“Free Solar” Lies and the RPS Myth: Why the Industry Needs Reform Now

How misleading sales tactics are harming trust in renewable energy—and what must change for a better solar future

The solar industry has a trust problem.

Across California, thousands of homeowners and renters are being targeted by aggressive salespeople claiming that a mysterious “California program” allows them to go solar at no cost. These offers often come with lofty promises: you’ll own the equipment, you’ll pay less than your current utility bill, and best of all—there will be no liens on your home.

It’s an enticing story, but here’s the truth: it’s not true—and in some cases, it’s deliberately deceptive.

Recently, a past client of mine called after receiving one of these offers. He was told over the phone that the program was tied to California’s Renewables Portfolio Standard (RPS), and that renters like him could “go solar for free.” No one explained how it worked. Just that he’d now be buying power from them instead of the utility. Naturally, he called me to make sense of it.

So I dug into it. And here’s what I found:

What the RPS Really Is (And Why It Has Nothing to Do with Your Roof)

The California Renewables Portfolio Standard (RPS) is a state policy that mandates utilities and electricity providersto source a specific percentage of their electricity from renewable sources—solar, wind, geothermal, etc. It began in 2002 and has since evolved into one of the most aggressive clean energy standards in the country.

• 33% renewable by 2020

• 60% by 2030

• 100% carbon-free electricity by 2045

But here’s the kicker: the RPS is a mandate for utilities—not a consumer incentive program. It doesn’t fund residential solar. It doesn’t send installers out to your home. And it certainly doesn’t offer free panels to renters or homeowners.

So why do salespeople invoke the RPS when pitching “free solar”?

The Bait-and-Switch: Leasing & PPAs Disguised as "Free Solar"

What these companies are almost always selling is a Power Purchase Agreement (PPA) or a lease. Under these models:

• You don’t own the panels.

• A third-party company installs them on your home or rental.

• You agree to buy the electricity they produce—usually at a lower rate than your utility.

• The installer gets the 30% federal tax credit, not you.

• There may be 20-25 year commitments involved with escalators and hidden clauses.

They may call it a “no-cost solar program.” But that’s not the same as owning a system.

And when they name-drop the RPS? It’s often a tactic to give the offer an air of government-backed legitimacy—even though the RPS has nothing to do with these deals.

This is textbook misrepresentation, and it’s exactly why public trust in solar is being eroded—even as the planet needs clean energy more than ever.

Why This Needs to Change—Now

The solar industry is at a crossroads. For years, it’s enjoyed generous federal subsidies like the 30% Investment Tax Credit (ITC), net metering programs like NEM 1.0 and 2.0, and other utility-based incentives.

But with great incentives should come great accountability—and that hasn’t happened.

Instead, we’ve seen:

• Sales teams stretching the truth to close deals.

• Companies prioritizing fast signups over quality installations.

• Poor customer service after the sale.

• An overreliance on outdated policy incentives that don’t benefit renters or modern energy users.

It’s time for change. And here’s what that looks like:

What Needs to Happen

1. Sunset the 30% Tax Credit for Third-Party Ownership Models

   If the consumer doesn’t own the system, the tax credit shouldn’t apply. Period. Let the credit benefit those who are investing in clean energy—not corporations exploiting tax breaks.

2. Move All Customers to Modern Net Billing

   Legacy NEM 1.0 and 2.0 customers are being subsidized by the rest of us. Moving everyone to a more balanced Net Billing program (like NEM 3.0) aligns incentives with grid needs and makes solar fairer across the board.

3. Crack Down on Deceptive Marketing

   We need stricter rules and enforcement for solar companies who misrepresent their offers. That includes clear disclosure requirements for leasing and PPA terms, and severe penalties for invoking programs like the RPS inappropriately.

4. Create Transparent Statewide Portals for Verified Programs

   Consumers deserve a simple, verified way to see what programs they actually qualify for—without risking predatory phone calls or fake leads.

Final Thoughts: The Promise of Solar Deserves Better

The clean energy revolution is real—but it can’t be built on half-truths and predatory contracts.

The future of solar must be transparent, consumer-focused, and rooted in real value—not smoke and mirrors. And until we raise the bar, remove misaligned incentives, and call out the crooks—we will continue to see trust erode, good companies struggle, and consumers walk away skeptical.

It doesn’t have to be that way.

It’s time to rebuild solar the right way. One honest conversation at a time.

Need help reviewing a solar offer or understanding your true options?

Reach out. I’ll give you the facts without the fluff.