Solar Panel Installation Dispute Letters
☀️ Solar Panel Installation Dispute Demand Letters
California C-46 contractor claims, roof damage liability, savings misrepresentation, AB 1070 disclosure violations, PPA disputes, and system underperformance
- Solar Energy System Installation Dispute & Contractor Claim Demand Letters – Emphasizes broader “solar energy system” terminology and contractor accountability
- California Solar Contractor Dispute Letters: C-46 Violations, Roof Damage & Performance Claims – Highlights specific licensing and technical issues
- Solar PPA, Lease & Installation Defect Demand Letters for Homeowners – Focuses on financing disputes and defect claims from homeowner perspective
Solar Panel Installation Disputes in California
California leads the nation in residential solar adoption, with hundreds of thousands of homeowners financing systems through cash purchases, loans, leases, or power purchase agreements (PPAs). While solar can deliver significant savings and environmental benefits, installation defects, misrepresented performance claims, roof damage, and financing disputes create substantial legal and financial headaches.
When a solar contractor fails to meet industry standards, violates licensing requirements, damages your roof, or misrepresents system savings, you have remedies under California law—including contract rescission, damages for repair costs, lost savings, and in some cases recovery of attorney’s fees.
Why Solar Installation Disputes Are Complex
- Long-term financing: 20-25 year PPAs/leases create ongoing disputes over performance, buyouts, and transferability
- Roof damage liability: Determining whether the solar installer (C-46) or separate roofer (C-39) is responsible for leaks
- Performance misrepresentation: Contractors often overstate savings based on unrealistic production estimates or utility rate assumptions
- Dual licensing issues: Electrical work requires C-10 in addition to C-46; unlicensed activity voids contracts
- Disclosure failures: AB 1070 requires specific written disclosures about system specifications, costs, and performance—violations are actionable
Categories of Solar Installation Disputes
| Dispute Type | Common Fact Patterns | Primary Legal Claims |
|---|---|---|
| Roof Damage | Leaks after installation, improper flashing, structural damage to trusses/rafters, voided roof warranty | Negligence, breach of contract, B&P § 7159 violations, recovery of repair costs + consequential damages |
| System Underperformance | System produces 30-50% less kWh than contractor projected; shading not disclosed; inverter undersized | Fraud/misrepresentation (Civ. Code § 1572), breach of express warranty, rescission + restitution |
| Savings Misrepresentation | Contractor claimed $200/mo savings but actual savings are $60/mo; unrealistic utility rate escalation assumptions | Fraud, CLRA violations (Civ. Code § 1770(a)(5)), UCL claims, damages = overpayments + lost opportunity cost |
| PPA/Lease Disputes | Unable to sell home due to PPA transfer issues; buyout price far exceeds system value; early termination fees | Contract unconscionability, breach of implied covenant of good faith, interference with property rights |
| AB 1070 Violations | No written disclosure document provided; cost per watt not disclosed; system specs inaccurate; performance estimates unsupported | B&P § 7164.5 violation = contract voidable, restitution remedy, potential CSLB disciplinary action |
| Unlicensed Activity | Electrical work performed by unlicensed workers; C-46 expired at time of contract; subcontractor had no C-10 license | B&P § 7031 = contract void, full refund regardless of work quality, no substantial compliance defense |
Key Legal Frameworks
Business & Professions Code § 7164.5 (AB 1070): Effective January 1, 2017, requires solar contractors to provide a written “Solar Energy System Disclosure Document” before contract signing. Must include:
- System size (kW DC rating), estimated annual production (kWh), and cost per watt
- Total system cost, financing terms, and total amount paid over financing term
- Estimated first-year savings and methodology/assumptions used
- Equipment manufacturer, model numbers, and warranty terms
Failure to provide compliant disclosure = contract voidable at homeowner’s option (B&P § 7164.5(c)).
CSLB Licensing Requirements: Solar installation requires a C-46 license. However, electrical work (conduit, panel upgrades, interconnection) requires a C-10 license. A C-46 alone cannot perform electrical work. Subcontracting to unlicensed electricians violates B&P § 7068 and voids the entire contract under § 7031.
