Momentum Solar Pyramid Scheme has emerged as a prominent provider of residential solar solutions. However, amidst its growing reputation, concerns have arisen regarding its business practices, particularly its compensation structure and recruitment strategies as a pyramid scheme.

This article delves into the intricacies of Momentum Solar’s business model, examining its compensation structure, identifying the hallmarks of a pyramid scheme, and evaluating Momentum Solar against these criteria.

Additionally, it provides guidance on making informed decisions about potential involvement with the Momentum Solar Pyramid scheme and emphasizes the importance of navigating the solar landscape with caution.

Introduction of the momentum solar

Founded in 2009, Momentum Solar is the largest privately held solar company in the nation. We handle the entire process from solar enrollment through customized design, engineering, permitting, installation, and activation of every system.

It is a popular solar energy company that has been making waves in the renewable energy industry. However, some people have raised concerns about whether Momentum Solar operates as a pyramid scheme.

Momentum Solar is a leading solar energy provider that offers residential and commercial solar panel installations. The company aims to make solar energy affordable and accessible for everyone. With a strong focus on customer satisfaction, Momentum Solar has grown rapidly over the years.

What solar panels does Momentum Solar use?

Momentum Solar doesn’t specify which equipment it installs, although it does mention that it only offers tier-one monocrystalline solar panels. These typically include Tesla (panels, not the solar roof shingles), Qcells, Panasonic, Canadian Solar, and more.

However, rumours about Momentum Solar being a pyramid scheme have confused me. Let’s dive deeper into what a pyramid scheme is and whether Momentum Solar fits the description.

Coverage Area: SunPower Vs. Momentum Solar

The coverage area of a solar panel installation company should be one of the first things you look at when deciding on an installer. The footprint can determine whether the company can serve you or not. Larger coverage areas are generally better because they mean more customers can benefit from the company’s services.

SunPower is a national solar installer that serves all 50 states through third-party installers. Momentum Solar is much smaller and uses an in-house installation team. Momentum services only the following 11 states:

• Arizona
• California
• Connecticut
• Florida
• Georgia
• Massachusetts
• Nevada
• New Jersey
• New York
• Pennsylvania
• Texas

Momentum Solar performance

Momentum Solar doesn’t specify which equipment it installs, although it does mention that it only offers tier-one monocrystalline solar panels. These typically include Tesla (panels, not the solar roof shingles), Qcells, Panasonic, Canadian Solar, and more. Still, the efficiency of the panels won’t be as high as that of SunPower.

Momentum also offers the Enphase IQ and Tesla Powerwall II, two of the best solar batteries on the market.

Momentum Solar Overview

Momentum Solar is also quite large, although it serves a smaller area and is considered a regional company rather than a national one. It’s been serving customers since 2009 and is considered one of the best solar companies for a personalized experience.

Momentum has a reputation for positive customer service experiences, which it owes to its concierge service. It promises a single point of contact throughout the entire installation process, which helps reduce confusion and poor communication.

Momentum Solar also has locally trained installers who are knowledgeable about available solar incentives and tax credits. They can often help you take advantage of these to save money.

Is Momentum Solar a Pyramid Scheme?

What is a Pyramid Scheme?

A pyramid scheme is an illegal business model that relies on recruiting new members rather than selling actual products or services. Participants are often required to pay upfront fees, and earnings depend on recruiting others into the scheme.

Momentum Solar’s Business Model

Momentum Solar operates as a legitimate solar energy provider. They sell and install solar panels, offering tangible products and services. While they do have a referral program, it is not the core of their business. Therefore, Momentum Solar is not a pyramid scheme.

Structure of the Momentum Solar Pyramid

Momentum Solar presents itself as a multi-level marketing (MLM) company, a business model characterized by a network of independent distributors who earn income not only from their direct sales but also from the sales of those they recruit into the company.

This structure has raised concerns about the potential for exploitation of its distributors, as their earnings may rely heavily on recruiting new members rather than selling products or services.

Momentum Solar Facts and Features

Momentum Solar is a reputable solar panel installation company with a strong presence in the United States. Founded in 2016, the company has quickly gained recognition for its commitment to quality, customer service, and innovation.

Key Features

• Wide range of solar panel options: Momentum Solar offers panels from seven different manufacturers, ensuring you can choose the most suitable option for your energy needs and budget.

• Customizable system design: Each solar system is tailored to your home’s specific energy consumption patterns and roof structure, maximizing efficiency and cost-effectiveness.

