When your New York solar installer misrepresented savings, performed faulty installation, worked without proper licenses, or defrauded you of NYSERDA incentives, use this playbook to recover damages under N.Y. Gen. Bus. Law Section 349, state licensing requirements, and consumer protection statutes.
Common New York Solar Panel Fraud Scenarios
Fraud Type
Typical Damages
Recovery Likelihood
Misrepresented energy savings/production
$5,000 - $25,000
High - clear GBL 349 violation
Unlicensed installation
$10,000 - $40,000
High - per se violation of law
Faulty installation causing damage
$8,000 - $50,000
High - negligence and breach of warranty
NYSERDA incentive fraud
$3,000 - $15,000
High - regulatory enforcement available
Predatory solar lease/PPA terms
$15,000 - $60,000+
Medium-High - depends on contract analysis
Failure to obtain required permits
$5,000 - $20,000
High - code violation supports claims
Why demand letters work for NY solar fraud
Unlicensed contracting is a per se deceptive practice under NY law.
GBL 349 provides statutory damages plus attorney fees.
NYSERDA can debar contractors and assist in remediation.
NY AG Consumer Frauds Bureau actively pursues solar scams.
Common solar contractor defenses
"Savings estimates were projections" - Written guarantees are binding.
"Weather affected production" - Production warranties must be honored.
"You signed the contract" - Misrepresentation invalidates consent.
"Our subcontractor was responsible" - General contractor is liable.
Check licensing immediately: If your solar installer was unlicensed, your entire contract may be void under NY law and you may be entitled to a full refund. Search the NY Department of State license database and verify electrical licenses with your local jurisdiction.
New York Legal Framework for Solar Fraud
N.Y. Gen. Bus. Law Section 349 - Deceptive Practices
Broad protection: Prohibits deceptive acts or practices in consumer transactions, including false promises about energy savings, system production, and incentive eligibility.
Private right of action: Consumers can sue directly without waiting for government enforcement.
Damages: Actual damages or $50 (whichever is greater), plus treble damages up to $1,000 for willful violations.
Attorney fees: Courts may award reasonable attorney fees to prevailing consumers.
Unlicensed work: Performing work without required licenses is a per se deceptive practice.
NYS Contractor Licensing Requirements
Home Improvement Contractor Registration: NY General Business Law Article 36-A requires home improvement contractors to register with the NY Department of State.
Electrical licenses: NYC requires Master Electrician or Special Electrician license for solar installations. Other jurisdictions have local licensing requirements.
Consequences of unlicensed work: Contracts with unlicensed contractors may be void or voidable under NY law.
Insurance requirements: Registered contractors must maintain liability insurance and workers' compensation coverage.
NYSERDA Solar Program Requirements
NY-Sun program: NYSERDA administers solar rebates and incentives through the NY-Sun Initiative.
Contractor certification: Only NYSERDA-approved contractors can process NY-Sun rebates.
Quality assurance: NYSERDA conducts inspections and can debar contractors for fraud or poor workmanship.
Complaint process: File complaints with NYSERDA for issues with NY-Sun installations.
Incentive clawback: Fraudulent installations may result in incentive forfeiture; report to protect your incentives.
Home Solicitation Sales Act (PPL Section 428)
Applies to solar contracts signed at your home.
Provides a 3-business-day right to cancel.
Contract must include notice of cancellation rights.
Failure to include notice extends cancellation rights indefinitely until cured.
Court
Jurisdiction Limit
Filing Fee
NYC Small Claims Court
$10,000
$15 - $20
Other NY Small Claims
$5,000
$10 - $20
NYC Civil Court
$25,000
$45 - $95
NY Supreme Court
Unlimited
$210+
Lien rights may apply: If the solar company filed a mechanics lien against your property based on a fraudulent contract, you may be able to have the lien discharged. Unlicensed contractors generally cannot enforce liens in New York.
Documentation Checklist
Contract Documents
Solar installation contract and all attachments.
Solar lease or PPA agreement (if applicable).
Written savings estimates and production guarantees.
Financing agreements and loan documents.
NYSERDA incentive applications and approvals.
Licensing Verification
NY Department of State contractor registration search.
Local electrical license verification (NYC DOB, etc.).
NYSERDA contractor approval status.
Insurance certificate provided by contractor.
Performance Records
Monthly electric bills before and after installation.
Solar monitoring system data showing actual production.
Promised vs. actual production comparison.
Net metering statements from your utility.
NYSERDA incentive payment records.
Installation Evidence
Photos of installation (before, during, and after).
Building permit applications and approvals (or lack thereof).
Roof damage or structural issues caused by installation.
Communications
Sales presentations and marketing materials.
Emails and texts with sales representatives.
Recorded phone calls (if legal in your jurisdiction).
Complaint correspondence with the company.
Notes from in-person conversations with dates.
Get an independent inspection: Hire a licensed electrician or solar professional to inspect your installation and document any defects, code violations, or safety hazards. This report will be crucial evidence for your demand letter and any litigation.
Demand Letter Strategy
Multi-Channel Approach
Send demand letter via certified mail to company headquarters and local office.
File complaint with NY Attorney General Consumer Frauds Bureau.
File complaint with NYSERDA if the contractor was NY-Sun approved.
File complaint with NY Department of State Division of Licensing.
Report to local building department for permit/code violations.
File with Better Business Bureau.
Key Letter Elements
Licensing status: State whether the contractor was properly licensed; if not, cite this as a per se violation.
Misrepresentations: Detail specific false promises about savings, production, or incentives.
Installation defects: Describe any faulty work, code violations, or damage caused.
NY law citations: Reference GBL Section 349, Article 36-A, and Home Solicitation Sales Act.
