Loading...
Consumer ProtectionYMYL — Your Money Guide
How to Avoid Solar Fraud
Anmol KumarFounder & CEO
Last updated: 12 April 2026
Solar scams are rising as demand increases under PM Surya Ghar. Learn to identify red flags, verify vendor credentials, check pricing benchmarks, and know your rights before you invest in solar.
How can I tell if a solar vendor is genuine or a scam?
Verify the vendor on 3 official portals: (1) UPNEDA empanelment list at upneda.org.in — look up their SPN number, (2) GSTIN verification at gst.gov.in — check active registration status, (3) PM Surya Ghar vendor list at pmsuryaghar.gov.in. Additionally, visit their physical office, ask for past installation references, and get a detailed itemized quotation. Red flags: unsolicited calls claiming to be from government, demanding full payment upfront, no GSTIN on quotation, and prices below Rs 35,000/kW. A genuine 3kW system costs Rs 1.8-2.1 lakh before subsidy (approximately Rs 1.1 lakh after subsidy) in 2026.
Source: BL Solar Solutions (UPNEDA SPN2511073938) | Last updated: April 2026
Common Solar Scams in India
These are the most common fraud patterns reported across Uttar Pradesh and India
Fake Subsidy Agents
Scammers call claiming to be from "PM Surya Ghar office" or "government solar department" and ask for advance fees to "process your subsidy." The government never calls to offer subsidies.
Unlisted Vendors
Companies not empaneled with UPNEDA or PM Surya Ghar charge for "government scheme enrollment" or "subsidy processing fees." They install systems but you never get the subsidy.
Overpriced Systems
Some vendors quote Rs 3-4 lakh for a 3kW system (market rate: Rs 1.8-2.1L). They inflate prices to cover "free installation" or "lifetime maintenance" that never materializes.
Substandard Panels
Fake BIS certification, inflated wattage ratings (selling 400W panels that actually output 300W), or unknown Chinese brands with no Indian warranty support. These panels degrade rapidly.
No After-Sales Service
Vendor disappears after installation. No warranty support, no maintenance, no net metering application follow-up. Your system underperforms and no one is accountable.
"100% Free Solar" Promises
Advertisements claiming solar is completely free under PM Surya Ghar. The subsidy covers only a portion of the cost. If someone says it is fully free, they are misleading you.
Red Flags to Watch For
If you encounter any of these warning signs, proceed with extreme caution
Unsolicited calls claiming to be from "government" or "PM Surya Ghar office"
The government does not make outbound calls to offer solar subsidies. All applications are initiated by the homeowner through the official portal.
Demanding full payment upfront before installation begins
Legitimate vendors typically follow a milestone-based payment: 30-40% advance, 50% on material delivery, and 10-20% after commissioning and net metering.
No physical office or verifiable business address
A genuine solar company has a physical office you can visit. Check Google Maps for their location and read reviews from real customers.
Prices too good to be true — below Rs 35,000/kW for on-grid
BIS-certified panels, reputable inverters, proper ACDB/DCDB, and earthing all cost money. Cutting below Rs 35,000/kW means corners are being cut on component quality.
No valid GSTIN on quotation or invoice
Without a GSTIN, you have no legal recourse, no GST input credit, and likely no genuine warranty. Verify the GSTIN at gst.gov.in.
Promises of "100% free" solar installation
PM Surya Ghar subsidy covers Rs 78,000-1,08,000 (central + UP state). A 3kW system costs Rs 1.8-2.1L. You will always have an out-of-pocket cost.
Refusing to share panel/inverter brand and model details
A legitimate vendor will proudly share the exact brand, model, and BIS certificate number of every component they plan to install.
Pressuring you to "sign today" or "offer expires tomorrow"
High-pressure sales tactics are a classic scam indicator. Solar subsidies do not expire overnight. Take your time to verify and compare.
How to Verify a Solar Vendor
Follow these 5 verification steps before signing any agreement or making any payment
1
Check UPNEDA Empanelment List
Visit upneda.org.in and search for the vendor in the list of empaneled solar installers. Every genuine vendor has an SPN number issued by UPNEDA. Ask the vendor for their SPN number and cross-verify.
Visit UPNEDA Website2
Verify GSTIN on GST Portal
Go to gst.gov.in, click "Search Taxpayer" and enter the vendor GSTIN. Verify that the trade name matches, the registration status is "Active," and the principal place of business matches their claimed address.
Verify GSTIN3
Check PM Surya Ghar Vendor List
On pmsuryaghar.gov.in, check if the vendor is listed as a registered installer for your state. Only vendors on this list can process subsidy applications on your behalf.
Check PM Surya Ghar Portal4
Ask for Past Installation References
Request 3-5 references of recent installations in your area. Call those customers and ask about their experience, system performance, after-sales service, and whether they received their subsidy.