• Comprehensive installation services: Momentum Solar handles the entire installation process, from initial assessment to final inspection, ensuring a seamless and hassle-free experience.

• Ongoing monitoring and support: Momentum Solar monitors your solar system’s performance and offers prompt support for any questions or concerns.

Facts About Momentum Solar

Here are some key facts about Momentum Solar:

Fact	Details
Founded	2009
Headquarters	New Jersey, USA
Services Offered	Solar panel installation, battery storage, and energy efficiency solutions
States Served	11 states, including California, Texas, and Florida
Customer Reviews	4.2/5 average rating on SolarReviews
Warranty	25-year warranty on panels and performance

Momentum Solar Pyramid Scheme Installation Process

Momentum Solar’s installation process is designed to be efficient and minimize disruption to your daily life. Here’s a simplified overview:

1. Consultation: An energy consultant will assess your home’s energy needs and roof suitability to determine the optimal solar system size and design.

2. Permits and Approvals: Momentum Solar takes care of obtaining all necessary permits and approvals from local authorities.

3. Installation: Experienced technicians will install the solar panels on your roof, ensuring proper adherence to safety standards and building codes.

4. Inspection and Connection: Upon completion of the installation, a thorough inspection will be conducted, and your system will be connected to the grid.

5. Monitoring and Support: Momentum Solar will provide ongoing monitoring of your system’s performance and offer prompt support if needed.

Examining the Compensation Structure

Momentum Solar’s compensation plan, the Solar Success System, outlines the various ways in which distributors can earn income. While it includes traditional sales commissions, it also emphasizes downline compensation, which refers to earnings derived from the sales of recruits.

This emphasis on downline recruitment has fueled suspicions that Momentum Solar operates as a pyramid scheme.

Momentum Solar Cost and Payment Options

The cost of a Momentum Solar system can vary depending on several factors, including the size of the system, the type of panels chosen, and the location of your home. However, Momentum Solar offers competitive pricing and flexible financing options to make solar energy more accessible.

Payment Options:

• Outright purchase
• Solar loans with competitive interest rates
• Solar leases with no upfront costs

Momentum Solar Costs: What to Expect

The cost of installing solar panels with Momentum Solar depends on several factors, including:

• System Size: Larger systems cost more but generate more energy.
• Location: Solar incentives and energy rates vary by state.
• Roof Condition: Complex installations may increase costs.

Updated Costs & Industry Trends in 2025

• Hardware costs: Solar panels now cost $0.15/W – $0.70/W, depending on quality and market—note this was falsely claimed to be higher in scams.
  
• Installation costs in the US: Around $3–4 per watt, typical residential install totals $15k–$30k for a 5–10 kW system, much more than hardware alone.
  
• Battery/financing collapse: Companies like Sunnova are experiencing financial strain, raising risk around installations and long-term maintenance, Reddit.
  

On average, Momentum Solar installations cost between 15,000 and 15,000 and 25,000 before incentives. However, federal tax credits and state rebates can significantly reduce the overall cost.

Costs & Financing Options

There are numerous solar panel manufacturers to choose from, and the price of the equipment from each varies. This is usually in line with the equipment’s energy efficiency, durability, and warranty coverage. Installers who provide high-quality and high-efficiency solar equipment will usually cost more but provide greater value.

Is selling solar a Ponzi scheme? Or is it legit?

Selling solar is not a Ponzi scheme — it is a legitimate and rapidly growing industry based on real products (solar panels, inverters, batteries) that deliver real value: clean, renewable energy.

However, some companies or individuals use misleading sales tactics, and those can resemble a Ponzi or pyramid structure. Let’s break this down:

Reasons Why Selling Solar Is Legitimate

1. Solar panels produce measurable energy that reduces or eliminates electricity bills.
   
2. Millions of homes and businesses globally rely on solar.
   
3. There are governing bodies (like SEIA in the U.S., NEPRA in Pakistan) that regulate the solar market.
   
4. Customers often save thousands over 20–30 years, especially with net metering.
   
5. Government incentives and financing options make it accessible and legal.

 Legitimate but Problematic

• Momentum Solar is not a pyramid scheme—it does sell real solar systems
  It’s criticized for aggressive sales tactics, “free solar” marketing, “cooling-off” delays, and poor cancellation practices.
  
