📋 What is Solar Fraud?

Solar fraud occurs when solar panel companies or contractors deceive homeowners through false promises, misrepresentations about energy savings, predatory financing, or substandard installations. California has experienced a surge in solar-related complaints, with thousands of homeowners victimized by deceptive sales practices, unlicensed installations, and PACE financing abuse.

Common Types of Solar Fraud

This guide applies if your solar contractor or company has engaged in any of the following:

❌ False Energy Savings Claims

Promising unrealistic energy bill reductions or production estimates that never materialize

🚫 Deceptive Sales Tactics

Door-to-door salespeople using high-pressure tactics, forged signatures, or misleading contract terms

💰 PACE Financing Abuse

Placing property tax liens without proper disclosure, inflating system costs, or targeting seniors

⚠ Defective Installation

Roof damage, fire hazards, code violations, or systems that fail to produce promised output

California's Strong Solar Consumer Protections

California provides robust protections for homeowners defrauded by solar companies:

📚 CSLB Solar Contractor Licensing (C-46 License)

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California requires a C-46 Solar Contractor license for installing, modifying, maintaining, or servicing thermal and photovoltaic solar energy systems. Key requirements:

  • C-46 License: Required for any solar installation project over $500
  • C-10 Electrical: Often needed for electrical interconnection work
  • Bond Requirement: $25,000 minimum contractor's bond
  • Workers' Comp: Required if company has employees

Unlicensed solar contractors face criminal penalties and cannot enforce contracts against homeowners.

💰 Home Improvement Contract Requirements (B&P Code 7150-7168)

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Solar installations are subject to California's stringent home improvement contract requirements:

  • B&P Code 7159: Written contract required with specific disclosures
  • 3-Day Cancellation: Right to cancel within 3 business days (CC 1689.5-1689.14)
  • Down Payment Limits: Cannot exceed $1,000 or 10% (whichever is less)
  • Progress Payments: Must match work completed
  • B&P Code 7160: Treble damages for willful contract violations

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

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The CLRA is a powerful consumer protection statute that applies to solar sales:

  • Prohibits 27 specific unfair or deceptive acts
  • Allows actual damages plus treble damages (up to $5,000)
  • Provides for attorney fees and costs to prevailing consumers
  • Requires 30-day notice before filing suit
  • Cannot be waived by contract

🔒 Unfair Competition Law (B&P Code 17200)

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California's UCL provides broad remedies against unfair business practices:

  • Covers any "unlawful, unfair, or fraudulent" business practice
  • Allows restitution of money or property
  • Provides for injunctive relief
  • 4-year statute of limitations
  • Can be brought as class action

🌱 PACE Financing Regulations (Civil Code 5898.20+)

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Property Assessed Clean Energy (PACE) financing is heavily regulated in California:

  • AB 1284: Requires ability-to-pay assessment before PACE loans
  • Oral Confirmation: Must confirm key terms in phone call recorded
  • 3-Day Right to Cancel: After receiving required disclosures
  • Senior Protections: Enhanced disclosures for homeowners 65+
  • DFPI Oversight: Department of Financial Protection and Innovation regulates PACE administrators

⚠ CPUC Regulated Solar Sales

The California Public Utilities Commission (CPUC) regulates solar marketing and sales practices. Solar companies must:

  • Provide accurate estimates of system production and savings
  • Disclose all financing terms before signing
  • Not misrepresent utility rates or rate structures
  • Comply with net metering (NEM) disclosure requirements

CPUC complaints can be filed at cpuc.ca.gov.

✅ Evidence Checklist

Gather these documents before sending your demand letter or filing claims. Click to check off items as you collect them.

📄 Contract Documents

  • ✓ Solar installation contract (all pages)
  • ✓ PACE financing agreement (if applicable)
  • ✓ PPA or lease agreement (if applicable)
  • ✓ Change orders and amendments

☀ Sales Materials

  • ✓ Written energy savings estimates
  • ✓ Sales presentation/proposal documents
  • ✓ Marketing brochures or flyers
  • ✓ System production projections

💰 Payment Records

  • ✓ All cancelled checks / bank statements
  • ✓ Credit card statements
  • ✓ PACE payment history (property tax bills)
  • ✓ Financing statements and interest paid

📈 Performance Data

  • ✓ Utility bills before installation
  • ✓ Utility bills after installation
  • ✓ System monitoring/production data
  • ✓ Independent production assessment

📷 Installation Evidence

  • ✓ Photos of installation/roof condition
  • ✓ Building permits and inspections
  • ✓ Utility interconnection approval
  • ✓ Code violation notices (if any)

📩 Communications

  • ✓ All text messages with salesperson
  • ✓ Email correspondence
  • ✓ PACE confirmation call recording
  • ✓ Written complaints to company

💡 Pro Tip: Get an Independent System Assessment

Hire an independent solar contractor to evaluate your system. They can document whether the system was properly installed, producing as promised, and meets code requirements. This expert opinion is valuable evidence for your claim.