C-46 Solar Licensing & AB 1070 Disclosure Requirements
C-46 Solar Contractor License
California classifies solar contractors under the C-46 license, which authorizes the installation of solar photovoltaic (PV) systems. The C-46 classification was created in 2006 to professionalize the solar industry and ensure contractors meet minimum experience, insurance, and bonding requirements.
- Authorized work: Installation of solar PV panels, racking/mounting systems, inverters, and DC wiring up to the point of interconnection
- Electrical limitation: C-46 does NOT authorize electrical work beyond the solar system itself. AC wiring, main panel upgrades, and utility interconnection require a C-10 Electrical license
- Roofing limitation: C-46 does NOT authorize re-roofing or substantial roof repairs. If roof work is needed, contractor must subcontract to licensed C-39 roofer
- Dual licensing: Some contractors hold both C-46 and C-10, which allows them to perform electrical work. Always verify both licenses are active at time of contract
Verifying Contractor Licensing
Before signing a solar contract, verify the contractor’s license at http://www.cslb.ca.gov/OnlineServices/CheckLicenseII/CheckLicense.aspx. Look for:
- Active status: License must be current, not expired, suspended, or revoked
- C-46 classification: Verify the license includes “C-46 Solar” classification
- C-10 for electrical work: If contractor is doing panel upgrades or interconnection, verify active C-10 license
- Bond and insurance: Confirm $15,000 contractor bond and workers’ compensation insurance are active
- Complaint history: Review any CSLB disciplinary actions or unresolved complaints
AB 1070: Solar Energy System Disclosure Document
Effective January 1, 2017, AB 1070 (codified at B&P § 7164.5) requires solar contractors to provide a standardized written disclosure document before contract execution. The disclosure must include:
| Disclosure Element | Required Information |
|---|---|
| System Specifications | System size in kilowatts DC, estimated annual production in kWh, panel manufacturer/model, inverter manufacturer/model |
| Cost Per Watt | Total system cost divided by DC watts (before incentives). Industry standard metric for comparing bids. |
| Total Cost | Cash price OR total financed amount over loan/PPA/lease term (including all interest, fees, and charges) |
| Estimated Savings | First-year dollar savings, methodology used (e.g., PVWatts simulation), and assumptions about utility rates, usage, and rate escalation |
| Warranty Terms | Equipment warranties (panel performance, inverter), workmanship warranty, roof penetration warranty |
| Interconnection Status | Whether net metering agreement is in place, utility approval status, any known delays |
Performance Estimate Standards
The most common AB 1070 violation involves inflated performance estimates. Contractors use software like PVWatts, Aurora, or HelioScope to model production, but often manipulate assumptions:
- Ignoring shading: Modeling the roof as “unshaded” when trees, chimneys, or neighboring structures cast shadows
- Overstating efficiency: Assuming 0% degradation or using “nameplate” ratings without accounting for real-world losses (soiling, temperature, inverter efficiency)
- Unrealistic utility rate escalation: Assuming 5-8% annual rate increases when historical averages are 2-3%
If actual production is more than 10-15% below projected kWh in the first year (adjusted for weather), you have strong evidence of misrepresentation. Obtain a third-party solar engineer’s analysis comparing contractor’s model to actual performance data from your inverter monitoring.
Common Solar Installation Disputes
Roof Damage & Leak Liability
Roof leaks after solar installation are among the most contentious disputes. Solar installers must penetrate the roof surface to mount racking, creating leak risks if flashing is improper or sealants fail.
- Timeline evidence: Leak occurred shortly after installation (within 6-24 months) and was not present before
- Location evidence: Leak is at or near solar panel mounting points, flashing, or conduit penetrations
- Roof age: Even if roof is older, installer still owes duty of care in penetrations. “Old roof” is not a defense to poor workmanship.
- Third-party inspection: Hire licensed C-39 roofer to inspect and document defects (improper flashing, missing underlayment, over-driven fasteners)
- Warranty claims: If roof had existing warranty, solar installation may void it—installer should have disclosed and obtained roofing contractor’s approval
Who Pays for Roof Repairs?
