Suing a Solar Panel Company for Deceptive Leases and Installation Fraud in Maryland

Switching to solar energy is supposed to save money and help the environment. Unfortunately, many homeowners in Maryland have become victims of aggressive sales tactics, deceptive leases, and shoddy installations by predatory solar companies. If you are stuck in a fraudulent solar contract, you are not alone, and state law provides robust mechanisms to fight back. We strongly recommend searching our US Lawyer Directory to find a local Maryland attorney who focuses on consumer protection.

Step-by-Step Process to Fight Solar Fraud in Maryland

Whether you live in Baltimore, Frederick, or Rockville, the process for holding a deceptive solar company accountable generally follows these critical steps. Taking action quickly can save your home from liens and financial ruin.

Step 1: Exercise Your Right to Cancel

If you recently signed a solar agreement at your home, Maryland provides a strict cooling-off period. Under the state Door-to-Door Sales Act, Md. Code Ann., Com. Law § 14-302, you have up to three business days to cancel the contract without any penalty. Send your cancellation notice via certified mail to prove the company received it before the deadline expired.

Step 2: File a State Complaint

If the company refuses to cancel the lease or refund your deposit, you can escalate the matter to the state level. You should file a formal grievance with the Consumer Protection Division, Office of the Attorney General, Baltimore. To do this, you must complete and submit an official Consumer Complaint Form to the division. This agency investigates systemic fraud and can sometimes mediate a resolution.

Step 3: File a Lawsuit Under the MCPA

If state mediation fails, you may need to file a civil lawsuit. The Maryland Consumer Protection Act (MCPA), found in Md. Code Ann., Com. Law § 13-301, prohibits unfair or deceptive trade practices. A successful MCPA claim allows consumers to recover actual financial damages and reasonable attorney fees. Your attorney will typically file this lawsuit in a local court, such as the Circuit Court for Montgomery County, Rockville or the Circuit Court for Howard County, Ellicott City. A foundational case in Maryland regarding consumer fraud is Golt v. Phillips, 308 Md. 1 (MD Supreme Court 1986), which solidifies the protections homeowners enjoy under the MCPA.

Identifying Common Solar Panel Frauds

Predatory solar companies rely on specific tactics to confuse homeowners. Understanding exactly how you were misled will help your lawyer build a stronger case for deception.

Deceptive Tax Credit Promises

Sales representatives frequently promise that the federal or Maryland state solar tax credits will cover the entire cost of the system. They often tell consumers they will get a massive cash refund in the spring. In reality, these credits are non-refundable, meaning if you do not owe enough in taxes, you cannot claim the full benefit. If a salesperson outright lied about your tax eligibility to secure a sale, it constitutes a deceptive practice under the MCPA.

Hidden Roof Repair Costs

Solar panels must be installed on a structurally sound roof. Honest companies inspect the roof first. Scammers, however, will install panels on a rotting roof just to close the deal. When the roof inevitably leaks, the company might demand thousands of dollars to remove the panels so a roofer can fix the damage, burying these hidden removal costs deep in the fine print of the lease.

Forged Interconnection Agreements

Before turning the system on, the solar company must get approval from your local utility company through an interconnection agreement. In a rush to get paid by their financing partners, some rogue salespeople forge the homeowner's signature on these utility documents. Forgery is outright fraud and provides powerful leverage in a lawsuit to completely void the contract.

Aggressive Door-to-Door Sales Tactics

Many deceptive leases are born from high-pressure door-to-door sales. Sales reps might refuse to leave your home until you sign on an iPad, claiming a special discount expires that very night. They often obscure the total 20-year cost of a Power Purchase Agreement (PPA), trapping you in a lease that increases by 3% every year.

How Much Does it Cost in Maryland?

Filing a lawsuit involves some upfront and ongoing costs, though consumer protection laws offer ways to shift these burdens.

• Court Filing Fees: Filing a civil case in a Maryland Circuit Court typically costs around $165.
• Attorney Fees: Because the MCPA allows for the recovery of attorney fees under Md. Code Ann., Com. Law § 13-408, some lawyers might take strong cases on a contingency basis or seek their fees directly from the fraudulent solar company.
• Potential Damages: You may be entitled to the return of all deposits, cancellation of the fraudulent debt, and compensation for any physical damage done to your roof.

How Long Does the Process Take?

Resolving a solar fraud dispute takes time. If the company is frightened by a strong demand letter from your attorney, they might agree to cancel the contract and remove the panels within 30 to 90 days. However, if they refuse to back down and the case proceeds to a full trial in a Maryland Circuit Court, the litigation process can take 12 to 24 months to complete.

Frequently Asked Questions (FAQ)