What a hidden fee adds to a solar loan
A solar loan is not just financing for panels. The Consumer Financial Protection Bureau, the federal agency that regulates consumer lending, says solar loans often carry an added charge kept by the lender rather than paid to the installer, called a dealer fee. That fee typically adds 10% to 30% of the system cash price to the loan, and can add more than 50%, without showing up in the interest rate a homeowner is quoted. In one complaint the bureau describes, a homeowner was quoted a 1.99% interest rate next to a 26% upfront fee, numbers that could not both be true over a 25 year loan.
These 3 figures come from a single worked example the Consumer Financial Protection Bureau describes, not a national average.
Show the numbers
| Cash price | 30,000 |
| Hidden fee | 9,000 |
| Total loan | 39,000 |
In a worked example, a 30,000 dollar system became a 39,000 dollar loan once a 9,000 dollar fee was added, 30% of the price, the top of the bureau own range.
Connecticut has already settled with 3 solar sellers
Regulators in Connecticut, Washington DC, Texas and New York City have investigated, sued, or settled with named solar sellers since 2024. Connecticut settled with Vision Solar for 5,000,000 dollars in 2024 over high pressure sales and unpermitted work, though the company has since filed for bankruptcy and the state says it cannot pay.
Electric bills are through the roof right now and it makes sense that many homeowners are looking to solar to save money.
William Tong, Attorney General of Connecticut. Source 2.
The Vision Solar figure is a stipulated judgment, a court order both sides agreed to. Vision Solar has since filed for bankruptcy, and the state says it does not have enough money left to pay.
Show the numbers
| EnergyBillCruncher, over false social media claims | 20,000 |
| Spruce Power, after complaints during a company takeover | 100,000 |
| Vision Solar, over high pressure sales and unpermitted work | 5,000,000 |
Texas and New York City are pursuing separate cases
Texas Attorney General Ken Paxton demanded records on April 6, 2026 from 4 companies, Freedom Forever, Sunrun, Lone Star Solar Services and CAM Solar, after residents filed over 100 complaints alleging misrepresented savings and equipment.
Thousands of Texans have been targeted by companies selling solar panel systems, and it's imperative that these companies are held responsible for any lies or deceptive marketing they use.
Ken Paxton, Attorney General of Texas. Source 4.
In New York City, the Department of Consumer and Worker Protection sued Radiant Solar and the person who owns it, William James Bushell, in January 2026, saying the company promoted more than 18,000,000 dollars in loans to at least 370 residents over 5 years, about 3,000,000 dollars of it a hidden dealer fee paid back to the company as a kickback from the lenders it steered borrowers toward. The city is seeking a combined 20,000,000 dollars in penalties and restitution.
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.
Sam Levine, Commissioner, New York City Department of Consumer and Worker Protection. Source 5.
What a fair price looks like, and a number that does not check out
The Attorney General for the District of Columbia says a fair price for a home solar system is about 3,000 dollars for every kilowatt, a unit that measures system size, so a 10 kilowatt system should cost about 30,000 dollars before any tax credit. A September 2025 alert names Wards 4, 5, 7 and 8 as neighborhoods where door to door sellers have targeted low income homeowners, seniors, and residents who do not speak English as a first language, with false promises of a free system and hidden fees added into loans.
A commission a solar salesperson earns on a sale is a number widely repeated online, but no source checked for this article states where it comes from, so it is left out here. The dealer fee documented above, from the federal regulator, is the number that actually traces to a source.