Solar Loan and Financing Disputes

Solar financing can involve a lengthy loan, escalating payment obligations, significant financing charges, or a balance that exceeds what the homeowner understood the system would cost.

Potential issues may include:

• A loan the homeowner denies authorizing;
• A forged or improperly obtained electronic signature;
• A salesperson presenting a contract as only a credit application;
• A loan amount materially exceeding the quoted cash price;
• Financing charges or dealer fees that were not adequately disclosed;
• Payments that increased after the homeowner did not apply a projected tax credit;
• Funding before the installation was complete or operational;
• Collection activity concerning incomplete or defective work;
• Inaccurate credit reporting;
• A disputed payoff balance;
• Failure to provide required financing disclosures; or
• Continued loan obligations after the seller or installer closed.

The Consumer Financial Protection Bureau has identified risks in residential solar financing, including hidden dealer fees, misleading statements about tax credits, unexpected payment increases, and exaggerated savings claims.

Depending on how the financing was arranged, the analysis may also include the federal FTC Holder Rule, lending disclosures, contractual defenses, servicing conduct, and the relationship between the seller and lender. These laws do not automatically make a lender responsible for everything a solar salesperson or installer did.

Incomplete, Abandoned, or Nonoperational Systems

A homeowner may be left making payments even though the solar project was never completed or never began producing electricity.

We evaluate matters involving:

• Installation that was started but abandoned;
• Missing or failed permits;
• Work that did not pass inspection;
• Failure to obtain utility interconnection or permission to operate;
• Missing equipment;
• Nonfunctioning panels, inverters, or batteries;
• Failure to complete promised electrical or roofing work;
• A system that was installed but never activated;
• Repeated unsuccessful repair attempts; or
• A seller or installer that closed before completing the project.

The legal and practical options may depend on who received the loan proceeds, what completion documents were submitted, whether the homeowner signed or disputed a completion certificate, and whether another contractor can complete or repair the system at a reasonable cost.

Misrepresentations About Savings, Production, and Tax Benefits

Disappointing savings do not automatically establish a legal claim. Electric rates, usage, weather, system maintenance, shading, and other circumstances can affect actual results.

A stronger matter may exist when the homeowner has evidence of a material written or recorded representation, such as:

• A specific production or performance guarantee;
• A promise that the electric bill would disappear;
• A false statement that the system was free;
• A misrepresentation that a government program would pay for the system;
• A guaranteed tax refund or credit;
• A false statement about the homeowner’s eligibility for a tax benefit;
• A material difference between the represented and installed system;
• A false statement about the loan’s principal, interest, or monthly payment; or
• Production records showing a substantial and unexplained failure to meet a contractual guarantee.

The Federal Trade Commission has warned consumers about false promises involving free solar panels, government affiliation, guaranteed savings, and contracts presented for electronic signature without adequate explanation.

Florida law also requires numerous disclosures in many qualifying solar sales and lease agreements, including information about total cost, financing, savings assumptions, tax incentives, cancellation rights, expected production, roof warranties, UCC filings, and transfer restrictions. See § 520.23, Florida Statutes.

Roof Leaks and Other Property Damage

Solar installation may involve penetrations through the roof, electrical modifications, structural loading, and the attachment of substantial equipment to the property.

Potential claims may involve:

• Roof leaks following installation;
• Improper penetrations, flashing, fasteners, or sealing;
• Water intrusion and resulting interior damage;
• Mold associated with water intrusion;
• Electrical damage or unsafe electrical work;
• Fire damage;
• Structural damage;
• Damage caused during panel removal or reinstallation;
• Damage to existing roof warranties; or
• Work performed without required permits, licensing, or inspections.

Property-damage matters ordinarily require more than photographs of the damage. A qualified roofer, engineer, electrician, remediation professional, or other expert may be necessary to establish the cause, necessary repairs, and reasonable cost of correction.

Florida’s Chapter 558 pre-suit process may require written notice and an opportunity to inspect and repair before a construction-defect lawsuit is filed. Property owners should obtain legal advice before authorizing destructive testing or permanent repairs, except when emergency work is reasonably necessary to protect health, safety, or the property from further damage.

Solar Problems Affecting a Sale or Refinancing

A solar loan, lease, power purchase agreement, payoff demand, transfer restriction, lien, or UCC financing statement may become a serious problem when the owner attempts to sell or refinance the property.

