CfA's Investigation of Rooftop Solar Companies

Holding the Solar Industry Accountable.

In the Fall of 2016, Campaign for Accountability launched an investigation into the deceptive marketing practices of the rooftop solar industry.

In August 2016, two consumer watchdogs warned government regulators about the use of exploitative contracts by solar companies.  Public Citizen submitted comments to the Federal Trade Commission criticizing the arbitration clauses included in rooftop solar contracts and highlighting how solar leasing arrangements pose “significant financial risks for families.” Around the same time, the National Consumer Law Center submitted comments to the Consumer Financial Protection Bureau, urging the agency to take action to protect low-income consumers citing, among other things, a dramatic increase in leases for solar panels “and extensive complaints of false claims as to the savings with such panels and the terms of the leases.”

Following these warnings, CfA submitted open records requests in several states to examine consumers’ concerns. CfA requested complaints submitted since 2012 pertaining to the sale or leasing of solar panels and the installation of solar panels on residential rooftops. CfA’s review of the complaints revealed a widespread pattern of apparent fraud and abuse by solar companies.  Since then, we’ve taken action.

CfA has since asked several state attorneys general to investigate deceptive sales and marketing practices in the rooftop solar industry.  We’ve urged attorneys general to hold bad actors accountable to ensure solar energy ultimately prevails in a political environment far more favorable to oil and gas.

Additionally, CfA asked the Bureau of Consumer Protection at the Federal Trade Commission to investigate companies that offer residential rooftop solar panels. CfA review of more than 1,200 complaints released by the FTC revealed a widespread pattern of apparent fraud and abuse. CfA has also published editorials in state and local newspapers calling for greater accountability of the solar industry.

CfA has also worked to hold clean energy advocates accountable. In June 2017, we published a report exposing the Energy and Policy Institute (EPI) – an organization that describes itself as both a watchdog and a think tank – as the apparent project of a for-profit public relations firm.

In December 2017, CfA released the findings of its year-long investigation into the rooftop solar industry’s unscrupulous sales practices. CfA’s investigation found consumers filed more complaints against SolarCity and Vivint Solar than any other company.

Following CfA’s efforts to draw attention to problems in the rooftop solar industry, government officials are beginning to take action. On May 3, 2017, The Wall Street Journal reported the Securities and Exchange Commission is investigating the solar industry, and in March 2018, New Mexico Attorney General Hector Balderas filed a lawsuit against Vivint Solar for allegedly engaging in “unfair and unconscionable business” practices.

Consumer Resources

Several organizations provide information for consumers regarding the installation of rooftop solar panels. Here are some resources we recommend:

Federal Trade Commission (FTC):

Better Business Bureau:

Consumer Reports:

Solar Consumer Advisor:

  • This website provides advice for solar consumers, particularly on common pitfalls and issues with rooftop solar companies: Solar Consumer Advisor

Solar Energy Industry Association:

  • The Solar Energy Industry Association – a trade group for the solar industry – has published a guide for consumers regarding the financing options available for rooftop solar customers: Residential Consumer Guide to Solar Power

Interstate Renewable Energy Council:

  • The Interstate Renewable Energy Council provides a checklist for residential consumers considering rooftop solar energy: Consumer Solar Checklist

U.S. Department of Energy:

EnergySage:

  • EnergySage has many helpful resources regarding solar energy, including this guide to understanding solar power, which includes a “Buyers Guide”: Solar energy: what you need to know

Go Solar California:

  • Go Solar California is a state-run initiative that provides information, resources, and alerts for solar consumers: Go Solar California

Note: Campaign for Accountability is not a law firm and does not provide legal representation to individuals in disputes with rooftop solar companies.

Our Actions

Below is a summary of our actions.  To tell us about your experience with the solar industry, please visit our contact us page.

Continue reading about our rooftop solar work below.


"Solar companies often seem to target vulnerable populations, leaving seniors and those living on fixed incomes with higher monthly utility costs and loans that often exceed what they can afford to pay, plunging them into debt. Attorneys general should investigate these nefarious practices and hold violators accountable."

CfA Executive Director, Daniel Stevens

Texas

On October 27, 2016, Campaign for Accountability asked Texas Attorney General Ken Paxton to investigate companies providing solar panels to residential homes. CfA’s request was based on a review of consumer complaints filed with the attorney general’s office suggesting false and misleading trade practices that may violate Texas law.

Press Release | Request for Investigation | Op-Ed

California

On November 17, 2016, Campaign for Accountability asked the California Attorney General to open an investigation into companies that offer residential solar panels. A review of consumer complaints filed with the California Public Utilities Commission (CPUC) – which lacks jurisdiction to resolve these complaints – reveals many of these companies have engaged in false and misleading acts in the marketing and sale or lease of solar panels, in apparent violation of California law.

Press ReleaseRequest for Investigation | Op-Ed

Florida

On January 18, 2017, Campaign for Accountability asked Florida Attorney General Pam Bondi to open an investigation into companies that offer residential solar panels in Florida. A review of consumer complaints filed with the Florida Attorney General’s Office reveals many of these companies have engaged in false and misleading acts in the marketing and sale or lease of solar panels, in apparent violation of Florida law.

Press ReleaseRequest for Investigation | Op-Ed

Oregon

On March 29, 2017, Campaign for Accountability asked Oregon Attorney General Ellen Rosenblum to open an investigation into companies that offer residential solar panels in Oregon. A review of consumer complaints filed with the Oregon Attorney General’s Office reveals many of these companies have engaged in false and misleading acts in the marketing and sale or lease of solar panels, in apparent violation of Oregon law.

