A salesman just knocked on your door. He mentioned your neighbor down the street, said something about a government program, and promised you could start saving on your electric bill immediately with no money down. He has a tablet ready for you to sign, and he needs an answer today because the program is ending soon.
Stop.
Key Takeaways
- Fannie Mae's Selling Guide excludes leased solar panels from appraised value
- Door-to-door solar sales resulted in 7,000+ FTC fraud complaints in 2025
- The FTC Cooling-Off Rule gives three days to cancel most sales of $25 or more made at your home, and Ohio law gives until midnight of the third business day.
- The IRS says the residential clean energy credit is not allowed for expenditures made after December 31, 2025.
- Ask "Am I leasing or buying?" and demand a direct answer before signing anything
Sources: Fannie Mae Selling Guide B2-3-04; Federal Trade Commission Cooling-Off Rule guidance; Ohio Revised Code 1345.22; Internal Revenue Service, Residential Clean Energy Credit (all accessed October 18, 2026).
Let me be clear upfront: solar panels can be a smart investment that reduces your energy costs and environmental impact. The problem isn't solar itself - it's how door-to-door companies are selling it. What they're offering is often a long-term lease, not ownership, and that creates serious problems down the road.
I'm Amanda Mullins, a REALTOR serving Southwest Ohio including Springfield, Dayton, Yellow Springs, Xenia, Fairborn, Beavercreek, and surrounding communities. Before real estate, I spent 13+ years as an Appraisal Management Director, where I coordinated appraisal work and saw exactly how leased solar panels affect property values and real estate transactions. I've watched deals fall apart and seen sellers write $25,000+ checks at closing just to get out of contracts they signed in 20 minutes.
Whether you're buying, selling, or staying put in Ohio (or relocating to or from the area), understanding the difference between leased and owned solar panels can save you tens of thousands of dollars and major headaches.
The Door-to-Door Solar Problem
The Federal Trade Commission received over 7,000 solar fraud complaints in 2025 alone. Door-to-door solar sales aren't illegal, but the tactics many companies use are designed to get you to sign before you understand what you're agreeing to.
Here's what I've seen reported by Ohio consumers and verified through attorney general complaints:
An Ohio consumer was told they could get solar panels at no cost. After asking more questions, they learned they had actually been approved for a $52,000 loan with monthly payments.
A 71-year-old homeowner in another state signed 4 documents in under 20 minutes. She thought the government was covering most of the cost. 3 months later, she had a $38,000 loan on her credit report and the panels weren't even connected to her electrical system.
The sales scripts are consistent across Arizona, Florida, Ohio, and New Jersey. These aren't random bad actors. These are organized operations running the same plays in different zip codes.
Leased vs. Owned Solar Panels: The Critical Difference
Before we get to the 7 questions, you need to understand the fundamental difference between leasing and owning solar panels. This distinction determines everything from your upfront costs to your home's value when you sell.
| Factor | Leased Solar Panels | Owned Solar Panels |
|---|---|---|
| Upfront Cost | $0 down, monthly payments for the contract term | Paid in cash or financed with a solar loan |
| Ownership | Solar company owns the equipment | You own the equipment |
| Federal tax credit | Ask who claims any credit and get it in writing | Ask who claims any credit and get it in writing |
| Impact on Home Value | Fannie Mae's Selling Guide excludes it from appraised value | Depends on the appraisal and the loan program |
| When Selling Your Home | Must transfer lease (buyer approval required), buy out contract ($15K-$50K+), or prepay remaining payments | Panels convey with property, increases value, no buyer approval needed |
| Annual Payment Increases | Yes, typically 1-3% escalator clauses | No (if paid cash) or fixed loan payment |
| After Contract Ends (25 years) | You own nothing, company owns equipment | You own equipment for remaining useful life |
| Impact on Mortgage Approval | Lease payment counts in debt-to-income ratio (reduces borrowing power) | If financed, loan payment may count in DTI depending on lien type |
The 7 Questions That Expose the Truth
When a solar salesman shows up at your door, ask these questions out loud and wait for clear answers. If they dodge, rush you, or get defensive, that's your red flag.
Question 1: "Am I leasing these panels or buying them?"
This is the single most important question. The salesman will use phrases like "no money down," "no upfront cost," or "government program." Those phrases almost always mean you're leasing, not buying.
What you're listening for: A direct answer. "You're leasing them" or "You're buying them with financing." If you hear anything vague like "It's a solar program" or "You're participating in an energy savings agreement," you're being sold a lease or power purchase agreement.
Why it matters: Leased panels are not counted in your home's appraised value. Fannie Mae's Selling Guide excludes leased solar panels from appraised value. The panels aren't yours, so they don't increase what a lender will loan on your property.
Question 2: "What is the total cost over the full contract term, including any annual increases?"
If it's a lease, the monthly payment matters less than the total you'll pay over the full contract term.