These matters may involve:

• A buyer who will not assume the solar obligation;
• A lender requiring the solar debt to be paid before closing;
• Difficulty obtaining an accurate payoff;
• A disputed or unexpectedly large payoff balance;
• A UCC financing statement that must be addressed;
• A lease or PPA requiring consent to transfer;
• A closed solar company that cannot provide necessary documents;
• A title or closing agent requesting a release or termination;
• Panels installed on property owned by someone other than the borrower;
• A solar agreement remaining after the owner’s death; or
• Disagreement over who must pay the solar obligation at closing.

A UCC financing statement concerning solar equipment is not necessarily the same as a mortgage or construction lien against the real property. Nevertheless, it can create a practical closing problem if a buyer, lender, or title company requires a payoff, termination, subordination, or transfer before proceeding.

Because closing dates create practical deadlines, homeowners should seek review as early as possible rather than waiting until the final days before closing.

Solar Warranties, Equipment Failures, and Service Disputes

The seller, installer, manufacturer, and warranty provider may have different responsibilities. A manufacturer’s warranty on a panel or inverter may not cover labor, removal, reinstallation, roof repairs, lost production, or damage caused by improper installation.

We can evaluate:

• Manufacturer warranties;
• Installation and workmanship warranties;
• Production or performance guarantees;
• Maintenance agreements;
• Warranty transfers;
• Denied warranty claims;
• Disputes over labor or service charges;
• Responsibility for removing and reinstalling panels during roof work; and
• Warranty obligations after the original seller or installer closes.

Some warranty matters may be resolved without litigation. Others may not be economically practical if the cost of legal action substantially exceeds the cost of repairing or replacing the affected component.

When a Paid Legal Assessment May Be Worthwhile

A paid assessment may be appropriate when one or more of the following circumstances exist:

• You remain responsible for a substantial solar loan, lease, or PPA;
• The system was never completed or never became operational;
• You deny signing or authorizing the contract or loan;
• There is documented roof, water, structural, fire, or electrical damage;
• The system materially fails to satisfy a written production guarantee;
• Written or recorded statements misrepresented the price, financing, payment increase, tax benefit, or expected savings;
• A lender is demanding payment for incomplete, defective, or undelivered work;
• Collection activity or negative credit reporting has begun;
• A sale or refinancing is being delayed by a payoff, UCC filing, lien, lease, or transfer requirement;
• You have received an arbitration demand, lawsuit, collection notice, or other time-sensitive document;
• The seller or installer closed, but a lender, insurer, manufacturer, surety, or other potentially responsible participant remains;
• You have already obtained a qualifying judgment, arbitration award, or restitution order that may support a recovery-fund application; or
• The financial or property interests at stake are substantial enough to justify legal investigation and potential litigation.

When Legal Action May Not Be Economically Practical

Not every solar complaint justifies retaining litigation counsel.

A legal claim may be weak or economically impractical when:

• The system is functioning but savings are merely lower than expected;
• The dispute concerns ordinary maintenance or a relatively inexpensive component;
• The homeowner simply changed their mind after the cancellation period expired;
• Alleged oral promises are contradicted by clear written documents and no corroborating evidence exists;
• The available evidence does not establish what was represented or agreed;
• The potential damages are less than the likely cost of legal action;
• Applicable deadlines have expired;
• The only potentially responsible business is insolvent or bankrupt;
• No insurance, bond, warranty, lender defense, recovery-fund path, or other source of relief can be identified; or
• The requested outcome is not legally or practically available.

A homeowner can have a legitimate grievance without having an economically viable lawsuit. The purpose of the initial assessment is to make that determination before the homeowner incurs substantial litigation expense.

The Solar Company Closed—Do You Still Have to Pay the Loan?

The seller’s or installer’s closure does not automatically cancel a separate solar loan, lease, or payment obligation. It also does not necessarily eliminate every possible claim.

The agreements and transaction history should be reviewed to determine:

• Which company made the disputed representation;
• Which company contracted to perform the work;
• Whether the seller and installer were separate entities;
• Who originated, owns, and services the financing;
• Whether the lender received a completion certificate;
• Whether the homeowner disputes signing or authorizing any document;
• Whether claims or defenses were preserved against a holder of the contract;
• Whether another contractor or warranty provider assumed service obligations;
• Whether insurance, a bond, or another recovery source may exist;
• Whether the contractor was properly licensed;
• Whether a qualifying recovery-fund claim may eventually be available; and
• Whether the company is dissolved, in bankruptcy, or merely no longer operating.

Florida’s Homeowners’ Construction Recovery Fund is not an automatic source of compensation whenever a contractor closes. Eligibility generally requires a qualifying judgment, arbitration award, or restitution order and exhaustion of certain other recovery sources. See § 489.141, Florida Statutes.

Do not assume that you can safely stop making payments merely because the solar company closed. A payment decision may affect collection activity, credit reporting, default remedies, and the homeowner’s negotiating position.

