If you have recently invested in solar panels and suspect you might be a victim of solar panel financing fraud, it is important to take immediate action. Solar panel financing fraud occurs when deceptive companies or individuals take advantage of homeowners seeking to reduce their energy bills and contribute to a greener future. Signs that you might be a victim include unexpected fees, misrepresentations in the financing agreement, or faulty or low-quality installations.
If you think you have fallen victim to solar panel financing fraud, it is important to protect your rights and seek legal assistance. Contact a Dallas solar financing fraud attorney near you to discuss your situation and explore your options for recourse.
The Rise in Solar Panel Installations and Financing Programs
In recent years, there has been a significant increase in the installation of solar panels on residential properties. With the rising awareness of renewable energy and the desire to reduce carbon footprints, many homeowners have turned to solar energy as a viable and sustainable alternative. Alongside the rise in solar panel installations, various financing programs have emerged to make solar energy more accessible to homeowners. These programs often offer attractive financing options and incentives, making it easier for homeowners to afford solar panel installations.
Most consumers do not have the necessary amount of cash to pay for solar panel installation. These are renovations to your home, and solar panels can cost an average of $30,000 to install. The amount can be even greater, depending on the residential area and the size of the home. Even though there are federal tax credits to pay for the installation of panels, the consumer would still likely need to borrow money to afford them. More than half of consumers who have solar panels installed in their homes need financing to pay for them.
While many of these financing programs are legitimate and provide homeowners with a means to invest in solar energy, there has also been an increase in consumer complaints related to solar panel financing fraud. Fraudulent companies or individuals take advantage of homeowners’ desire to switch to solar energy and exploit them through deceptive practices.
Why There Is So Much Fraud in the Solar Panel Financing Industry
Companies that sell and install solar panels do not always partner with traditional financial institutions when they offer you a financing option. If they worked with traditional banks, the situation may not be as rife with fraud. Instead, solar panel installation companies often work with nonbank partners who make loans. The installation company may receive their own incentive from the financing agent to steer your business their way. Simply stated, everyone is on the take, and you are the one who has to pay with increased fees that are added onto your loan. You may have been told that you are being given a certain annual percentage rate without realizing that the fees that were tacked onto your loan have become a part of the principal.
Types of Solar Panel Financing Fraud
Solar panel financing fraud can manifest in various ways, each with the common goal of deceiving homeowners and exploiting their investment in solar panels. It is essential to familiarize yourself with the different types of fraud to protect yourself from falling victim to these schemes.
Misrepresentation of Financing Terms and Agreements
One common form of solar panel financing fraud involves the misrepresentation of financing terms and agreements. Fraudulent companies may lure homeowners with promises of low-interest rates, government incentives, or guaranteed savings. They may manipulate the terms of the financing agreement to make it seem more favorable or withhold key details that can impact the homeowner’s financial well-being.
Unscrupulous Sales Tactics
Another tactic used by fraudulent solar panel companies is employing unscrupulous sales tactics to convince homeowners to invest in their products or services. These tactics often involve high-pressure sales tactics, false claims about government rebates or tax incentives, and misleading information about the potential savings from solar energy. You may even have been aggressively steered away from seeking financing from your own bank in the form of a home equity loan because the installation company wants you to work with a lender who will share some of the fees that you have paid.
Low-Quality or Faulty Installations
Some fraudulent solar panel companies may cut corners when it comes to the installation process. They may use substandard materials, hire unqualified installers, or fail to follow safety regulations. These low-quality or faulty installations can lead to inefficiency, system malfunctions, or even safety hazards.
Unexpected Fees and Hidden Costs
Fraudulent solar panel financing schemes often involve unexpected fees and hidden costs that were not disclosed during the sales process. Homeowners may be surprised to find additional charges on their financing statements, which can significantly impact their ability to repay the loan or achieve the expected cost savings from solar energy.
In August 2024, the Consumer Financial Protection Bureau issued a nationwide alert to consumers about the potential for solar panel financing fraud. The agency called out numerous schemes being propagated by companies in the field. According to the CFPB, these improper business practices can add as much as 30 percent in fees to the average loan for solar panels. In light of these fees, consumers may not even be saving any money when they switch to solar panels. In some cases, they may even be financially worse off than if they maintained their existing electric service.
Signs You May Be a Victim of Solar Panel Financing Fraud
Recognizing the signs of solar panel financing fraud is vital in protecting yourself from falling victim to these scams. If you have recently invested in solar panels and notice any of the following red flags, it is essential to investigate further and consult with a solar panel financing fraud lawyer:
- Unexpected fees and charges: If you notice unexpected fees or charges on your financing statements that were not disclosed during the sales process, it can be a sign that you are a victim of fraud. Examples of hidden fees may include processing fees, maintenance fees, or administrative charges.
