Solar Panel Problems? California Demand Letter for Solar Installation Disputes

Q: Can I cancel my solar contract?

Yes, in several situations. Under California law, if you signed at home during a door-to-door sale, you have a 3-day right to cancel (Civil Code 1689.5-1689.14). If the salesperson made material misrepresentations about savings, production, or financing terms, you may rescind under Civil Code 1689. For PACE financing, additional cancellation rights apply. Even after installation, you may be entitled to rescission if the company committed fraud, which means they remove the system at their cost and refund your payments.

Q: What are my options with a solar lease or PPA?

Solar leases and Power Purchase Agreements (PPAs) create unique challenges. Common issues include: hidden rate escalators (often 2.9% annually, which compounds significantly over 20-25 years), transfer problems when selling your home, and production guarantees not being met. Review your contract for the escalator clause, production guarantee, and transfer terms. If the salesperson misrepresented these terms, you may have fraud claims. For transfer issues, some companies demand $10,000+ or refuse approval of qualified buyers - document all communications and consider CLRA claims.

Q: How do I know if my solar system is underperforming?

Compare your system's actual production to: (1) The production estimate in your original contract/proposal, (2) Your monitoring system data (most systems have apps showing daily/monthly kWh), (3) Your utility bills before and after installation. Account for factors like seasonal variation and shading changes. A system consistently producing 15-20% less than promised likely indicates a problem. Request your production data from the company if you don't have monitoring access. Consider hiring an independent solar assessor to evaluate system performance if the company disputes your findings.

Q: Can I sue my solar company for misrepresentation?

Yes. Common misrepresentations include: overstated energy production, understated costs, hidden lease escalators, false claims about utility rate increases, misrepresentation of tax credits/rebates you'd receive, and false promises about home value increases. Under California's Consumer Legal Remedies Act (CLRA), you can recover actual damages plus up to $5,000 in statutory damages, plus attorney fees. Under Business & Professions Code 17200, you may also recover restitution. Document all sales materials, contracts, and communications showing what was promised versus reality.

Common Solar Scam Tactics in California

Lease vs. Purchase Confusion: Salespeople often blur the line between buying and leasing, leaving homeowners surprised they don't own their panels
Hidden Rate Escalators: 2.9% annual increases compound to 75%+ higher payments over 20-25 year lease terms
Transfer Nightmares: Can't sell your home because the solar company won't transfer the lease or demands $10,000+
Inflated Production Estimates: Promised 10,000 kWh/year but only getting 6,000? That's money out of your pocket
PACE Financing Liens: Property Assessed Clean Energy loans create priority liens that can block refinancing or sale

⚖ California Laws That Protect Solar Customers

Business & Professions Code 7170-7173 - Solar Energy System Contractors

Solar installers must hold a valid C-46 Solar Contractor license or appropriate C-10 (Electrical) or B (General) license. They must provide written contracts specifying system specifications, expected performance, and warranty terms. Violations enable recovery of all payments plus damages.

Civil Code 1689 - Contract Rescission

If a solar company obtained your contract through fraud, misrepresentation, or undue influence, you can rescind (cancel) the entire contract. This means they must remove the system at their cost and refund all payments you've made.

Civil Code 1750-1784 - Consumer Legal Remedies Act (CLRA)

The CLRA prohibits unfair and deceptive business practices. For solar disputes, this includes misrepresenting energy production, savings, financing terms, or system characteristics. Remedies include actual damages, up to $5,000 in statutory damages, and attorney fees.

Business & Professions Code 17200 - Unfair Competition Law

California's powerful UCL allows claims for any unlawful, unfair, or fraudulent business practice. Solar companies that make false promises, use deceptive contracts, or engage in bait-and-switch tactics violate this law. You can recover restitution of all money taken.

Public Utilities Code 2854 - Solar Disclosure Requirements

Solar companies must provide specific written disclosures about system size, estimated production, rate assumptions, and total costs over the contract term. Failure to provide required disclosures strengthens your claims.

Civil Code 1689.5-1689.14 - Home Solicitation Contracts

If you signed a solar contract at your home after a door-to-door sale, you have a 3-day right to cancel. The company must provide you with a cancellation form. Failure to do so extends your cancellation rights indefinitely until they comply.

⚠ Common Solar Installation Disputes

System Underperformance

Your solar panels aren't producing the kWh promised in your contract. You expected $200/month savings but your utility bills barely changed. Production estimates were wildly inflated to close the sale.

Roof Damage from Installation

Leaks appeared after installation. Improper mounting damaged your roof structure. The installer voided your roof warranty. Now you're facing $15,000+ in roof repairs on top of solar payments.

Misrepresentation of Savings/Terms

Salesperson promised elimination of your electric bill, but you still pay $100+/month. Hidden rate escalators mean your lease payment increases every year. Tax credit promises that didn't materialize.

Lease/PPA Problems

Can't sell your home because the solar company won't approve the transfer. Discovered you don't own the panels after being told you were "buying." Hidden escalator clause means payments doubled.

