Attorney Gen. Ken Paxton (R) has sued San Antonio-based CAM Solar Inc. (CAM Solar) for allegedly engaging in fraudulent and deceptive practices in its sale of solar panel systems.
This lawsuit follows an investigation into CAM Solar and other solar panel companies, which was announced in April after Paxton's office received over 100 consumer complaints involving misrepresentations regarding savings for consumers on their energy bills, the efficacy of their solar panel systems, equipment implementations, as well as the companies' terms and policies.
Paxton's investigation found nonexistent or significantly reduced energy savings, defective or nonfunctioning systems, improper installations, unanswered service requests, undisclosed warranty and maintenance fees, misrepresented tax-credit eligibility, and continued financing obligations for systems that failed to operate as promised.
"People have found a lot of these promises that are told to them when they sign the dotted line don't come to fruition," says Larry Behrens of Power the Future. "[One] of the common traps that we have seen … is you'll save on your monthly bill, which is true; you are paying less for electricity."
Some people pay for the solar panels up front, but for those who finance, he says it turns out to be "kind of a wash."
"If they pay a whole lot up front, they have seen some financial benefit in terms of lower electric bills. But most people who are in it for the federal subsidies are not paying everything up front," Behrens explains. "A lot of them are financing, and the benefits are way down quickly when they realize that their systems may not have been put in correctly, that they don't have recourse on the warranty, and that they are stuck with the system for multiple decades in terms of financing no matter how the system does or doesn't work."
He also points out that about 90% of the panels are made in China, and it is unknown as to what materials are being used.
Paxton's lawsuit seeks to shut down CAM Solar's unlawful and deceptive business practices, obtain restitution for affected Texans, and secure civil penalties under the state's Deceptive Trade Practices Act.
Paxton says his office will continue to investigate additional solar panel companies and take action against any businesses that engage in fraud or deception targeting Texas consumers.
