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Understanding the Growing Discontent Among Solar Customers and How to Protect Your Solar Business

By: Jack Jacobs, Managing Partner, Cleantech Law Partners

In recent years, solar energy has been promoted as a sustainable solution to reduce carbon footprints and lower energy costs. As more homeowners and businesses embrace renewable energy, and the solar industry has experienced exponential growth. But with this expansion, has come an increasing number of disgruntled solar customers that are posting bad reviews about solar companies online, filing complaints with agencies such as the Better Business Bureau (BBB), state consumer protection departments and Attorney Generals, and even taking legal action against their solar providers.

These mounting disputes present significant challenges for solar companies, threatening their reputation and creating potential legal risks, but also tarnishing the entire solar industry, which could negatively affect the overall growth of the solar market in the future.

But there is a way forward.

This article will identify the main disputes that lead to solar conflicts, discuss the likely source of the disputes, and suggest ways to prevent these risks thereby reduce costly disputes.

Top 10 Reasons Consumers File Complaints and Lawsuits Against Solar Companies

1. Misleading Sales Tactics and Overpromises

One of the most significant reasons customers file complaints or lawsuits against solar companies is misleading sales tactics and overpromises made during the sales process. In the highly competitive solar industry, companies often use aggressive marketing strategies to stand out, which can sometimes lead to exaggerated or inaccurate claims about the benefits of solar energy systems. These inflated promises, whether intentional or not, can cause customers to feel deceived, disappointed, and financially burdened when their expectations are not met.

Often the relationship with independent sales personnel, who are not salaried employees of the solar company, is a contributing factor that leads to deceptive sales pitches and overpromises. The very nature of this independent contractor relationship, which provides commission-based compensation only upon successful signature of the contract, motivates the salesperson to say anything they can to get the homeowner to sign the agreement.

• Example: A customer is told by an independent salesperson that the price of the project includes removal of all trees shading the roof around the property. However, the system is installed without tree removal, and there is no mention of this promise in the sales agreement. Feeling lied to and deceived, the customer files a complaint with the state Attorney’s General office and demands the contract be rescinded and trashes the solar company online.

How Cleantech Law Partners can help:
Cleantech Law Partners can review your marketing materials, sales scripts, and independent sales agent agreement to ensure that all claims are truthful, clear, and compliant with consumer protection laws. We can also guide you on how to present accurate, realistic expectations to customers from the beginning, reducing the risk of complaints or lawsuits

2. Exaggerated Savings Claims

Many solar companies promise consumers substantial savings on their energy bills, with some claiming that customers will pay little to nothing for their energy after installing solar panels. While solar systems can reduce electricity costs over time, the actual savings depend on numerous factors, including the size of the system, geographic location, local energy rates, available sunlight, and the customer’s energy usage patterns.

If sales representatives promise more than what’s realistically achievable, customers may feel misled when their savings fall short of expectations. When consumers discover that they’re not saving as much money as promised, they often feel deceived, which can lead to formal complaints or even lawsuits.

• Example: A customer is told they’ll see a 50% reduction in their monthly utility bills, but after installation, they only experience a 10% savings. Feeling they were misled, the customer files a complaint or sues for breach of contract.

How Cleantech Law Partners can help:

Cleantech Law Partners can help counsel your sales pitches and contracts to ensure that the customer has realistic expectations about their new solar system. We can also have legal briefing meeting with your sales and marketing teams to make sure that savings claims are not exaggerated.

3. High-Pressure Sales and Unclear Contracts

Customers often report feeling pressured into signing contracts too quickly, without fully understanding the terms, fees, or long-term commitments. These rushed decisions can lead to misunderstandings and complaints once the customer eventually reviews their contract in detail. While it’s not uncommon for sales teams to employ urgency or persuasive strategies to close deals, when these tactics are used irresponsibly, they can result in frustrated customers who feel trapped or misled. In the solar industry, where customers are making substantial financial commitments, the potential for confusion and dissatisfaction is high, especially when contracts are complex and difficult to understand.

Furthermore, we find that when solar sales agreements are too complex, unclear, use unnecessary technical jargon, and laden with fine print that the average consumer might not fully grasp, misunderstandings are more likely. While the terms may be legally binding, the lack of clarity in how they are presented can make it difficult for customers to understand their rights, obligations, and the total cost of the system over time.

