Hot Topics - Solar Panel Fraud, Lies, Scams and Unfair Contracts

Many homeowners who are convinced to “go solar” and purchase a solar panel system often end up feeling disappointed, lied to, and taken advantage of. Homeowners can feel victimized as a result of:

Deceptive and Unfair Marketing Practices / Lies and Fraud

Whether by a door-to-door / in-home solicitation salesperson, telemarketer or other salesperson, homeowners often are subjected to gross exaggerations, lies, and outright fraud about a host of issues including:

  • The true cost of the solar equipment;
  • The savings the solar equipment will produce;
  • The timing and amount of tax “rebates” the homeowners will receive.
  • The amount of the monthly payments the homeowners will have to make to lenders such as GoodLeap, LLC, and Sunlight Financial;
  • The solar equipment will “pay for itself;”
  • The electric or power company will actually pay the homeowner after the solar equipment is installed;
  • Hidden or undisclosed “dealer,” “program,” or other similar fees, which actually are loan origination fees. According to an advisory issued on 8/7/24 by the Consumer Financial Protection Bureau (the “CFPB”), “The CFPB has found that some lenders include substantial markups and fees that can increase the loan principal by 30 percent or more above the cash price.”; and
  • The type/amount of equipment a homeowner needs (e.g., selling equipment based on the amount of finance for which the homeowner qualifies, instead of the equipment actually needed).

 

Solar Equipment is Not Working Properly, if at All

Unfortunately, homeowners also are victimized when solar companies cut corners when installing solar equipment. Examples of improper installation issues, include:

  • the solar equipment is not properly installed;
  • the wrong or previously used components are installed,
  • the equipment is not properly connected to the electric / power company;
  • the solar company did not obtain or close necessary permits; and
  • equipment that was included in the purchase agreement is not installed.

 

Solar Company Damages Home

It’s not unusual for a solar company to damage a homeowner’s roof or other property when installing solar equipment causing roof leaks and other damage. Sadly, damage caused during the installation of solar equipment often goes undetected for some time, and homeowners only become aware of the damage when they notice water marks or mold caused by water seeping through leaks caused by faulty solar equipment installation.

 

Solar Company Goes “Out of Business,” Files for Bankruptcy / Won’t Fulfill Warranties

Solar companies often emphasize as part of their sales pitches “lifetime,” 25-year or similar “workmanship” warranties that cover the workmanship and materials used when installing the solar equipment. For example, purchase agreements used by Titan Solar Power include a “workmanship” warranty like the following:

MATERIALS AND WORKMANSHIP: Titan Solar Power warrants that all of the Work and the System will be free from material, construction, and workmanship defects for twenty-five (25) years following the Completed Installation (the “Limited Warranty”).

However, homeowners often experience delays or denials of warranty claims or are simply unable to make a warranty claim, because the solar company has gone out of business or filed for bankruptcy. Popular solar companies that have gone out of business or filed for bankruptcy include:

o Titan Solar Power

o MC Solar – Modern Concepts

o Atlantic Key Energy – AKE Solar

o Pink Energy

o Vision Solar

o Kayo Energy

o ADT Solar

o 3D Solar

o Solar Dot

o Electriq Power

o Voltage Solar Power

 

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If you believe you have been lied to or taken advantage of by a solar company or have experienced any other problems with your solar panels,
The Diaz Law Firm, P.A. can help!