This content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
The installer that sold you the system is gone. The phone number is disconnected… But the lender’s payment reminder still arrives on time every month.
That split is the most common situation we see. Two companies were involved in one sale, yet only one of them is still answering the phone.
Yes, in many cases homeowners can pursue claims involving both the solar company and the solar lender, but not automatically. Whether you can sue your solar company and lender together depends on your contracts, how the installer and lender worked together, and the evidence. The Consumer Financial Protection Bureau (CFPB) found that hidden financing fees can push solar loan principal 30% or more above the cash price.
Below, we explain when both parties may matter, how arbitration changes the process, why the dealer-lender relationship is often the key, and what attorneys look for in your paperwork.
Why do many solar disputes involve two companies?
Most financed solar systems involve at least two separate companies: the installer who sold and built the system, and the lender who funded it. The CFPB’s August 2024 Issue Spotlight on solar financing describes this model directly. Solar-specific loans are usually offered at the point of sale, through a partnership between the installer and the lender.
That means the salesperson at your kitchen table was often presenting the lender’s product, using the lender’s software, under the lender’s program rules.
You signed two documents, but it may have felt like one transaction.
The problem shows up later. The installer handles installation, workmanship, and production promises. The lender handles the money. When something goes wrong, each company may point at the other.
Our guide to loan holders vs. loan servicers explains why the company collecting your payment may not even be the company that owns your loan. Identifying every party is the first step in any multi-party solar claim.
When might both the installer and the lender be responsible?
Both parties may matter when the installer’s conduct and the lender’s financing are tied together in the same harm. That usually happens in a handful of recurring patterns. Each one depends on the facts and your documents.
| Situation | Why the installer matters | Why the lender may matter |
|---|---|---|
| Installer went out of business, loan still active | Workmanship, warranty, and sales promises | Loan holder may face claims or defenses tied to the seller’s conduct |
| Loan funded for an unfinished or never-installed system | Failed to complete the work | Released funds before the system was built or working |
| Salesperson misstated loan terms or tax credit | Made the representations | Its loan product and terms were what was being sold |
| Hidden dealer fee inflated the price | Marked up the system price | Charged the fee to the installer as a condition of financing |
| Signature or consent problems on loan documents | Controlled the e-sign process | Accepted and funded the documents |
Some homeowners report loans funded for systems that were never finished. We cover that pattern in fraudulent solar loans for uninstalled systems.
How does the FTC Holder Rule connect your installer to your lender?
The FTC Holder Rule is the main federal rule that can let homeowners raise an installer’s misconduct against the company holding their loan. The Holder Rule (16 C.F.R. Part 433) requires certain consumer credit contracts to include a notice preserving the buyer’s claims and defenses against the seller.
Here’s the part many homeowners miss. The rule reaches loans where the lender is affiliated with the seller “by common control, contract, or business arrangement,” or where the seller refers buyers to that lender. In other words, the dealer-lender relationship is often what brings the Holder Rule into play.
Limits matter, too. Affirmative recovery under the notice is generally capped at the amounts you paid under the contract. However, in a January 2022 advisory opinion, the FTC said that cap doesn’t limit attorneys’ fees when separate state or federal law authorizes them against a holder.
Read our full guide to the Holder Rule for solar homeowners.
What is a dealer-lender relationship in solar financing?
A dealer-lender relationship is the business arrangement that lets an installer offer a specific lender’s loans to its customers. The installer signs up as an approved “dealer.” The lender sets program rules, pricing, and often a dealer fee, which is a charge the lender collects from the installer for offering certain loan terms.
The Minnesota Attorney General’s 2024 lawsuit against GoodLeap, Sunlight Financial, Solar Mosaic, and Dividend Solar Finance alleged $35 million in hidden fees on nearly 5,000 Minnesota solar loans. Those are allegations, not findings, but they show how regulators view the lender’s role in the sale.
The relationship can matter in other ways too. Lenders may train dealers, approve their sales scripts, and decide when to release funds. Some lenders pay installers in stages tied to installation milestones.
That funding record can show what the lender knew and when.