- If leak is caused by solar mounting/penetrations → C-46 solar contractor liable
- If leak is from underlying roof failure unrelated to solar → homeowner or original roofer (if under warranty)
- If solar installer subcontracted roofing work to C-39 → both may be jointly liable; pursue both and let them apportion fault
Demand full repair costs, interior damage (drywall, flooring, mold remediation), and cost to remove/reinstall solar panels during roofing repair. Many homeowners insurance policies exclude contractor workmanship, so you must pursue the solar contractor directly.
System Underperformance
System produces significantly less electricity than contractor projected. Common causes:
| Underperformance Cause | Who Is Responsible | Remedy |
|---|---|---|
| Shading not disclosed | Contractor (failed to model shading or misrepresented site as “unshaded”) | Rescission + restitution, or damages = difference between projected and actual savings |
| Undersized inverter | Contractor (design defect—inverter cannot convert all DC production to AC) | Replace inverter with properly sized model + lost production damages |
| Wrong roof orientation | Contractor (placed panels on north-facing roof or suboptimal orientation) | Relocation to optimal roof surface or rescission |
| Defective panels | Manufacturer (warranty claim) + Contractor (selected inferior product, misrepresented quality) | Panel replacement under warranty + damages for lost production and contractor misrepresentation |
| Weather variance | Neither (below-average solar irradiance year) | No remedy unless contractor guaranteed production (rare) |
Savings Misrepresentation
Contractor promised “$250/month in savings” but actual savings are far less. Misrepresentation claims require proof the contractor made false statements about material facts:
- Overstated production: Claimed system would produce 12,000 kWh/year but actual is 7,000 kWh/year
- Inflated utility rates: Assumed you pay $0.35/kWh when your actual blended rate is $0.22/kWh
- Unrealistic escalation: Modeled 6% annual rate increases when utility’s historical average is 2.5%
- Ignored fixed charges: Claimed you’d “eliminate your electric bill” but forgot that utility still charges $10-15/month in fixed fees even with solar
Damages = difference between promised savings and actual savings over the contract term (20-25 years for PPA/lease). Courts may also award rescission + restitution if misrepresentation was intentional.
PPA & Lease Disputes
Power Purchase Agreements (PPAs) and solar leases create long-term financial obligations (typically 20-25 years) and transfer/buyout issues:
- Home sale blocked: Buyer’s lender refuses to approve loan with PPA lien; buyer won’t assume PPA; unable to sell home
- Buyout price shock: Early buyout quote is $25,000 for a system worth $8,000 used
- Performance guarantee breach: PPA includes production guarantee but company refuses to honor credits when system underperforms
- Rate escalation abuse: Contract includes 2.9% annual escalator but utility rates have stayed flat—now paying more with solar than without
- Unconscionable terms: Cannot transfer without $500 fee + buyer credit check; cannot terminate without paying remaining 15 years of payments
Remedies depend on contract terms and whether you can prove unconscionability (Civ. Code § 1670.5), breach of implied covenant of good faith, or fraud in the inducement (contractor misrepresented buyout costs or transferability).
AB 1070 Disclosure Violations
Even if system is functioning, failure to provide required disclosure is independently actionable:
- No disclosure provided: Contract is voidable; seek rescission + return of all payments
- Incomplete disclosure: Missing cost per watt, system size, or warranty terms → voidable
- Materially inaccurate disclosure: Stated 8 kW system but installed 6 kW; stated $3.50/watt but actual is $5.00/watt → voidable + fraud damages
File CSLB complaint in addition to civil demand—CSLB may suspend contractor’s license and order restitution through administrative process.
Sample Solar Dispute Demand Letters
Sample 1: Roof Leak After Solar Installation
Date: [Current Date]
To: [Solar Contractor Name]
[Contractor Address]
License No. C-46-XXXXXX
From: [Your Name]
[Your Address]
[Phone and Email]
RE: DEMAND FOR REPAIR AND DAMAGES – ROOF LEAK CAUSED BY SOLAR INSTALLATION AT [Property Address]
Dear [Contractor Name]:
I write to demand immediate repair of roof damage and compensation for losses caused by your defective solar panel installation at my home located at [Property Address]. On [Installation Date], your company installed a [X] kW solar system pursuant to contract dated [Contract Date].