⚠

PACE Financing Warning

If you have PACE (Property Assessed Clean Energy) financing, the loan is attached to your property as a tax lien - it has priority over your mortgage. This can block refinancing or sale. PACE programs have faced numerous lawsuits for predatory practices. Check your documents carefully.

$ What You Can Recover

California law allows substantial damages for solar installation disputes:

Damage Type	Typical Amount
System Removal & Roof Repair Cost to remove panels and repair any damage	$10,000 - $30,000
Lost Savings Difference between promised and actual production x utility rate x years	$5,000 - $25,000+
Contract Rescission Full refund if fraud is proven - they remove system at their cost	Full Contract Amount
CLRA Statutory Damages On top of actual damages for willful violations	Up to $5,000
Roof Damage Repairs Leak repairs, structural repairs, re-roofing costs	$5,000 - $20,000+
Attorney Fees CLRA provides for fee recovery in successful cases	Recoverable

💡

Calculating Lost Savings

Example: Promised 12,000 kWh/year but only producing 8,000 kWh. At $0.30/kWh, that's $1,200/year in lost savings. Over a 20-year system life = $24,000 in damages, not counting utility rate increases.

📝 Demand Letter Template

Send this letter via certified mail with return receipt requested. Keep a copy for your records.

DEMAND FOR COMPENSATION - SOLAR INSTALLATION DISPUTE [Your Name] [Your Address] [City, CA ZIP] [Phone] [Email] [Date] VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED [Solar Company Name] [Company Address] [City, State ZIP] Re: Demand for Compensation - Solar Installation Dispute Property Address: [Your Property Address] Contract/Account Number: [Contract or Account Number] Installation Date: [Date System Was Installed] System Size: [System Size in kW, e.g., "6.5 kW"] Dear [Solar Company Name]: I am writing to demand compensation for damages arising from your company's [breach of contract / fraudulent misrepresentation / negligent installation / failure to perform as promised] regarding the solar energy system installed at my property. SYSTEM SPECIFICATIONS: System Size: [X.X kW] Number of Panels: [Number] Inverter: [Brand/Model] Contract Type: [Purchase / Lease / PPA] Contract Amount: $[Total Contract Value] Monthly Payment: $[Monthly Amount] PROMISED PERFORMANCE: According to your sales representative and written proposal dated [Date]: - Estimated Annual Production: [X,XXX] kWh - Estimated Monthly Savings: $[Amount] - Estimated First-Year Production Value: $[Amount] [Include any other specific promises made, such as "elimination of electric bill," "system will pay for itself in X years," specific tax credit amounts, etc.] ACTUAL PERFORMANCE / PROBLEMS: Since installation, I have experienced the following problems: [Select and customize the applicable issues:] UNDERPERFORMANCE: - Actual annual production: [X,XXX] kWh (only [XX]% of promised) - Actual monthly savings: $[Amount] vs. promised $[Amount] - Total production shortfall: [X,XXX] kWh over [X] years ROOF DAMAGE: - [Describe damage: leaks, structural issues, voided roof warranty, etc.] - Repair estimate: $[Amount] from [Contractor Name] MISREPRESENTATION: - [Describe what was misrepresented: savings, ownership vs. lease, escalator terms, transfer provisions, tax credits, etc.] LEASE/PPA ISSUES: - [Describe issues: undisclosed escalator clause, transfer problems, ownership confusion, etc.] LEGAL VIOLATIONS: Your company's conduct violates multiple California laws: 1. Consumer Legal Remedies Act (Civil Code 1750-1784): Your misrepresentations regarding [production estimates / savings / contract terms / ownership] constitute unfair and deceptive practices. 2. Business & Professions Code 17200: Your conduct constitutes unlawful, unfair, and fraudulent business practices. 3. Business & Professions Code 7170-7173: [If applicable: Your company failed to provide required disclosures / performed work without proper licensing / violated contractor requirements.] 4. Civil Code 1689: Your fraudulent inducement entitles me to rescission of the contract. [If door-to-door sale:] 5. Civil Code 1689.5-1689.14: Your company failed to provide the required 3-day right to cancel notice for this home solicitation contract. DAMAGES: Lost Savings (production shortfall): $[Amount] Roof Repair Costs: $[Amount] Overpayment Due to Misrepresentation: $[Amount] Cost of Independent System Assessment: $[Amount] [Other documented damages]: $[Amount] TOTAL DAMAGES: $[Total Amount] [ALTERNATIVE - For Rescission:] Alternatively, I demand full rescission of the contract pursuant to Civil Code 1689, requiring your company to: - Remove the solar system from my property at your expense - Repair any damage to my roof from installation and removal - Refund all payments made: $[Total Paid to Date] - Release any liens on my property DEMAND: I hereby demand that you [choose one or more:]: [ ] Pay $[Total Amount] in damages within thirty (30) days [ ] Rescind the contract, remove the system, and refund all payments [ ] Repair or replace the system to meet promised specifications [ ] Repair all roof damage at your expense [ ] [Other specific remedy requested] If I do not receive a satisfactory response within thirty (30) days, I will pursue all available legal remedies, including: - Filing a complaint with the Contractors State License Board - Filing a complaint with the California Attorney General - Commencing civil litigation seeking actual damages, CLRA statutory damages up to $5,000, restitution under Business & Professions Code 17200, attorney fees, and costs Please contact me at [Phone/Email] to discuss resolution. Sincerely, _______________________________ [Your Signature] [Your Printed Name] Enclosures: - Original contract and proposal - Production estimates provided at sale - Actual production data from monitoring system - Utility bills (before and after installation) - Roof inspection report (if applicable) - Repair estimates - All communications with company representatives - Financing documents (if applicable) cc: Contractors State License Board California Attorney General [Your attorney, if applicable]

