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Before you sign with any California energy company, you can confirm whether it's legitimate in about fifteen minutes — using free public tools. Run five checks: verify the CSLB license, confirm any program registration, check reviews and the physical address, read the written contract, and know your cancellation rights. If a company resists any of these, that's your answer.
Here's exactly how to do each one.
1. Verify the contractor's license
In California, any home project of $1,000 or more in combined labor and materials must be performed by a contractor licensed by the Contractors State License Board (CSLB), which operates under the Department of Consumer Affairs. Use the free "Check a License" tool at cslb.ca.gov to confirm:
The license is active and the name matches the company you're talking to;
It carries the right classification (C-46 Solar, C-10 Electrical, or Class B);
The $25,000 bond and workers' compensation coverage are in place;
There are no disclosed complaints or disciplinary actions.
You can also call the CSLB at 800-321-CSLB. If you hire an unlicensed company, the CSLB generally can't help you resolve a dispute.
2. Confirm program registration (if a rebate is involved)
If a company promises to handle a state program like SGIP, remember that you cannot file an SGIP application yourself — it must be submitted by a registered SGIP developer through the utility portal. Confirm the company appears on the statewide Approved SGIP Developer List at selfgenca.com. A company that claims it can "instantly enroll you" without going through the portal is misrepresenting how the program works.
3. Check reviews, address, and business registration
Reviews: Read Google and Better Business Bureau (BBB) listings — look for volume and how the company responds to complaints, not just the star rating.
Physical address: Confirm a real Sacramento-area (or California) office, not only a P.O. box or a virtual address.
Registration: Search the company name on the California Secretary of State's business database to confirm it's a registered entity.
4. Read the written contract
California law requires a written contract for any home improvement project over $500 (Business & Professions Code §7159). A compliant contract must include the contractor's license number, a detailed scope and materials, the total price, and a payment schedule tied to completed milestones. Two numbers protect you most:
The down payment cannot exceed $1,000 or 10% of the contract price — whichever is less. On a $30,000 project, that means no more than $1,000 upfront. Anything higher violates state law.
Payments after that cannot exceed the value of work already performed.
5. Know your cancellation rights
For contracts signed at your home, you have a three-business-day right to cancel under California's Home Solicitation Sales Act. Since 2021, homeowners 65 and older get five days (AB 2471). If you cancel in writing within that window, the company must return everything you paid within 10 days.
What to check | Green flag | Red flag |
|---|---|---|
License | Active CSLB license, name matches, correct class | No license number, or name doesn't match |
Down payment | $1,000 or 10% maximum | Demands a large sum or full payment upfront |
Contract | Written, itemized, milestone-based payments | Verbal promises and "sign today" pressure |
Program claims | Listed on the Approved SGIP Developer List | Claims to "sign you up" with no portal step |
Outreach | Clear, honest company identity | A mailer designed to look like a government notice |
Where an honest advisor fits
A transparent energy advisor makes all of this easier, not harder. California Energy Initiative is an advisory service — not a contractor or installer. We point you to the public verification tools above, explain your options, and connect you with independent licensed installers you can check yourself. Our assessment is free, with no pressure to sign anything. You can verify us the same way we're describing here.
Frequently asked questions
How do I check if a California energy company is licensed?
Use the CSLB "Check a License" tool at cslb.ca.gov, or call 800-321-CSLB. Confirm the license is active, matches the company name, and carries the correct classification.
How much can a company ask for upfront?
For home improvement work, the down payment is capped at $1,000 or 10% of the contract price, whichever is less. More than that violates California law.
Do I get time to change my mind after signing?
Yes. Most at-home contracts carry a three-business-day right to cancel — five days for homeowners 65 and older — with a full refund within 10 days of written cancellation.
Is a company that "signs me up for SGIP on the phone" legitimate?
Be cautious. SGIP applications must be filed by a registered developer through the utility portal. No one can instantly enroll you over the phone.
Is California Energy Initiative a contractor?
No. CEI is a Sacramento-based local energy advisory service. We help you check eligibility and connect with independent licensed installers, and we're not affiliated with californiaenergyinitiative.org.
California Energy Initiative is a Sacramento-based local energy advisory service. We help homeowners check SGIP eligibility, get a free assessment, and connect with independent licensed installers. We are not a contractor or installer, and we are not affiliated with californiaenergyinitiative.org. Call (877) 743-1143 or visit cainitiative.com.