This is an open question, if you were to use blockchain to prove how much energy someone produced with their solar panel, doesn't this depend on a trusted configuration? Can't they feed in false data before the block chain part?
Yes and yes. This is the big pitfall i see so many ignoring - the real challenge if you're trying to interface with the outside world is establishing what the internal token means in the outside world without depending so heavily on a centralized weak link that the decentralization of the blockchain's maintenance is pointless. If the actors in a system don't trust each other enough to make changes to the database unilaterally, why would they trust that the other actors aren't lying about their on-chain/off-chain holdings?