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The FTC Holder Rule (16 CFR 433) is one of the most powerful consumer protections available in solar disputes. It states that any claims or defenses you could raise against the solar installer can also be raised against the company that holds your financing contract — typically the lender. This means if your installer misrepresented savings, failed to complete the installation, or went bankrupt, you can pursue relief directly from the lender (GoodLeap, Mosaic, Dividend, Sunlight Financial, etc.) — even though they did not install the system. The lender chose to finance that installer's sales. The Holder Rule makes them share responsibility.

Statutes of limitations vary by state and by the type of claim. Generally, breach of contract claims must be filed within 3 to 6 years, and fraud or misrepresentation claims within 2 to 4 years. The clock typically starts when the breach occurred or when you reasonably discovered the problem — not necessarily when you signed the contract. For contracts signed in 2020 or later, most claims currently fall within active limitation periods. This is why acting sooner is always better — waiting risks losing legal options that are available to you today.

Depending on your state and the type of claim, you may be entitled to several forms of relief: loan cancellation or reduction, refund of payments made, removal of UCC liens from your property, credit repair for missed payments, and in some states, statutory damages that exceed your actual losses. For example, Massachusetts Chapter 93A and the Texas DTPA allow treble (triple) damages plus mandatory attorney fees. In your free consultation we walk through which state-specific remedies may be available based on your location and contract details.

Filing a complaint with your state attorney general is a legitimate option and can be part of a broader strategy. AG complaints create an official record, may trigger investigations, and can generate pressure on solar companies and lenders. However, an AG complaint alone typically does not result in individual financial relief — it contributes to enforcement actions at the state level. For personal financial remedies (loan cancellation, refunds), individual legal action through a consumer protection attorney is usually more effective. In your free consultation we can point you to the right state complaint process.

The "prevailing party" is the side that wins. In many solar contracts and under certain state consumer protection statutes, the prevailing party is entitled to recover their attorney fees from the losing side. This is significant because it means that if you win your case, the lender or installer may be required to pay your legal costs in addition to any damages awarded. This provision is built into many solar financing agreements and several state UDAP statutes.

The vast majority of solar disputes are resolved through settlement or arbitration rather than trial. Most solar financing contracts include mandatory arbitration clauses, which means disputes are decided by an arbitrator rather than a judge or jury. This is not necessarily disadvantageous — arbitration can be faster and less expensive than litigation. Settlement negotiations often occur before or during the arbitration process. The strength of your evidence and documentation is the primary factor in achieving favorable settlement terms.

Most solar financing contracts include class action waivers, which means you typically cannot participate in a class action. However, individual arbitration under the FTC Holder Rule can be highly effective — and in many cases produces better individual results than class actions, where recoveries are often diluted across thousands of claimants. When patterns of abuse affect many homeowners (such as systematic misrepresentation by a specific installer), attorneys may pursue coordinated individual claims that create collective pressure while preserving your individual remedies.

Timelines vary based on the complexity of the case, the responsiveness of the opposing party, and the dispute resolution mechanism. Straightforward cases — particularly those involving systems that never worked or installers that went bankrupt — may resolve in 3 to 6 months. More complex cases involving disputed savings calculations or technical installation issues may take 6 to 12 months. Cases that proceed through full arbitration hearings can take 9 to 18 months. Your attorney will provide a timeline estimate based on the specifics of your situation.

Most solar financing agreements include mandatory arbitration clauses that require disputes to be resolved through organizations like the American Arbitration Association (AAA) or JAMS rather than in court. While this eliminates the option of a jury trial in most cases, arbitration offers certain advantages: it is typically faster, more private, and less procedurally complex than litigation. The same legal theories (misrepresentation, breach of contract, TILA violations) apply in arbitration, and arbitrators can award the same relief including loan cancellation, refunds, and damages.

Absolutely. You should never accept a settlement offer without fully understanding its terms. If you are working with an attorney, they will review the offer with you, explain what it includes and what it does not, and advise you on whether it fairly compensates you based on the strength of your case. Settlement offers are negotiable — the first offer is rarely the best offer. Factors to evaluate include: total financial relief, loan cancellation versus reduction, lien removal, credit repair provisions, and whether you retain or return the solar equipment.

