5 Common Solar Scams in Australia — and How Melbourne Homeowners Can Avoid Them
Australians are no strangers to scams. From fake emails to dodgy phone calls, most of us have learned to spot the obvious ones quickly. Unfortunately, solar scams can be much harder to detect because they often look professional, sound convincing, and come wrapped in genuine-looking offers.
With solar rebates, rising power prices, and strong demand across Victoria, some bad actors have entered the market hoping to cash in. At Climate Green Melbourne, we believe homeowners deserve clear, honest information before making a major energy investment.
Below are five of the most common solar scams we see, along with practical tips to help you avoid them.
Solar Scam 1: The Product Swap
This scam occurs when a homeowner is quoted premium solar panels or an inverter but receives cheaper, lower-quality products at installation.
While less common than it once was, it still happens — especially when customers don’t know exactly what they’re supposed to be receiving.
What to Look For
Before signing a contract, make sure you clearly understand:
- Manufacturer name
Reputable brands such as REC, LONGi, GoodWe, Sungrow, or similar should be clearly listed. - Exact model numbers
Panel wattage and inverter models must be specified — not just brand names. - Written confirmation
All selected products should be clearly documented in your contract or quote.
On installation day:
- Ask to see the panels before installation (labels are usually on the back).
- Ensure the inverter arrives in the original manufacturer packaging.
- Check the inverter’s model label once installed.
If the installer arrives with different products:
- Do not allow installation
- Do not sign paperwork
- Request immediate clarification or rescheduling
A reputable installer will never pressure you to accept substitutions without approval.
Solar Scam 2: Fake or Fly-By-Night Installers
One of the most damaging scams involves fake or short-lived solar companies that collect deposits with little or no intention of completing the job properly — or at all.
These operators often:
- Ask for large upfront payments
- Use polished websites and ads
- Disappear once money is transferred
- In some cases, misuse customer personal details
How to Spot a Fake Solar Installer
Check the ABN
- Look up the installer’s ABN online
- Be cautious if the business is newly registered
- Avoid companies unwilling to share their ABN
Search their online footprint
- Look beyond testimonials on their own website
- Search Google reviews, forums, and social platforms
- Check if the business has changed names frequently
Confirm accreditation
- Installers should be appropriately accredited and licensed
- Experience and compliance matter far more than flashy marketing
If something feels rushed or unclear, pause. A genuine installer will welcome questions.
Solar Scam 3: Shonky Solar Contracts
Not all scams happen upfront. Some are hidden in the fine print of contracts, especially in finance agreements or long-term energy arrangements.
These contracts can lock homeowners into expensive commitments that are extremely difficult to exit.
What to Review Carefully
Before signing anything, check:
- Interest rates
Are they fixed or variable over time? - Contract duration
Look for long terms and early exit penalties. - Performance clauses
Understand what happens if the system underperforms. - Hidden fees
Administration, monitoring, or service charges may apply. - Maintenance responsibilities
Clarify who is responsible and what happens if maintenance isn’t met.
Solar finance can be useful — but only when the terms are fully understood.
Solar Scam 4: Unrealistic Promises and Sales Hype
The solar industry attracts aggressive sales tactics, and while enthusiasm is fine, false promises are not.
Common Claims to Be Wary Of
- Inflated energy production figures
System output depends on roof orientation, shading, location, and system size. - Extended or exaggerated warranties
Always cross-check manufacturer warranties independently. - Guaranteed feed-in tariffs
Installers cannot guarantee electricity retailer rates. - Exact savings figures
Solar savings are estimates, not guarantees. - “Zero electricity bills” promises
No installer can predict future usage or energy prices with certainty.
If a quote sounds too perfect, it usually is.
Solar Scam 5: Going Too Small on Purpose
This lesser-known scam involves convincing homeowners to install a much smaller system than they actually need, purely to make the upfront price look attractive.
You may hear phrases like:
- “You don’t need such a big system”
- “This smaller system will do the same job”
- “The bigger quotes are overkill”
Why This Is a Problem
- The system may not cover your actual energy use
- Savings will be limited
- Future upgrades may be more expensive
- Some rebates may no longer apply later
How to Protect Yourself
- Review your average daily electricity usage (kWh) from bills
- Consider future needs (EVs, heat pumps, family growth)
- Ask why a smaller system is being recommended
- Get multiple quotes before deciding
Cheaper upfront doesn’t always mean better value long-term.
What to Do If You’ve Been Scammed
If you believe you’ve fallen victim to a solar scam:
- Contact your bank immediately
- Report the issue to ScamWatch
- Lodge a complaint with the ACCC
- Contact Consumer Affairs Victoria
- If there’s immediate risk, call 000
Acting quickly can limit financial damage.
How Melbourne Homeowners Can Avoid Solar Scams
The best protection is knowledge and choosing the right installer.
✔ Research products and brands
✔ Understand rebates and eligibility
✔ Read contracts carefully
✔ Avoid rushed decisions
✔ Choose experienced, transparent installers
At Climate Green Melbourne, we believe in:
- Honest system design
- Clear pricing
- Proper product selection
- Compliance-first installations
- Long-term customer support
Looking for Safe, Reliable Solar in Melbourne?
Climate Green helps Victorian homeowners navigate solar the right way — without pressure, hidden terms, or shortcuts.
📞 Speak with Climate Green Melbourne today
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