When customers finally realize that the contract they signed doesn’t match their expectations, or that they’ve committed to more than they bargained for, they often feel trapped. This leads to frustration, complaints to consumer protection agencies, or legal disputes over alleged misrepresentation or breach of contract.

• Example: A customer signs a contract with a solar company after being told the system will cost $65,000. However, the fine print of the contract includes high cancellation fees, maintenance charges, and an escalating interest rate over the course of the financing period, which were not clearly explained by the sales representative. After installation, the customer is shocked to find that the total cost of the system, including interest, has ballooned to $90,000—far above what they were initially led to believe. They file a complaint with the Better Business Bureau (BBB), stating that they were misled and that the contract was unclear and difficult to understand.

How Cleantech Law Partners Can Help:

Cleantech Law Partners can help mitigate the risks of high-pressure sales and unclear contracts through effective contract review and simplification to help ensure your contracts are clear, straightforward, and free of hidden clauses that might confuse or mislead consumers. Simplifying your contracts and making them easier to understand can help reduce complaints and disputes.

4. Unexpected Costs and Hidden Fees

Another common issue is when solar customers encounter unexpected fees or costs after the installation of their solar system, such as charges for permits, inspections, or ongoing maintenance. These unforeseen expenses often lead to anger and frustration.

One of the biggest causes of friction during a residential solar project is when issues arise with homeowner’s roof during the installation process, such as structural weaknesses or old materials. In such cases, the solar company may add costs for necessary roof repairs or upgrades. If homeowners were not warned that this might be an additional cost, they may argue that the company should have assessed the roof condition beforehand or at least informed them about potential costs for repairs.

Another area of conflict is regarding the unexpected costs of unexpected equipment or added installation charges. This occurs sometimes when the solar installation requires more materials or labor than initially estimated, resulting in unexpected charges. For instance, if the solar company realizes the roof slope or shade level is more complex than anticipated, they might charge more to adjust for these factors, causing frustration for the homeowner.

• Example: A homeowner signs a contract for a 5-kilowatt solar system with a company, agreeing on a fixed price based on a free initial site inspection. Once installation begins, the company informs the homeowner that additional support structures are needed to secure the panels due to a previously undetected roof slope issue. This adjustment adds several thousand dollars to the installation cost. The homeowner might argue that the company should have accounted for such conditions in their initial inspection and accuse the company of deceptive practices, while the company might counter that such adjustments are sometimes unavoidable. This dispute can lead to negative reviews, complaints to consumer protection agencies, or even legal action, which can damage the reputation of solar companies and make homeowners hesitant to invest in solar solutions.

How Cleantech Law Partners Can Help:

Cleantech Law Partners can help review and streamline your pricing structure to ensure all fees are clearly disclosed upfront in your contracts. Our legal team can also develop transparent billing practices and provide mechanisms for addressing cost-related disputes before they escalate.

5. Installation Delays and Scheduling Problems

Delays in installation, often due to permitting issues or poor project management, are a major source of customer dissatisfaction. Installation delays can disrupt customers’ plans, especially if they are expecting immediate savings from their solar system. Many customers sign up for solar installations with the expectation that their project will be completed within a certain timeframe. When those expectations aren’t met—due to permitting delays, unexpected weather conditions, equipment backorders, or overbooked installation teams—it can lead to a series of issues that ultimately damage the relationship between the solar company and the customer.

Homeowners usually invest in solar expecting to start saving on their energy bills as soon as possible. When installations are delayed, those savings are postponed, impacting the return on their investment. Sometimes, when installation or activation of the solar system is delayed, even by several months, the homeowner will file a complaint and claim that they missed out on hundreds or thousands of dollars in potential savings, creating financial stress and dissatisfaction.

Furthermore, in some cases, delays may cause homeowners to miss deadlines for valuable tax credits or government incentives, which are sometimes only available within a certain timeframe after installation. So, if delays push the completion date beyond the eligibility period, homeowners may lose out on these benefits, which can be a major financial blow and a strong motivation to file complaints or seek compensation.

