This content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
Encor Solar, once promoted as a full-service solar energy provider, has suddenly shut down operations. This left many homeowners with unfinished installations, malfunctioning systems, and active loan obligations for solar panels that don’t work. The company is now under investigation by the North Carolina Department of Justice, raising serious concerns for affected customers.
If you worked with Encor Solar and are experiencing issues with your system, you are not alone, and you may have legal options.
Across the United States, thousands of homeowners trusted Encōr Solar, a once-promising solar company that marketed itself as a full-service provider of solar energy solutions. The in-house team and local contractors claimed to take care of your entire solar power project, from roof run and installation to activation and maintenance. Sales reps often highlighted energy savings, federal tax credits, and reduced electric bills as major incentives to go solar.
But for many customers, those promises turned into empty promises. After signing an original contract and providing a copy of the financial contracts or loan documents at the point of sale, homeowners were left with unfinished solar panel systems, exposed live electrical lines, and ongoing payments to lenders. Some even received mechanics liens or preliminary notices from subcontractors who were never paid.
Encōr once advertised “the best customer value” using “quality products” and “licensed professionals,” competing with top solar contractors in several states. Yet, the company’s sudden disappearance has become further proof of neglect within parts of the renewable energy sector. For both residential and commercial customers, this event serves as a reminder to carefully review all financing options, confirm that your local license holder is valid, and verify that your installer has North American Board of Certified Energy Practitioners (NABCEP) credentials before moving forward with any solar PV system or power purchase agreement.
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If you worked with Encor Solar and are experiencing issues with your system, you are not alone, and you may have legal options.
A Brief History of Encor Solar
Founded in 2016, Encor Solar LLC was headquartered in Arlington, Virginia. It operated throughout several states including Virginia, Maryland, Delaware, Pennsylvania, North Carolina, and Washington D.C. The company marketed itself as a comprehensive solar solution provider, offering:
- Solar panel installation
- Energy storage batteries
- Energy efficiency audits
- Maintenance and monitoring services
In its early years, Encor built a reputation as a high-tech, customer-focused solar brand, leveraging proprietary tools and mobile apps for customer engagement and project tracking.
The Company’s Sudden Collapse
In early 2024, Encor Solar abruptly ceased operations. Customers and vendors reported being unable to reach the company. Phone lines became disconnected, and the company’s website was taken offline.
Without warning, many homeowners became left in limbo, with unfinished or malfunctioning systems and no communication from the company.
Shortly after the shutdown, the North Carolina Department of Justice launched an official investigation into Encor’s business practices, citing a high volume of complaints related to:
- Incomplete installations
- Non-functioning or unsafe systems
- Customers still billed for systems that never worked
- Alleged misrepresentations or high-pressure sales tactics
The Better Business Bureau (BBB) has also confirmed that Encor Solar is no longer in business.
Customer Complaints and Reported Issues
Although some customers successfully had their systems installed and working, a significant number of reviews on platforms like SolarReviews paint a different picture. Reported issues include:
- Delayed installations
- Poor communication throughout the project
- Panels or batteries never activated
- Unresponsive customer service post-installation
- Allegations of deceptive sales practices or coerced agreements
For homeowners, the result has been costly. Many are still making loan payments on systems that were never completed or never functioned properly.
The Holder Rule
If your solar system was financed through a third-party lender but never fully installed, activated, or made functional by Encor Solar, you might feel stuck. Many homeowners are still making monthly payments on solar loans, even though their systems are broken or never completed. But you may have legal grounds to fight back, thanks to a powerful consumer protection law called the Holder Rule.
What Is the Holder Rule?
The Federal Trade Commission (FTC) created the Holder Rule to protect consumers who use financing to buy a product or service. It ensures that if something goes wrong – like the product is defective or the company vanishes, as Encor Solar did – consumers can still hold the lender accountable.
If you finance a product through a lender connected to the seller, you can potentially hold the lender legally responsible if the product never arrives or turns out to be defective or deceptive.
Put simply: If Encor didn’t install or activate your solar system and you financed it through one of their partners, you may not have to keep paying on that loan.
Why It Matters Now
We’ve spoken with many Encor Solar customers whose systems were never completed, yet they’re still being billed monthly by lenders like GoodLeap, Sunlight Financial, or Mosaic. The Holder Rule may give you the right to challenge or stop those payments and possibly seek financial recovery.
But here’s the catch: Most people, and even some attorneys, don’t know how to use this rule effectively. And many lenders aren’t quick to educate consumers about their rights.
At Prevost Law Firm, we can help you determine if your situation qualifies and take action on your behalf.
Contact us for a no cost claim review.
Do You Have Legal Recourse?
If you financed your solar panels through a third-party lender but the system was never completed or activated, you may have options to challenge the validity of the contract. At Prevost Law Firm, we help consumers hold solar companies and lenders accountable for:
- Breach of contract
- Misrepresentation
- Unfair or deceptive sales practices
- Failure to deliver promised services
You don’t have to navigate this alone. We’re already helping thousands of homeowners in similar situations. And we can help you too.
Get a Free Case Review
If you dealt with Encōr Solar or any of its local project managers and are still receiving power bills despite having a non-functioning solar energy system or not getting the energy savings you were promised, it’s important to document every phone call, page of texts, or message from an Encor text line or customer service line. Keep a copy of the financial contracts and any lien waiver or preliminary notice you’ve received. These materials could be crucial evidence in determining whether your solar installer violated your original contract or failed to meet federal law requirements regarding disclosure and financing.
Whether you purchased a new installation or removal of an old passive solar system, if your solar PV system wasn’t completed by a properly licensed Encor-certified team, you may be eligible for legal assistance. At Prevost Law Firm, we have experience in helping victims of complete scams and deceptive solar providers pursue justice.
Our attorneys can review your original contract, verify whether your local utility company properly connected your system, and assess whether you’re entitled to refunds, system repairs, or loan relief. Even if you worked with a local Encor team or a commercial project branch, you can still contact us for guidance on your next step. View our entire process here.
If you were affected by Encor Solar’s closure or have concerns about your solar panel contract, contact Prevost Law Firm for a no-cost claim review. We’ll review your documents, assess your legal options, and help you determine next steps.
📞 Call us today at (855) 584-3576
📄 Or request a free case review at prevostlawfirm.com
We’ll evaluate your case, explain your rights under federal consumer protection laws, and help you understand how to move forward confidently.
This content is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