Who May Be Responsible?

Depending on the agreements and evidence, potentially relevant parties may include:

• The solar seller;
• The installation contractor;
• A separate sales or marketing organization;
• A salesperson, when an individual basis for liability exists;
• A subcontractor;
• The original lender;
• The current owner or holder of the financing agreement;
• The loan servicer;
• A lease or PPA provider;
• A panel, inverter, or battery manufacturer;
• A warranty or maintenance administrator;
• An insurer or surety; or
• Another business that assumed relevant contractual obligations.

The existence of one of these participants does not mean that participant is legally responsible. The relationship among the parties—and the documents connecting them—must be investigated.

What Relief May Be Available?

The appropriate objective depends on the nature of the problem. Possible outcomes may include:

• Completion or activation of the system;
• Repair or replacement of defective equipment;
• Enforcement of a warranty or production guarantee;
• Repair of roof, electrical, water, or structural damage;
• Recovery of legally compensable damages;
• Rescission, reformation, or cancellation when legally available;
• Reduction or resolution of a disputed financing obligation;
• Correction of unauthorized or inaccurate credit reporting;
• Defense against collection, arbitration, or litigation;
• An accurate payoff or transfer agreement;
• Termination or correction of a UCC filing;
• Resolution necessary to complete a property sale or refinancing;
• Recovery through insurance, a bond, or a qualifying state fund;
• A bankruptcy claim; or
• A negotiated settlement addressing several parts of the transaction.

No particular result can be promised. The available relief depends on the contracts, evidence, responsible parties, applicable law, procedural requirements, and ability to obtain or enforce a judgment or agreement.

How Our Solar Dispute Assessment Works

Step One: Conflict and Eligibility Review

The initial inquiry allows our staff to identify the property owners and businesses involved, check for conflicts of interest, confirm any immediate deadline, and determine whether the matter appears appropriate for a paid attorney assessment.

This preliminary screening is not a free legal opinion or contract review.

Step Two: Paid Solar Contract and Recovery Assessment

If the matter appears suitable, the firm will explain the scope and fee for the initial legal assessment before beginning work.

Depending on the agreed scope, the assessment may include:

• Review of the sales and installation agreement;
• Review of the loan, lease, or PPA;
• Review of available disclosure forms;
• Review of relevant electronic-signature or authorization evidence;
• Identification of the seller, contractor, lender, servicer, manufacturers, and other participants;
• Preliminary analysis of potential Florida and federal claims or defenses;
• Review of arbitration, venue, notice, limitations, and attorney’s-fee provisions;
• Preliminary assessment of damages and available evidence;
• Investigation of corporate status, bankruptcy, licensing, insurance, bonds, warranties, or other recovery sources;
• Identification of immediate deadlines and evidence-preservation needs; and
• A recommendation concerning negotiation, pre-suit notices, administrative remedies, arbitration, litigation, further investigation, or no additional legal action.

The assessment may be limited by the number and length of documents submitted. Any expanded review will require agreement concerning the additional scope and fee.

Step Three: Further Representation, If Recommended

Further representation is not automatic. If additional work appears justified, the firm may propose a separate engagement for:

• Pre-suit notices and demand letters;
• Lender or servicer disputes;
• Evidence-preservation demands;
• Chapter 558 construction-defect notices;
• Insurance or bond investigation;
• Administrative complaints;
• Warranty enforcement;
• Closing, payoff, transfer, or UCC resolution;
• Negotiation or mediation;
• Arbitration;
• Litigation; or
• Post-judgment and collection proceedings.

Solar matters are not presently accepted on a contingency-fee basis. Additional representation is generally hourly or divided into defined stages and ordinarily requires an advance retainer.

The possibility that a contract or statute may permit attorney’s-fee recovery does not eliminate the client’s responsibility under the engagement agreement. Any fee award depends on the governing law, contract, procedural result, and ability to collect.

Documents and Evidence to Preserve

If you are involved in a solar dispute, preserve:

• Every sales, installation, loan, lease, or PPA agreement;
• Disclosure forms;
• Cancellation notices;
• Electronic-signature confirmations and audit records;
• Emails and text messages;
• Advertisements, proposals, and sales presentations;
• Recorded calls or voicemails;
• Loan statements and payment history;
• Utility bills from before and after installation;
• Production and monitoring records;
• Permits, inspection reports, and utility correspondence;
• Completion certificates;
• Warranty and maintenance documents;
• Photographs and videos;
• Roof, electrical, engineering, or remediation reports;
• Repair estimates and invoices;
• Credit reports and collection notices;
• UCC records, payoff statements, title documents, and closing communications;
• Bankruptcy notices;
• Complaints submitted to a lender, contractor, insurer, DBPR, CFPB, or another agency; and
• Any lawsuit, arbitration demand, summons, subpoena, or hearing notice.