The Problem: On or about [Leak Discovery Date], I discovered water intrusion in my [room location] ceiling, directly below the solar panel array on the [roof orientation] roof. The leak was not present before your installation and is located at or near the solar panel mounting hardware.
I immediately hired [Roofing Contractor Name], a licensed C-39 roofing contractor, to inspect and identify the source. Their inspection report dated [Inspection Date] (attached) conclusively found:
- Improper flashing around solar panel mounting brackets at [location]
- Over-driven lag bolts penetrating roof deck without adequate sealant
- Missing underlayment protection at penetration points
- Standing water pooling around mounting hardware due to improper slope grading
The roofer confirmed these defects are directly attributable to your installation and constitute violations of standard roofing practices and the California Residential Code (Chapter 9, Roof Assemblies).
Damages Incurred:
- Roof repair (flashing, sealant, underlayment): $[amount]
- Solar panel removal and re-installation to access roof: $[amount]
- Interior damage repair (ceiling drywall, paint, insulation): $[amount]
- Mold inspection and remediation: $[amount]
- Third-party roof inspection report: $[amount]
- Total damages: $[total amount]
Legal Basis for Liability: You are liable under multiple theories:
- Breach of Contract: Your contract included an implied warranty of workmanlike performance. Improper flashing and roof penetrations breach this warranty.
- Negligence: You owed me a duty of care in performing roof penetrations. The defects documented by the roofer constitute negligence per se under industry standards.
- Business & Professions Code § 7159: Your work failed to meet the standards of the trade, and I am entitled to damages for repair costs plus consequential damages (interior repairs, mold remediation).
DEMAND: Within 15 days of this letter, you must:
- Pay $[total amount] for all repair costs and damages itemized above, OR
- Arrange and pay for all necessary repairs using licensed contractors acceptable to me
If you fail to respond or refuse to accept responsibility, I will pursue all available remedies, including filing a CSLB complaint (which may result in license suspension), filing a civil lawsuit for damages, and reporting the matter to my homeowners insurance (which may subrogate against you). I will also seek recovery of attorney’s fees and costs under Civil Code § 1717.
This letter serves as notice under Business & Professions Code § 7159 and preserves all legal rights. Please contact me immediately at [phone/email] to arrange payment or repair.
Sincerely,
[Your Name]
Enclosures: Roof inspection report; photos of interior damage; repair estimates
Sample 2: System Underperformance & Savings Misrepresentation
Date: [Current Date]
To: [Solar Company Name]
[Company Address]
Attn: [Sales Rep Name] and Legal Department
From: [Your Name]
[Your Address]
[Phone and Email]
RE: DEMAND FOR RESCISSION AND RESTITUTION – FRAUDULENT MISREPRESENTATION OF SOLAR SYSTEM PERFORMANCE
Dear [Company Name]:
I demand rescission of the solar power purchase agreement (PPA) dated [PPA Date] and restitution of all payments made, based on your fraudulent misrepresentation of system performance and savings.
Background: On [Sales Date], your sales representative [Rep Name] presented a proposal claiming the [X] kW solar system would:
- Produce 12,500 kWh of electricity in year one
- Save me $240 per month on my electric bill
- Reduce my annual electricity costs by 95%
These projections were prominently featured in your written proposal (attached) and were the primary inducement for my decision to enter the PPA. You charged me $0.18/kWh for solar energy under the PPA, claiming this was far below my utility’s $0.34/kWh rate.
The Reality: After 14 months of operation, the system has produced only 7,850 kWh—37% below your projection. My actual monthly savings average $82, not $240. I am paying the PPA rate of $0.18/kWh for underperforming solar while still buying significant grid power at utility rates.
Evidence of Misrepresentation: I hired [Solar Engineer Name], a professional engineer licensed in California (PE XXXXX), to analyze the system performance. Their report dated [Report Date] (attached) found:
- Shading was ignored: Your proposal modeled the roof as “unshaded,” but the neighbor’s two-story home casts afternoon shadows across 40% of the array from 2-6 PM daily. This was obvious from a site visit and should have been disclosed.
- Production estimate inflated: Using actual weather data and shading analysis, the engineer re-modeled expected production at 8,200 kWh/year—34% below your claim.
