Recent enforcement actions in Texas and New York are putting residential solar sales and financing practices under renewed scrutiny. The cases involve allegations about promised energy savings, tax credits, financing costs, system performance, installation quality, and homeowners being left with substantial loan obligations. For homeowners whose solar experience does not match what they were originally told, these developments highlight several important issues worth reviewing.
The cases do not mean that every solar agreement is invalid or that every disappointing system resulted from misconduct. They do show, however, that regulators are paying attention to the difference between what homeowners are promised, what their contracts actually require, and what happens after the panels are installed.
Texas Investigates Residential Solar Sales Practices
In April 2026, the Texas Attorney General launched an investigation into the sales practices of several residential solar companies. According to the announcement, the office had received more than 100 complaints involving the companies under investigation.
The reported complaints included concerns about:
- Representations about energy-bill savings
- The effectiveness of solar panel systems
- Equipment and installation issues
- Warranty and service terms
- Marketing materials
- Contract information
The attorney general issued civil investigative demands seeking documents about how companies calculated and tracked customer savings, along with information about warranties, service plans, marketing, and contracts.
In May 2026, the Texas Attorney General followed the broader investigation with a lawsuit against CAM Solar. The state alleges that the company engaged in fraudulent and deceptive practices in connection with residential solar sales.
According to the Texas Attorney General’s announcement, the investigation identified allegations involving nonexistent or significantly reduced energy savings, defective or nonfunctioning systems, improper installations, unanswered service requests, undisclosed warranty and maintenance fees, tax-credit representations, and continuing financing obligations for systems that allegedly failed to operate as promised.
These are allegations made in an ongoing legal action. A lawsuit does not by itself establish that every allegation has been proven, and the outcome may depend on further court proceedings.
New York Case Targets Both a Solar Company and Its Lenders
A separate case filed by the New York Attorney General in March 2026 goes beyond the conduct of a solar sales and installation company. It also names two lending companies that allegedly helped finance the transactions.
The state sued Attyx, formerly known as SUNco, along with company executives and lending partners Solar Mosaic and WebBank. The attorney general alleges that homeowners were promised free or substantially discounted solar systems, roof repairs, and other home improvements through government incentives and programs.
According to the New York Attorney General’s announcement, some homeowners were instead placed into sales and loan contracts costing tens or even hundreds of thousands of dollars.
The state also alleges that:
- Some consumers were told government incentives would cover project costs
- Solar systems were promoted as a way to significantly reduce monthly utility bills
- Some homeowners did not qualify for the tax-credit amounts represented during the sales process
- Consumers were sometimes told they were signing applications or credit-check forms rather than purchase and loan agreements
- Lender fees were allegedly concealed within inflated project prices
- The true cost and effective interest rate of some loans were not clearly disclosed
New York is asking the court for several forms of relief, including restitution, civil penalties, and an order voiding the agreements at issue. Those remedies have been requested by the state but should not be treated as guaranteed outcomes for every affected homeowner.
Federal Agencies Have Also Warned About Solar Sales and Financing
Concerns about residential solar marketing and financing are not limited to these 2026 cases. In August 2024, the U.S. Department of the Treasury, Consumer Financial Protection Bureau, and Federal Trade Commission announced a coordinated effort addressing unfair and deceptive practices in the residential solar market.
The agencies said regulators had observed increased complaints involving companies that pressured consumers into predatory contracts or purchases, offered unfair financing, or failed to install or activate systems as promised.
The agencies also released consumer advisories explaining different solar arrangements, warning signs to watch for, questions to ask before signing, and ways to submit complaints. The Treasury announcement encouraged homeowners who believe they experienced unfair or deceptive practices to contact the appropriate federal or state consumer-protection office.
What These Cases Have in Common
Although the Texas and New York actions involve different companies and specific allegations, they highlight several recurring areas of concern for homeowners.
Promised Utility Savings
Many homeowners decide to go solar because they are told the system will substantially reduce or replace their electric bill. Actual results can be affected by household energy use, solar production, utility billing rules, seasonal conditions, system design, and financing costs.
A disappointing electric bill does not automatically prove that a sales representation was improper. It may still be worth comparing the original proposal, estimated production, projected savings, actual utility bills, and system-monitoring data.
If the numbers you were shown never matched the real financial outcome, read What to Do If Solar Savings Were Misrepresented.
Tax-Credit Representations
A federal solar tax credit is not necessarily the same as an immediate rebate, cash payment, or guaranteed reduction in the purchase price. A homeowner’s ability to use a tax credit can depend on current tax law and individual tax circumstances.