5
Visit Their Physical Office
A genuine solar company has a proper physical office with staff, display products, and business registration certificates displayed. If they only operate via WhatsApp with no physical presence, it is a major red flag.
Pricing Benchmarks for 2026
Know what you SHOULD pay. These are market rates for quality on-grid solar systems in UP.
| System Size | Before Subsidy | Central Subsidy | UP State Subsidy | You Pay (Approx) |
|---|---|---|---|---|
| 1 kW | ₹55,000-65,000 | ₹30,000 | ₹15,000 | ₹10,000-20,000 |
| 2 kW | ₹1,10,000-1,30,000 | ₹60,000 | ₹30,000 | ₹20,000-40,000 |
| 3 kW | ₹1,80,000-2,10,000 | ₹78,000 | ₹30,000 | ₹72,000-1,02,000 |
| 5 kW | ₹3,00,000-3,50,000 | ₹78,000 | ₹30,000 | ₹1,92,000-2,42,000 |
| 10 kW | ₹5,50,000-6,50,000 | ₹78,000 | ₹30,000 | ₹4,42,000-5,42,000 |
If Quoted Much LOWER
A quote below Rs 35,000/kW likely means substandard components: unknown panel brands without BIS certification, undersized inverters, no ACDB/DCDB, improper earthing, or cheap aluminium structure that corrodes in 2-3 years. These systems underperform and have no valid warranty support.
If Quoted Much HIGHER
A quote above Rs 70,000/kW for a standard on-grid system is likely overcharging. Some vendors inflate prices claiming "premium installation" or "lifetime maintenance." Get at least 3 quotes from different UPNEDA-empaneled vendors to compare.
* Prices are for standard on-grid rooftop solar systems with BIS-certified panels and reputable inverters. Subsidy amounts as per PM Surya Ghar 2026 guidelines. UP state subsidy subject to state government policy. View detailed solar panel prices
What to Check in Your Quotation
A genuine quotation is detailed and transparent. Here is what must be included.
Bill of Materials
- Solar panel — brand, model, wattage per panel, quantity, and total wattage
- Inverter — brand, model, and capacity (kW)
- Mounting structure — material (GI/aluminium), type (elevated/flush), gauge
- DC cables — brand, gauge (4mm²/6mm²), length
- AC cables — brand, gauge, length
- ACDB and DCDB — with MCB ratings and SPD specifications
- Earthing kit — type, number of earthing points
- MC4 connectors, cable ties, conduit pipes
Terms & Conditions
- Total cost with GST breakup (material cost + labour + GST)
- Payment schedule — milestone-based (advance, delivery, commissioning)
- Warranty terms — panel warranty (25 years), inverter warranty (5-10 years)
- Installation timeline — start date, completion date, net metering timeline
- After-sales service terms — AMC availability, response time guarantee
- Net metering application — who handles it, timeline for completion
- Subsidy processing — vendor responsibility and expected timeline
- Vendor GSTIN printed on quotation
Red Flag: Vague Quotation
If the quotation says only “3kW solar system — Rs 1,80,000” without specifying panel brand, inverter brand, cable specs, or warranty terms, do not proceed. This makes it easy for the vendor to substitute cheap components and you will have no written proof of what was promised.
Documents Your Vendor Must Provide
Collect ALL of these documents. Without them, warranty claims and subsidy processing will be impossible.
Tax Invoice with GSTINMandatory
Must include vendor GSTIN, your name, itemized cost breakup with GST, and payment receipt
Panel Warranty CardMandatory
From the panel manufacturer (not the vendor). Must include panel serial numbers and 25-year performance warranty terms
Inverter Warranty CardMandatory
From the inverter manufacturer. Register the product on their portal within 30 days of installation
Installation CertificateMandatory
Signed by the installer/vendor confirming system specifications, installation date, and safety compliance
Net Metering Application ReceiptMandatory
Proof that the vendor has submitted your net metering application to the DISCOM (UPPCL/MVVNL/etc.)
Commissioning ReportMandatory
Technical report with system specifications, test results, generation readings, and earth resistance measurements
PM Surya Ghar Portal RegistrationMandatory
Confirmation that your system has been registered on pmsuryaghar.gov.in for subsidy processing
Panel BIS CertificateMandatory
BIS (Bureau of Indian Standards) certification for solar panels — mandatory for subsidy eligibility
Annual Maintenance Contract (AMC)
Optional but recommended. Covers periodic cleaning, inverter checkups, and performance monitoring
Where to Complain
If you have been cheated or are facing issues with a solar vendor, use these official channels
UPNEDA Complaint Cell
File a formal complaint against an empaneled vendor. UPNEDA can delist the vendor and issue warnings. Submit complaint with your agreement copy, payment receipts, and photos.