Unexpected delays are also troublesome because they cause the homeowner inconvenient and unnecessary frustration. Solar installations can be disruptive, and if a homeowner is told to expect a crew at a certain time but the crew shows up late or reschedules repeatedly, it creates unnecessary inconvenience. Homeowners may rearrange their schedules around the installation process, and when scheduling problems arise, it adds to their frustration and erodes trust in the company. This loss of confidence in the company can make homeowners question the reliability and professionalism of the solar company and feel they’re being given the “runaround” and become concerned about whether the installation will ever be completed. This loss of trust can increase the likelihood of dispute.

• Example: A homeowner signs a contract with a solar company to install a 6-kilowatt solar system. The company promises that the installation will be complete within 6 to 8 weeks, allowing her to start saving on her electricity bills before summer, when her energy costs are typically high. However, a series of delays begins to push back the timeline. First, there’s a two-week delay in obtaining the necessary permits. When that’s resolved, the installation is further delayed by a month due to supply chain issues affecting the availability of solar panels. Finally, the company’s installation team is overbooked and can’t schedule the installation for another three weeks. By the time the system is finally installed, it’s three months past the original estimated completion date, causing the homeowner to miss out on both peak summer energy savings and a regional solar incentive with an end-of-summer application deadline. She feels frustrated, misled, and financially impacted, and decides to file a complaint with the Better Business Bureau, expressing her dissatisfaction. Additionally, she posts a negative review online detailing her experience, warning other potential customers about the company’s unreliable scheduling.

How Cleantech Law Partners Can Help:

Cleantech Law Partners can help you review your company’s sales strategy and legal agreements to ensure that you are communicating proactively with solar customers, setting realistic timelines for your projects, and planning for delays. Also, sometimes it is good practice to offer compensation to customers for unexpected delays. Often small gestures and discounts are an effective means to preventing disputes. CLP can also draft detailed service level agreements (SLAs) for your vendors and subcontractors to set clear installation timelines and penalties for delays. Thereby creating expectations and reducing delays.

6. Poor Installation Quality and Safety Concerns

Faulty installations, such as improperly mounted solar panels, exposed wires, or system malfunctions, can create both safety hazards and significant repair costs. These issues often lead to customer complaints and legal claims and are a major liability risk for solar companies.

Unlike delays that can be easily resolved with offers of compensation, safety hazards or roof damage caused during installation can infuriate homeowners, and rightly so. They view the solar installation company as the cause endangering the life of their family or injuring their most valuable asset – their home.

Therefore, extra effort must be taken to reduce (or altogether completely prevent) damage that causes damage to the roof or safety.

• Example: A homeowner contracts a solar company to install a solar array on his roof. The installation is completed, but within a few weeks, during a rainstorm, the homeowner discovers water leaking from the ceiling beneath the area where the solar panels were installed. Upon investigation, he learns that the mounting hardware was not sealed correctly, leading to roof leaks. He also notices that the panels were installed at a suboptimal angle that limits sunlight exposure, and the wiring appears poorly organized, and one of the circuit breakers trips frequently, disrupting power in parts of his home. Frustrated, John contacts the solar company for repairs. However, they take weeks to respond, and when they finally send a technician, the technician provides only a temporary fix for the leak. John feels that the company’s poor workmanship and lack of responsiveness have left him with a defective system and additional repair costs for his roof. As a result, John files a complaint with the Better Business Bureau, detailing the company’s poor installation quality and lack of response to his issues. He also leaves a negative review online, warning other potential customers about his experience.

How Cleantech Law Partners Can Help:

Cleantech Law Partners will work with you to ensure that your installation teams adhere to local building codes and industry safety standards. If issues arise, our team can assist in mediating disputes to resolve installation problems quickly before they lead to lawsuits. We can also advise you on best practices to help reduce legal liability.

7. Poor Customer Service and Lack of Support

Poor customer service and lack of support are some of the most common reasons for disputes and lawsuits in the solar installation industry. When customers invest in solar energy, they expect a smooth, reliable process from start to finish—including timely communication, professional guidance, and prompt service for any issues that may arise post-installation. If these expectations aren’t met, customers can quickly become frustrated, leading them to file complaints, post negative reviews, or even pursue legal action.