Pay close attention if a salesperson presented the credit as guaranteed, described it as a government payment, or built it into future loan-payment projections without explaining the assumptions involved.
Exit Your Solar does not provide tax advice. Questions about tax-credit eligibility, timing, or how a credit applies to an individual return should be reviewed with a qualified tax professional.
Loan and Financing Costs
The cash price of a solar system and the amount financed may not always be the same. Some financing structures can include lender or dealer fees that are incorporated into the project price.
Homeowners should review more than the advertised monthly payment. Important figures may include:
- Total amount financed
- Annual percentage rate
- Finance charges
- Total repayment amount
- Loan term
- Prepayment provisions
- Any payment changes tied to an expected tax-credit contribution
If the financing, payment expectations, or overall deal were presented differently during the sales process, read Misled by a Solar Sales Rep? What Homeowners Can Do Next.
Installation, Production, and Service Problems
Solar agreements may involve several separate companies, including a salesperson, dealer, installer, equipment manufacturer, lender, and loan servicer. That structure can make it difficult to determine who is responsible when a system is not activated, produces less than expected, damages the property, or requires service.
Review the sections of your agreement covering installation, system activation, workmanship, equipment warranties, production guarantees, maintenance, repairs, and dispute procedures. Also preserve every service request and response.
Continuing Loan Obligations
One of the most difficult situations occurs when a homeowner believes the solar system failed but the lender continues requesting payment. The installation agreement and financing agreement may be separate contracts with different companies and obligations.
A system problem, service dispute, company closure, investigation, or lawsuit does not automatically cancel every related loan. Homeowners should not assume they can stop making payments solely because another customer filed a complaint or a regulator brought an enforcement action.
What Solar Homeowners Should Gather
If what happened after installation does not match the original sales pitch, begin by gathering the complete record of the transaction. Useful documents may include:
- The signed solar purchase agreement, lease, or power purchase agreement
- The complete loan or financing agreement
- The original proposal and system design
- Energy-production and savings estimates
- Documents discussing rebates, incentives, or tax credits
- Emails, text messages, advertisements, and sales presentations
- Utility bills from before and after installation
- Solar monitoring and production reports
- Change orders and installation documents
- Warranty and maintenance terms
- Service requests and company responses
- Communications from the lender or loan servicer
- Property records related to any UCC filing or security interest
Do not rely only on your memory of the sales conversation. The most useful review compares what was represented, what was signed, what was installed, and what the homeowner is now being charged.
For a more complete checklist, read What Documents to Gather Before Reviewing a Solar Contract.
What These Enforcement Actions Do Not Automatically Mean
News about a solar investigation or lawsuit can give homeowners hope that their own agreement will be canceled. It is important to keep the legal and practical limits in mind.
- An investigation is not a final determination that misconduct occurred
- A lawsuit contains allegations that may still need to be proven in court
- Action against one company does not automatically affect every solar provider
- A poor financial outcome does not necessarily establish fraud or deception
- An installer dispute does not automatically eliminate a separate financing obligation
- A requested court remedy is not the same as relief already awarded
- Available options can depend on the agreement, location, timing, evidence, and individual circumstances
The best next step is usually to evaluate the homeowner’s own documents and facts rather than assuming that another case will determine the outcome.
What to Do If Your Solar Promises Do Not Match the Results
Start by writing down the specific differences between what you were told and what happened. For example:
- The electric bill did not decrease as represented
- The solar payment changed unexpectedly
- The system was never activated or is not producing properly
- The promised tax benefit was unavailable or smaller than represented
- Previously undisclosed fees appeared in the transaction
- The roof, electrical system, or property was damaged
- The company stopped responding to service requests
- You did not understand that you were signing a long-term financing agreement
You may also consider submitting a complaint to the appropriate state attorney general, consumer-protection agency, the Federal Trade Commission, or the Consumer Financial Protection Bureau. Filing a complaint does not guarantee that an agreement will be canceled, but it creates a record and can help regulators identify broader patterns.
Before taking action that could affect your credit, property, taxes, or legal rights, consider speaking with an appropriately qualified attorney, tax professional, lender, or other adviser for guidance specific to your circumstances.
Ready to Review Your Solar Situation?
If your solar agreement is causing more stress than savings, the next step is understanding what happened, what you signed, and what options may be available based on the facts of your situation.
Exit Your Solar helps homeowners review solar loans, leases, PPAs, confusing payments, misleading sales representations, and other difficult solar agreement issues.
Learn more about how the Exit Your Solar review process works, or use the contact page to share the details of your situation.