• A solar financing company, Sunnova also under financial stress; Reddit users allege service payments and obligations are falling apart—some describe it as “Ponzi‑like” 

Famous Ponzi Case: DC Solar (California)

• DC Solar, once valued at billions, was dismantled in 2018 by the FBI as a true Ponzi scheme.
  
• Investors were promised large returns via federal solar tax credits and leases, but funds were misused for lavish lifestyles

When It Starts to Look Like a Scam or Pyramid Scheme

Some warning signs of shady practices:

Companies that collapse if recruits stop joining — classic Ponzi behavior.

Overpromising “free solar” with no explanation.

Pushing for multi-level marketing (MLM) recruitment over product sales.

No transparency about costs, financing, or warranties.

Encouraging you to recruit others to earn commissions.

Momentum solar pros and cons

Pros

1. High-quality equipment & warranties
   
   • Uses Tier‑1 monocrystalline solar panels from trusted brands like LG, QCells, Trina, REC, Hyundai, and pairs them with Enphase micro‑inverters. Offers 25‑year equipment warranty and 25‑year workmanship guarantee, well beyond the industry standardFlexible financing options.
     
   • Provides cash purchases, loans, leases, and PPAs with appealing “$0 down” promotions
     
   • Offers solar loan transferability when selling a home — rare in the industry
     
2. System monitoring & maintenance support
   
   • Includes complimentary monitoring via Enphase MyEnlighten and Momentum’s own mobile app
     
   • Offers regular maintenance checks and online payment convenience
     
3. Accredited & expanding footprint
   
   • Holds an A+ rating from the BBB and generally positive reviews for equipment quality,
     
   • Rapidly growing, operating now in multiple states (CA, TX, FL, NJ, NY, PA, CT), Consumera+1TIME+1.
     

Cons

1. Aggressive, high-pressure sales tactics
   
   • Reports of misleading “$0 cost” offers that are leases or PPAs, with complex contracts that can lock in homeowners for 20‑25 years
     
   • Customers describe pushy door‑to‑door reps who won’t leave without a signed contract, HackerNoon.
     
2. Contract/cancellation frustrations
   
   • Difficulty cancelling within the FTC’s 3‑day “cooling‑off” period; some report reps becoming unresponsive until the window closes
     
3. Inconsistent after‑sales support
   
   • Complaints about long delays for installations and repairs, unfulfilled warranties, and a lack of communication
     
   • Real customer stories:
     
     
     “They said panels were to be for the entire house… installed only half… then said it’ll cost me more.”
     “Momentum tells me they don’t honor the warranty… complete scammers!”
     
     
4. Service area limitations
   
   • Available in only ~11 U.S. states, so many customers simply aren’t eligible. Slightly limited service offerings
     
5. Employee dissatisfaction & transparency issues
   
   • Former staff report misleading training, bait‑and‑switch salary tactics, and aggressive internal cultures 

 Summary

Momentum Solar is not a Ponzi or pyramid scheme, as they sell a genuine product—solar energy systems. That said, its aggressive sales tactics and contract complexities can feel deceptive, drawing criticism similar to MLM-like pressure at times.

Should You Consider Them?

• Go for it if you want top-tier panels with strong warranties, flexible buying/leasing options, and live in their service area.
  
• Be cautious if you: dislike pushy sales environments, worry about complex long-term contracts, or need reliable post-sale support.
  

Recommendations if Proceeding:

Read the fine print thoroughly, especially on contract length, cancellation terms, and transfer conditions.

Request a clear, written quote and comparison of lease vs purchase.

Mixed Reviews: Some customers report issues with customer service.

Momentum Solar Panel Options

Momentum Solar Pyramid Scheme offers a wide variety of solar panel options from leading manufacturers, including:

• SunPower
• LG
• Panasonic
• Tesla
• Maxeon
• Q CELLS
• REC Solar

Hallmarks of Momentum Solar Pyramid Scheme

A pyramid scheme is an unsustainable business model that primarily relies on recruiting new members rather than selling legitimate products or services. It typically exhibits several characteristics, including:

• A focus on recruitment over sales: The primary emphasis is on bringing in new members rather than selling products or services.

• Exaggerated income claims: The company promises unrealistic levels of income, often based on the success of top earners, without emphasising the challenges and low success rates of the average participant.

• Emphasis on downline sales: A significant portion of a distributor’s income is derived from the sales of their recruits, creating a system that relies on continuous recruitment for sustainability.