Solar customers often need answers to questions about system performance, billing, or repair scheduling. If they reach out to the company and face delays or receive vague responses, they may feel neglected.

• Example: A solar customer notices a drop in energy production. She contacts the solar company that installed the system and ask them to come out to her home and conduct an inspection on the system to see why it is not operating properly. But, after repeated follow-ups, she still doesn’t receive a clear answer, and the system still fails to perform as expected. This lack of responsiveness can damage customer’s trust and lead to formal complaints or even lawsuits, especially if delayed responses result in financial losses for the customer.

How Cleantech Law Partners Can Help:

Cleantech Law Partners can assist you in creating strong customer service protocols that ensure timely responses to inquiries and quick resolution of issues. Having legally sound customer service agreements in place will also help reduce the likelihood of complaints reaching regulators or the courts. Also, CLP can review your existing agreements and help reduce any unclear language that can contribute to misunderstandings and set clear expectations to help reduce disputes.

8. Inaccurate or Unclear Performance Data

Many solar customers complain that their systems aren’t performing as promised, whether in terms of energy savings or overall efficiency. This discrepancy between expectations and actual performance often results in customer dissatisfaction.

The disconnect between customer expectations and actual solar system performance can result in significant dissatisfaction and complaints against solar companies. By addressing the factors that contribute to these discrepancies—such as improving marketing transparency, ensuring high-quality installations, providing effective maintenance and monitoring, and enhancing customer support—solar companies can foster better relationships with their customers and improve overall satisfaction with solar energy systems. This approach not only helps retain customers but also enhances the reputation of the solar industry as a whole.

• Example: A homeowner installed a solar panel system on her roof after attending a seminar hosted by a local solar company. The sales representatives promised her that the proposed system would generate 110% of her monthly energy needs. In reality, her electric bill is 20% more than it was before she installed the solar system! Feeling frustrated and misled, the homeowner decided to voice her concerns formally by filing a complaint with the state attorney general, and the Better Business Bureau (BBB), stating that the system was not delivering the promised savings and that the customer support was inadequate. She also shared her experience on social media and left a negative review on the company’s website.

How Cleantech Law Partners Can Help:

Cleantech Law Partners’ legal team can help ensure that all performance claims in your marketing and contracts are based on accurate, verifiable data. We can also advise you on how to set realistic performance expectations with customers and offer guidance on addressing performance-related complaints. If complaints are filed with state agencies, we can work on your behalf to mediate those complaints and ultimately reach an amicable resolution with the customer.

9. Problems with Financing and Loan Terms

Customers frequently express frustration with the terms of their solar financing options, whether it’s high interest rates, confusing loan terms, or unexpected fees. Poorly structured financing agreements can lead to customer complaints and legal challenges.

Often, when contracts are not fully understood, or contain confusing legal language, customers do not fully understand their obligations under the agreement. This is especially true when customers finance a system (as opposed to buying it for cash). There can be some confusion as to the relationship between the customer, finance company, and solar company. Sometimes, customers are shocked to receive a monthly financing bill each month in addition to their regular monthly electric bill from the utility. There is also a mistaken belief that the solar company that is installing the system is also financing the deal, when in fact the finance company is a separate third-party entity.

• Example: A homeowner eager to cut energy costs, signed up with his local solar company, financing his solar system through a third party financing company. Expecting savings, the homeowner was surprised when he received both a monthly financing bill from the financing company and a regular utility bill, as his solar setup didn’t fully cover his electricity needs. This double billing, coupled with unexpected fees from a loan company, left him feeling misled; he hadn’t realized the solar company wasn’t directly involved in financing or that loan terms could change. Confused by the separate roles of the solar and finance companies, the customer filed complaints and left negative reviews, frustrated by the lack of transparency in the agreement and the higher-than-expected monthly costs.

How Cleantech Law Partners Can Help:

Cleantech Law Partners’ legal team can review and revise your solar sales agreements to make them clearer and more customer friendly. Our team can also help ensure that financing options are fully explained to customers before they sign any agreements, reducing the risk of disputes down the line. We will also advise sales teams on how to present the relationship with the finance company and explain clearly that the finance company is a third-party entity, and not connected with the solar company. Also, expectations should be established regarding monthly bills.

