If you’re dealing with a dispute over your solar panel system, you might have come across the term arbitration in your contract. But what is arbitration, and why is it used in solar panel lawsuits?
At our law firm, we handle nothing but solar panel cases across multiple states. A major part of these cases is resolving disputes through arbitration. In this article, we’ll explain what arbitration is, why it’s commonly used in solar contracts, and how it impacts your legal options when seeking justice against solar lenders and installers.
What Is Arbitration?
Arbitration is a private dispute resolution process where a neutral third party (the arbitrator) makes a binding decision, much like a judge in a courtroom. Many solar panel contracts include mandatory arbitration clauses, meaning that if a dispute arises, you cannot take the case to court—you must resolve it through arbitration.
How Arbitration Works:
- You and the opposing party (the solar lender or installer) present your case to an arbitrator.
- The arbitrator reviews the evidence and issues a final, binding decision.
- Unlike a court case, arbitration is occasionally conducted via Zoom or electronic meetings, making it accessible regardless of your location.
Why Do Solar Panel Lawsuits Go to Arbitration?
Many solar companies and lenders include arbitration clauses in their contracts for several reasons:
- Avoiding Public Court Cases – Arbitration is private, keeping disputes out of the public eye.
- Cost Efficiency – Arbitration is generally faster and cheaper than going to trial.
- Control Over the Process – Companies often prefer arbitration because they can avoid unpredictable jury verdicts.
For consumers, arbitration can be both a benefit and a challenge. On the one hand, it offers a faster resolution. On the other, it may limit legal options compared to a full court trial.
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What If Your Contract Doesn’t Have an Arbitration Clause?
Some major solar lenders—such as Service Finance and Dividend—do not include arbitration clauses in their contracts. If your contract does not require arbitration, you may need to:
- File a lawsuit in your local county court.
- Find a local attorney familiar with your court system and judges.
There’s a well-known legal saying:
“A good lawyer knows the law, but a great lawyer knows the judge.”
This holds true because every court operates differently, and having a local attorney who understands your judge’s preferences can make a big difference in your case.
Should You Choose Arbitration or Court?
If you have the option, choosing between arbitration and court depends on several factors:
- Speed: Arbitration is often quicker than a traditional court case.
- Legal Strategy: Some claims may be stronger in a courtroom setting.
- Costs: While arbitration is usually cheaper, some cases may require a lawyer who is familiar with your county’s legal system.
Need Legal Help with a Solar Panel Dispute?
If you’re facing a dispute with your solar lender or installer, our firm specializes in solar panel lawsuits and can guide you through the arbitration process. We work with homeowners nationwide, helping them fight against misleading sales practices, broken warranties, and unfair loan agreements.
Contact us today for a
