Can a Solar Panel Company Legally Lie About Tax Credits in New Hampshire?

Switching to solar energy is a popular way for homeowners in New Hampshire to lower their electricity bills and adopt clean energy. Unfortunately, the solar industry has seen a rise in aggressive and sometimes deceptive door-to-door sales tactics. Homeowners are often promised massive government rebates, free roof repairs, or tax credits that simply do not exist or for which they do not qualify.

If you live in Portsmouth, Keene, or Manchester, it is crucial to know your rights. A solar sales representative outright lying about the financial benefits of their system is not just bad business; it is a violation of the law. This guide breaks down what makes these tactics illegal, how the New Hampshire Consumer Protection Act protects you, and how you can fight back against predatory solar companies. If you need personalized legal assistance, you can find a local consumer rights lawyer in our directory.

Step-by-Step Process to Fight Solar Fraud in New Hampshire

If you believe you were scammed by a solar company, acting quickly is your best defense. Follow these steps to challenge the contract and protect your home.

Step 1: Utilize the 3-Day Cooling-Off Rule

If the solar salesperson sold you the system at your house, you have special protections. Under N.H. Rev. Stat. Ann. § 361-B:2 (the Home Solicitation Sales Act), you have three business days to cancel the contract without any penalty. You must provide a written notice of cancellation to the company's address as listed on the contract. Do not rely on a phone call; send a certified letter.

Step 2: Document the Misrepresentations

If the 3-day period has passed, you need evidence. Write down everything the salesperson promised you. Did they claim the government would pay for 30% of the system directly via a check? Did they promise your electric bill would completely disappear? Collect all brochures, emails, and the actual contract. These documents are vital if you need to prove a violation of the New Hampshire Consumer Protection Act, N.H. Rev. Stat. Ann. § 358-A:2.

Step 3: File State Complaints

Report the deceptive practices to the state authorities. You can submit a Consumer Complaint Form to the New Hampshire Department of Justice, Consumer Protection and Antitrust Bureau, Concord. Additionally, you should report the solar installer to the New Hampshire Department of Energy, Concord, which oversees utility practices and renewable energy programs in the state.

Step 4: Seek Legal Counsel and File Suit

If the solar company refuses to cancel the fraudulent contract or repair damages, you may need to file a lawsuit in a court like the Rockingham County Superior Court, Brentwood or the Hillsborough County Superior Court South, Nashua. Courts in New Hampshire look sternly upon businesses that use deceit to secure contracts, as demonstrated in precedents like Snierson v. Scruton, 145 N.H. 73 (NH Supreme Court 2000), which established that material misrepresentations in consumer transactions can result in damages.

Common Deceptive Solar Tactics

Misrepresented Federal Tax Credits

One of the biggest lies told by door-to-door solar reps is regarding the federal solar investment tax credit (ITC) found in 26 U.S.C. § 25D. Salespeople often tell homeowners they will get a direct cash rebate check from the government. In reality, it is a non-refundable tax credit, meaning it only offsets taxes you owe. If a retired person on a fixed income with no tax liability is sold a system based on this lie, the contract was formed under fraudulent pretenses.

Predatory Lease Agreements

Many homeowners are tricked into signing Power Purchase Agreements (PPAs) or solar leases, believing they are purchasing the panels. These leases often include hidden escalator clauses that raise your monthly payment every year. When you try to sell your home, the buyer must take over the lease, which frequently sabotages real estate sales. Misrepresenting a lease as a purchase is a classic consumer fraud violation.

Roof Damage Caused by Reckless Solar Installation

Another major issue occurs when companies rush installations, putting panels on old or decaying roofs despite promising an inspection. When the roof leaks and the company refuses to honor its warranty, the homeowner is left with thousands of dollars in damages. This constitutes negligence and breach of implied warranty.

How Much Does It Cost in New Hampshire?

Filing a civil lawsuit in a New Hampshire Superior Court requires a total filing fee of $325.00 ($285.00 entry fee, $10.00 dispute resolution assessment, and $30.00 electronic case filing surcharge). If you hire a consumer protection lawyer, their fees can range from $250 to $450 per hour. However, under the NH Consumer Protection Act, if you win your case, the judge has the authority to order the fraudulent solar company to pay your attorney's fees and even award double or treble (triple) damages if the violation was willful.

How Long Does the Process Take?

If you use the 3-day cancellation rule, the process is immediate. If you are locked in a dispute and have to file complaints or a lawsuit, resolving solar fraud can take anywhere from 6 to 18 months depending on whether the solar company is willing to settle out of court or if the case goes to trial.

Frequently Asked Questions (FAQ)