- Utility rate misstated: You claimed my blended utility rate was $0.34/kWh, but my actual rate (based on my utility bills) was $0.24/kWh. This inflated your claimed savings by 42%.
- System undersized: The inverter is undersized (clipping occurs), further reducing AC output by an estimated 8%.
Legal Basis for Rescission:
1. Fraud (Civil Code § 1572): You intentionally or recklessly misrepresented material facts—system production, shading conditions, and utility rates—with the intent to induce me into the PPA. I relied on these misrepresentations, and they were false. Fraud voids the contract and entitles me to rescission and restitution of all payments.
2. AB 1070 Violation (B&P § 7164.5): Your “Solar Energy System Disclosure Document” stated the system would produce 12,500 kWh/year. This estimate was materially inaccurate and unsupported by reasonable modeling. Under § 7164.5(c), I may void the contract and seek restitution.
3. CLRA (Civil Code § 1770(a)(5)): Your misrepresentation of system performance and savings constitutes an unfair and deceptive business practice under the Consumers Legal Remedies Act. I am entitled to actual damages, injunctive relief, and attorney’s fees.
DEMAND FOR RESCISSION: Within 20 days of this letter, you must:
- Agree in writing to rescind the PPA and remove the solar system at no cost to me
- Refund all PPA payments made to date: $[total paid]
- Release any UCC-1 financing statement or lien on my property
- Restore my property to its pre-installation condition (roof repairs if necessary)
Alternative Demand (if rescission refused): Pay damages of $[amount calculated as difference between promised savings and actual savings over 20-year term], plus cost to upgrade inverter and remove shading obstacles.
If you do not respond within 20 days, I will file a civil action seeking rescission, restitution, fraud damages, treble damages under the CLRA, and attorney’s fees. I will also file complaints with the CSLB and the California Attorney General’s Office regarding your deceptive sales practices.
This letter constitutes the 30-day pre-suit notice required under Civil Code § 1782 (CLRA). Do not contact me except through written correspondence to the address above.
Sincerely,
[Your Name]
Enclosures: Solar engineer performance analysis; PPA contract; sales proposal; 14 months of production data; utility bills
Sample 3: PPA Transfer Dispute & Home Sale Interference
Date: [Current Date]
To: [Solar Company Name]
[Company Address]
Attn: Legal Department and Transfer Department
From: [Your Name]
[Your Address]
[Phone and Email]
RE: DEMAND FOR IMMEDIATE PPA BUYOUT AT FAIR MARKET VALUE – INTERFERENCE WITH HOME SALE
Dear [Company Name]:
I demand that you immediately provide a fair market value buyout of the solar power purchase agreement (PPA) dated [PPA Date] affecting my property at [Property Address]. Your refusal to provide a reasonable buyout and your unconscionable transfer requirements are interfering with my sale of the home and causing substantial financial harm.
Background: I entered into a 25-year PPA with your company in [Year]. I am now selling my home, with an accepted offer and purchase agreement dated [Offer Date]. The sale is contingent upon buyer’s approval of the PPA transfer or removal of the solar system.
The Problem: The buyer is willing to assume the PPA, but their mortgage lender, [Lender Name], has refused to approve the loan with the PPA lien in place. The lender considers the $0.21/kWh PPA rate (with 2.9% annual escalation) to be above-market and a credit risk. Additionally, your transfer requirements include:
- $500 transfer fee
- Buyer must have 680+ credit score (buyer has 660)
- Buyer must consent to automatic bank withdrawals (buyer prefers credit card)
- Transfer processing takes 45-60 days (my close of escrow is in 30 days)
As a result, the buyer has threatened to cancel the purchase agreement unless I remove the solar system or buy out the PPA. I requested a buyout quote from your company on [Request Date]. You quoted $[amount]—which is absurd given:
- The system is [X] years old and has 14 years remaining on the PPA
- Fair market value of a used [X] kW system is approximately $[FMV amount] (per appraisal attached)
- Your buyout quote is 3-4 times the system’s actual value
Legal Basis for Demand:
1. Unconscionability (Civil Code § 1670.5): The PPA’s transfer terms and buyout provisions are procedurally and substantively unconscionable:
- Procedural: The PPA was a contract of adhesion with no negotiation; transfer terms were buried in fine print and not explained by your sales rep
- Substantive: Requiring a 680 credit score is unreasonably restrictive and not commercially justified. The $[amount] buyout for a system worth $[FMV] is grossly one-sided and serves no legitimate business purpose other than to extract windfall profits.