Learn more in how dealer fees work in solar panel financing.
Have regulators pursued installers and lenders together?
Yes. State attorneys general have named solar installers and their lending partners in the same enforcement actions. These cases don’t decide your individual claim, but they show the multi-party theory isn’t new.
- Tennessee and Kentucky (2023): The Tennessee Attorney General’s lawsuit named Knoxville installer Solar Titan USA, its owners, and related lender Solar Mosaic. A federal court placed Solar Titan under a receiver.
- Minnesota (2022 and 2024): Minnesota sued Utah-based solar sellers and the lenders they partnered with, then separately sued four major solar lenders over dealer fees.
- Texas (2026): In April 2026, the Texas Attorney General issued civil investigative demands to Freedom Forever, Sunrun, Lone Star Solar Services, and CAM Solar under the Deceptive Trade Practices-Consumer Protection Act (DTPA).
Government actions often don’t put money back in an individual homeowner’s pocket.
See how the attorney general might impact your solar case.
Can a solar lender be liable for its own conduct, not just the installer’s?
Sometimes. Depending on the facts, a lender may face claims based on its own actions, separate from anything the Holder Rule passes through. This is a different question from “can I raise the installer’s misconduct against the lender.”
Potential lender-side issues an attorney may look at include:
- Loan disclosures: whether the Truth in Lending Act (TILA) disclosure, the federal form showing your APR and finance charge, accurately reflected the deal
- Funding decisions: releasing money for work that wasn’t done
- Signature and consent: approving loan documents signed in a rushed or improper e-sign process
- Credit reporting: how the lender reported a disputed account
- State consumer law: claims under statutes like the Texas DTPA, which we explain in our deceptive trade practices guide
Whether any of these apply depends on your documents and state law. A lender being involved doesn’t automatically make it liable.
In one recent Texas arbitration we handled, the lender’s own disclosures decided the case. Our client signed a retail installment contract that carried EverBright’s branding and showed a 2.99% interest rate. The arbitrator found that the dealer fee was left out of the finance charge, so the contract didn’t accurately disclose the true cost of borrowing.
The arbitrator also found that both the installer and EverBright violated the Texas DTPA by presenting $63,873 as the cash price without disclosing the added finance charge. The award resulted in our client’s loan being cancelled.
Timing mattered, too. The arbitrator noted that the federal TILA claim fell outside its one-year filing window, so the state-law claim carried the case. This is one real life example. This doesn’t mean every arbitration will have the same result. Every result depends on the contract, the facts, and state law.
How does arbitration work when two companies are involved?
Arbitration often decides where and how a multi-party solar dispute proceeds, and many homeowners face two separate arbitration clauses. Your installation contract may require one forum, such as the American Arbitration Association (AAA). Your loan agreement may require another, such as JAMS.
That creates real procedural questions:
- Separate or together? Claims may proceed in parallel unless the agreements or parties allow them to be combined.
- Non-signatories: In Arthur Andersen LLP v. Carlisle (2009), the U.S. Supreme Court held that state contract law decides whether a party who didn’t sign an arbitration agreement can enforce it. A lender may try to use the installer’s clause, or the reverse.
- Class action waivers: Most solar agreements require individual proceedings. See why a Mosaic class action may not work for you.
Learn more about why arbitration plays a role in solar lawsuits and what JAMS arbitration means for your case.
What happens if the installer filed for bankruptcy?
An installer’s bankruptcy usually pauses claims against that installer, but it generally doesn’t cancel your loan or automatically stop claims involving a separate lender. The automatic stay, a court order that takes effect when a bankruptcy is filed, halts most collection and litigation against the bankrupt company.
That’s exactly why the lender relationship becomes so important. When the installer can’t pay a judgment, the loan holder may be the only solvent party left connected to the sale.
Freedom Forever shows how this plays out. It filed Chapter 11 in April 2026, and pv magazine USA reported the case converted to Chapter 7 liquidation on August 7, 2026. The court also let former financing partners resume work on stranded installations.
If your installer filed bankruptcy, watch for proof-of-claim deadlines. Read what happens to your loan when a solar company goes out of business.
