Can I sue my solar company?

The grounds that actually work

A solar company is sued the way any other business is sued: for a specific legal wrong, not for a bad deal. The wrongs that come up again and again in residential solar fall into a short list, and most homeowners who have a real case have two or three of them at once.

1. Misrepresentation and deceptive sales practices

This is the most common claim and the one behind most settlements. Every state has a consumer-protection statute (usually called a UDAP law, for "unfair or deceptive acts and practices") that prohibits false or misleading statements in a sale. Typical solar examples: a promise that your electric bill would be eliminated or cut by a specific percentage; a claim that the system "pays for itself"; a statement that the 30% federal tax credit is a rebate you will receive as cash, when it is a nonrefundable credit many retirees and low-income households cannot fully use; a "free solar" or "government program" pitch; a monthly payment quoted without disclosing that it balloons in month 18 if you do not pay the tax credit into the loan; or a salesperson posing as a utility or government representative. The Consumer Financial Protection Bureau documented each of these patterns in its August 2024 review of solar financing. Many state UDAP laws allow double or treble damages and make the company pay your attorney fees, which is why consumer attorneys take these cases.

2. Hidden dealer fees and Truth in Lending violations

On financed systems, the installer is often paid a "dealer fee" by the lender, commonly 20% to 30% of the loan, and that fee is rolled into your principal without being disclosed as a cost of credit. The CFPB found dealer fees that raised loan costs by 30% or more above the cash price. On a loan secured by your home, an understated finance charge can be a Truth in Lending Act violation that lets you rescind the loan for up to three years; on an unsecured loan it is still a deceptive practice. Our guide to solar loans and Truth in Lending rescission walks through the mechanics.

3. Forged signatures and unauthorized documents

A surprising number of solar disputes involve a contract or loan agreement the homeowner never signed, signed on a tablet without seeing, or signed in a different form than the one that was later produced. E-signature logs, IP addresses and timestamps are discoverable, and a forged or altered financing document is grounds to void the agreement and, in many states, a separate statutory claim.

4. Breach of contract and breach of warranty

If the contract contains a production guarantee and the system produces materially less than promised, if the panels were never commissioned, if the wrong equipment was installed, or if the company stopped honoring a written workmanship warranty, you have a straightforward contract claim. Written warranties on consumer goods also fall under the federal Magnuson-Moss Warranty Act, which allows attorney fees.

5. Property damage and negligence

Roof leaks from improperly flashed penetrations, electrical fires, damaged trusses and code violations give rise to negligence and, in most states, contractor-licensing claims. These are often the easiest to prove: an independent roofer or electrician documents the defect and estimates the repair.

6. Elder financial abuse

Many states, California most prominently, have statutes that enhance damages when a deceptive sale targets a person 65 or older. Door-to-door solar sales to seniors on fixed incomes are a recurring pattern in attorney-general enforcement actions.

Who you can sue: installer, lender, or both

Most solar deals involve at least two companies: the installer or sales dealer who sold and built the system, and the finance company that holds your loan, lease or power purchase agreement. Homeowners often assume that only the installer can be held responsible for the sales pitch. That is usually wrong, and it matters most when the installer has gone out of business.

The FTC Holder Rule (16 CFR Part 433) requires consumer credit contracts arranged by a seller to carry a notice that the lender is subject to all claims and defenses the buyer could raise against the seller. In plain terms: if the installer lied to you to get the loan signed, you can raise that lie against the lender, up to the amount you have paid under the contract. Leases and PPAs are typically owned by a financing entity that is itself the contracting party, so the claims run directly against it. This is why a case can survive an installer's bankruptcy; our page on what happens when the solar company goes out of business covers that scenario.

What the arbitration clause changes

Almost every solar contract and solar loan contains a mandatory arbitration clause and a class-action waiver. Courts generally enforce them. What that changes:

• Forum, not rights. Arbitration moves the dispute from a courtroom to a private arbitrator (usually AAA or JAMS). Your statutory claims, damages multipliers and attorney-fee rights travel with you.
• Cost shifting. Under the AAA and JAMS consumer rules, the business pays nearly all arbitration fees; the consumer's filing fee is capped at a few hundred dollars. Some contracts promise to cover even that.
• Small claims carve-out. Most clauses let either side go to small claims court instead. Limits run from $5,000 to $25,000 depending on the state, which covers a roof repair or a refund of payments but not the loan itself.
• Opt-out windows. Some contracts let you reject arbitration by written notice within 30 or 60 days of signing. If you are inside that window, send the notice.
• Enforceability challenges. A clause buried in a document you never received, or in an agreement whose signature is disputed, may not bind you at all.

