FOR IMMEDIATE RELEASE

August 7, 2024

CONTACT
Carter Dougherty
carter@ourfinancialsecurity.org

Treasury, FTC, and CFPB Announce Pivotal Interagency Effort to Promote Safer Solar Lending 

WASHINGTON, D.C. — The U.S. Department of the Treasury, Federal Trade Commission (FTC), and Consumer Financial Protection Bureau (CFPB) announced a critical interagency effort that aims to protect consumers from solar fraud and scams, clamp down on bad actors and practices in the industry, promote safe green lending that can benefit consumers and responsible solar businesses, and mitigate climate change.

This move comes as more consumers are being marketed and offered loans and leases for green products and projects, due in part to new federal financial incentives that make them more affordable. New lenders and contractors—as well as established actors with limited experience in green lending—need guidance and oversight from federal agencies to minimize unfair, deceptive, and predatory marketing and sales practices in the solar industry as well as other green lending products.

“Consumer protection plans are critical to preventing financial harm to households and communities and are key to the continued successful rollout of the important green programs created by the Inflation Reduction Act. We are enthusiastic about agency efforts to curb bad practices and root out bad actors in the solar industry as a starting point,” said Jessica Garcia, senior policy analyst for climate finance at Americans for Financial Reform Education Fund. “A lack of proactive consumer protection plans and requirements from federal and state agencies and program implementers could reduce public trust in clean energy technologies and green lenders, undermining federal efforts to expand viable solar and clean energy projects that help mitigate climate change.”

The agencies have taken the following steps:

• Treasury issued a consumer advisory on solar energy scams and launched a consumer solar awareness web page which includes instructions on how to file a complaint, descriptions of four different types of solar energy options available to consumers, and identifies common clean energy scams and tactics consumers must watch out for.
• FTC released advisories to consumers on how to avoid solar and clean energy scams and for businesses on how to maintain a positive reputation and remain compliant with consumer laws.
• CFPB issued a consumer advisory on costly and complex solar energy installation loans and released an issue spotlight report on solar financing business models.

“Interagency collaboration to educate the public is a helpful first step. We look forward to robust regulatory and enforcement measures to complement these efforts, maximizing the safety and soundness of these green lending products to protect households, particularly the elderly or those with limited language access, from predatory or fraudulent green loans,” said Christine Zinner, senior policy counsel for consumer protection at Americans for Financial Reform Education Fund.

This week, 44 environmental justice, energy, consumer, housing, and other organizations sent a letter to federal agencies urging them to: (1) require consumer protection plans for green lending products across all federal programs, and (2) conduct oversight and enforcement based on existing consumer protection laws which apply to these products.

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