricted list, but door-to-door solar contracts must still follow the Consumer Protection Act. You have 10 days to cancel a door-to-door agreement for any reason, starting when you receive a written copy. Other provinces have similar cooling-off rules, so check with your provincial consumer protection office.

"Free solar" and "no cost to you"

Solar equipment and installation cost real money. When an offer says free, the cost is usually somewhere else: a long lease, a monthly payment that rises over time, a power purchase agreement at a set price, or a loan with fees built in. Ask for the total amount you will pay over the full term, in writing.

Fake government programs

Some sellers imply they work for the government, your utility or a provincial agency. They may use names that sound official or say they are "enrolling homes" in a program.

Government programs don't send salespeople door to door to sign contracts. If someone mentions a program, look it up yourself on the official government or utility website before going any further.

Rebates that no longer exist

A frequent tactic is to quote a net price that includes a rebate or loan you can't get.

• The Canada Greener Homes Grant closed to new applicants in 2024.
• The Canada Greener Homes Loan (interest-free) closed to new applicants on October 1, 2025.
• In Ontario, the Home Renovation Savings Program pays up to $5,000 for solar, but only for systems sized for on-site use that don't join net metering.

If a quote counts a closed program, or combines the Ontario rebate with net metering on the same system, the price is wrong. Our incentives page lists current programs.

Inflated savings

Watch for savings figures that assume every kWh is worth the most expensive rate, large yearly price increases, or production well above what your roof can make. A quote that says your bill will go to zero is a warning sign, since fixed charges remain. See how to compare solar quotes for how to check the maths.

Huge deposits

A modest deposit is normal. Paying most of the price before any equipment arrives puts you at risk if the company stalls or closes. Tie payments to milestones, and hold the final payment until the electrical inspection passes and the system is connected.

Lease and lien traps

Some leases and financing arrangements register a lien or notice on your property title. That can cause trouble if you want to refinance, sell or cancel. Ontario's consumer protection rules prohibit registering a Notice of Security Interest for consumer goods, and the province warns that some companies try to register liens on home titles instead. Some homeowners have later been offered high-cost mortgages to pay off these liens.

Before signing, ask directly whether anything will be registered on your title, and get the answer in writing. Read our guide on buying, leasing or financing and talk to a lawyer about any contract you don't fully understand.

A quick checklist

• Did you contact them, or did they contact you?
• Do you have a written quote with the total price, equipment models and warranties?
• Is every rebate in the quote currently open to new applicants?
• Is the deposit small and the payment schedule tied to milestones?
• Will anything be registered on your title?
• Have you had at least 24 hours and a second quote?

Where to get help or report a problem

• Your provincial consumer protection office, such as Consumer Protection Ontario, for contract disputes, cancellations and complaints about a business.
• The Canadian Anti-Fraud Centre, through its online reporting system or toll-free at 1-888-495-8501, if you believe you have been defrauded.
• The Competition Bureau, at 1-800-348-5358 or through its online complaint form, for misleading or deceptive marketing claims.
• Your local police, if money has been taken.

Next step

Before you sign anything, run the quote through our quote checker or check your roof to see what a fair system looks like.

Common questions

Can I cancel a solar contract signed at my door?

In Ontario you have 10 days to cancel a door-to-door agreement for any reason, starting when you receive the written copy. Other provinces have their own cooling-off rules, so check with your provincial consumer protection office.

Is the Canada Greener Homes Grant still available for solar?

No. The grant closed to new applicants in 2024, and the interest-free Canada Greener Homes Loan closed to new applicants on October 1, 2025. A quote that counts either one is out of date.

Is free solar a scam?

Not always, but it is never free. The cost is usually built into a lease, loan or power purchase agreement, so ask for the total you will pay over the full term.

Where do I report a solar scam in Canada?

Report fraud to the Canadian Anti-Fraud Centre at 1-888-495-8501 or online. Report misleading advertising to the Competition Bureau, and contract problems to your provincial consumer protection office.

Sources

• Government of Ontario: Door-to-door sales and home service contracts
• Competition Bureau Canada: How to report fraud and scams in Canada
• Natural Resources Canada: Closed: Greener Homes Grant - Ontario
• Canadian Renewable Energy Association: Research door-to-door solar contracts