Does it matter whether you have a loan, lease, or PPA?
Yes. The type of agreement changes who you may have claims against and which rules apply. With a loan, you generally own the system and owe a lender. With a lease or power purchase agreement (PPA), a company owns the system and you pay to use it or buy its power.
| Agreement | Who owns the system | Key parties in a dispute |
|---|---|---|
| Solar loan | You, generally | Installer, lender, loan holder, servicer |
| Solar lease | Leasing company | Installer, lessor, any new owner of the lease |
| PPA | Provider | Installer, PPA provider, any successor |
The Holder Rule is written for consumer credit, so it may not apply the same way to a lease or PPA. Other claims may still exist. Lease and PPA portfolios also get sold, as happened with Sunnova and PosiGen customers.
Compare your options in what a solar PPA is and how solar lease cases differ.
What evidence do attorneys evaluate in an installer-and-lender case?
Attorneys look for documents that show what each company promised, what each company did, and how the two companies worked together. The table below shows what we typically ask homeowners to gather and why each item matters.
| Evidence | What it can show |
|---|---|
| Sales contract and proposal | Price, promised savings, production estimates |
| Loan agreement and TILA disclosure | Amount financed, finance charge, Holder notice |
| E-signature audit trail | When, where, and by what device documents were signed |
| Texts, emails, and recordings of the pitch | What the salesperson actually said |
| Lender “welcome call” recording | What the lender confirmed with you, and what it didn’t |
| Monitoring data and utility bills | Real production against promised production |
| Permits and interconnection records | Whether the system was completed and approved |
| Photos of damage or unfinished work | Workmanship problems, roof leaks |
| Payment history and statements | What you’ve paid, which can matter under the Holder Rule |
| Bankruptcy or transfer notices | Who holds the loan now |
Don’t throw anything away, even if it seems minor. See how to document roof damage after a solar installation and which documents to prepare for arbitration.
Should you keep paying your solar loan during a dispute?
Whether to keep paying is an individual decision with real consequences either way, so it’s worth getting advice before you change anything. Stopping payments may lead to negative credit reporting, collection activity, or acceleration, which means the lender demands the full balance at once.
Continuing to pay may avoid some of those consequences while a claim is pending. Payments made can also matter under the Holder Rule, because affirmative recovery is generally tied to amounts paid.
Be careful with refinancing as well. Rolling a disputed solar loan into a mortgage or consolidation loan may affect your claims or defenses against the original lender.
Prevost has covered each angle in depth:
- Should you keep paying your solar loan or stop?
- Stopping payments and addressing your credit
- Why you shouldn’t refinance your solar loan into your mortgage
How does Prevost Law Firm handle multi-party solar cases?
Prevost Law Firm focuses on solar disputes involving installers, lenders, financing companies, and related parties, including cases where several companies share responsibility. The firm is licensed in Texas and North Carolina and handles arbitration in 46 states.
Every case starts with a no-cost review of your documents. We identify every party involved, review both contracts and their arbitration clauses, and look at how the installer and lender worked together.
You can read real experiences from homeowners, including Alejandro, who faced a broken system and two loans, and Rajeev, after Victory Solar went silent. Every case is different, and prior results do not guarantee a similar outcome.
Before hiring anyone, read the questions to ask a solar claim company.
Prevost’s Solar Installer Guides: Find Your Company
Prevost Law Firm has published guides on dozens of solar installers. Find the company named on your sales contract below. To check a company’s current status, use our Solar Company Tracker of 400+ installers or the full Out of Business Installer Database.
Have a question about your financing company instead? Start with our Solar Lender Problems guide, which covers EverBright, EnFin, KeyBank, Mosaic, Sunnova, Sunrun, and Tesla.
Bankrupt or out-of-business installers
- ADT Solar: ADT Solar’s exit and what it means
- Abilene Solar: Action plan for Abilene Solar customers
- Alternative Solar: Alternative Solar customers left without support
- American Power Company: Project stalled with American Power Company
- Arcadia Solar: Arcadia Solar out of business
- BrightSun Energy: Is BrightSun Energy still in business?
