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Why Arbitration? Understanding Its Role in Solar Panel Lawsuits
If you’re dealing with a dispute over your solar panel system, you might have come across the term arbitration in your contract. But what is arbitration, and why is it used in solar panel lawsuits?
At our law firm, we handle nothing but solar panel cases across multiple states. A major part of these cases is resolving disputes through arbitration. In this article, we’ll explain what arbitration is, why it’s commonly used in solar contracts, and how it impacts your legal options when seeking justice against solar lenders and installers.
What Is Arbitration?
Arbitration is a private dispute resolution process where a neutral third party (the arbitrator) makes a binding decision, much like a judge in a courtroom. Many solar panel contracts include mandatory arbitration clauses, meaning that if a dispute arises, you cannot take the case to court—you must resolve it through arbitration.
How Arbitration Works:
You and the opposing party (the solar lender or installer) present your case to an arbitrator.
The arbitrator reviews the evidence and issues a final, binding decision.
Unlike a court case, arbitration is occasionally conducted via Zoom or electronic meetings, making it accessible regardless of your location.
Why Do Solar Panel Lawsuits Go to Arbitration?
Many solar companies and lenders include arbitration clauses in their contracts for several reasons:
Avoiding Public Court Cases – Arbitration is private, keeping disputes out of the public eye.
Cost Efficiency – Arbitration is generally faster and cheaper than going to trial.
Control Over the Process – Companies often prefer arbitration because they can avoid unpredictable jury verdicts.
For consumers, arbitration can be both a benefit and a challenge. On the one hand, it offers a faster resolution. On the other, it may limit legal options compared to a full court trial.
What If Your Contract Doesn’t Have an Arbitration Clause?
Some major solar lenders—such as Service Finance and Dividend—do not include arbitration clauses in their contracts. If your contract does not require arbitration, you may need to:
File a lawsuit in your local county court.
Find a local attorney familiar with your court system and judges.
There’s a well-known legal saying:
"A good lawyer knows the law, but a great lawyer knows the judge."
This holds true because every court operates differently, and having a local attorney who understands your judge’s preferences can make a big difference in your case.
Should You Choose Arbitration or Court?
If you have the option, choosing between arbitration and court depends on several factors:
Speed: Arbitration is often quicker than a traditional court case.
Legal Strategy: Some claims may be stronger in a courtroom setting.
Costs: While arbitration is usually cheaper, some cases may require a lawyer who is familiar with your county’s legal system.
Need Legal Help with a Solar Panel Dispute?
If you’re facing a dispute with your solar lender or installer, our firm specializes in solar panel lawsuits and can guide you through the arbitration process. We work with homeowners nationwide, helping them fight against misleading sales practices, broken warranties, and unfair loan agreements.
Contact us today for a consultation and find out how we can help you resolve your solar panel dispute—whether through arbitration or a local lawsuit.
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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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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
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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.