Types of Solar Claims We Handle And What Homeowners Can Expect

Most homeowners contact us because something went fundamentally wrong with their solar system. Either it was installed incorrectly, isn’t producing the savings that were promised, or the installer has disappeared altogether. 

At Prevost Law Firm, we look at each case through three key factors. These include what type of claim you have, legal strategies that apply, and potential outcomes based on evidence and law.

Below is a clear explanation of the main case categories we handle and what homeowners can expect when pursuing each type of claim.

Reminders and disclaimers

No Law Firm Can Guarantee Results

No law firm can guarantee results. Read more about why here.

Every solar case is unique, and outcomes depend on the specific facts, documentation, applicable state laws, and the strength of the evidence available. While the patterns below reflect what we commonly see, they are not promises or predictions about any individual case. Our goal is to give homeowners realistic expectations, not assurances. This is so you can make informed decisions about your legal options.

Evidence

The bottom line: the more physical evidence you have, the better.

In solar-panel cases, evidence is often the single biggest factor in determining what outcomes are realistic. Even when a homeowner’s story feels strong, legal results depend on proof through documentation and system data. The clearer the proof, the more strategic options our team has.

The most helpful evidence typically includes:

• your contracts and written agreements
• photos or videos showing installation issues
• communication records that substantiate your expectations
• utility bills that show savings problems
• and any third-party inspections confirming damage or incomplete work.

A simple timeline of events – when you bought the system, and when specific problems arose – also strengthens nearly every type of claim.

Even if you don’t have everything, every piece helps. Strong evidence doesn’t just support your claim. It expands the legal paths available to pursue the best possible outcome under the governing law.

1. Breach of Installation

A breach of installation occurs when your solar system wasn’t installed properly or wasn’t installed at all. These cases are among the strongest we see. We commonly work with homeowners whose systems were never completed, who have waited nine months or longer with no Permission to Operate (PTO), or who later discover that required components listed in the contract were never installed.

In many of these cases, the homeowner did everything right. They signed the contract, paid what they owed, provided access to the property. But the installer simply failed to deliver a functioning system. In 2025, contracts from 2020 or later typically fall within current statutes of limitation, which strengthens these claims even further. The date range is based on a rolling 5-years back.

Our legal strategy here focuses on documenting the full installation timeline, showing how and when the installer failed to perform, and identifying every deviation from manufacturer instructions or building standards. We often bring in third-party inspections to verify incomplete work, safety violations, or missing equipment.

Potential Outcomes

When the evidence is strong, these cases may result in cancellation of the solar loan, refunds of money paid in, reimbursement of attorney fees (when possible), and removal of UCC liens and credit repair if the homeowner stopped paying out of frustration. 

When installation is defective or incomplete, the law is often squarely on the homeowner’s side.

Weaker case facts might result in loan reduction versus cancellation.

2. Breach of Warranty

A breach of warranty happens when the protections written into your contract—such as workmanship warranties, roof penetration warranties, or equipment warranties—are lost or ignored by the installer. 

Homeowners typically qualify when they’ve lost several years of warranty support, when the system has caused property damage the installer refuses to fix, when the installer goes out of business and stops supporting the warranty, or when the installer has been unresponsive for 60 days or longer despite repeated documented attempts to get help.

If the installer is out of business, warranty breach becomes even more clear. (Discussed more below.)

And as long as the warranty breach occurred within the state’s statute of limitations, these cases remain strong. (One note: we generally cannot take cases where someone assumed a solar loan unless the warranty breach occurred after the loan transfer, because the new homeowner wasn’t the one who was misled by the original sales process.)

Our strategy centers on establishing the warranty terms, proving the installer failed to honor them, and demonstrating the financial harm that followed—whether that’s roof leaks, electrical issues, system shutdowns, or years of lost coverage.

Potential Outcomes

These cases often produce outcomes such as loan cancellation or reduction, return of payments, and in some cases, reimbursement of legal fees. Warranty breaches can be legally powerful because they reflect obligations the installer voluntarily created in writing.

3. Unrealized Electrical Savings

Many homeowners,Mosaic-financed homeowners for example, find that the savings they were promised simply never materialize. This type of claim focuses on whether the system produces meaningful financial benefit. In most cases, contracts signed in 2020 or later still fall within the relevant time window.

A key question we evaluate is whether your actual savings are equal to, or significantly less than, your monthly loan payment. Evaluating your savings is often dependent on the client being able to provide past and present electricity statements. 

If you aren’t saving more than your loan payment, or if your savings amount to less than 85% of what you owe each month, the claim becomes stronger. Homeowners who are saving very little or nothing at all may qualify for substantial loan reductions or even full loan cancellation.