🖩 Solar Installation Damages Calculator

Use this interactive calculator to estimate potential damages in your case. Enter your information below to get an estimate of recoverable damages.

Direct Financial Loss ($) Actual money lost or spent

Consequential Damages ($) Additional losses caused by the issue

Emotional Distress Level

Statutory Penalty Type

📈 Estimated Damages Breakdown

Direct Damages $0

Consequential Damages $0

Emotional Distress (Est.) $0

Statutory Penalties (Est.) $0

TOTAL ESTIMATED DAMAGES $0

Disclaimer: This calculator provides rough estimates for educational purposes only and does not constitute legal advice. Actual damages vary significantly based on specific facts, evidence strength, and many other factors. Consult with a qualified California attorney for an accurate case evaluation.

📋 Evidence to Gather Before Sending

1 Contract and All Disclosures - Your signed agreement, any addendums, and all disclosure documents provided at sale
2 Production Estimates Given - The proposal showing promised kWh production, savings projections, and any written claims made by sales rep
3 Actual Production Data - Screenshots or exports from your monitoring app/system showing actual kWh produced monthly/annually
4 Utility Bills Before and After - Compare your electric bills from before installation to after - show the actual savings (or lack thereof)
5 Roof Inspection Reports - If you have roof damage, get an independent roofer's assessment documenting the damage and cause
6 All Communications - Emails, texts, voicemails with sales reps and company. Note verbal promises in writing immediately after calls
7 Financing Documents - Loan agreements, PACE documents, lease terms including escalator clauses and transfer provisions
8 Photos and Video - Document any visible damage, system condition, and installation quality issues

✓

Get Production Data Now

Most solar systems have monitoring through apps like Enphase, SolarEdge, or the company's own portal. Download or screenshot your production data immediately - some companies have been known to disable monitoring access after disputes begin.

? Frequently Asked Questions

What if my solar panels aren't producing what was promised?

If your solar system produces significantly less than the written estimate provided at sale, you likely have claims for breach of contract and potentially fraud. Document your actual production data from your inverter or monitoring system, compare it to the promised kWh output, and calculate the financial difference. You may be entitled to the cost difference, system removal, or full contract rescission if the misrepresentation was intentional.

Can I cancel my solar contract?

Yes, in several situations. If you signed at home during a door-to-door sale, you have a 3-day right to cancel under California law. If the salesperson made material misrepresentations about savings, production, or financing terms, you may rescind the contract entirely. Even after installation, rescission may be available if the company committed fraud - meaning they remove the system at their cost and refund your payments.

Who is responsible for roof damage from solar installation?

The solar installation company is responsible for any roof damage caused during installation. This includes leaks from improper mounting, structural damage from inadequate engineering, and any voided roof warranties. Document the damage with photos, get a roofing contractor's assessment, and include roof repair costs in your demand. If the installer was unlicensed, you have additional remedies requiring them to return all payments.

What are my options with a solar lease or PPA?

Solar leases and PPAs create unique challenges including hidden rate escalators (often 2.9% annually), transfer problems when selling your home, and production guarantees not being met. If the salesperson misrepresented these terms, you may have fraud claims. For transfer issues where companies demand $10,000+ or refuse qualified buyers, document all communications and consider CLRA claims for deceptive practices.

How do I know if my solar system is underperforming?

Compare your system's actual production to the production estimate in your contract, your monitoring system data, and your utility bills before and after installation. Account for seasonal variation and any shading changes. A system consistently producing 15-20% less than promised likely indicates a problem. Consider hiring an independent solar assessor if the company disputes your findings.

Can I sue my solar company for misrepresentation?

Yes. Common misrepresentations include overstated energy production, understated costs, hidden lease escalators, false claims about utility rate increases, misrepresentation of tax credits, and false promises about home value increases. Under California's CLRA, you can recover actual damages plus up to $5,000 in statutory damages, plus attorney fees. Under B&P Code 17200, you may also recover restitution of all money paid.

Complex Solar Dispute? I Can Help.

For large claims, PACE financing issues, or uncooperative companies, I can assist with demand letters, negotiations, and litigation.

Contact: owner@terms.law

📅 Schedule a Consultation

For complex solar disputes, PACE financing liens, or claims over $25,000, book a call to discuss your options.

📝 Create Your Demand Letter

Generate a professional demand letter, CA court complaint, or arbitration demand