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Struggling with a Solar Panel Loan? Know Your Legal Options
If you’ve found yourself stuck with a solar panel system that isn’t performing as promised, or you’re facing issues with your lender, you’re not alone. Thousands of homeowners across the country have been misled by solar companies that overpromised and underdelivered. Many of these companies have now gone out of business, leaving homeowners with non-functioning systems and expensive loans. Here’s what you need to know about your rights and potential legal options.
The Growing Problem with Solar Panel Contracts
Many homeowners were sold solar panel systems under the promise of reduced electricity bills, government incentives, and long-term savings. However, the reality has been quite different for a significant number of people. Common complaints include:
False promises about energy savings – Some solar companies exaggerated how much homeowners would save on electricity bills.
System malfunctions – Panels and inverters may stop working, and with the company out of business, homeowners have nowhere to turn for repairs.
Lender issues – Many homeowners find themselves stuck paying a loan for a system that isn’t operational or delivering the benefits they were promised.
Warranty voids – When a solar company files for bankruptcy, any promised warranty often becomes worthless, leaving homeowners with expensive repairs or replacements.
Can You Cancel Your Solar Loan?
One of the biggest concerns for homeowners is whether they are still obligated to pay for a solar panel system that is not working as promised. The good news is that there are legal protections in place, specifically under the Federal Trade Commission (FTC) Holder Rule. This rule states that a consumer who has been misled by a company can assert the same claims and defenses against the lender that financed the purchase.
This means that if the solar company engaged in fraud or misrepresentation, you may have legal grounds to fight your loan obligation. Homeowners in this situation should consult a consumer protection attorney who specializes in solar loan disputes.
Legal Options Available
If you were misled into purchasing a solar system and your lender is still demanding payment, you may have legal options, including:
Disputing the loan – If the solar company made false claims, you might be able to challenge the validity of your contract.
Filing a lawsuit – Homeowners can take legal action against lenders that refuse to acknowledge the fraudulent nature of the sale.
Seeking compensation for damages – If you’ve experienced financial losses due to a non-working solar system, you may be entitled to recover those losses.
What Should You Do Next?
If you’re facing any of these issues, it’s important to act quickly. Here are some immediate steps you can take:
Gather your documents – Collect all contracts, loan agreements, email exchanges, and marketing materials that show what the solar company promised.
Check for a UCC lien – Many solar lenders place a lien on your property. You should verify whether this is the case for your home.
Consult with an attorney – A consumer protection attorney can help you understand your rights and determine the best course of action.
Do not stop making payments immediately – Until you have legal guidance, stopping payments can negatively impact your credit score.
Conclusion
Being stuck with a faulty solar panel system and an unfair loan can be incredibly frustrating. However, legal options may be available to help you cancel your loan, recover damages, and move forward without the burden of a non-functioning system. If you find yourself in this situation, reach out to a legal professional who specializes in solar loan disputes to explore your options.
If you believe you’ve been misled, don’t wait. Protect your rights and take action today.
(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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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
Feeling Lied To About Solar?
Millions of Americans have been duped into one-sided solar contracts. If you were misled when purchasing solar panels, you are not alone.
Is your solar contract costing you more money that it’s saving you? Did the solar salesperson misrepresent the savings or outright lie to get you sign up? Did you lose your warranty?
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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.