Visit UPNEDAPM Surya Ghar Portal — Grievance Section
Use the "Grievance" tab on pmsuryaghar.gov.in to report issues related to subsidy processing, vendor behavior, or installation quality. Track your complaint status online.
File GrievanceDistrict Consumer Forum
For claims up to Rs 1 crore, file a complaint at the District Consumer Disputes Redressal Forum. No lawyer required for filing. Attach all documents and payment proof.
State Renewable Energy Helpline
Contact UPNEDA or MNRE helpline for guidance on solar-related disputes. They can mediate between you and the vendor.
Local Police (FIR)
For outright fraud (fake vendor, money taken without installation, forged documents), file an FIR at your local police station under IPC sections for cheating and fraud.
BL Solar Solutions — Our Credentials
We practice what we preach. Here is how we meet every standard we recommend.
UPNEDA Registration
SPN2511073938 (Verified)
PM Surya Ghar
Registered Vendor
GSTIN
Active and verifiable on gst.gov.in
Installations
500+ residential & commercial
Physical Offices
Lucknow (HQ) & Shahjahanpur
Service Area
12+ districts in Uttar Pradesh
Components
BIS-certified panels, Growatt/Goodwe inverters
After-Sales
Dedicated service team with AMC options
Official Resources
- PM Surya Ghar Portal — Apply for solar subsidy (up to ₹78,000 central + ₹30,000 UP state)
- MNRE — Ministry of New and Renewable Energy guidelines
- UPNEDA — UP New and Renewable Energy Development Agency
- GST Verification — Verify any vendor GSTIN — check active status and business name
- Consumer Helpline — National Consumer Helpline (1800-11-4000) for filing consumer complaints
FAQs
Solar Fraud Prevention FAQs
Common questions about avoiding solar scams and verifying vendors in India
No, PM Surya Ghar is NOT fully free. The government provides a subsidy of up to Rs 78,000 (central) + Rs 30,000 (UP state), but you must pay the remaining cost yourself. For a 3kW system costing Rs 1.8-2.1 lakh before subsidy, you will pay approximately Rs 1.1 lakh after both subsidies. Anyone claiming it is "100% free" is either scamming you or misleading you. The subsidy is credited directly to your bank account after installation and net metering — not deducted upfront by the vendor.
Verify through 3 official sources: (1) Check the UPNEDA empanelment list at upneda.org.in — search for the vendor name and SPN number, (2) Verify their GSTIN on gst.gov.in — check that the trade name, address, and registration status are active, (3) Check the PM Surya Ghar vendor list at pmsuryaghar.gov.in. Additionally, visit their physical office, ask for past installation references with photos, and check Google Maps reviews. A genuine vendor will gladly provide all of this.
A proper quotation must include: itemized bill of materials (panel brand, model, wattage, and quantity), inverter brand and capacity, mounting structure material and type, DC/AC cable specifications, ACDB/DCDB details, earthing specification, total cost breakdown (material + labor + GST), warranty terms for each component, installation timeline, after-sales service terms, and the vendor GSTIN. If the quotation is just "3kW solar system — Rs X" without details, it is a red flag.
No, you cannot install a PM Surya Ghar subsidized system yourself. The installation must be done by a registered vendor (empaneled with the state nodal agency like UPNEDA). The vendor registers your application on the PM Surya Ghar portal, installs the system, applies for net metering, and uploads the commissioning report. Only then is the subsidy released to your bank account. You choose the vendor, but they must be on the official empanelment list.
Take these steps immediately: (1) Document everything — save all payment receipts, WhatsApp chats, quotations, and photos of installed equipment, (2) File a complaint on the PM Surya Ghar portal under the "Grievance" section, (3) Write to UPNEDA complaint cell at upneda.org.in with your vendor details and complaint, (4) File a complaint at the nearest consumer forum (District Consumer Disputes Redressal Forum), (5) If the amount is significant, file an FIR at your local police station for cheating/fraud. Keep copies of all complaints filed.
Not always a scam, but very low prices (below Rs 35,000/kW for on-grid) usually mean the vendor is using substandard components: low-efficiency panels from unknown brands, undersized inverters, cheap aluminum structures, no ACDB/DCDB, or improper earthing. These components fail within 2-3 years, have no valid warranty, and may even be unsafe. A genuine 3kW on-grid system with BIS-certified panels and a reputable inverter costs Rs 1.8-2.1 lakh before subsidy in 2026. If the quote is significantly lower, ask for the exact panel and inverter brand, model, and BIS certificate.
Still have questions?
Our solar experts are here to help you make an informed decision
Get a Transparent, Verified Solar Quote
UPNEDA-registered vendor (SPN2511073938) with 500+ installations. Detailed itemized quotation, BIS-certified components, and full documentation guaranteed.