The Consumer Financial Protection Bureau today issued a report and consumer alert on what it said were “costly and complex loans” for home solar installations. The bureau examined “solar-specific” loans, which are often facilitated by nonbank financial technology firms through a point-of-sale partnership with solar installers. It claimed to have found hidden markups and fees, misleading statements to consumers about federal tax credits for home solar, misrepresentations and omissions concerning payments, and misrepresentations concerning the financial benefits of the technology.
“Homeowners have the potential to generate substantial savings by making improvements to their home that generate clean energy and increase energy efficiency,” the CFPB said in the report. “However, these investments require upfront costs that many families must finance.”
The CFPB recommended homeowners investigate less expensive options before taking out a solar-specific loan, such as federal, state and local programs that offer free or subsidized energy efficiency, weatherization and or solar home improvements. It also urged consumers to file a complaint if they believe they received “a bad deal” on their solar energy system or loan.
The CFPB alert was released the same day the Treasury Department issued a new report about tax credits for energy efficiency and renewable energy included in the Inflation Reduction Act, which it claimed resulted in billions of dollars in savings for homeowners.
