Solar Power Purchase Agreements: Protecting Consumers from Solar Panel Scams

Don’t give up hope! Give us a call. Our experienced consumer protection lawyers have dealt with many unscrupulous solar panel companies, and they know how to protect your interests from solar panel scams. Crooked solar panel installation companies will insert all sorts of jargon and confusing terms in solar power purchase agreements. We see it as our duty to protect consumers from solar panel companies looking to take advantage of homeowners who fall victim to their traps. 

Background Information on Solar Power Purchase Agreements 

People call us about solar power purchase agreements. With these agreements, the company (i.e., Vivint solar, Tesla, etc.) owns the solar panels, and you end up paying for energy produced by their system. Typically, a homeowner is obligated to keep that solar system on their roof and purchase all of the energy it produces for 20 years. They claim that you save money, but beware. These agreements usually have escalation clauses that allow the energy cost to increase every year. And, because the company owns the solar panels, they get to take advantage of the federal tax credits, not you. In addition, these agreements typically prohibit you from using electricity to heat a swimming pool; they may impose other limits on what you can and cannot use your electricity for.  

Common Problems with Solar Panels 

Here are some problems that our clients have experienced:

• Roof leaks after the solar panel installation 
• The panels too heavy for the roof and were not properly specified
• Utility bills increase
• Trouble selling the house because of the solar panel power purchase agreement
• The solar company will not return phone calls
• Service and maintenance problems that the solar company will not address 

These companies usually file a Uniform Commercial Code-1 filing statement in your county’s land records. Although they may say this does not technically create a lien on your property, it may factor into refinancing or selling your house. You will have to get the UCC filing “released” either by paying it off or getting the new purchaser to take over the loan. 

In summary, solar power purchase agreements are very complicated and are filled with potential pitfalls for consumers. If you have already entered into one and are having problems, contact a consumer rights lawyer today. The lawyers at the Holland law firm can help.