9. Unclear or Misleading Warranty Information

Unclear or misleading warranty information is a common issue in the solar industry that contributes significantly to customer dissatisfaction. Many solar companies offer warranties to reassure customers about the reliability and longevity of their systems. However, these warranties often come with limitations or fine print that customers might not fully understand or that may not be clearly explained at the time of purchase. This can lead to frustration, as customers may have a different perception of what is covered under the warranty and for how long. When issues arise and customers try to make warranty claims, they may find the process confusing or discover that coverage is far more restricted than anticipated, often resulting in disputes, complaints, and even legal action.

Furthermore, customers tend to confuse performance warranties, which guarantee production of the system, with other warranties offered by the company (namely, warranties from the manufacturer and those covering installation and labor).

Lastly, Solar warranties frequently include exclusions, such as damage from extreme weather, shading, or environmental factors beyond the company’s control. These conditions may be buried in fine print or communicated vaguely, causing customers to feel misled if they discover these limitations only when trying to make a claim.

The consequence of warranty confusion is that customers begin to feel misled or deceived by warranty terms, and these dissatisfied customers are likely to express their frustration publicly, sharing their experiences on social media, review sites, or with consumer protection agencies, which can damage the company’s reputation. In cases where the warranty was a significant selling point, customers may resort to legal action, particularly if they feel they were misled about coverage. This can lead to costly litigation for both the customer and the solar company. Repeated issues with warranties can contribute to a broader mistrust in the solar industry, making it harder for companies to attract new customers as people grow wary of potential pitfalls.

• Example: When the homeowner purchased her solar system, she was reassured by the company’s 25-year warranty, which she believed would cover any issues with performance or repairs. However, a few years later, her system’s output declined, and when she tried to make a claim, she discovered that her warranty only guaranteed specific performance levels—not full coverage of repairs—and that repairs for damage caused by local storms were excluded. Frustrated and feeling misled, Sarah realized the warranty terms had been vague, especially regarding performance versus product coverage and environmental exclusions. She shared her negative experience online, filed a complaint with a consumer agency, and even considered legal action, feeling that the warranty had been a key selling point.

How Cleantech Law Partners Can Help:

Cleantech Law Partners’ can help you draft clear, transparent warranty agreements that accurately reflect what is covered and for how long. By managing customer expectations from the start and making warranty terms easy to understand, we can help prevent frustration and potential lawsuits.

10. Misunderstanding and Misrepresentation of Tax Credits:

Disputes can arise when solar sales representatives provide misleading or false information regarding which costs qualify for the federal solar tax credit. The federal solar tax credit, also known as the Investment Tax Credit (ITC), allows homeowners to deduct a percentage of the cost of installing a solar energy system from their federal taxes. However, this credit is strictly limited to the expenses directly associated with the solar system itself—such as solar panels, inverters, mounting hardware, and installation labor. Costs unrelated to the solar system, like roof repairs, tree trimming, or any modifications to prepare the site for solar installation, are typically not eligible for the tax credit. When sales representatives encourage homeowners to claim these non-qualifying expenses, it can lead to misunderstandings, financial complications, and even potential disputes.

Misleading information from a sales representative can cause homeowners to overestimate the amount of the tax credit they’ll receive, possibly leading them to commit to higher-than-expected financing costs. For instance, a homeowner may be persuaded that a $10,000 roof repair or significant tree removal costs can be bundled with their solar project and submitted under the tax credit. This would inflate their expected tax savings and could lead to financing decisions based on a tax credit amount that is inaccurate. When homeowners file their taxes and learn that these expenses aren’t eligible, they may find themselves unable to claim the full tax credit they expected, creating an unexpected financial burden and leading to frustration and disappointment with the solar company.

Additionally, this type of misinformation can have serious tax implications for the homeowner. If they follow the sales rep’s advice and claim ineligible expenses, they may face repercussions from the IRS, including an audit or penalties for claiming improper deductions. Homeowners often assume that the sales representative is well-versed in tax matters relating to solar installations, and many may not question the advice they’re given. When the tax credit falls short of their expectations, they may hold the solar company responsible for the misleading information.