Evaluating Momentum Solar Against Pyramid Scheme Criteria

Assessing Momentum Solar against the hallmarks of a pyramid scheme reveals mixed signals. While its compensation structure places a strong emphasis on downline recruitment, it also offers traditional sales commissions and requires distributors to sell a certain amount of products to qualify for certain benefits.

Additionally, the Momentum Solar Pyramid Scheme does not require a significant upfront investment to join, a common feature of pyramid schemes.

Seeking Clarity and Transparency

Momentum Solar maintains that it is a legitimate MLM company and not a pyramid scheme. It emphasizes the importance of product sales and downplays the significance of downline recruitment.

However, the company’s compensation structure and recruitment strategies continue to raise concerns among consumer protection advocates and regulatory bodies.

Empowering Informed Decisions

To make informed decisions about potential involvement with Momentum Solar Pyramid Scheme, individuals should carefully consider the following:

• Conduct thorough research: Gather information from various sources, including independent reviews, consumer reports, and regulatory bodies, to gain a comprehensive understanding of the company’s business practices and compensation structure.

• Assess personal financial risks: Understand the potential for financial loss, especially if income relies heavily on recruiting new members.

• Seek legal and financial advice: Consult with a qualified attorney or financial advisor to evaluate the legal implications and financial risks associated with Momentum Solar.

Navigating the Solar Landscape with Caution

The solar energy industry offers promising opportunities for individuals seeking to contribute to a sustainable future. However, it is crucial to approach these opportunities with caution and due diligence.

Carefully evaluate any company’s business practices, compensation structure, and reputation before making any commitments. Remember, informed decision-making is essential to safeguard your financial well-being and protect yourself from potential exploitation.

To further aid in your evaluation of Momentum Solar Pyramid Scheme and similar companies, consider the following questions:

1. What is the company’s track record? Investigate the company’s history, financial stability, and any past legal or regulatory issues.

2. What are the qualifications and experience of the company’s leadership? Assess the expertise and credibility of those leading the company.

3. What support and resources does the company provide to its distributors? Evaluate the training, tools, and guidance offered to distributors to help them succeed.

4. What are the potential hidden costs or fees associated with joining? Be aware of any additional expenses beyond the initial investment.

5. What is the company’s approach to customer satisfaction? Review customer reviews and feedback to gauge the company’s commitment to customer service.

Momentum Solar Lawsuit

There have been two major lawsuits filed against Momentum Solar, a New Jersey-based solar energy company:

1. 2019 Lawsuit for Racial Discrimination:

• Six Black former employees filed a lawsuit in 2019 alleging racial discrimination and a hostile work environment at Momentum Solar’s Long Island warehouse.
• The lawsuit claimed that managers used racial slurs, paid Black employees less than white employees for the same work, and fired employees who complained about the discrimination.
• Momentum Solar denied the allegations, claiming the terminations were for non-discriminatory reasons.
• The lawsuit was settled in 2021 with the estate of one of the deceased plaintiffs, but the terms of the settlement were not disclosed.

2. 2021 Lawsuit for Racial Discrimination and Retaliation:

• A new lawsuit was filed in 2021 by five Black former employees alleging similar claims of racial discrimination. and a hostile work environment, as well as retaliation against employees who complained.
• This lawsuit also alleges that managers made racist comments and gestures. and that Black employees were disproportionately assigned to undesirable tasks.
• Momentum Solar has again denied the allegations.
• This lawsuit is still ongoing.

These lawsuits have raised concerns about the company’s workplace culture and its treatment of Black employees. The lawsuits have also been criticized for potentially hindering the progress of clean energy initiatives.

It is important to note that these are just allegations, and Momentum Solar has denied any wrongdoing. The lawsuits are still ongoing, and it is too early to say what the outcome will be.

What to Do If You Think You’ve Been Scammed

If you think a momentum solar pyramid scheme has scammed you, there are a few things you can do:

• Contact the Better Business Bureau to file a complaint.
• Contact your state’s Attorney General’s Office to report the scam.
• Consult with an attorney to discuss your legal options.

Conclusion

While Momentum Solar presents itself as a legitimate MLM company, the concerns surrounding its compensation structure and recruitment strategies warrant careful consideration.

Conduct thorough research, assess the potential risks, and seek expert advice before making any decisions about potential involvement with the Momentum Solar Pyramid Scheme.

Remember, informed and cautious engagement in solar energy. Industry is essential to protect your interests and contribute meaningfully to a sustainable future.

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FAQs About the Momentum Solar Pyramid Scheme