Calculate damages: Include cost of repairs, lost savings, lost incentives, and consequential damages.
Demand specific amount: State the exact amount demanded and deadline for payment.
Escalation Path
Day 1: Send demand letter; file NY AG complaint.
Day 7: File NYSERDA complaint; follow up by email.
Day 14: Contact financing company to dispute charges.
Day 21: File suit if unresolved.
If you have a solar lease or PPA: Be careful about stopping payments, as this may trigger default provisions. Instead, send a notice of breach and demand for cure while continuing payments under protest. Document that payments are made under reservation of rights.
Sample New York Solar Panel Fraud Demand Letter
[Date]
Via Certified Mail and Email
[Solar Company Name]
[Owner/CEO Name]
[Address]
[City, NY ZIP]
Re: Demand for Damages - Solar Installation Fraud
Property Address: [Your Address]
Contract Date: [Date]
Amount Due: $[Total Damages]
Dear [Owner/CEO Name]:
I am writing to demand payment of $[Amount] for damages arising from [Solar Company Name]'s fraudulent and defective solar panel installation at my New York residence.
BACKGROUND
On [Contract Date], I entered into a contract with [Solar Company Name] for installation of a [size] kW solar panel system at [Property Address]. Your sales representative, [Name], promised that the system would [describe promises: produce X kWh annually / reduce my electric bills by $X per month / qualify for $X in NYSERDA incentives]. Based on these representations, I paid $[Amount] for the installation.
FRAUDULENT MISREPRESENTATIONS
Your company made the following material misrepresentations that induced me to enter the contract:
1. [Production/Savings Fraud]: Your representative promised the system would produce [X] kWh annually and save me $[X] per month. Actual production has been only [X] kWh, resulting in savings of only $[X] per month - a shortfall of $[X] from what was promised.
2. [Incentive Fraud]: Your representative stated I would receive $[X] in NYSERDA NY-Sun rebates. [The rebate was never processed / your company was not a certified NYSERDA contractor / the installation does not qualify due to code violations].
3. [Licensing Fraud]: Your company [is not registered as a home improvement contractor with the NY Department of State / did not hold required electrical licenses / used unlicensed subcontractors for electrical work].
INSTALLATION DEFECTS
An independent inspection by [Licensed Professional Name/Company] documented the following defects and code violations:
- [List specific defects: improper wiring, roof penetration issues, structural concerns, etc.]
- [Building permits: never obtained / failed inspection]
- [Code violations: list specific violations]
NEW YORK LAW VIOLATIONS
Your conduct violates multiple New York laws:
1. N.Y. Gen. Bus. Law Section 349 (Deceptive Acts and Practices): Your misrepresentations about system performance, savings, and incentives constitute deceptive practices. Performing work without required licenses is a per se deceptive practice. This statute entitles me to actual damages plus treble damages up to $1,000 for willful violations, as well as attorney fees.
2. N.Y. Gen. Bus. Law Article 36-A (Home Improvement Contractor Registration): Your failure to maintain proper registration violates Article 36-A, rendering the contract voidable and precluding you from enforcing any lien rights.
3. Personal Property Law Section 428 (Home Solicitation Sales Act): The contract signed at my home [did not include the required notice of cancellation rights / I was not provided a copy of the contract at signing], extending my cancellation rights.
[If applicable:] 4. NYC Administrative Code (Electrical Code): Installation by unlicensed personnel violates the NYC Electrical Code and voids the work.
DAMAGES
I am entitled to the following damages:
- Cost of repair/reinstallation by licensed contractor: $[Amount]
- Lost energy savings (promised vs. actual, annualized): $[Amount]
- Lost NYSERDA incentives: $[Amount]
- Roof damage repair: $[Amount]
- Independent inspection costs: $[Amount]
- GBL 349 statutory damages (treble): $[Amount up to $1,000]
TOTAL DEMAND: $[Total]
DEMAND
I demand that you pay $[Total] within fourteen (14) days of this letter. Payment should be made by certified check mailed to [your address].
If I do not receive payment by [Deadline Date], I will:
1. File suit in [appropriate court] seeking all damages plus attorney fees under GBL 349;
2. File a formal complaint with the NY Attorney General Consumer Frauds Bureau;
3. File a complaint with NYSERDA seeking contractor debarment;
4. Report licensing violations to the NY Department of State and [local licensing authority];
5. Report code violations to [local building department]; and
6. Pursue all additional remedies available under New York law.
I have already filed complaints with [list agencies where complaints filed]. Your prompt response is in your interest.
Sincerely,
[Your Name]
[Your Address]
[Your Email]
[Your Phone]
Enclosures:
- Solar installation contract dated [Date]
- Payment receipts totaling $[Amount]
- Independent inspection report
- Utility bills showing actual vs. promised savings
- Sales materials with written promises
- NY DOS license search results
Solar leases and PPAs are governed by their specific terms, but fraud claims still apply. If you were misled about payments, escalator clauses, production guarantees, or buyout costs, you have claims under GBL 349. Send a notice of breach demanding cure of the misrepresentations. You may be able to rescind the agreement entirely if fraud is proven.
If you financed through a third-party lender, you may have claims against the lender under the FTC Holder Rule (if included in the contract) or state law. Send a copy of your demand letter to the financing company and dispute the debt based on the contractor's fraud. Some lenders will put collection on hold pending resolution.
Attorney Services & Contact
New York Solar Panel Fraud Resolution
I represent New York homeowners who have been defrauded by solar panel companies through misrepresentation of savings, faulty installation, unlicensed work, or NYSERDA incentive fraud.
Email owner@terms.law or use Calendly for a paid strategy session.