Defective solar installations cause roof leaks, electrical hazards, and system underperformance. When contractors breach their obligations or file improper liens, this playbook helps you document defects, assert warranty claims, and demand remediation or damages.
Incorrect panel orientation, shading not addressed, equipment mismatch
Production 20-40% below specifications, failed ROI
Permit/inspection failures
No permits pulled, failed inspections, unpermitted electrical work
Voided warranties, sale complications, forced removal
Breach of Contract Claims
System fails to meet specified wattage or production guarantees
Installation not completed by contractual deadline
Equipment differs from contract specifications
Warranties not honored as promised
Change orders or additional charges not authorized
Workmanship Defect Claims
Installation fails to meet industry standards (NABCEP guidelines)
Work violates National Electric Code (NEC) requirements
Damage to property during installation
Substandard materials used despite contract specifications
Failure to pass required building inspections
Safety First: If you suspect electrical defects, arc faults, or fire hazards, contact a licensed electrician immediately. Some solar installation defects create genuine safety risks that require immediate professional assessment.
Legal Framework for Installation Disputes
Contractor Licensing Requirements
State
Required License
Effect of Unlicensed Work
California
C-10 (Electrical) or C-46 (Solar)
Contract is voidable; contractor has no lien rights; criminal penalties
Arizona
CR-11 Electrical (Solar endorsement)
Civil penalties; no valid mechanics lien; contract voidable
Nevada
C-2G (Photovoltaic)
Void contract; consumer can recover all payments
Florida
EC (Electrical Contractor)
No mechanics lien rights; administrative penalties
Texas
Electrical contractor license (varies by city)
Local ordinance violations; contract enforceability issues
Mechanics Lien Issues
UCC Filings: Financed solar systems often involve UCC-1 financing statements that encumber your property. These are not mechanics liens but create similar complications.
Contractor Liens: If you withhold payment due to defects, the contractor may file a mechanics lien. In most states, substantial defects provide a defense to lien enforcement.
Lien Waivers: Demand unconditional lien waivers before making final payment. Conditional waivers become unconditional only when the check clears.
License Requirements: In California and other states, unlicensed contractors cannot file valid mechanics liens.
Warranty Claims
Manufacturer warranties: Solar panels typically have 25-year performance warranties and 10-12 year equipment warranties. Inverters usually have 10-25 year warranties.
Installer workmanship warranty: Most contracts include 1-10 year workmanship warranties covering installation defects.
Implied warranties: Even without express warranties, implied warranties of merchantability and fitness apply to construction work.
Warranty transfer: Manufacturer warranties typically transfer to new owners; installer warranties may or may not transfer.
CSLB Remedies (California): The Contractors State License Board can order restitution, suspend or revoke licenses, and recover from the Contractor's Bond. Filing a CSLB complaint is often more effective than small claims court for amounts up to $15,000.
Documentation Checklist
Contract Documents
Signed installation contract with all exhibits
System specifications: panel wattage, inverter model, kW rating
Production estimates and guarantees
Warranty terms (installer and manufacturer)
Change orders and payment schedule
Financing agreement if applicable
Permit and Inspection Records
Building permits (request from local building department)
Electrical permits and inspection results
Utility interconnection approval
Final inspection sign-off (or failure notices)
Any correction notices from inspectors
Defect Evidence
Photographs: Document visible defects, water stains, damaged roofing, exposed wiring, and equipment labels showing model numbers.
Video: Record water leaks during rain, system monitoring data, and inspector comments.
Independent inspection: Hire a licensed solar inspector or electrical engineer to document defects and code violations.
Production data: Download monitoring reports showing actual production versus contract specifications.
Repair estimates: Get written estimates from other contractors to fix the defects.
Communication Trail
All emails, texts, and letters with the installer
Service call requests and installer responses
Warranty claim submissions and denials
Any promises made to fix issues that were not fulfilled
Tip: Before allowing the installer back on your property for repairs, document the current condition thoroughly. Some contractors "fix" problems by covering them up or making cosmetic repairs that fail later.
Letter Strategy
Core Legal Claims
Breach of contract: System fails to meet specifications, production guarantees, or completion deadlines.
Breach of warranty: Installer refuses to honor workmanship warranty or assist with manufacturer claims.
Negligence: Installation failed to meet the standard of care for solar contractors, causing property damage.
Building code violations: Work fails to comply with NEC, local electrical codes, or building standards.
License law violations: Work performed by unlicensed personnel or company operating without proper license.
Specific Demands
Cure defects: Repair all defects at installer's expense within specified timeframe.
Property damage: Repair or compensate for roof damage, water intrusion damage, and any consequential losses.
Production shortfall: Compensate for difference between actual and guaranteed production, or upgrade system.
Permit compliance: Complete all required permits and pass final inspections.
Lien release: Release any improper liens or UCC filings if payment is disputed due to defects.
Lien Defense Strategy
If the contractor has filed a lien, your demand letter should assert that defects constitute a valid offset against the lien amount.
In California, unlicensed contractors have no lien rights. Verify license status at cslb.ca.gov.
Document that you provided timely notice of defects and opportunity to cure before withholding payment.