If you prevail, typical outcomes include loan cancellation or reduction, refund of payments made, removal of UCC liens from your property, and in some cases credit repair and attorney fee recovery. The solar panels typically remain on your roof — they become yours free and clear. If the outcome is unfavorable, the result depends on your fee arrangement with your attorney. Many consumer protection attorneys work on contingency or hybrid fee structures, meaning you owe reduced or no fees if the case is unsuccessful. Your specific arrangement should be clearly defined in your attorney's engagement agreement.

The most helpful evidence includes: your original contract and any written agreements, utility bills from before and after solar installation, communications with the installer (emails, texts, recorded calls), photos or videos showing installation issues, any third-party inspection reports, a timeline of events (when you signed, when problems started), and records of attempts to contact the installer for resolution. Even if you do not have everything, every piece strengthens your position.

The dealer fee is a markup added to your solar loan by the installer, typically ranging from 10% to 30% above the cash price of the system. The CFPB has documented that many homeowners are unaware this fee exists because it is rolled into the loan principal rather than disclosed as a separate charge. For example, a system with a $40,000 cash price may result in a $50,000 to $52,000 loan — with the $10,000 to $12,000 difference being the dealer fee paid to the installer at closing. This fee inflates your monthly payments and total interest costs over the life of the loan. Failure to clearly disclose dealer fees may constitute a violation of the Truth in Lending Act (TILA).

You may still have legal options even if your loan is mostly or fully paid. If you were the victim of misrepresentation, hidden fees, or other deceptive practices, you may be entitled to recover payments already made. The statute of limitations is the primary factor — if the claim is still within the limitation period, past payments can potentially be recovered as damages. Consult with an attorney to evaluate whether your specific situation supports a claim for refund of amounts already paid.

Using the Investment Tax Credit (ITC) to pay down your loan does not affect your legal rights. The tax credit is a federal benefit available to qualifying homeowners — how you applied it is your decision. However, many homeowners were misled about the ITC during the sales process: told they would receive a direct refund check, when in reality the ITC is a dollar-for-dollar reduction in federal tax liability that requires sufficient tax obligation to claim. If you were misrepresented about the nature or amount of the tax credit, that misrepresentation may itself be grounds for a legal claim.

Many solar companies file a UCC-1 financing statement (a type of lien) on your property to secure their interest in the solar equipment. This lien appears on your property records and can complicate home sales, refinancing, and title transfers. In a PPA or lease, the solar company owns the equipment and the UCC filing protects that ownership. In a loan, the lender may file a UCC lien until the loan is paid off. Importantly, many homeowners are unaware these liens exist until they try to sell or refinance. If a UCC lien was filed without proper disclosure, or if it was filed improperly, that may create additional legal remedies. Successful case outcomes often include removal of UCC liens as part of the resolution.

Refinancing a solar loan into your mortgage may seem attractive for a lower interest rate, but it can eliminate critical legal protections. The FTC Holder Rule — which allows you to raise claims against the lender for the installer's misconduct — typically applies to the original solar financing agreement. When you refinance that loan into a conventional mortgage, you replace the original agreement with a new one, potentially waiving your Holder Rule protections. Additionally, converting an unsecured or equipment-secured solar loan into a mortgage-secured debt puts your home at risk if you default. Before refinancing, consult with an attorney to understand how it may affect your legal options.

A secured solar loan is backed by collateral — typically the solar equipment itself or, in some cases, your home. If you default, the lender can pursue the collateral. An unsecured solar loan has no collateral backing, meaning the lender's recourse for non-payment is limited to credit reporting and collections. Most solar loans are secured by the equipment (via UCC filing), not by your home. Understanding which type you have affects your risk profile and legal strategy.

This is the most common complaint in solar litigation. If you were promised your electric bill would be eliminated or significantly reduced, and instead you are paying both a solar loan and a utility bill, you may have a misrepresentation claim. The key evidence is the gap between what was promised and what actually happened. When your actual monthly savings are less than your loan payment — and especially when savings fall below 85% of what you owe — the legal argument strengthens considerably.