📊 Calculate Your Damages

California law allows recovery of all damages caused by solar fraud. When CLRA treble damages or B&P 7160 penalties apply, your recovery can be significantly multiplied.

Damage Type Description
Full Contract Price If fraud induced the contract, you may be entitled to rescission and full refund of all amounts paid, including down payments and financing costs.
Overcharge Amount Difference between price paid and fair market value of the system actually installed. Often solar systems are grossly overpriced.
Lost Energy Savings If promised savings never materialized, calculate the difference between promised and actual utility bill reductions over the system life.
PACE Financing Costs Interest paid, assessment fees, and the burden of having a senior lien on your property. May include costs to refinance or payoff.
Roof Repair Costs Cost to repair roof damage, leaks, or structural issues caused by improper installation.
System Removal Costs If the system must be removed and roof restored, include all contractor estimates for removal and repair.
Code Violation Remediation Cost to bring the installation into code compliance, including permit fees and required modifications.

Treble Damages and Statutory Penalties

California provides enhanced damages for solar fraud victims:

💰 CLRA Treble Damages

Up to 3x actual damages (minimum $1,000) for willful CLRA violations, plus attorney fees

💰 B&P 7160 Treble Damages

3x damages for false representations inducing the contract

⚖ Elder Abuse Penalties

If victim is 65+, additional penalties under Welfare & Institutions Code 15610.30

🔒 UCL Restitution

Full restitution of all money paid, plus disgorgement of profits

📊 Sample Solar Fraud Damages Calculation

Example: Fraudulently Sold Solar System

Total system cost (including PACE financing) $45,000
Fair market value of system installed $22,000
Overcharge amount $23,000
PACE interest paid to date $4,800
Promised savings shortfall (5 years) $8,500
Roof repair from improper installation $6,200
ACTUAL DAMAGES SUBTOTAL $42,500
CLRA Treble damages (x3) $127,500
MAXIMUM POTENTIAL RECOVERY $127,500 + attorney fees

⚠ Document Promised vs. Actual Performance

Keep detailed records comparing what was promised to what was delivered:

  • Written estimates of energy production vs. actual monitoring data
  • Promised utility bill savings vs. actual bills
  • Sales presentation claims vs. system reality
  • Contract specifications vs. equipment actually installed

📝 Sample Demand Letter Language

Copy and customize these paragraphs for your solar fraud demand letter. Note: This letter also serves as the required 30-day CLRA notice.

Opening - CLRA Notice + Formal Demand
RE: FORMAL DEMAND FOR DAMAGES / 30-DAY CLRA NOTICE
CALIFORNIA CIVIL CODE SECTION 1782 DEMAND

Dear [SOLAR COMPANY NAME],

This letter constitutes formal notice under California Civil Code Section 1782 that you have violated the Consumer Legal Remedies Act (Civil Code 1750-1784), the Unfair Competition Law (Business & Professions Code 17200), and the Contractors State License Law through your deceptive marketing, sale, and installation of a solar energy system at my property located at [PROPERTY ADDRESS]. I hereby demand rescission of the contract and full restitution as set forth below.
Background - The Sale
On or about [DATE], your sales representative [SALESPERSON NAME] came to my home and made the following representations to induce me to purchase a solar system:

1. That the system would reduce my electricity bills by [PROMISED PERCENTAGE/AMOUNT] per month
2. That the system would produce [PROMISED kWh] annually
3. That my monthly payment of [$AMOUNT] would be less than my current utility bill
4. That [OTHER FALSE REPRESENTATIONS]

In reliance on these representations, I signed a contract on [DATE] for a total system cost of $[CONTRACT PRICE], financed through [FINANCING TYPE - PACE/loan/lease].
False Representations
The representations made by your company were materially false and designed to deceive me into purchasing an overpriced and underperforming solar system:

False Energy Savings: Your company promised my utility bills would decrease by $[AMOUNT] per month. In reality, my bills have [increased/stayed the same/only decreased by $X]. The system has produced only [ACTUAL kWh], which is [PERCENTAGE]% below the promised production.

Overpriced System: I have obtained independent estimates showing the fair market value of the system installed is approximately $[FAIR VALUE], while I was charged $[CONTRACT PRICE] - an overcharge of $[DIFFERENCE].

