Arizona Solar Panel Fraud Demand Letters

Solar salespeople in Arizona often make aggressive promises about energy savings, tax credits, and system performance that never materialize. This playbook helps you document misrepresentations, leverage Arizona Registrar of Contractors (ROC) requirements under A.R.S. Section 32-1101 et seq., and demand rescission or damages.

Common Arizona Solar Fraud Schemes
Fraud Type How It Works Red Flags
Inflated savings projections Salesperson promises 80-100% utility bill elimination using unrealistic production estimates Projections not based on your specific roof, orientation, or Arizona sun exposure
Tax credit misrepresentation Claiming everyone gets 30% back without explaining tax liability requirements No discussion of whether you have sufficient federal tax liability
Bait-and-switch financing Advertising low rates, then switching to high-interest dealer fees at signing Final APR differs from quoted rate; hidden origination fees
Unlicensed installation Contractor lacks proper Arizona ROC license for solar work No license number on contract; unable to verify at roc.az.gov
Fake utility partnerships Claiming to work with APS, SRP, or TEP to offer special programs Utility has no record of partnership or program

Why Solar Fraud Is Common in Arizona

  • Arizona's abundant sunshine makes solar attractive to many homeowners
  • Commission-based salespeople incentivized to close at any cost
  • Complex technology that consumers struggle to evaluate
  • Long payback periods delay discovery of underperformance
  • Door-to-door sales create high-pressure situations

Demand Letter Objectives

  • Document the specific misrepresentations made during the sale
  • Demand contract rescission and removal of the system
  • Seek refund of payments plus damages for utility costs
  • Request removal of any liens filed on your Arizona property
  • Preserve claims for Consumer Fraud Act punitive damages
Time-Sensitive: Arizona has a three-day cooling-off period for door-to-door solar sales (A.R.S. Section 44-5001). Consumer Fraud Act claims have a one-year statute of limitations from discovery. Act quickly once you realize the salesperson's promises were false.
Documentation Checklist

Sales Materials

  • Original sales presentation, proposals, or brochures
  • Written savings estimates with production projections
  • Email and text communications with salesperson
  • Any recordings of sales calls (Arizona is one-party consent)
  • Business cards, door hangers, or marketing materials