2. Breach of Implied Covenant of Good Faith: The PPA impliedly includes a duty of good faith and fair dealing. By imposing excessive transfer fees, unreasonable credit requirements, and inflated buyout prices, you are frustrating my ability to sell my home—a foreseeable and fundamental property right.
3. Interference with Property Rights: The UCC-1 lien you filed creates a cloud on title that is impairing marketability. Your refusal to provide a fair buyout or streamline the transfer process constitutes intentional interference with my contractual relationship with the buyer.
DEMAND: Within 10 days of this letter, you must:
- Provide a buyout quote at fair market value (not to exceed $[reasonable amount based on FMV appraisal]), OR
- Waive the $500 transfer fee, reduce the credit score requirement to 640, and expedite transfer approval within 15 days, OR
- Agree to remove the solar system at no cost to me and release the UCC-1 lien
If you fail to provide a commercially reasonable resolution, I will:
- File a civil action for declaratory relief, seeking a court order voiding the unconscionable transfer and buyout terms
- Seek damages for interference with my home sale, including lost sale proceeds, additional carrying costs (mortgage, taxes, insurance), and emotional distress
- File complaints with the California Attorney General and the CSLB regarding your predatory PPA practices
- Pursue class action certification, as I believe your PPA transfer/buyout abuses affect thousands of California homeowners
My close of escrow is [Close Date], giving you limited time to act. I expect a written response within 10 days confirming one of the three options above.
Sincerely,
[Your Name]
Enclosures: PPA contract; purchase agreement; lender’s denial letter; appraisal of solar system; buyout quote from your company
Evidence Gathering & Litigation Strategy
Critical Evidence for Solar Disputes
| Evidence Type | What to Collect | Why It Matters |
|---|---|---|
| Contract Documents | Sales proposal, PPA/lease/loan agreement, AB 1070 disclosure document, change orders, warranty documents | Establishes contractor’s representations, performance guarantees, and disclosure compliance |
| License Verification | CSLB license lookup printout as of contract date; verify C-46 and C-10 (if applicable) were active | Proves licensing status—expired/suspended license voids contract under B&P § 7031 |
| Production Data | 12-24 months of inverter monitoring data (kWh produced per month); export from Enphase, SolarEdge, or Tesla app | Compares actual production to contractor’s projections; proves underperformance |
| Utility Bills | 12 months pre-solar and 12+ months post-solar; shows actual usage, rates, and savings (or lack thereof) | Proves actual savings vs. contractor’s claimed savings; exposes rate misrepresentation |
| Photos & Videos | Pre-installation roof condition; shading at different times of day; roof leaks; interior damage; defective workmanship | Establishes baseline condition, proves causation for leaks, documents defects |
| Third-Party Reports | Solar engineer performance analysis; roof inspection by C-39; inverter efficiency test; shading study | Expert opinions to prove defects, underperformance, or design negligence |
| Communications | Emails, texts, recorded sales calls (if legal); written representations about performance, savings, transferability | Proves what contractor promised vs. what was delivered; evidences fraud or misrepresentation |
Retaining a Solar Expert
For underperformance or design defect claims, hire a licensed Professional Engineer (PE) or NABCEP-certified solar professional to analyze your system. The expert should provide:
- Site assessment: Physical inspection of panel orientation, shading, inverter sizing, wiring
- Performance modeling: Re-model expected production using actual weather data (NREL TMY3), shading analysis (Solmetric SunEye), and industry-standard software (PVWatts, SAM, HelioScope)
- Comparative analysis: Compare contractor’s projections to expert’s re-modeled projections to actual production data
- Defect identification: Document any design defects (undersized inverter, wrong orientation, shading ignored, electrical code violations)
- Damages calculation: Quantify lost production (kWh) and lost savings ($) over system lifespan
A strong expert report is often sufficient to force settlement without litigation. If the contractor disputes, the expert can testify at trial.
