Nov 1 in Open Class Actions
Sun Run Lawsuit Do You Qualify
Vivint and Sunrun solar power PPA fraud class action investigation
Class Action Lawsuits | October 31, 2024
Category: Lawsuits to Join
Solar scam PPA issues: Who’s affected?
Did you sign a power purchase agreement (PPA) with Sunrun or Vivint? California residents may be eligible to take part in an investigation into allegations of deceptive sales and business practices. Fill out the form on this page to learn more.
Residential solar company Sunrun, which acquired Vivint Solar in October 2020, is facing allegations it used misleading sales tactics to lock customers into unfair PPAs under false claims they could cancel any time, lower their energy bill, only pay for what they use, transfer to another solar company easily, increase their property value, and more. Many questions are being asked online if PPA leases are a solar scam.
These allegedly aggressive and dishonest sales tactics and hard-to-understand PPAs lock consumers into 20-year obligations that are difficult and extremely expensive to escape. These practices may violate California consumer protection laws and, as a result, homeowners could be entitled to compensation or other relief to help get out of their contract.
Do you qualify?
If you live in California and have a solar PPA (not a solar lease) with Sunrun or Vivint Solar, you may be able to pursue mass arbitration and seek relief.
Leave a comment and we will get back to you to see if you qualify.
Vivint and Sunrun accused of deceptive sales practices
Sunrun and Vivint have allegedly employed high-pressure, dishonest sales strategies and complex financial agreements for more than ten years. These tactics can be excessively harmful to consumers.
These two solar panel installation companies offered a power purchase agreement, which locks individuals into a 20-year obligation. The contractual language within the solar PPA can be complex and nuanced, making thorough comprehension challenging for many consumers. Additionally, early termination of the contract may trigger significant financial penalties or obligations for the homeowner. Angy homeowners online suggest that these deceptive practices are a solar scam
If these allegations are found to be true, they could represent multiple violations of California statutes meant to safeguard homeowners. As a consequence, individuals who signed a Vivint or Sunrun power purchase agreement may qualify for legal recourse. Arbitration may offer a means of escaping the contract and, in some cases, compensation.
Power purchase agreements: an overview
What is a power purchase agreement?
A power purchase agreement (PPA) is a contract where the homeowner agrees to pay a predetermined rate for the electricity generated by a residential solar energy system. Individuals pay for a fixed amount of kilowatt-hours of electricity.
If the homeowner exceeds the predetermined amount, the homeowner will pay the local utility provider (e.g., PG&E, Southern California Edison) for any supplemental energy needed. If a homeowner does not fully utilize their monthly electricity allocation, both energy and the money paid are wasted. The monthly payments associated with this contract are not allocated to the purchase of the solar panels. At the end of the 20-year contract, the homeowner does not own the equipment and is required to pay further fees to keep the system in place.
Will Sunrun put a lien on my home?
When the homeowner enters into the power purchase agreement, Sunrun/Vivint will file a UCC-1 Financing Statement against the property. While this is not formally classified as a lien, it serves a similar purpose. This statement gives the solar company recourse to obtain the homeowners property in the event of non-payment.
Are there tax benefits to me under a solar PPA?
No. The solar company owns the system throughout the contract and therefore is entitled to utilize any tax credits or other governmental benefits.
What if I want to cancel my Vivint or Sunrun PPA?
Terminating your Sunrun PPA before the end of the contract presents significant challenges for the homeowner. If the homeowner wishes to sell the property, relocate, or discontinue payments due to financial difficulties, the agreement stipulates that they must repay the estimated remaining energy value. If the homeowner originally signed a 20-year contract, this could mean paying for over a decade of unused energy.
Additionally, most contracts also impose cancellation fees to compensate the provider for initial solar panel installation and operational expenses. It is not unusual for early contract terminations to result in tens of thousands of dollars in fees.
What if I want to sell my home?
In order to sell your home, you have two options: (1) Persuade the homebuyer to take over your PPA, or (2) buy out the entire contract if the homebuyer won’t agree to the assignment. Either way, the PPA will likely complicate your transaction. You may have to reduce the sale price or offer other concessions. And if they won’t budge, you must buy out the PPA (making you the owner) and remove, transport, and reinstall the system yourself.
Can I file a class action lawsuit?
Unfortunately, no. Except for the very first consumers who signed up with Vivint Solar more than a decade ago, every version of the PPA contains an arbitration agreement and class action waiver. That means any legal dispute must be brought in a private legal action called arbitration and you cannot join with other consumers who have similar claims.
What kind of relief can I get in arbitration?
The good news is you can get the same relief as in a court of law. That could mean cancellation or modification of your PPA, monetary compensation, or other relief.
Is arbitration expensive?
Arbitration is not expensive for you. Under the PPA, Sunrun must pay for arbitration costs and fees, which can be tens of thousands of dollars, whereas we just pay a small filing fee.
How are you paid?
We only get paid if we win—meaning we receive a portion of any arbitrator award or settlement. If we recover nothing, you pay nothing. While arbitrations are typically quicker than lawsuits filed in court, the legal process is hard to predict. Some cases may resolve within several months and others may take a year or two.
Is a power purchase agreement a solar power scam?
There is a wide variety of solar panel scams out there, so consumers should always be on guard and aware of what to look for.
While power purchase agreements are a viable leasing option, consumers must proceed with caution. These contracts can be exceedingly rigid. It may result in unwanted monthly payments for a solar energy system you do not own. Nevertheless, if sold deceptively, a solar PPA can feel like a solar scam
It is highly recommended that you thoroughly review and understand the conditions of any power purchase agreement before formally committing to this type of long-term obligation. Being on the lookout for contractual language and consequences is prudent to avoid potential problems.
Fill out the form on this page to see if you qualify for a free case evaluation.
See If You Qualify
Join a Sunrun and Vivint Solar PPA investigation
By submitting your information, you agree to receive communications from Top Class Actions and to be contacted by an attorney or law firm or their agents to discuss the details of your potential case at no charge to you if you qualify.
First Name*
Last Name*
Street address*
City*
State*
Choose a State
Zip Code*
Phone (no country code needed)*
Email*
Are you a California resident?*
Yes
No
Which agreement did you sign?*
Power purchase agreement (PPA)
Solar lease
Which solar company did you sign with?*
Sunrun
Vivint Solar
When did you sign this agreement? (approximate month and year)*
Are you still under contract with Sunrun or Vivint Solar?*
Yes
No
Were you bought out of or did you transfer your PPA?*
Yes
No
Have you defaulted on your payment obligations?*
Yes
No
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