Broken promises in solar sales can take many forms: system performance below projections, savings that never materialized, equipment that differs from the contract specifications, service or monitoring that stopped, or roof warranties that were never honored. Any material promise that was part of the sales process and was not delivered may support a legal claim. The strength depends on whether the promise was documented (contract terms, marketing materials, emails, texts) versus verbal only. Even verbal promises can be actionable under certain state consumer protection statutes.

An unresponsive installer who fails to honor warranty obligations, complete repairs, or address system issues for 60 or more days may be in breach of their contractual obligations. Document every attempt to contact them — emails, calls, certified letters — with dates and outcomes. This documentation trail becomes evidence of breach of warranty. If the installer has gone silent, it may indicate financial distress or impending closure, making earlier legal action more advantageous.

Solar lease cases present unique legal challenges that differ from loan-based claims. In a lease, the solar company owns the equipment and you pay for the electricity it produces or for the right to use the panels. The legal theories that apply to loan fraud (TILA violations, hidden dealer fees, Holder Rule claims against lenders) generally do not apply to leases in the same way. Lease disputes typically involve different remedies — buyout negotiation, transfer to a new owner, or early termination under the lease terms. Our free consultation covers lease contracts too and walks through the available exit paths, but the legal strategy differs from loan cases.

We strongly advise against stopping payments without first consulting a licensed attorney. While it may feel justified — especially if your system is not working or your installer has disappeared — missed payments can damage your credit score, trigger collections, and in some cases lead to UCC lien enforcement or additional fees. A better approach is to continue making payments while pursuing legal remedies. An attorney can advise whether strategic payment suspension is appropriate in your specific situation and how to protect your credit in the process.

In most successful outcomes — particularly loan cancellation — the solar panels remain on your roof and become yours free and clear. The lender releases their security interest (UCC lien) and you own the equipment outright. In some settlement agreements, the homeowner may be given the option to keep the panels, have them removed at the company's expense, or return them. Panel removal and roof restoration costs can range from $3,000 to $10,000, so keeping them is usually the better financial outcome — even if they underperform, they still produce some electricity at no ongoing cost.

Yes, but proceed carefully. If you have an active legal claim or are considering one, modifying or repairing the system may affect the evidence available to support your case. Document the current state of the system thoroughly (photos, production data, inspection reports) before making any changes. For urgent safety issues (exposed wiring, roof leaks, fire hazards), make the repair and document everything. For performance issues, consult with your attorney first. If you need a repair and have no pending legal matter, any licensed solar installer can service most systems regardless of who originally installed them.

A pending legal case does not prevent you from selling your home, but it adds complexity. The UCC lien on the property will need to be addressed — either removed as part of the case resolution, paid off at closing, or transferred. Disclose the pending legal matter and the solar contract to potential buyers as required by your state's property disclosure laws. Your attorney can advise on the best strategy for coordinating a home sale with an active case. In some situations, the urgency of a home sale can actually strengthen your legal position by demonstrating concrete financial harm from the solar contract.

Removing or disposing of solar panels complicates a legal claim but does not necessarily eliminate it. The key factors are: when and why the panels were removed, whether the removal was documented, and what evidence of the original installation remains (contracts, photos, production records, inspection reports). If panels were removed due to roof damage, safety hazards, or installer abandonment, those circumstances may actually support your claim. Consult with an attorney to evaluate how the removal affects your specific legal options.

A manufacturer warranty covers the equipment itself — the panels, inverters, and other hardware — typically for 25 years on panels and 10 to 15 years on inverters. These warranties protect against defects in the product. An installation warranty (also called a workmanship warranty) covers the quality of the installation work — mounting, wiring, roof penetrations, and system configuration — typically for 5 to 10 years. When an installer goes bankrupt, the installation warranty is usually voided, but manufacturer warranties may survive if the manufacturer is still in business.

Some third-party solar companies contact homeowners whose installers have gone bankrupt, claiming they can "take over" or "assume" the original warranty. Be cautious. In many cases, these companies have no legal obligation to honor the original warranty terms and may use the contact as a sales opportunity for new equipment or service contracts. Before agreeing to any warranty transfer, verify that the transfer is legally documented, understand exactly what is and is not covered, and consult with an attorney if you have an active or potential legal claim. Unauthorized modifications or repairs by a third party may also affect your legal position.

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