Why Class Actions Are Not Allowed in Solar Panel Lawsuits

If you’ve been searching for ways to take legal action against your solar panel lender or installer, you may have come across discussions about class-action lawsuits. Many frustrated homeowners turn to Facebook groups or online forums, asking, “Is there a class action lawsuit I can join?” Unfortunately, in most cases, the answer is no—and here’s why.

The Role of Arbitration Agreements

Most solar panel contracts include arbitration agreements, which prohibit homeowners from participating in class-action lawsuits. These agreements are a standard practice in contracts issued by solar panel companies and lenders. When you signed your contract, you likely agreed to resolve any disputes through arbitration rather than a court trial.

What Does This Mean for You?

• You cannot file or join a class action – Arbitration agreements are legally binding, and courts typically enforce them.
• Each case must be handled individually – This means that if you want to dispute your solar panel contract, you must file an individual arbitration claim rather than a group lawsuit.
• Class actions often get dismissed – If someone attempts to file a class action, the defendants (solar companies and lenders) will file a motion to dismiss or a motion to compel arbitration, which will likely succeed.

Are There Any Exceptions?

There have been rare instances where companies, such as Lumio, faced class-action lawsuits. This only happened because they did not include arbitration agreements in their contracts. However, most major solar panel companies do include them, making class-action lawsuits nearly impossible.

How Homeowners Can Still Fight Back

Even though a traditional class action is not an option, homeowners still have legal strategies to challenge misleading solar panel contracts:

1. Mass Arbitration: Instead of a single lawsuit, multiple homeowners can file individual arbitration claims against the same company. If enough people take action, the sheer volume of cases can force the company to negotiate.

2. Consumer Protection Claims: Depending on your state’s laws, you may still be able to pursue legal action. This can happen under consumer protection statutes that regulate deceptive business practices.

3. FTC Holder Rule Claims: If your solar panel purchase was financed through a loan, you might have a claim against your lender. This is an option under the FTC Holder Rule. This rule allows you to assert the same legal defenses against the lender as you would against the seller.

4. State Attorney General Complaints: Filing complaints with your state’s Attorney General’s office or the Federal Trade Commission (FTC) can help bring regulatory scrutiny to deceptive solar sales practices.

The Bottom Line

Class-action lawsuits against solar companies usually aren’t allowed. Unfortunately, arbitration clauses in contracts block them. However, homeowners still have power. By filing individual legal claims and coordinating with others in similar situations, you can pressure lenders and solar companies to take responsibility.

If you’re facing deceptive sales tactics, false promises, or a company that ignored its warranty, take action. Speak with an attorney who focuses on solar panel lawsuits. They can help you choose the best way to move forward.