Contract Documents

  • Signed purchase or lease agreement
  • Financing documents with APR and fee disclosures
  • Equipment specifications and warranties
  • Notice of cancellation rights (or lack thereof)
  • Arizona ROC license number verification
Performance Evidence
  • Utility bills: Gather 12+ months of APS, SRP, or TEP bills before installation and all bills after. Calculate actual savings versus promised savings.
  • Production data: Download reports from your inverter monitoring app (Enphase, SolarEdge, etc.) showing actual kWh produced.
  • Third-party analysis: Consider hiring an independent solar engineer to evaluate whether the system is performing to specifications.
  • Arizona solar irradiance data: Obtain local weather data to show whether underperformance is due to equipment issues versus weather.
Arizona ROC License Verification
  • Search the contractor's license at roc.az.gov for status, bond information, and complaints.
  • Verify the license was active on the date of contract signing.
  • Check for any disciplinary actions or prior consumer complaints.
  • Document if the company that sold you the system differs from the company that installed it.
Tip: Request your complete customer file from the solar company. Under Arizona law, this may reveal internal communications about your account, sales scripts, or performance projections they never shared with you.
Letter Strategy
Core Arguments for Arizona Claims
  • Fraudulent inducement: The salesperson made specific false statements about savings, tax credits, or system performance that induced you to sign the contract.
  • Consumer Fraud Act violations: A.R.S. Section 44-1522 prohibits deceptive practices in connection with merchandise or services.
  • ROC licensing violations: If the contractor was unlicensed, the contract may be voidable under A.R.S. Section 32-1151.
  • Breach of contract: The system fails to meet the specifications and performance guarantees in the contract.
  • Door-to-door sales violations: Failure to provide proper cancellation notices under A.R.S. Section 44-5001.
Specific Demands
  1. Rescission: Cancel the contract, remove the system at company expense, refund all payments made.
  2. Lien release: Record a release of any UCC filings or mechanics liens on your Arizona property.
  3. Damages: Compensate for excess utility bills, time dealing with the dispute, and any property damage from installation.
  4. Credit repair: If any negative reports were made to credit bureaus, correct them and provide documentation.
Leverage Points
  • Mention intent to file complaints with the Arizona Registrar of Contractors and Attorney General.
  • Reference the company's volume of similar complaints on BBB or ROC databases.
  • Note that Consumer Fraud Act claims allow punitive damages for willful violations.
  • Cite A.R.S. Section 12-341.01 providing attorney fee recovery in contract disputes.
Arbitration Clauses: Many solar contracts contain mandatory arbitration provisions. Your demand letter should still be sent, but be aware that litigation may need to proceed in arbitration rather than Arizona court.
Sample Arizona Solar Fraud Demand Letter
[Date] Via Certified Mail and Email [Solar Company Name] [Address] [City, Arizona ZIP] Re: Demand for Rescission - Fraudulent Misrepresentation Customer: [Your Name] Contract Date: [Date] System Address: [Installation Address, Arizona] ROC License: [License Number or "Unverified"] Dear Sir or Madam: I represent [Customer Name], an Arizona homeowner, regarding the solar panel system your company sold and installed at the above address. This letter demands rescission of the contract based on material misrepresentations made during the sale. FACTUAL BACKGROUND On [Date], your salesperson [Name] visited my client's Arizona home and made the following representations: 1. The proposed [X] kW system would eliminate 90% of my client's electricity bill, reducing monthly costs from approximately $[Amount] to under $[Amount]. 2. My client would receive a 30% federal tax credit of approximately $[Amount], which would "come back as a refund." 3. The system would produce approximately [X] kWh annually based on "guaranteed production estimates." Relying on these representations, my client signed a purchase agreement for $[Amount], financed through [Lender] at [X]% APR. THE MISREPRESENTATIONS WERE FALSE After 12 months of operation, the facts demonstrate your salesperson's statements were materially false: 1. SAVINGS: My client's average monthly electricity bill ([APS/SRP/TEP]) has decreased only from $[Amount] to $[Amount], a [X]% reduction, not the promised 90%. Actual annual savings are approximately $[Amount], not the $[Amount] promised. 2. TAX CREDIT: Your salesperson failed to explain that the Investment Tax Credit reduces tax liability, not refund amounts. My client's federal tax liability is only $[Amount] annually, making the full credit impossible to claim in one year. 3. PRODUCTION: According to the monitoring system, the panels produced only [X] kWh in the first year, [X]% below the "guaranteed" estimate. Arizona solar irradiance data confirms this was not due to unusual weather. ARIZONA LAW VIOLATIONS These misrepresentations violate: 1. Arizona Consumer Fraud Act, A.R.S. Section 44-1522, prohibiting deception, fraud, and misrepresentation in connection with the sale of services. 2. Arizona Registrar of Contractors requirements, A.R.S. Section 32-1101 et seq., regarding truthful advertising and proper licensing. 3. Arizona Door-to-Door Sales Act, A.R.S. Section 44-5001, requiring proper cancellation notices. 4. FTC regulations requiring substantiation of savings claims. Under Arizona law, consumers are entitled to actual damages, punitive damages for willful violations (A.R.S. Section 44-1528), and reasonable attorney fees (A.R.S. Sections 44-1528 and 12-341.01). DEMANDS Within fourteen (14) days of this letter, [Solar Company] must: 1. Agree to rescind the contract and remove the solar panel system at your expense; 2. Refund all payments made by my client, totaling $[Amount]; 3. Pay the balance owed to [Lender] and release my client from the financing agreement; 4. Record a release of any UCC financing statements or liens on my client's Arizona property; 5. Compensate my client $[Amount] for excess utility costs incurred due to system underperformance. If you fail to respond or refuse to resolve this matter, my client will file complaints with the Arizona Registrar of Contractors and Arizona Attorney General Consumer Protection Division. We will also pursue all available legal remedies, including punitive damages and attorney fees under Arizona law. Contact me at [email/phone] to discuss resolution. Sincerely, [Attorney Name] [Firm Name] [Address] [Phone] [Email] cc: Arizona Registrar of Contractors Arizona Attorney General - Consumer Protection Division
If the installer is defunct, you may have claims against the contractor's bond through the Arizona ROC, the financing company if it was integrated with the sales process, or the equipment manufacturer for warranty claims. Arizona's ROC may have a recovery fund for consumers harmed by licensed contractor misconduct.
Be cautious about stopping payments, as this can damage your credit and trigger collection actions. If you financed through a third party, they may not be liable for the installer's fraud. Consult an Arizona attorney about escrow arrangements or formal dispute procedures before withholding payment.
Attorney Services & Contact

Arizona Solar Fraud Representation

I represent Arizona homeowners who were deceived by solar salespeople into purchasing underperforming or overpriced systems. Cases involving clear misrepresentation and documented underperformance are strong candidates for rescission or damages under Arizona law.

Email owner@terms.law or use Calendly for a paid strategy session.

Schedule strategy call

Services

  • Demand letters documenting misrepresentation with production data analysis
  • Contract rescission negotiations with solar companies and financers
  • Arizona Consumer Fraud Act litigation for punitive damages
  • Arizona Registrar of Contractors complaints
  • Arbitration representation where required by contract

Engagement Notes

  • 📄 Demand letter: Flat fee $450
  • Extended negotiation: $240/hr
  • 📊 Contingency: 33-40% for strong claims