• Example: A homeowner was advised by a sales rep from a solar company that his $15,000 solar system installation cost would qualify for the federal tax credit. The rep also encouraged him to include $8,000 in additional expenses—$5,000 for roof repairs and $3,000 for tree trimming—to his total cost for the tax credit. Trusting the rep, he applied for the tax credit on his entire $23,000 expense. Months later, the homeowner received a notice from the IRS stating that only the $15,000 directly related to the solar installation was eligible, and he was asked to pay back taxes and penalties for the misfiled credit. Feeling deceived, Tom filed a complaint against the solar company, arguing that their representative had misled him into believing all costs would qualify, and considered pursuing legal action to cover the unexpected financial liability. This situation damaged the homeowners trust in the company and underscored the importance of accurate, transparent information regarding tax credits in solar sales.

How Cleantech Law Partners Can Help:

Cleantech Law Partners can offer guidance on the specific eligibility criteria for the federal solar tax credit and help homeowners understand which expenses qualify, reducing the risk of filing errors. We can also make sure contract language is clear and unambiguous with regard to the ITC so few misunderstandings arise.

How Cleantech Law Partners Can Help Protect Your Solar Business:

As a solar company, it’s essential to address customer concerns early and proactively. Cleantech Law Partners can help mitigate legal risks by providing expert legal guidance and support in the following key areas:

1. Contract Review and Revision: We can audit and refine your contracts, ensuring they are legally sound, clear, and customer friendly. By addressing potential ambiguities upfront, we can help prevent complaints and disputes. We help ensure your contracts are clear, straightforward, and free of hidden clauses that might confuse or mislead consumers. Simplifying your contracts and making them easier to understand can help reduce complaints and disputes.

2. Defending Your Solar Business When Disputes Arise: If your company faces an administrative complaint (attorney general, consumer protection department, Better Business Bureau) or a lawsuit, Cleantech Law Partners can represent your interests and work to minimize potential financial and reputational damage. Our team specializes in solar energy law, and we are committed to protecting your interests.

3. Dispute Resolution Before Litigation: Rather than letting conflicts escalate into lawsuits, we can assist with preemptive dispute resolution. Our goal is to help you resolve issues quickly and amicably, preserving customer relationships and protecting your company from costly legal battles.

4. Consumer Protection and Compliance: Cleantech Law Partners can help ensure that your business complies with local, state, and federal consumer protection laws. If a customer files a complaint, we can work to get it dismissed or resolved efficiently, preventing reputational damage.

5. Proactive Business Practices: We can guide you in developing proactive business practices that promote transparency, trust, and customer satisfaction. By setting up clear policies, service standards, and communication strategies, we can help you reduce the likelihood of future complaints and legal challenges.

6. Provide Sales Personnel Training: We provide training for sales teams to ensure they are not using high-pressure tactics and are fully disclosing all relevant information about the system, financing options, and terms of the agreement. We help ensure your sales practices are transparent and comply with consumer protection laws.

7. Dispute Resolution: If a customer files a complaint or lawsuit due to unclear contract terms or feeling pressured, we can mediate the situation and help resolve disputes before they escalate to litigation. This can involve negotiating with the customer or working with them to find a satisfactory resolution, which can save your business time, money, and reputation.

8. Proactive Risk Management: We work with solar companies to develop best practices in contract transparency, communication, and sales processes. Proactive risk management can prevent complaints and legal issues from arising in the first place.

About Cleantech Law Partners:

Cleantech Law Partners is a boutique law firm specializing in the unique legal needs of renewable energy companies. If your solar company is struggling with complaints from disgruntled solar customers or looking to reduce your legal risks when selling solar projects to residential homeowners, Cleantech Law Partners can help you navigate these challenges and reduce conflicts. This proactive approach to legal protection and customer service not only reduces the risk of complaints but also strengthens your company’s reputation, helping to foster a loyal and satisfied customer base.

Contact us today to discuss how we can assist you in minimizing legal risks, avoiding costly customer disputes, and improving your sales and contract processes.

Email: info@cleantechlawpartners.com
Phone: 866.233.8064
Web: www.cleantechlaw.com