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If my panels aren't working, can I stop paying?
One question we often receive is this: If my solar panels are not working, am I allowed to stop making loan payments?
Potential Impact of Non-Payment
Theoretically, the answer is no.
You are contractually obligated to continue making payments to your lender according to the terms of your financing agreement. If you miss those payments, the lender may report the delinquency to credit bureaus, which can negatively affect your credit score.
However, if you have hired Prevost Law Firm to help remove the solar loan from your credit report or to pursue a legal resolution, there is a path forward.
While we work to resolve your case, we understand that it may feel unreasonable to continue paying for a system that is not functioning.
In fact, this very situation is what the Federal Trade Commission’s Holder Rule was designed to address.
Understanding the FTC’s Holder Rule
The Holder Rule protects consumers by allowing them to assert the seller’s misconduct as a defense against the lender. In simple terms, it links the seller’s duty to deliver a working product or service with your obligation to pay for it. If the seller fails to meet their obligations—such as delivering a functioning solar energy system—you may have legal grounds to stop payments.
That said, choosing to withhold payment will likely affect your credit until the matter is legally resolved. It is a personal decision, and some clients may feel justified in refusing to continue paying for a product that is not delivering any value.
What Are the Risks?
While lenders sometimes threaten repossession of the solar panels, we have not seen this happen to any of our clients. In rare instances, a lender may attempt to deactivate the system. However, if the panels are not producing energy in the first place, this action has little practical impact.
Whether or not you continue making payments does not significantly affect the strength of your legal case. It is largely a personal or financial decision. If you are unable to cover both your traditional electric bill and the solar loan payment, we recommend prioritizing your electricity bill. We will address the solar loan payment through legal channels.
Conclusion
Stopping payment on a non-functioning solar panel system can affect your credit, but it does not weaken your legal position. While the decision is ultimately yours, we are here to support you either way. If you are facing this issue and unsure of what steps to take, contact Prevost Law Firm for a no-cost claim review.
We are committed to helping you protect your rights and pursue the resolution you deserve.
Our Results
What clients are saying
"Took Care of Everything"
I felt completely stuck when Encor went out of business, leaving me with an unfinished solar system that didn’t work, failed inspections, and a loan I still had to pay. On top of that, they misled me about tax credits and savings, and I ended up paying more in taxes and insurance instead. Prevost Law Firm stepped in and took care of everything. Their team handled my case with professionalism and compassion, and I’m so grateful for the outcome. If you're struggling with solar issues, you need to call them. (Cara J.)
"Exceeded My Expectations"
My experience with Encor Solar was a disaster. They installed a system that didn’t work, used an unlicensed subcontractor, voided my roof warranty, and lied about the need for batteries during power outages. When they went out of business, they left me with an unfinished system and no way to fix the mess they created. Prevost Law Firm was amazing—taking on my case and delivering results that exceeded my expectations. They are true advocates for homeowners, and I’m so grateful for their help. If you're facing a similar situation, I can’t recommend them enough! (John S.)
"Pleasure To Work With"
Would recommend 100%. Neal and his staff did an excellent job keeping me informed about the process every step of the way. He was able to get a settlement. He was a pleasure to deal with. (Gabrielle S.)
"Communicated Each Stage Clearly"
Working directly with Mr. Prevost was excellent. Having worked with several attorneys in several fields regarding general real estate matters, I was very pleased with my specific niche case against UCC-1 filings regarding solar liens. Mr. Prevost knew exactly how things would play out in handling the matter and communicated each stage clearly with me as to what I should do and what his team would need from me in the process. (Cody McDonald)
"Changed Our Lives
We can’t thank Prevost Law Firm enough for what they’ve done for us. My wife and I felt utterly defeated and trapped by the $73,590 loan for a solar panel system that never even worked. Encor, the installer, went out of business before the system passed inspection, but Solar Mosaic still demanded we pay for it. As disabled homeowners, we felt taken advantage of and didn’t know where to turn.
From the first phone call, their team made us feel like we weren’t alone in this fight. They listened to our story, fought tirelessly on our behalf, and never gave up until they got results. Thanks to them, our $73,590 loan was completely canceled, and we were refunded every single dollar of the $28,493 we had already paid into the loan. Best of all, we got to keep the solar panels for free!
When we got the news, we were overwhelmed with relief and gratitude. My stroke has already made life challenging enough, and this financial nightmare had only added more stress. Now, thanks to Prevost Law Firm, we can breathe again and finally focus on getting the panels working for us.
To anyone dealing with a solar panel loan disaster: don’t wait—call Prevost Law Firm. They are incredible, and they truly fight for people like us. We are so grateful we found them, and we hope others in similar situations will reach out for their help.
Bart and Diana Daniels
(855) 584-3576
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The Law Firm Solely Focused on Solar Panel Lawsuits
Neal Prevost, Trial Attorney With 31 Years of Experience
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Millions of Americans have been duped into one-sided solar contracts. If you were misled when purchasing solar panels, you are not alone.
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Nothing herein is intended, and does not, create an attorney client relationship and is for informational purposes only. The Prevost law firm is licensed in Texas and is licensed to practice law in all Texas state courts and in multiple Federal Courts and Arbitration in 46 states. Solar sales are governed by both state and federal law. The attorney client relationship will only be created after the parties enter into a signed letter of representation.