What you're listening for: A specific dollar amount. Most leases include escalator clauses with 1-3% annual increases. A $120/month lease with a 2.5% escalator becomes $141/month by year 5 and keeps climbing. Over 25 years, you could pay $45,000+ and own nothing at the end.
Why it matters: That $120 payment sounds reasonable today. But combined with utility rate changes, your "savings" can evaporate fast. I've seen homeowners end up paying more than they would have staying on the grid.
Red flag: If the salesman says "it depends on your usage" or won't give you a total contract amount, he's hiding the escalator clause.
Question 3: "If I need to sell my home in 5 years, what are my options and what do they cost?"
This is where lease contracts get ugly.
What you're listening for: 3 options exist: transfer the lease to the buyer (requires their credit approval), buy out the remaining contract, or prepay the lease and pay removal fees.
Why it matters: In real estate transactions, I've seen agents spend hours on hold trying to get solar companies to respond during a closing timeline. Some buyers refuse to take on lease debt. Others can't qualify because the lease payment counts against their debt-to-income ratio.
Red flag: If the salesman says "it's easy to transfer" or "the buyer will love it," he's oversimplifying. Ask for the specific buyout amount at year 5. Get it in writing.
Question 4: "How long has your company been operating in Ohio, and can I call 3 customers in my zip code who installed in the last 6 months?"
Legitimate local installers have a track record. Fly-by-night operations don't.
What you're listening for: Specific company name (not just "we work with several installers"), years in business in Ohio, and actual customer references you can call randomly, not pre-selected.
Why it matters: Pink Energy (formerly Power Home Solar) operated in Ohio until going bankrupt, leaving consumers $50,000-$80,000 in debt with no savings on power bills and broken systems. The Ohio Attorney General sought a permanent injunction for deceptive practices.
Red flag: If the salesman says "we're a national company" but can't name local installations, or if he only offers pre-selected testimonials, that's a warning sign.
Question 5: "Who gets the federal tax credit, me or your company?"
The IRS says the residential clean energy credit is not allowed for expenditures made after December 31, 2025.
Source: Internal Revenue Service, Residential Clean Energy Credit (accessed October 18, 2026).
What you're listening for: A clear, written answer about who, if anyone, claims any federal credit, and why.
Why it matters: Salesmen often say "the government is helping pay for this" to make it sound like you're getting free money. Ask the salesman to show you in writing which taxpayer qualifies for any credit he mentions.
Red flag: If the salesman quotes a federal tax credit and cannot show it to you in writing, walk away.
Question 6: "Can I have paper copies of the full contract to review with my family before signing?"
You have a legal right to review contracts. Any legitimate business will provide this.
What you're listening for: "Yes, here's the full contract. Take your time." If he hands you a tablet showing one page at a time, that's a tactic to prevent you from seeing the full terms.
Why it matters: The FTC Cooling-Off Rule gives three days to cancel most sales of $25 or more made at your home, and Ohio law gives until midnight of the third business day. The rule has exclusions. These rights only help if you know they exist, so ask for the cancellation notice in writing.
Red flag: "I can't leave these with you" or "these are proprietary" or "just initial here, here, and here" without letting you read the full document.
Question 7: "What happens if the panels don't produce the electricity you're estimating?"
Most contracts include production guarantees, but the details matter.
What you're listening for: A specific guarantee (usually 80-90% of projected production) and what compensation you receive if the system underperforms.
Why it matters: If the system is undersized for your actual usage or if the salesman's estimates are inflated, you won't see the promised savings. Some contracts make you responsible for "maintaining optimal conditions," meaning you have to clean panels and trim trees or they can charge you for lost generation.
Red flag: Vague answers like "it's guaranteed to work" without specifics, or estimates that seem too good to be true (100% electric bill elimination).
The Biggest Red Flags to Walk Away From
Beyond these 7 questions, here are the red flags that should end the conversation immediately:
"This deal ends today." Legitimate solar installers don't operate on 24-hour deadlines. The same financing and equipment will be available next week.
"Your neighbor signed up." This is a sales tactic to build false urgency and social proof. Even if true, your neighbor's situation isn't yours.
"Free solar panels." There is no such thing. You're either paying upfront, paying over time, or leasing. When you lease, you pay monthly for 20-25 years and own nothing at the end.
"Special government program." There are tax credits and some state incentives, but no special government program that makes solar free or gives you grants. This is a misrepresentation.
Pressure to sign before you can talk to family, review documents, or get other quotes. Any company discouraging you from getting competing bids or consulting with trusted advisors is not acting in your best interest.
Can't answer basic questions about equipment brands and specifications. If the salesman can't tell you the panel manufacturer, model numbers, inverter type, or warranty details, he's a commissioned salesperson reading a script, not a solar expert.
What Leased Solar Panels Mean When You Sell Your Home
This is where my appraisal management and real estate background becomes critical. Here's what happens in a real transaction:
The listing: Your agent must disclose in the MLS that solar panels are leased. Failing to do this clearly can lead to lawsuits. Buyers assume "solar panels" means they're included in the sale. When they discover the lease, deals fall apart.