Improper Installation: [DESCRIBE ANY INSTALLATION ISSUES: roof damage, code violations, improper equipment, etc.]
Legal Violations
Your conduct violates multiple California laws:

1. Consumer Legal Remedies Act (Civil Code 1770):
- Misrepresenting the characteristics and benefits of the solar system
- Advertising goods with intent not to sell them as advertised
- Representing that goods have performance characteristics they do not have

2. Unfair Competition Law (B&P Code 17200):
- Engaging in unlawful, unfair, and fraudulent business practices
- Making false or misleading statements to induce consumer transactions

3. Contractors State License Law:
- B&P Code 7159: Contract failed to include required disclosures
- B&P Code 7160: False representations inducing the contract
[IF APPLICABLE: - B&P Code 7028: Work performed by unlicensed contractor]

4. PACE Financing Violations (if applicable):
- Failure to conduct proper ability-to-pay assessment
- Failure to provide required oral confirmation of terms
- Failure to honor right of rescission
Damages Calculation
As a direct result of your fraudulent conduct, I have suffered the following damages:

Primary Damages:
- Contract price paid/financed: $[AMOUNT]
- Less fair market value: ($[FMV])
- Overcharge amount: $[DIFFERENCE]

Additional Damages:
- Financing interest/PACE assessments paid: $[AMOUNT]
- Lost promised energy savings: $[AMOUNT]
- Roof/property repair costs: $[AMOUNT]
- [OTHER DAMAGES]: $[AMOUNT]

ACTUAL DAMAGES TOTAL: $[TOTAL]

Under the CLRA and B&P Code 7160, your willful violations entitle me to treble damages of $[TOTAL x 3], plus attorney fees and costs.
Demand and 30-Day CLRA Notice
DEMAND FOR RELIEF

Pursuant to Civil Code Section 1782, I demand that within thirty (30) days of the date of this letter, you provide the following relief:

1. Full Rescission: Rescind the solar contract and PACE financing agreement
2. Full Refund: Return all payments made, including $[TOTAL PAID]
3. PACE Payoff: Satisfy and release the PACE lien on my property
4. System Removal: Remove the solar system at your expense and restore my roof
5. Property Repairs: Pay $[AMOUNT] for roof/property damage repairs

ALTERNATIVELY, pay damages of $[DEMAND AMOUNT] in full settlement.

If you fail to provide appropriate relief within 30 days, I will file suit seeking actual damages, treble damages under the CLRA and B&P Code 7160, attorney fees, and all costs of suit. I will also file complaints with the CSLB, CPUC, and Attorney General.
Closing
Sincerely,

[YOUR NAME]
[YOUR ADDRESS]
[YOUR PHONE]
[YOUR EMAIL]

Enclosures:
- Copy of solar contract and financing agreement
- Sales proposal with energy savings estimates
- Utility bills (before and after installation)
- System production data/monitoring reports
- Photos of installation and any damage
- Independent contractor assessment
- Payment records

cc: Contractors State License Board
cc: California Public Utilities Commission
cc: California Attorney General
cc: [PACE ADMINISTRATOR - if applicable]

🚀 Next Steps

What to do after sending your demand letter.

Recommended Action Sequence

Step 1: Send CLRA Demand Letter

Send via certified mail with return receipt. This starts the 30-day clock for CLRA compliance.

Step 2: File Regulatory Complaints

File with CSLB, CPUC, and DFPI (for PACE). These create official records and may prompt settlement.

Step 3: Wait 30 Days

CLRA requires 30 days before filing suit. Use this time to prepare your case and consult an attorney.

Step 4: File Lawsuit if No Resolution

After 30 days, file in Small Claims (up to $10,000) or Superior Court for larger claims.

Where to File Complaints

  1. Contractors State License Board (CSLB)

    File online at cslb.ca.gov. Include all contract documents, photos, and communications. CSLB can order restitution and suspend licenses.

  2. California Public Utilities Commission (CPUC)

    File a complaint about deceptive solar marketing at cpuc.ca.gov. CPUC regulates solar sales practices and net metering.

  3. Department of Financial Protection and Innovation (DFPI)

    For PACE financing complaints, file with DFPI at dfpi.ca.gov. DFPI oversees PACE administrators.

  4. California Attorney General

    Report the company at oag.ca.gov/consumers. AG tracks patterns and may bring enforcement actions.

⚠ PACE Lien Warning

If you have PACE financing, the assessment is a lien on your property that is senior to your mortgage. This can affect:

  • Your ability to sell or refinance your home
  • Property foreclosure if assessments are not paid
  • Estate planning and property transfer

Consult with an attorney about options to remove or subordinate the PACE lien.

Need Professional Help?

Solar fraud cases can be complex, especially when PACE financing is involved. Get a 30-minute strategy call with a consumer protection attorney to evaluate your options.

Book Consultation - $125

California Resources