Consider recording a notice of completion or cessation to start lien deadline clocks.
Arbitration Clauses: Many solar contracts require arbitration. Review your contract carefully. Demand letters are still valuable for creating a record and may resolve matters without formal proceedings.
Sample Solar Installation Defect Demand Letter
[Date]
Via Certified Mail and Email
[Solar Installation Company Name]
[Address]
[City, State ZIP]
Re: Demand for Defect Remediation and Damages
Customer: [Your Name]
Contract Date: [Date]
Installation Address: [Address]
Contract Amount: $[Amount]
Dear Sir or Madam:
I represent [Customer Name] regarding the solar panel system you installed at the above property. This letter demands immediate remediation of installation defects and compensation for resulting damages.
FACTUAL BACKGROUND
On [Date], my client contracted with your company to install a [X] kW solar panel system consisting of [number] [Brand] panels with a [Brand] inverter. The contract price was $[Amount], with installation to be completed by [Date]. The contract included a [X]-year workmanship warranty and production guarantee of [X] kWh annually.
INSTALLATION DEFECTS
An independent inspection by [Licensed Inspector Name, License #] on [Date] identified the following defects:
1. ROOF PENETRATIONS: Multiple mounting points lack proper flashing and sealant. Water intrusion has occurred during rain events, causing water stains on interior ceiling drywall and potential mold conditions.
2. ELECTRICAL CODE VIOLATIONS: The DC wiring run exceeds NEC 690.31 requirements without proper conduit protection. Ground fault protection testing was not completed per NEC 690.5. The main service panel wiring fails to meet NEC 705.12 requirements for supply-side connections.
3. STRUCTURAL CONCERNS: [Number] mounting points are not attached to rafters and instead rely only on deck sheathing, violating manufacturer installation specifications and creating risk of panel separation.
4. PERMIT VIOLATIONS: Our review of building department records shows that electrical permit #[Number] was never finalized. The installation failed its [Date] inspection for [reason], and no follow-up inspection was scheduled.
5. UNDERPERFORMANCE: System monitoring shows actual production of [X] kWh over the past 12 months, [X]% below the guaranteed [X] kWh. The inverter error logs show [number] ground fault shutdowns.
DAMAGES
These defects have caused and continue to cause the following damages:
- Interior water damage requiring drywall repair: $[Amount] (estimate attached)
- Mold inspection and potential remediation: $[Amount] (estimate attached)
- Lost energy production value: $[Amount] (based on [X] kWh shortfall at $0.XX/kWh)
- Independent inspection fees: $[Amount]
- Risk of fire from electrical defects: incalculable but significant
LEGAL CLAIMS
Your company's failures constitute:
- Breach of the installation contract and express warranties
- Breach of the implied warranty of workmanship
- Violation of [State] contractor licensing laws (License #[Number] was not properly qualified for electrical work)
- Building and electrical code violations
- Negligence causing property damage
Under [State] law, willful contractor violations may result in license suspension, bond claims, and enhanced damages.
DEMANDS
Within fourteen (14) days of this letter, [Company Name] must:
1. Provide a detailed written remediation plan addressing all defects identified in the inspection report;
2. Schedule and complete repairs within thirty (30) days, to be verified by independent re-inspection at your expense;
3. Complete all required permits and pass final building department inspection;
4. Pay $[Amount] for interior water damage repairs and related expenses;
5. Compensate $[Amount] for production shortfall to date, and either upgrade the system or provide ongoing compensation for continued underperformance;
6. Extend the workmanship warranty to [X] years from completion of remediation.
If you fail to respond or refuse to remediate, my client will:
- File a complaint with the [State] Contractors State License Board seeking restitution and license discipline;
- Pursue a claim against your contractor's bond (Bond #[Number]);
- Initiate legal proceedings for breach of contract, negligence, and [State] Consumer Protection Act violations;
- Record a notice of defective construction against any lien claims you may file.
You are on notice that withholding payment for defective work is lawful. Any attempt to file a mechanics lien for disputed amounts will be vigorously contested.
Contact me at [email/phone] to arrange inspection access and discuss resolution.
Sincerely,
[Attorney Name]
[Firm Name]
[Address]
[Phone]
[Email]
Enclosures:
- Independent inspection report
- Photograph documentation of defects
- Production data showing shortfall
- Repair estimates
- Building department permit records
cc: [State] Contractors State License Board
[Contractor's Bonding Company]
If the installer is defunct, pursue claims against their contractor's bond (typically valid for 4 years after last renewal), file with the CSLB recovery fund if available, pursue manufacturer warranty claims directly, and check if the installer had liability insurance that might still cover claims.
Yes, you can generally withhold payment proportional to the cost of correcting defects, but you must provide written notice of the defects and opportunity to cure. Document everything. The contractor may still file a lien, but your defect claims provide a valid offset defense.
Attorney Services & Contact
Solar Installation Defect Representation
I represent homeowners dealing with defective solar installations, roof damage, electrical hazards, and contractor disputes. Cases with documented defects, independent inspections, and significant damages are strong candidates for successful recovery.
Email owner@terms.law or use Calendly for a paid strategy session.