The appraisal: Fannie Mae's Selling Guide excludes leased solar panels from appraised value, and the appraisal will note them as personal property owned by the solar company.
The buyer's mortgage: If the buyer needs to assume the lease, the monthly payment counts against their debt-to-income ratio unless there's a production guarantee. This reduces how much they can borrow.
The timeline: Solar companies are often slow to respond during real estate transactions. Transfer approvals can take 2+ weeks. Some companies are financially unstable, making negotiations impossible. This causes closing delays and deal failures.
Your options as seller:
- Transfer the lease (buyer must qualify, agree to terms, and be willing to take on the debt)
- Buy out the lease (often costs more than the system would cost to buy new today)
- Prepay the remaining lease payments
None of these options are cheap or easy.
What To Do Right Now
If a solar salesman is at your door right now:
Thank them for their time and tell them you need to review everything with your family and get competing bids. Take their business card. Do not sign anything. Do not give them your electric bill or social security number for a credit check.
If you're seriously interested in solar:
Get at least 3 quotes from local, established solar installers (not door-to-door companies). Look for companies that have been in business in Ohio for 5+ years with verifiable local installations. Ask about buying the system with financing instead of leasing. The monthly payment might be similar, but you'll own the equipment and get the tax credit.
If you already signed a solar lease:
The FTC Cooling-Off Rule gives three days to cancel most sales of $25 or more made at your home, and Ohio law gives until midnight of the third business day. If you're past that window, read your contract carefully for buyout terms. If you feel you were misled or defrauded, file complaints with the Ohio Attorney General's Consumer Protection Section and the Federal Trade Commission.
Ohio Revised Code 1345.22 lets you cancel a home solicitation sale until midnight of the third business day after you sign, and the seller may not begin the work during that time.
Source: Ohio Revised Code 1345.22 (accessed October 18, 2026).
If you're selling a home with leased solar:
Contact your solar company now to find out your options and costs. Don't wait until you're under contract. Get buyout quotes in writing. Work with a real estate agent who has experience with solar transactions. Disclose clearly in all marketing and contracts that the panels are leased.
Frequently Asked Questions About Door-to-Door Solar Sales
Can I cancel a solar contract I signed with a door-to-door salesperson in Ohio?
Yes, in most cases. Ohio Revised Code 1345.22 lets the buyer cancel a home solicitation sale until midnight of the third business day after signing, by written notice to the seller by certified mail, personal delivery, fax, or email. The FTC Cooling-Off Rule also gives three days to cancel most sales of $25 or more made at your home.
What paperwork must a door-to-door seller leave with me?
Under Ohio Revised Code 1345.23, the seller must leave a signed copy of the agreement that states your right to cancel near the signature line, with a detachable "notice of cancellation" form in duplicate. The FTC Cooling-Off Rule also requires two copies of a cancellation form and a dated contract or receipt.
Can the installer start work before my cancellation period ends?
No. Ohio Revised Code 1345.22(B) says that when a home solicitation sale requires the seller to provide services, the seller shall not begin performing those services during the time the buyer may cancel. If you cancel, Ohio law says payments are returned within ten business days after the seller receives your notice.
Can I still get the 30 percent federal tax credit for solar panels?
Not for a system installed now. The IRS says the residential clean energy credit is not allowed for expenditures made after December 31, 2025, and an expenditure counts as made when the original installation is completed. Ask any salesperson who quotes a federal credit to show it in writing.
Do leased solar panels add to a home's appraised value?
Not for a Fannie Mae loan. Fannie Mae's Selling Guide says the value of leased or power purchase agreement solar panels cannot be included in the appraised value, and the monthly lease payment counts in the buyer's debt-to-income ratio unless the lease meets specific production guarantee terms.
Sources: Ohio Revised Code 1345.22 and 1345.23; Federal Trade Commission Cooling-Off Rule guidance; Fannie Mae Selling Guide B2-3-04; Internal Revenue Service (all accessed October 18, 2026).
The Bottom Line
Solar energy can be a smart investment when done right. But the door-to-door sales model is built on pressure, confusion, and contracts most people don't fully understand when they sign.
The 7 questions in this article will expose whether you're talking to a legitimate installer or a high-pressure salesman. Use them. And remember: any company that won't let you take time to review, get other quotes, and make an informed decision isn't working in your best interest.
Whether you're buying, selling, or staying in Southwest Ohio, or relocating to or from the area, understanding how solar panels affect real estate transactions is critical. I serve Springfield, Dayton, Yellow Springs, Xenia, Fairborn, Beavercreek, and surrounding communities. For clients relocating outside my market, I can connect you with trusted agents nationwide through my eXp network.
With 13+ years of appraisal management experience and years navigating real estate transactions, I can help you understand what you're dealing with before it becomes a problem.
Need help with a real estate transaction involving solar panels, or relocating to or from Southwest Ohio?
Call me at (317) 750-6316 or email amullinsmba@gmail.com
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