Arizona Solar Panel Litigation Lawyer
Many homeowners who financed solar panel systems believed they were entering into a long-term investment that would reduce utility bills, increase energy independence, and provide financial benefits over time. However, many consumers later discovered that the transaction may have involved large undisclosed dealer fees, inflated loan balances, misleading savings projections, installation problems, or financing structures that were not fully explained during the sales process.
At Champions for The Injured, we are investigating claims involving deceptive solar financing practices, lender liability, hidden dealer fees, misleading tax credit representations, installation defects, warranty disputes, arbitration claims, and related consumer protection violations.
What Is a Solar Dealer Fee?
A solar dealer fee is generally a financing markup built into the total amount financed for a solar energy system. In many transactions, consumers are shown a low monthly payment or attractive interest rate without understanding that the financed principal may have been substantially increased in exchange for that lower advertised rate.
In some situations, dealer fees may increase the financed amount by 25% to 35% or more. In most cases, consumers report they were never clearly told that the financed amount included a large embedded fee paid between the solar company and financing company.
The FTC Holder Rule and Lender Responsibility
Many consumers believe that only the solar installer or sales company can be held responsible when problems arise. However, under certain circumstances, lenders and financing companies may also face responsibility for the conduct of the solar company or installer.
The Federal Trade Commission Holder Rule is an important consumer protection rule that allows consumers to assert claims and defenses against a lender arising from the conduct of the seller. In simple terms, the Holder Rule may prevent a financing company from avoiding responsibility when the financing transaction is closely tied to the underlying sale. In essence, the lending company is responsible for the sins of the seller.
Four Common Categories of Solar Claims
1. Installation Problems
Consumers frequently report systems that were improperly installed, never fully activated, fail inspections, leak, damage property, or fail to produce the promised energy output.
2. Misrepresentations About Savings
Some consumers were promised the system would eliminate or dramatically reduce their electric bill, only to discover they still owe significant utility charges in addition to the solar loan payment. In many instances, their overall energy costs increase.
3. Tax Credit or Rebate Misrepresentations
Consumers are often told they would qualify for tax credits or rebates that either did not exist, were overstated, or improperly presented as guaranteed benefits. For instance, if a consumer is on fixed income, the never produce enough income to take advantage of a tax credit.
4. Breach of Warranty Claims
Homeowners may experience equipment failures, inverter issues, roof damage, production problems, or service failures while being unable to obtain meaningful warranty support.
TILA and Disclosure Requirements
The Truth in Lending Act (“TILA”) is a federal consumer protection law requiring lenders to disclose important credit terms so consumers can understand the true cost of financing. In most instances, a “dealer fee” oftentimes 25%-30% of the overall costs of the loan, is baked into the transaction but never disclosed to the consumer. This is a clear violation of TILA.
Arbitration Clauses and Solar Litigation
Many solar agreements contain arbitration clauses requiring disputes to proceed through private arbitration forums such as JAMS or AAA rather than traditional court litigation. It depends on the individual documentation.
Signs You May Have a Solar Financing Claim
• Your financed balance was significantly higher than expected;
• You later discovered a large dealer fee;
• Your promised utility savings never materialized;
• The system failed to perform as represented;
• You received misleading information about tax credits or rebates;
• You continue making payments on a system that is not functioning properly.
Why Choose Champions for The Injured?
SL Chapman Trial Lawyers is actively investigating hidden dealer fees, lender liability claims, FTC Holder Rule issues, deceptive financing practices, installation defects, and arbitration-based solar disputes. Call our experienced team of lawyers for a free legal consultation.