An experienced consumer attorney treats arbitration as a routine step. It is not a reason to give up.

Deadlines: how long you have

Statutes of limitation differ by state and by claim, so treat these as the shape of the rules, not your dates:

Two practical points. First, the "discovery" rule helps homeowners who only realized the savings were fictional when a year of utility bills came in. Second, the one-year Truth in Lending damages window and the three-year rescission window are rigid; if your loan is secured by your home, have the dates checked now. Our 20 questions guide covers the cooling-off deadlines for recent signatures.

What a lawsuit costs and who pays

Most consumer attorneys who handle solar cases work on contingency, on a fee-shifting basis, or both. Contingency means the attorney is paid a percentage of what is recovered; fee shifting means the statute makes the losing company pay your fees, which is standard under most state UDAP laws, Truth in Lending and Magnuson-Moss. An initial review is usually free. Where you may spend money: an independent roof or electrical inspection (a few hundred dollars), and the small arbitration or small-claims filing fee. Be wary of any non-lawyer "solar exit" service that asks for a large fee up front for a guaranteed cancellation; nobody can guarantee that outcome.

What winning actually looks like

Few solar cases reach a verdict. The typical result is a negotiated settlement once the company sees documented claims and an attorney's letterhead. Outcomes we see, roughly in order of frequency:

1. Rescission: the contract and loan are cancelled, the lien released, the panels removed at the company's expense, and payments refunded in whole or in part.
2. Loan reduction: the dealer fee and interest are stripped out or the balance is written down to the system's cash price.
3. Repair plus compensation: the roof or system is fixed by a third party at the company's cost, with damages for the interim.
4. Buyout at a negotiated figure: for leases and PPAs, an early buyout well below the contract schedule in exchange for a release.
5. Statutory damages and fees: in litigated cases, multiplied damages plus attorney fees under the consumer statute.

Any settlement should include a written release, an agreed credit-reporting correction, removal and roof restoration terms, and a UCC-1 termination filing if a fixture lien was recorded against your home.

The evidence that decides these cases

• The signed contract, the loan or lease agreement, and every disclosure page, including the Notice of Cancellation form (or its absence).
• The sales proposal, savings estimate or "energy audit" the salesperson showed you, in whatever form it exists.
• Texts, emails, voicemails and any recorded "verification call" with the company.
• Twelve months of utility bills before installation and every bill since.
• Monitoring data showing actual production against the promised figure.
• Photographs of the installation, any damage, and permits or inspection records from your city or county.
• Your tax return for the year of installation, if the pitch depended on the tax credit.
• A timeline, in your own words, of who said what and when.

What to do this week

1. Keep paying. Stopping payments converts your claims into defenses and hands the company a default. If you cannot pay, talk to an attorney before you miss a payment; see what happens if you stop paying your solar loan.
2. Gather the evidence list above into one folder. Screenshots are fine.
3. Send one written complaint to the installer and the lender describing the misrepresentation and asking for rescission. Keep it factual and keep a copy; it starts the paper trail and, under some state laws, triggers a cure period.
4. File complaints with your state attorney general and the CFPB. They are free, they are public record, and companies settle faster when regulators are watching.
5. Get the contract reviewed by someone who reads solar paperwork every day. Our free assessment flags the grounds above and, when the file calls for it, connects you with an independent consumer attorney in your state.

Questions people also ask

Related reading

Misrepresentation

My solar company lied to me. What can I do?

The specific statements that count as misrepresentation, the proof you need, and the path from complaint to rescission.

Financed systems

Solar loans, hidden dealer fees and Truth in Lending rescission

How defective disclosures can unwind a home-secured solar loan for up to three years.

Bankrupt installers

What happens if your solar company goes out of business?

Who owns your warranty, who you still pay, and how the Holder Rule keeps your claims alive.

After the window closes

Can you cancel a solar contract after installation?

The six legal grounds that work after the cooling-off period, and what each requires.