NM Solar: A Guide to Warranty Issues and Legal Options

Has a business you trusted has performed a magic trick, taking your money and then vanishing into thin air?  What if that disappearing act involves the solar panel system on your roof and the long-term warranty? If you are a customer of NM Solar, you’re not just watching the show… you’re living the consequences. You were likely sold on a vision of energy savings and reliable local support. Homeowners face a harsh reality: systems don’t work, leaking roofs, and the company that took their money, gone.

When you’re stuck with a broken system and the company responsible has vanished, it’s easy to feel powerless and alone. This article is designed to provide a clear, honest assessment of the situation with NM Solar. Lets walk through the company’s history of customer complaints, the critical difference between equipment and workmanship warranties, and the powerful legal protections for homeowners. You are not out of options, and you do not have to navigate this alone.

About NM Solar: A History of Unfulfilled Promises

New Mexico Solar Group (sometimes referenced as NM Solar Group), operated as a solar panel sales and installation company based in Albuquerque, New Mexico. The company marketed itself as a local solution for homeowners transitioning for solar energy, promising professional installation and significant long-term savings.

Their business model involved direct-to-consumer sales, often through door-to-door representatives or local marketing efforts. They offered comprehensive services, from initial consultation and system design to permitting and final installation. However, as the company grew, a pattern of serious issues began to emerge. This left a trail of dissatisfied customers in their wake.

A Pattern of Problems: What Customer Reviews Reveal

Complaints and local reporting describe customer reviews on the Better Business Bureau (BBB) and Google, painted a troubling picture of NM Solar’s business practices. A consistent pattern of complaints suggests systemic issues with project management, quality control, and post-installation support.

Many homeowners reported a stark contrast between the smooth, reassuring sales process and the chaotic reality of the installation. Common themes in customer complaints include:

• Excessive Delays and Poor Communication: Customers frequently described a frustrating lack of communication after signing their contracts. Clients reported projects dragging on for many months, often with no clear timeline or updates from the company. Homeowners left in the dark. They felt unsure of when their panels would be installed or when their system would finally be turned on.
• Substandard Workmanship and Property Damage: Numerous reviews detail significant problems with the quality of the installation itself. These include improperly installed panels, faulty wiring, and, most alarmingly, roof damage leading to leaks. Customers reported having to pay out of pocket for roof repairs caused by the solar installation. This was a cost they felt assured would never exist.
• Non-Functional or Underperforming Systems: Many homeowners complained that their systems were never properly turned on. A process called “Permission to Operate” or PTO dramatically underperformed compared to the savings promised by the sales team. This left them paying both a hefty solar loan and their original high utility bill.
• Unresponsive Customer Service: When problems arose, customers reported that their calls and emails to NM Solar went unanswered. The company became notorious for its failure to address post-installation issues, leaving homeowners with broken systems and no support.

This pattern of neglect and poor service culminated in the company’s eventual failure, creating problems for homeowners.

What Went Wrong with NM Solar?

The widespread issues reported by customers point to a business that was unwilling/unable to fulfill its contractual obligations. The core problem involved the significant gap between the sales team’s promises and what they actually delivered.

Sales representatives likely emphasized the quality of the equipment and the comprehensive warranty, giving customers a sense of security. In practice, NM Solar often sent inexperienced crews, failed to supervise installations, and abandoned customer support once customers made their final payment. The company prioritized closing sales over building the systems, processes, and staffing needed to provide reliable long-term service and support.

Is NM Solar Still in Business?

No. According to the Better Business Bureau, NM Solar is out of business. The company’s BBB profile is marked with an alert stating it is no longer in operation, listing an alert indicating the company is not rated. This is the most critical fact for homeowners to understand. Because the company has ceased operations, it cannot honor any workmanship warranty it provided. There is no one to call for repairs, no one to address roof leaks, and no one to hold accountable directly for the installation. Problems you may be experiencing as a customer.

Your Warranty: Understanding What You Actually Have

When a solar installer goes out of business, many homeowners assume their entire warranty is void. However, your solar system is protected by two separate and distinct warranties. It is crucial to understand the difference.

Manufacturer’s Warranty (often still available)

This warranty covers the physical hardware of your system—the solar panels and the inverters. This coverage is provided directly by the equipment manufacturers (e.g., Enphase, SolarEdge, Qcells), not by NM Solar. These warranties are long-term, often lasting 25 years for panels and 10-25 years for inverters.

If a specific component of your system fails due to a manufacturing defect, this warranty is still active. You can file a claim directly with the manufacturer to receive a replacement part.

Workmanship Warranty (effectively unenforceable)

This is the warranty that covers the labor and quality of the installation. It protects you from issues like improper wiring, faulty mounting, and roof leaks caused by the installation crew. NM Solar was responsible for this warranty, which likely had a term of 5 or 10 years.

Because NM Solar is out of business, this workmanship warranty is now worthless. The entity no longer exists to honor it. This means if you have a roof leak or another problem directly related to the installation, you cannot rely on the warranty for a solution.

