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What Does It Mean to Be the Prevailing Party in a Solar Panel Lawsuit?
When homeowners enter into solar panel contracts, they often don't anticipate needing legal action to resolve disputes. However, many solar contracts include "prevailing party" language, which can significantly impact legal outcomes if a lawsuit arises. But what exactly does it mean to be the prevailing party, and how does it affect solar panel lawsuits?
Understanding Prevailing Party Language in Solar Contracts
Most solar panel contracts contain clauses stating that the prevailing party in a lawsuit is entitled to attorney’s fees. Fortunately, these clauses often favor the consumer, meaning that if a homeowner successfully proves their claim, the opposing party (typically the solar lender) may be required to cover their legal costs.
In legal terms, the prevailing party is the one who wins on any claim filed in court. If a judge rules in favor of the homeowner on even a single claim—such as breach of contract, breach of warranty, or failure of consideration—that homeowner is considered the prevailing party and may be entitled to attorney’s fees as part of their claim.
How Does Prevailing Party Status Affect Solar Panel Lawsuits?
Many homeowners who financed their solar panels were promised long-term warranties and energy savings. However, when solar providers go out of business, those warranties become unenforceable, leaving homeowners with costly loans for systems that may not perform as advertised. In these cases, homeowners may sue their lenders under consumer protection laws, arguing that the lender is responsible under the Federal Trade Commission’s Holder Rule.
Being deemed the prevailing party in such lawsuits is crucial because it can determine whether attorney’s fees are awarded. Even if the judge does not grant the full cancellation of the solar loan, any partial win—such as a reduction in the balance owed—can still establish the homeowner as the prevailing party. For example, if a judge rules that 50% of the loan should be canceled due to breach of warranty, the homeowner still qualifies as the prevailing party and could recover legal costs.
Why This Matters for Homeowners
Legal battles over solar panel contracts can be complex and costly, but the prevailing party clause provides an important financial safeguard. By winning even a portion of their case, homeowners may be able to shift the price of attorney’s fees to the lender, reducing out-of-pocket expenses while securing financial relief from an unfair solar loan.
If you're considering legal action over a faulty solar panel contract, understanding your rights as the prevailing party can make a significant difference in the outcome of your case. Consulting with an experienced consumer attorney can help ensure that you maximize your chances of success and recover any fees owed under the prevailing party provision.
Final Thoughts
Navigating a solar panel lawsuit requires legal expertise, but knowing what it means to be the prevailing party can strengthen a homeowner’s position. If you have been misled about your solar panel system and your installer has gone out of business, you may have a strong case against your lender. A successful legal claim could not only reduce or eliminate your loan but also force the lender to cover your attorney’s fees, easing the financial buOur Resultsrden of litigation.
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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.)
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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.)
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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
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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.