One critical aspect of these cases is homeowner testimony. Opposing counsel will ask whether you still would have purchased the solar system had you known the real financial outcome. If your answer is honestly “no,” that supports the legal theory of misrepresentation. 

It’s also important that you’re not satisfied with the minimal savings you’re receiving, even if the system technically works.

Potential Outcomes

Our legal approach focuses on comparing promised savings to actual utility data, analyzing underperformance, and exposing misrepresentations in the sales process. 

When successful, homeowners often achieve loan reductions proportional to their actual savings, refunds of money paid, and, when savings are negligible, full loan cancellation.

4. Poor Installation

This category blends financial harm with technical installation failure, creating an especially compelling claim. For example, many Mosaic-financed homeowners discover that their systems were installed incorrectly in ways that directly impact performance and violate manufacturer guidelines.

One scenario we see frequently is that inverters are installed on exterior walls in direct sunlight, which can void the manufacturer warranty and drastically shorten their lifespan. Excessive heat also lowers energy conversion efficiency, reducing savings over time.

Shading issues are another major problem. Even partial shading on a single panel can damage internal components, accelerate degradation, and significantly reduce system output. Some homeowners experience performance decline of 10% or more per year. This is far beyond the typical 0.75% annual degradation stated in most contracts. By the time the failure becomes obvious, the statute of limitations may be nearing, which is why early action is critical.

For cases like these, we often recommend a detailed inspection so we can document technical failures and long-term system impacts. Armed with this evidence, we build a clear narrative showing how the installer violated its obligation to install the system in a “good and workmanlike manner.”

Another issue we see is installers using parts that differ from the model your contract specifies. For example, sometimes substituting lower-quality or less efficient equipment without disclosure. 

Using subpar panels, inverters, or mounting hardware can reduce system performance, shorten the lifespan of the equipment, and significantly impact the financial benefits you were promised. When the installed system doesn’t match the contract, it may qualify as both a breach of installation and a misrepresentation claim, depending on the circumstances.

Potential Outcomes

These cases frequently result in loan cancellation, substantial loan reductions, refunds, and occasionally compensation for long-term performance loss.

5. Systems That Never Worked or Never Reached PTO

Roughly 10% of solar owners fall into this situation. The system never worked, never produced energy, or never received PTO approval. In these cases, homeowners essentially paid for a product that never existed in a usable state.

Additionally, some systems are never installed at all. This often happens when a homeowner signs a contract and the installer goes out of business shortly afterward, leaving the project unfinished while the lender continues to enforce the loan. 

In these cases, homeowners are stuck with long-term payments for equipment that was never delivered, and no installer available to complete the work or honor the warranty.

Our strategy is straightforward. We show that the installer failed to deliver a functioning system, failed to meet permitting or utility requirements, and failed to provide the service the homeowner paid for. When the installer is out of business or refuses to respond, the claim becomes even more compelling.

Potential Outcomes

The likely outcomes in these cases include full loan cancellation, refunds of all money paid, removal of UCC liens, and credit repair for missed payments. 

When the system never worked at all, the law generally considers the contract unenforceable.

6. When the Installer Is Out of Business

Installer bankruptcy or sudden shutdowns impact thousands of homeowners each year. 

When an installer disappears, warranties evaporate, unfinished installations remain unresolved, and homeowners lose any avenue for repairs or system support. These scenarios commonly involve both breach of installation and breach of warranty.

Our legal focus shifts to the parties who remain. This usually involves the lender or other surviving entities responsible for the financing. Under the FTC holder rule, we pursue the financial relief the installer would have been responsible for had they remained operational. We also investigate misrepresentations during the sales process, inflated dealer fees, fraudulent claims about savings, and contractual promises that were never fulfilled.

(Either because they filed for bankruptcy or simply shut down operations. In these cases, we also verify whether any warranty obligations were lawfully transferred to a new installer. And if not, the original warranty is typically considered void.)

Potential Outcomes

Outcomes vary, but many homeowners receive loan cancellations or reductions, refunds, removal of liens, and help restoring their credit. Out-of-business cases are often the most straightforward because the breach is undeniable.

Next Steps: Your No-Cost Case Review

Whether your system was installed poorly, never worked, isn’t producing the savings you were promised, or the installer has simply vanished, you don’t have to deal with the consequences alone. Our team evaluates each case individually and provides tailored guidance, without charging anything upfront.

If you’re struggling with a solar loan or a system that isn’t working the way it should, reach out today for your no-cost claim review and learn your options.