Press ReleaseRequest for Investigation | Op-Ed

Nevada

On October 23, 2018, CfA renewed its request to Nevada Attorney General Adam Laxalt to investigate rooftop solar companies – specifically Vivint Solar – after a local media outlet uncovered evidence that Vivint is continuing to victimize Nevada consumers. CfA previously called on Attorney General Laxalt to investigate Vivint Solar and other rooftop solar companies in April, after New Mexico Attorney General Hector Balderas initiated legal action lawsuit against Vivint.

Press Release | Request for Investigation

New Mexico Attorney General’s Lawsuit Against Vivint Solar

On March 8, 2018, New Mexico Attorney General Hector Balderas initiated legal action against Vivint Solar – alleging systematic fraud, deceptive business practices and racketeering –suggesting solar companies are continuing to violate state consumer protection laws more than a year after CfA first called for investigations.

On March 22, 2018, CfA renewed its calls to investigate solar companies in California and Texas, with an emphasis on Vivint Solar. Additionally, on April 24, 2018, CfA called on attorneys general in Arizona, Nevada, and New York to investigate rooftop solar companies.

Follow-Up Letters to California, Texas Attorneys General

Press Release | Requests for Investigation | Op-Ed

Letters to Arizona, Nevada, and New York Attorneys General

Press Release | Requests for Investigation

Federal Trade Commission

On July 19, 2017, Campaign for Accountability asked the Bureau of Consumer Protection at the Federal Trade Commission (FTC) to open an investigation into companies that offer residential solar panels. CfA reviewed more than 1,200 complaints released by the FTC.  The complaints reveal a widespread pattern of apparent fraud and abuse by solar companies.  Consumers detailed how the companies deceived them about the true costs of installing solar panels, lured them in with low price quotes that later proved to be false, required them to sign confusing contracts, and promised energy savings that failed to materialize.

Press Release | Request for Investigation

Report Revealing Vivint and SolarCity are Industry’s Worst Companies

On December 7, 2017, Campaign for Accountability released a report highlighting the findings of its year-long investigation into the unscrupulous sales practices of the rooftop solar industry. CfA’s investigation found consumers filed more complaints against SolarCity and Vivint Solar than any other company.

Press Release | Report | Op-ed

What is the Energy and Policy Institute?

On June 20, 2017, Campaign for Accountability released a new report unmasking the Energy and Policy Institute (EPI) – an organization that describes itself as both a watchdog and a think tank – as the apparent project of a public relations firm.  CfA’s report explains that EPI, which claims it “exposes attacks on clean-energy,” is just as secretive as the organizations it seeks to expose.

CfA’s investigation into EPI found that the group is not a typical watchdog or think tank: EPI does not disclose its annual tax return; it has no address beyond a post office box; its few employees appear to be scattered across the country; it is not registered with any Secretary of State’s office in states in which its employees appear to reside; and it does not release the names of any board members.

Press Release | Report | Op-Ed

 

On June 1st, 2020, Campaign for Accountability Executive Director Daniel Stevens published an op-ed with Alabama’s AL.com, explaining EPI’s opaque background as an organization, following the state’s Attorney General sending a letter to the organization inquiring about their incorporation status.

Op-Ed


"Customers saying they are paying more on their utility bills, not less as they were promised, and have been sold expensive systems they can’t afford, according to Freedom of Information Act requests filed by the Campaign for Accountability, a consumer-watchdog group"

Kirsten Grind, The Wall Street Journal

In the News

Our work has received national and local media attention, and government officials are starting to take notice.

Under Investigation

On May 3, 2017, The Wall Street Journal reported the Securities and Exchange Commission is investigating whether certain solar companies have adequately disclosed the number of customers who have canceled contracts after signing up for a home solar-energy system, an important metric in determining the honesty of solar marketing tactics. The Journal cited CfA’s work as a significant motivator behind the SEC investigation.

“Customers saying they are paying more on their utility bills, not less as they were promised, and have been sold expensive systems they can’t afford, according to Freedom of Information Act requests filed by the Campaign for Accountability, a consumer-watchdog group, and according to lawsuits filed by customers,” wrote Kirsten Grind of The Wall Street Journal.

As the Journal noted, “Some customers say they were strong-armed into buying solar-energy systems by sales representatives who threatened to sue them if they didn’t proceed with a project or to place a so-called mechanic’s lien on their homes—a measure used to force a homeowner to pay for a home-improvement project. Others say they didn’t realize they had actually signed contracts. Many said they believed they were just giving permission for a consultation.”

Additionally, other public interest organizations are taking notice. In July 2017, the Consumer Federation of America released their annual report, “Nation’s Top Ten Consumer Complaints 2016,” which flagged problems with solar energy sales as an “issue to watch” for consumers.

State officials are also starting to take action. In March 2018, New Mexico Attorney General Hector Balderas filed a lawsuit against Vivint Solar for allegedly engaging in “unfair and unconscionable business” practices including clouding titles to consumers’ homes, fraud and racketeering. CfA’s December 2017 report revealed Vivint Solar is one of the worst offenders in the industry. In October 2019, the New Jersey Attorney General reached a settlement with Vivint concerning allegations the company had deceived customers. Vivint agreed to alter its business practices and uninstall and remove solar panels from the homes of dissatisfied customers. Additionally, officials in New York and Hawaii have subpoenaed Vivint for records.

Get in Touch

Please contact us if you have any questions about our work or if you would like to view the consumer complaints filed with Attorneys General.

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