- Daybreak Solar: What happened to Daybreak Solar?
- Design 1 Group: Guide for Design 1 Group customers
- Encor Solar: Encor Solar’s sudden shutdown
- Enviro Solar: What happened to Enviro Solar?
- Erus Energy: Guide for Erus Energy customers
- Fluent Solar: What happened to Fluent Solar?
- Freedom Forever: Freedom Forever bankruptcy guide and Freedom Forever overview
- GST Nevada (Green Solar Technologies): Where did GST Nevada go?
- Kosmos Solar: What happened to Kosmos Solar?
- Lumio: Lumio Solar Chapter 11 guide
- Meraki Solar: Meraki Solar and the Titan connection
- Nivo Solar: Nivo Solar bankruptcy
- NM Solar: NM Solar warranty issues and legal options
- O3 Home Solar: O3 Home Solar unfinished projects
- Pink Energy / Power Home Solar: Pink Energy legal options and the Power Home Solar collapse
- Shine Solar: What happened to Shine Solar?
- Solar Solution AZ: When Solar Solution AZ disappears
- Streamline Energy: Streamline Energy out of business
- Sunnova Energy: Sunnova bankruptcy guide
- SunPower: Navigating SunPower service issues
- Titan Solar Power: Titan Solar lawsuit and bankruptcy update, can you sue Titan Solar?, and a Titan homeowner’s story
- Victory Solar: How Rajeev fought back
- Wells Solar: What happened to Wells Solar? and Wells Solar reviews
- Zenith Solar: Zenith Solar and the Lumio bankruptcy
Acquired installers and ownership changes
- American Sun Solar / Texas Solar Broker: Clarifying warranty confusion
- SolarCity (Tesla): What happens when Tesla acquires your installer
- Solcius (Suntuity): Service issues after the Suntuity acquisition
- Southern Solar Power (SolaTrue): The SolaTrue takeover
- Speir Solar (Sunder Energy): What happened to Speir Solar?
- SunPro Solar: How SunPro was acquired
Installer reviews (companies still operating)
- Freedom Solar: Is Freedom Solar the right choice?
- Momentum Solar: Momentum Solar reviews
- Sunrun: Sunrun solar reviews
- Trinity Solar: Trinity Solar reviews
FAQs: Suing a Solar Company and Lender
Q: Can I sue my solar lender if the installer went out of business? A: Possibly. Depending on your loan agreement and how the installer and lender worked together, the FTC Holder Rule may let you raise certain claims about the installer’s conduct against the loan holder. Recovery may be limited, and many loans require arbitration instead of court.
Q: Do I have to file two separate cases against the installer and the lender? A: Not always. If each contract has its own arbitration clause, claims may proceed separately unless the agreements or the parties allow them to be combined. An attorney can review both clauses and explain the likely path for your situation.
Q: Does the Holder Rule apply to solar leases and PPAs? A: The Holder Rule is written for consumer credit contracts, so it may not apply the same way to a lease or power purchase agreement. Homeowners with leases or PPAs may still have other claims under their contracts or state consumer protection laws.
Q: What if the lender says it isn’t responsible for what the salesperson said? A: That’s a common response. Whether the lender can be held accountable depends on the Holder notice in your contract, the dealer relationship between the companies, and the lender’s own conduct. Documents like the e-sign audit trail and funding records often help answer that question.
Q: Will my solar loan go away if I win a case against the installer? A: Not automatically. Results depend on the claims, the parties, and the outcome. Some resolutions involve the loan holder and some don’t, which is why identifying the lender’s role early matters.
Two Companies, One Sale: Getting Answers About Both
When a solar sale goes wrong, the installer and the lender often tell different halves of the same story. The key questions are who was involved, what each company promised or did, and how closely the two worked together.
You don’t have to sort that out alone. Gathering your contracts, loan documents, and communications now puts you in a stronger position, whatever comes next.
Want help from the law firm focused on solar disputes involving installers and lenders? We’ll review your documents and explain the options that may fit your circumstances. Get your no-cost claim review
This content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
This content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