Measuring Actual Savings
Contractors often conflate “solar production” with “savings.” To prove savings misrepresentation, you must demonstrate:
- What you were promised: Extract from sales proposal, contract, or AB 1070 disclosure (e.g., “$240/month savings”)
- What the promise was based on: Contractor’s assumptions about kWh production, utility rates, usage patterns
- Actual results: Calculate real savings by comparing pre-solar utility bills to post-solar utility bills + PPA/lease payments
Monthly Savings = (Pre-Solar Utility Bill) − (Post-Solar Utility Bill + PPA/Lease Payment)
Example:
Pre-solar average bill: $320/month
Post-solar utility bill: $85/month (for grid power not covered by solar)
PPA payment: $150/month (for solar kWh)
Actual savings = $320 − ($85 + $150) = $85/month
If contractor promised $240/month, the shortfall is $155/month × 12 months = $1,860/year. Over 20-year PPA term, total damages = $37,200 (not accounting for time value of money or rate escalation).
CSLB Complaint Process
In addition to civil demand, file a complaint with the Contractors State License Board:
- Online filing: http://www.cslb.ca.gov → File a Complaint
- Information needed: Contractor license number, description of defect/fraud, dollar amount of damages, supporting documents
- CSLB investigation: Board will investigate, may require contractor to respond, and can order mediation or arbitration
- Disciplinary action: If violations found, CSLB can suspend/revoke license, impose fines, order restitution
- Recovery from bond: If contractor refuses to pay judgment/arbitration award, you can pursue the $15,000 contractor bond
CSLB complaints are free and can result in restitution without hiring an attorney. However, CSLB cannot award damages beyond direct economic loss (no pain and suffering, emotional distress, or punitive damages).
Litigation Timeline & Costs
If demand letter and CSLB complaint fail, litigation options include:
| Forum | Claim Limit | Timeline | Pros & Cons |
|---|---|---|---|
| Small Claims | Up to $10,000 (or $5,000 if business plaintiff) | 1-3 months to hearing | Pros: No attorney needed, low filing fee ($30-75), fast. Cons: Claim limit may be insufficient; no discovery; limited appeal rights. |
| Limited Civil | $10,000 – $25,000 | 6-12 months to trial | Pros: Higher claim limit, formal discovery. Cons: Attorney recommended (not required); limited discovery compared to unlimited civil. |
| Unlimited Civil | Over $25,000 | 12-24+ months to trial | Pros: No claim limit, full discovery, jury trial available. Cons: Expensive (attorney’s fees $10k-50k+), lengthy process. |
| JAMS/AAA Arbitration | Any amount (if contract requires arbitration) | 6-12 months to award | Pros: Faster than court, expert arbitrators. Cons: Expensive (arbitrator fees $5k-15k+), limited appeal rights, may favor repeat-player companies. |
Attorney’s Fees Recovery
California follows the “American Rule”—each party pays their own attorney’s fees unless a statute or contract provides otherwise. Solar disputes may allow fee recovery under:
- Civil Code § 1717: If contract includes attorney’s fees clause, prevailing party recovers fees (applies to breach of contract claims)
- CLRA (Civil Code § 1780(e)): Prevailing plaintiff recovers fees in consumer fraud actions
- UCL (Bus. & Prof. Code § 17200): Court may award fees in unfair competition cases (discretionary)
- Code of Civil Procedure § 1021.5: “Private attorney general” doctrine—fees awarded if lawsuit enforces important public rights (e.g., challenging widespread solar fraud scheme)
Because many solar contracts include attorney’s fees clauses, and because CLRA provides fee recovery, these cases are often economically viable even for modest damages ($15k-50k).
Attorney Services for Solar Installation Disputes
Solar installation disputes involve complex technical issues (electrical engineering, roof construction, financial modeling) combined with intricate legal frameworks (licensing, consumer protection, contract law). While some homeowners successfully resolve disputes through demand letters and CSLB complaints, many cases require legal representation to achieve full recovery.
How I Can Help
I represent California homeowners in solar installation disputes, roof damage claims, performance misrepresentation cases, and PPA/lease rescission actions. My practice focuses on holding contractors and solar companies accountable for defective work, fraud, and unfair business practices.
