One of the most frequently asked questions we receive from homeowners dealing with problematic solar panel installations is: “Can I sue for damages?” If your home has suffered damage due to a faulty solar panel installation—such as roof leaks, interior water damage, or electrical issues—you may be wondering if legal action can help recover those costs. The answer depends on who you’re suing and the nature of your case.
Understanding the Legal Limitations in Solar Panel Lawsuits
When pursuing legal action against your solar panel lender, the scope of recoverable damages is somewhat limited. Under the FTC Holder Rule, which protects consumers in financed transactions, you can sue your lender for damages. However, this is only for up to the amount of money you’ve already paid into the loan, plus the total loan balance.
If you suffer additional damages—like roof leaks causing mold or electrical failures damaging appliances—you might not recover those costs fully in a lawsuit against the lender. Instead, the main legal remedy focuses on reducing or eliminating your loan obligation. This effectively credits you for the financial burden you’ve faced.
What If You Want More Than Just Loan Cancellation?
To seek damages beyond your loan balance, you would need to file a separate lawsuit against the solar panel seller or installer. This type of lawsuit could include claims for:
- Breach of Contract – If the installer failed to meet the terms of the agreement.
- Negligence – If their work caused physical damage to your home.
- Fraudulent Misrepresentation – If they misled you about the system’s capabilities, performance, or installation process.
However, one major obstacle homeowners face is that many of these solar companies have gone out of business. If your solar installer is no longer in operation, suing them may not be a viable option. This is because there would be no entity to recover damages from.
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How Can a Lawsuit Against the Lender Help You?
Suing the lender may not cover your home repair costs directly. However, it can eliminate your financial obligation for a defective or misrepresented solar system. This frees up the money you would have spent on payments for the faulty system, letting you invest in the repairs you need.
When filing a legal claim against your lender, you may be able to seek:
- Cancellation of your solar loan
- Refunds of previous payments made toward the loan
- Compensation for damages—up to the amount of the loan balance
- Rectification of negative credit reporting
What Should You Do Next?
If you believe you have a case against your lender due to a misrepresented or defective solar panel system, it’s important to act quickly. The longer you wait, the more difficult it can be to gather evidence and build a strong claim.
Steps to Take:
- Gather Your Documentation – Collect your contract, installation records, loan statements, and any communications with the solar company.
- Document Any Damage – Take photos and keep records of any home damage caused by the solar panels.
- Consult with a Solar Litigation Attorney – A specialized attorney can evaluate your case and guide you on the best legal strategy.
Final Thoughts
While suing for direct damages may not always be an option in solar panel lawsuits against lenders, eliminating or reducing your loan obligation can be a significant financial relief. If you have experienced misleading sales practices, defective installation, or a non-functioning solar system, you may have legal grounds to fight back.