- Misleading or incomplete financing agreements: If the terms and conditions of your financing agreement do not align with what was promised or if there are discrepancies in the agreement, it is essential to seek legal advice. Fraudulent companies may intentionally misrepresent the financing agreement or withhold important information to manipulate homeowners.
- Failed promises and unrealistic savings estimates: If the promised savings from switching to solar energy are significantly lower than what was initially advertised or if you are not achieving the expected financial benefits, it is important to investigate further. Fraudulent companies often make exaggerated claims about the savings homeowners can expect, only to disappoint them later on.
- Difficulty contacting the solar panel company or their lender: If you are having trouble reaching out to your solar panel company or receive vague responses to your inquiries, it can be a sign of fraudulent activity. Legitimate companies should have clear lines of communication and be responsive to homeowners’ concerns. If you find yourself getting the runaround or no clear answers when you have questioned the fees and costs associated with your loan, it can be a sign that there is something more nefarious at work.
What to Do if You Have Been Victimized By Solar Panel Financing Fraud
If you believe you have been a victim of solar panel financing fraud, it is vital to take immediate action to protect your rights and seek legal assistance. Follow these steps to navigate the situation effectively:
Document Your Experience
Gather all documents related to your solar panel installation, financing agreement, and any communication with the company. Take photographs of any installation issues or safety hazards you observe. These documents can serve as evidence to support your case later on.
Report the Fraudulent Activity
Contact your local consumer protection agency and file a complaint against the fraudulent solar panel company. Provide them with all the necessary documentation and details about your experience. Reporting the fraudulent activity can help prevent others from falling victim to the same scams. You may also wish to file a claim with your state’s attorney general office.
Consult with a Solar Panel Financing Fraud Lawyer
Seek the advice of an experienced solar panel financing fraud lawyer to assess your legal options. A lawyer can review your case, determine the appropriate course of action, and represent your interests in any legal proceedings or negotiations with the fraudulent company.
Explore Remedies and Compensation
Work with your lawyer to explore potential remedies and compensation options available to you. This may include filing a lawsuit to recover financial losses, seeking compensation for damages, or negotiating a settlement with the fraudulent company.
Protect Yourself from Further Fraud
Take steps to protect yourself from further fraud by conducting thorough research before engaging with any solar panel companies. Verify their credentials, read reviews and testimonials, and ask for references from satisfied customers. Additionally, carefully review all financing agreements and seek legal advice if needed.
The CFPB recently clarified that Property Assessed Clean Energy loans (PACE) are subject to the Truth in Lending Act. You may even be able to file a lawsuit against the lender under TILA, seeking to recover the losses that you have suffered due to their unscrupulous tactics. You may not be able to receive punitive damages under TILA. However, if you file a fraud lawsuit under state law, you can seek punitive damages. Your solar panel financing fraud lawyer can advise you which is the best forum to file your case.
Why You Need a Solar Panel Financing Fraud Lawyer
Dealing with solar panel financing fraud can be a complex and challenging process. Having a solar panel financing fraud lawyer by your side can provide you with the knowledge and guidance necessary to handle the legal landscape effectively. Here are some reasons why hiring a lawyer is important in cases of solar panel financing fraud:
A solar panel financing fraud lawyer focuses on cases involving deceptive practices by solar panel companies. They have in-depth knowledge of consumer protection laws and can navigate the legal complexities on your behalf. These can be niche types of cases, and you need an solar financing fraud attorney who has particular experience in these types of lawsuits.
A lawyer can evaluate the strength of your case and advise you on the best course of action. They can identify any potential legal violations, assess the damages you have suffered, and determine the appropriate legal remedies available to you.
If necessary, a lawyer can negotiate with the fraudulent company or their legal representatives on your behalf. They will fight for your rights, advocate for fair compensation, and work towards a resolution that protects your interests. You may be able to recover some or all of your money without having to file a lawsuit if you have a solar panel financing fraud attorney stand up for your rights.
In cases where a resolution cannot be reached through negotiation, a lawyer can represent you in court. They will build a strong case, present evidence, and advocate for your rights before a judge or jury. You can recoup some of the losses you have suffered due to fraudulent business practices on the part of solar lenders.
Having a solar panel financing fraud lawyer on your side provides peace of mind knowing that you have a knowledgeable legal professional working tirelessly to protect your rights and achieve the best possible outcome for your case.
A Solar Financing Fraud Lawyer Will Level the Playing Field
If you have been a victim of solar panel financing fraud, it is important to seek legal assistance to protect your rights and explore your options for recourse. Contact a reputable law firm near you who is skilled in solar panel financing fraud cases to discuss your situation and take the necessary steps to seek justice. Don’t delay in asserting your rights and holding the fraudulent companies accountable for their deceptive practices.
