Consumer group warns that federal oversight is waning and state must step in
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Center for Responsible Lending urges states to take the lead on solar financing reforms as federal oversight wanes.
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Key recommendations include limits on hidden fees, enforceable savings guarantees, and stricter sales protections.
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Goal is to ensure fair access to rooftop solar for low- and moderate-income homeowners.
The Center for Responsible Lending (CRL) has released a new reportcalling on policymakers and regulators to strengthen consumer protections in rooftop solar financing, warning that abusive practices threaten both homeowners and the industrys long-term success.
With the federal government scaling back oversight, CRLs policy recommendations arguethat states must take the lead in creating a fairer, more transparent market.
Now more than ever, state action will play a critical role to restore trust and ensure the solar industrys long-term success, said Andrew Kushner, senior policy counsel at CRL and co-author of the report. We urge policymakers and regulators to enact reforms to combat abusive practices that could harm the very communities that stand to benefit most.
Recommendations for reform
Among the most pressing reforms, CRL is urging states to:
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Require lenders to conduct an ability to repay analysis for solar loans.
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Cap hidden dealer fees and ensure such fees genuinely reduce interest rates.
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Provide accurate, good-faith estimates of energy production and savings, guaranteed for at least five years.
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Mandate clear, written explanations of tax credits and their limitations, especially for low- and moderate-income households.
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Enforce consumer protection laws against fraudulent or high-pressure sales tactics, while requiring that installations be done by licensed professionals.
Solar panels play a critical role in increasing access to clean energy, said Anneliese Lederer, another co-author and CRL senior policy counsel. By enacting policies that require both transparency and truthfulness in solar financing, policymakers can help create a market that better benefits both consumers and lenders.
Warning against abuses
The report builds on CRLs earlier study, The Shady Side of Solar System Financing, which detailed how some lenders mislead consumers about true costs, often inflating solar system prices by 25 percent or more and saddling borrowers with unaffordable loans.
CRL said reforms outlined in the new report would help prevent such practices and expand access to solar energy in a way that protects families, particularly those in vulnerable communities.
Posted: 2025-08-19 18:09:42