Do not alter monitoring records, discard equipment, authorize destructive testing, or make permanent nonemergency repairs without considering whether doing so could affect the available evidence. Take reasonable steps to prevent additional property damage and address genuine safety concerns.

Frequently Asked Questions

Can I cancel a solar contract after installation?

Installation does not necessarily determine whether a contract can be challenged, but cancellation after installation is generally more complicated than exercising a timely contractual cancellation right.

Florida law requires many qualifying solar agreements to provide a right to rescind for at least three business days. Other rights may depend on where and how the sale occurred, financing disclosures, misrepresentations, contract formation, authorization, performance, and the relief permitted by applicable law.

A homeowner should not assume that every solar contract can be canceled merely because the system is disappointing or expensive.

Do I still owe the solar loan if the installer went out of business?

Usually, the installer’s closure does not by itself terminate a separate financing obligation. However, the contracts and circumstances may support claims or defenses involving incomplete work, authorization, financing disclosures, preserved seller-related defenses, servicing conduct, or other issues.

The homeowner should obtain individualized advice before withholding payments.

Can the lender be responsible for what the solar company did?

Possibly, but not automatically. The answer may depend on how the financing was arranged, the language of the credit agreement, whether the seller arranged the financing, whether claims and defenses were preserved against a holder, and whether the lender engaged in its own actionable conduct.

The mere fact that a lender financed the transaction does not necessarily make it responsible for every statement or act of the seller.

What if I did not sign the solar contract or loan?

A disputed electronic signature can be significant, but the investigation should go beyond a general denial. Relevant evidence may include email addresses, telephone numbers, IP information, electronic audit records, verification calls, identification documents, bank records, completion certificates, and communications with the salesperson.

Act promptly if an unauthorized account is being reported or collected.

What if solar installation damaged my roof?

Document the condition promptly and take reasonable measures to prevent additional damage. Obtain qualified evaluations concerning the cause, scope, and cost of repair. Before filing a construction-defect lawsuit, Florida law may require a Chapter 558 notice and an opportunity to inspect and offer repairs.

Can a solar loan or UCC filing interfere with selling my house?

Yes. Even when a solar UCC filing is not a lien against the real estate itself, a buyer, mortgage lender, or title company may require a payoff, termination, transfer, or other resolution before closing.

Provide the solar agreements and closing requirements to counsel as early as possible.

What happens when the property owner dies?

The solar obligation does not necessarily disappear when an owner or borrower dies. The analysis may involve the estate, title to the property, loan or lease terms, transfer provisions, probate administration, the identity of any co-borrower, and the proposed disposition of the property.

Our firm’s estate planning and probate practice can evaluate related probate or ownership issues when appropriate.

What if I was promised a tax refund that I never received?

A federal tax credit is not necessarily the same as an immediate cash refund. Eligibility and the practical benefit may depend on the law applicable to the relevant tax year and the taxpayer’s circumstances.

A legal claim generally requires evidence of what was represented, who made the representation, whether it was material to the transaction, and how it caused legally recoverable damage. Tax advice may require consultation with a qualified tax professional.

Does my solar contract require arbitration?

Many solar sales, installation, and financing agreements contain arbitration provisions. Whether a provision is enforceable and which parties may invoke it depends on the contract and surrounding circumstances.

Arbitration may materially affect procedure, discovery, costs, appeal rights, and case strategy. It does not necessarily mean that no remedy is available.

Does your firm accept solar disputes on contingency?

No. The firm does not presently accept solar disputes on a contingency-fee basis.

Qualified matters begin with a paid legal assessment. Any additional representation is generally provided on an hourly or staged basis and ordinarily requires an advance retainer.

Before You Contact Us

Please be prepared to provide:

• The names of every property owner and borrower;
• The name of the solar seller;
• The name of the installation contractor;
• The lender, finance company, lease company, and current servicer;
• The salesperson or sales organization, if known;
• The approximate contract and installation dates;
• The original system price and current loan or payoff balance;
• Whether the system is complete and operational;
• Whether there is documented property damage;
• Whether a sale, refinancing, lawsuit, arbitration, or response deadline is pending;
• The general result you are seeking; and
• A brief description of the evidence available.

Please identify these parties even if you believe some were cooperative or acted on your side. The firm needs the names to complete a conflict check and understand each participant’s role.

Do not send confidential information or documents until the firm confirms that its conflict review is complete and provides submission instructions.