Your Strongest Protection: The FTC Holder Rule

Just because NM Solar is gone does not mean you are left without a powerful legal recourse. If you financed your solar system, you remain protected by a federal law called the FTC Holder Rule.

This rule protects consumers in exactly this situation. In simple terms, the Holder Rule states that the company that holds your loan (the lender or finance company) is legally responsible for the same claims you could have brought against the seller. The law effectively makes the lender a party to the original transaction. They cannot simply claim to be an uninvolved third party that only handles the money.

If you were sold the system based on misleading promises about its performance or the comprehensive nature of the warranty, that constitutes a breach of your sales agreement. The Holder Rule allows you to assert these claims directly against your finance company.

Depending on the facts and your contract, you may be able to assert the seller’s misconduct as claims/defenses against the holder of the consumer credit contract, potentially reducing what you owe and/or pursuing monetary recovery. This is often limited to amounts you’ve paid under the contract (with some nuances for fees/costs depending on state law).

This means you may be able to:

• Bring a legal claim against the lender for the seller’s misconduct and failure to provide a functional system.
• Negotiate a settlement to cover the cost of repairs needed to fix your system.
• In some cases, seek to have your entire loan cancelled and be refunded for the payments you have already made.

The FTC Holder Rule is your financial lifeline, ensuring that you are not forced to continue paying a massive loan for a product that was not what was promised.

Legal Actions You Can Take Now

If you are a former customer of NM Solar with a faulty or non-operational system, you can take control of the situation. Here are the practical steps you should follow.

1. Gather All Your Documents: Locate every piece of paperwork related to your solar panel purchase. This includes your sales agreement, the installation contract, financing and loan agreements, any email correspondence you have with the company.
2. Document All Problems: Create a detailed record of every issue you have experienced. Take clear photos and videos of any physical damage, roof leaks, or error messages on your system. Keep a log of system performance data that shows it is underproducing. Get written estimates from reputable solar repair companies for the cost of fixing the problems.
3. File Formal Complaints: It is important to create an official record of the problems. File formal complaints against NM Solar with the Better Business Bureau and the New Mexico Attorney General’s Office.
4. Consult with an Experienced Consumer Protection Attorney: The most effective way to leverage the FTC Holder Rule and protect your rights is with professional legal guidance. An attorney can review your contracts, assess the strength of your claim, and formally engage your lender to demand a fair resolution.

Conclusion

The collapse of NM Solar has left many New Mexico homeowners facing serious financial and property-related challenges. What was marketed as a long-term investment in energy savings has, for some, resulted in unfinished installations, roof damage, and ongoing loan payments tied to systems that never delivered what was promised.

While NM Solar is no longer operating and cannot honor its workmanship obligations, that does not end a homeowner’s legal rights. Understanding the distinction between manufacturer warranties and installer warranties is the first step. For those who financed their systems, federal consumer-protection laws, particularly the FTC Holder Rule, may provide a meaningful path forward by allowing claims related to the seller’s misconduct to be raised against the holder of the loan.

Every situation is fact-specific. Outcomes depend on contract language, system status, lender behavior, and the documentation available. Homeowners should proceed carefully and seek qualified legal guidance before taking action that could impact their credit or financial standing.

The failure of NM Solar does not mean homeowners must continue paying for systems that were never properly delivered or supported. With the right documentation and legal strategy, it may be possible to pursue accountability through appropriate legal channels and work toward a fair resolution.

Frequently Asked Questions (FAQs)

Can I just stop making payments on my solar loan?
While it is understandable to want to stop paying for a system that doesn’t work, you should not stop making payments without first consulting an attorney. Unilaterally stopping payments can lead to default, which can negatively impact your credit score and lead to collections actions. An attorney can advise you on the proper legal strategy for challenging the loan.

Who can I hire to fix my solar panels?
You will need to find a reputable, licensed solar repair and maintenance company in your area. It is wise to get quotes from multiple companies for any necessary repairs. These written estimates will be crucial evidence in your claim against the finance company.

How do I make a warranty claim for my broken equipment?
You will need to identify the manufacturer of your panels and inverters, which should be listed in your system documents. You can then contact the manufacturer’s customer service line directly to initiate a warranty claim for a faulty part. They will guide you through their specific process.

I was promised a 25-year warranty. Does that mean anything now?
The 25-year warranty was likely a combination of the manufacturer’s warranty on the panels and a workmanship warranty from NM Solar. The promise of a single, all-encompassing 25-year warranty covering labor from the installer was a common misleading sales tactic. While the manufacturer’s warranty is still good, the promise of a 25-year workmanship warranty from NM Solar is now void. However, this misrepresentation is a key element of your potential legal claim against your lender.

References

• NM Solar Group | Better Business Bureau® Profile. bbb.org
• New Mexico Attorney General, Consumer Protection Division. nmdoj.gov
• Holder Rule | Wex | US Law | LII / Legal Information Institute. law.cornell.edu