Solar companies have increasingly faced lawsuits alleging false claims, deceptive practices, and defective products, reflecting growing consumer and regulatory scrutiny in the industry. These legal challenges arise from various issues, including misleading sales tactics, contract disputes, product defects, and financing controversies.
One common source of lawsuits involves allegations that solar companies made false or exaggerated promises about the performance, savings, or benefits of their solar systems. Consumers sometimes claim that sales representatives used deceptive or high-pressure tactics, promising guaranteed energy savings or government incentives that were not delivered. However, solar companies often defend themselves by pointing out that system performance depends on many factors such as weather, roof conditions, and energy usage habits, and that contracts typically include disclaimers and realistic performance estimates. Courts have seen disputes over whether sales presentations were truly misleading or simply failed to meet consumers’ expectations, which can be subjective and influenced by external variables.
Another significant area of litigation concerns defective solar products. For example, a notable class action lawsuit against BP Solar alleged that certain solar panels had inherent defects in their junction boxes, causing premature failure and fire risks. This case resulted in a substantial settlement, providing replacements and safety upgrades to affected consumers. Such product defect claims highlight the technical complexities and risks involved in solar panel manufacturing and installation, and they underscore the importance of quality control and warranty enforcement in the industry.
Financing arrangements for solar installations have also been a focal point of legal disputes. Some lawsuits target the financing companies or lenders, accusing them of improper lien practices or misleading loan terms. However, solar financing often involves equipment liens rather than real estate liens, which affects the applicability of certain mortgage and settlement laws. Additionally, when solar companies file for bankruptcy, as in the case of Solar Mosaic, homeowners who financed their systems through these companies face uncertainty but may retain rights to sue lenders for misconduct related to the solar company’s actions.
There have also been cases involving alleged false claims that blocked solar projects, such as a lawsuit accusing parties of orchestrating a false land claim that derailed a solar project development. These disputes illustrate how legal battles can extend beyond consumer contracts to impact broader solar industry projects and investments.
To protect consumers, legal experts advise vigilance against common red flags like promises of “free” solar panels, vague contract terms, and high-pressure sales tactics. Many solar scams exploit incentives and tax credits, leaving homeowners with unexpected debt and legal headaches. Consumers are encouraged to carefully review contracts, verify installer credentials, and seek legal advice if they suspec