- Contract review: I analyze your solar contract, PPA/lease, and AB 1070 disclosure to identify violations, unconscionable terms, and misrepresentations
- Licensing verification: I confirm contractor’s C-46/C-10 licensing status at time of contract—expired licenses void contracts and trigger full refund remedies
- Performance analysis: I work with solar engineers to model expected vs. actual production and quantify underperformance damages
- Damages calculation: I calculate economic losses including repair costs, lost savings, diminished property value, and consequential damages
- Demand negotiation: I draft and deliver demand letters, negotiate settlements, and pursue CSLB administrative remedies before litigation
- Litigation representation: If settlement fails, I file civil actions for fraud, breach of contract, CLRA violations, and roof damage—pursuing rescission, restitution, and damages
Why Legal Representation Matters in Solar Disputes
Solar contractors and PPA companies have in-house legal teams and insurance defense lawyers. They routinely deny valid claims, delay responses, and offer lowball settlements hoping homeowners will give up. An attorney levels the playing field by:
- Proving technical defects: Coordinating with engineers, roofers, and electricians to document violations and quantify damages
- Establishing fraud: Gathering sales materials, communications, and expert analysis to prove intentional misrepresentation
- Navigating AB 1070: Identifying disclosure failures that trigger contract voidability and restitution remedies
- Challenging arbitration clauses: Filing motions to invalidate unconscionable arbitration provisions that limit your remedies
- Maximizing recovery: Pursuing not just repair costs, but lost savings, property damage, emotional distress, and attorney’s fees
Types of Cases I Handle
| Case Type | Typical Recovery | Fee Structure |
|---|---|---|
| Roof leak / structural damage | Repair costs ($5k-30k) + interior damage + diminished value | Contingency (33-40%) or hourly ($400-600/hr) |
| Underperformance / misrepresentation | Lost savings over PPA term ($20k-100k+) or rescission + restitution | Contingency (33-40%) |
| PPA rescission / unconscionability | Refund of all payments ($10k-40k) + system removal | Contingency or flat fee ($5k-15k) |
| AB 1070 disclosure violations | Contract voidability, restitution of payments, damages | Contingency or hybrid |
| Unlicensed contractor (B&P § 7031) | Full refund of all payments (regardless of work quality) | Contingency (25-33%) due to strong legal position |
What to Expect in the Legal Process
Phase 1: Investigation & Demand (1-3 months): I gather evidence, retain experts if needed, and send a detailed demand letter. Many cases settle at this stage when contractors realize the strength of your claim and the cost of litigation.
Phase 2: CSLB Complaint (Parallel Track): I file a CSLB complaint, which may result in administrative mediation, arbitration, or license discipline. This puts additional pressure on the contractor.
Phase 3: Litigation (If Necessary, 6-18 months): If settlement fails, I file a civil complaint in superior court (or arbitration if required). Discovery includes depositions, document production, and expert reports. Most cases settle before trial, but I prepare every case for trial to maximize settlement leverage.
Phase 4: Trial or Arbitration: If settlement is not reached, I present your case to a judge, jury, or arbitrator, seeking full damages, rescission, and attorney’s fees.
Submit Your Case for Review
Don’t let a solar contractor’s broken promises, shoddy workmanship, or fraudulent sales tactics cost you tens of thousands of dollars. I have successfully recovered substantial settlements and verdicts for homeowners facing roof damage, underperformance, and PPA disputes.
Send me your solar contract, PPA/lease agreement, production data, and photos of any defects or damage. I’ll evaluate your case and discuss representation options, including contingency fee arrangements where I only get paid if you recover money.
Contingency fees available. No recovery, no fee. Attorney’s fees often recoverable from contractor under Civil Code § 1717 or CLRA, meaning the contractor pays your legal costs when you win.
- Fraud: 3 years from discovery of fraud
- Breach of contract: 4 years from breach (but may be tolled for continuing violations)
- Negligence (roof damage): 2-4 years depending on property damage vs. economic loss
- CLRA consumer protection: 3 years from discovery
Don’t wait until it’s too late. The longer you delay, the harder it becomes to gather evidence and prove damages. Contact me as soon as you discover defects, underperformance, or misrepresentation.