What Damages Can I Recover From Solar Fraud?

If you suspect a solar company misrepresented what you would save or entered you into financing you never knowingly authorized, one question naturally follows: what damages can I recover from solar fraud? The answer depends on what happened, the financial harm you experienced, the terms of your agreement, and the laws that apply to your situation.

This article is for you if you already suspect you were misled by a solar company, through inflated savings claims, forged paperwork, or a loan you didn't fully understand, and you're now weighing whether pursuing a claim is worth it. We'll explain the types of compensation that may be available and how a solar fraud attorney can evaluate your specific circumstances.

What Types of Compensation Are Available for Solar Contract Fraud?

The damages you can recover from solar fraud depend on the losses you can document and the laws that apply to your case. Federal consumer-protection law prohibits unfair or deceptive practices, and the FTC has pursued monetary relief for consumers harmed by unlawful conduct. However, the remedies available to an individual homeowner depend on the specific claims and applicable law.

Contract Rescission and Refunds

Rescission generally means unwinding the contract and attempting to put both sides back in the position they were in before the agreement. A refund, by contrast, involves recovering money that you already paid.

The CFPB notes that homeowners could have the right to get out of certain solar loans or contracts, but that right depends on the particular transaction and applicable protections.

Compensatory (Actual) Damages

When trying to recover damages from solar fraud, it helps to separate potential solutions into a few broad categories. Compensatory damages are intended to address measurable financial losses caused by the company’s misconduct.

Depending on the case, compensation for solar contract fraud could potentially include:

• Amounts overpaid because of misrepresented pricing or savings
• Certain costs associated with defective installation or property damage
• Financial losses tied to promised benefits that were not delivered
• Other documented expenses directly resulting from the misconduct

The specific losses that qualify depend on applicable law and the evidence supporting them. Keeping contracts, payment records, utility bills, repair invoices, and communications can help establish the financial impact.

Punitive or Treble Damages in Serious Cases

Punitive damages are different from compensation for an actual financial loss. They may be available in some jurisdictions when the conduct was particularly egregious. Certain consumer-protection laws  may also allow treble damages—meaning three times certain qualifying losses—but these remedies are not available in every case.

Ultimately, compensation for solar contract fraud depends on the specific facts and legal claims involved. Understanding what laws protect homeowners from solar fraud can help explain why two homeowners experiencing similar misconduct may have very different potential remedies. A solar fraud attorney can evaluate which remedies may apply to your circumstances.

What Does a Typical Solar Fraud Settlement Actually Look Like?

Ultimately, there is no single number that represents a typical solar fraud settlement. The damages you can recover from solar fraud cannot be reliably determined by looking at someone else's outcome, even if you have experienced similar deceptive sales tactics.

Solar fraud settlement amounts vary substantially depending on the nature of the misconduct, the homeowner's financial losses, the evidence available, and the legal claims involved. A settlement also isn't guaranteed; some disputes are resolved through negotiation, while others may require litigation.

What Affects Solar Fraud Settlement Amounts

Several factors can influence what a homeowner may ultimately recover:

• Severity of the misconduct: A significant misrepresentation, unauthorized financing, or intentional forgery may be treated differently from a relatively minor sales discrepancy.
• Documented financial losses: Contracts, payment records, utility bills, repair costs, and other documentation can help establish the actual harm suffered.
• Applicable state laws: Consumer-protection statutes may provide remedies that differ depending on where the homeowner lives and what conduct occurred.

These factors can make solar fraud settlement amounts difficult to predict without reviewing the specific case.

Timeline From Filing to Resolution

The process of a solar fraud settlement can vary significantly, but a dispute may generally progress through several stages:

• Demand letter: An attorney may outline the homeowner's claims and requested resolution to the solar company, lender, or other responsible party.
• Negotiation: The parties may exchange information and negotiate a potential settlement without going to court.
• Litigation: If the dispute cannot be resolved, filing a lawsuit may become necessary. Litigation can take considerably longer because it involves formal legal procedures, evidence gathering, and potentially trial.

Because both timing and potential recovery depend heavily on the circumstances, homeowners should avoid relying on advertised settlement figures. An attorney reviewing the actual contract, evidence, and losses can provide a more individualized assessment.

If the potential expense of seeking legal help is part of that decision, learn more about solar fraud attorney costs and what homeowners may expect when pursuing a claim.

Can I Sue My Solar Company for Fraud?

It is possible that you can sue a solar company for solar panel fraud, but it depends on what actually happened, what you can prove, and which laws apply to your situation. Being unhappy with your system or discovering that your savings were lower than expected does not necessarily establish that you were a victim to a solar scam. A viable claim generally involves specific misleading or unauthorized conduct that caused you measurable harm.

Evidence that may help establish a claim includes:

• The contract: The written agreement may show what you actually agreed to versus what you were told.
• Sales communications: Texts, emails, advertisements, or proposals may document promises about savings, tax credits, or financing.
• Financial records: Utility bills, loan statements, and payment records can help show whether the promised financial benefits matched reality.

Some solar panel scams may involve more serious conduct, such as forged signatures or deliberately false representations. These cases are an indicator of when to hire a solar fraud lawyer.

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What damages you can recover from solar fraud depend on the circumstances of how you were defrauded, the evidence you have available, and which laws support your case. Those damages could range from rescinding the agreement and recovering actual financial losses to, in certain serious cases, pursuing additional or punitive damages.

If you already believe you may have experienced solar fraud, the next step is understanding what your specific situation may be worth.

Request a free, no-obligation case review with a Covar Law Group solar fraud attorney to find out what compensation may be available for your situation.

Frequently Asked Questions

Can I sue a solar company for property damage?

Yes, you may be able to sue a solar company for property damage caused by improper installation. Roof leaks, electrical problems, water intrusion, or other documented damage may support separate claims from solar fraud.

Can I sue both the solar installer and the lender?

You may be able to pursue claims against both the solar installer and lender, depending on their involvement. If the installer misrepresented the system while the lender financed the transaction, different legal claims may apply to each party.

What is contract rescission, and how is it different from a refund?

Contract rescission generally means unwinding an agreement, while a refund means returning money already paid. Rescission attempts to restore both parties to their positions before the contract, when legally available.

Can I recover money for property damage caused by a bad installation?

Yes, you may be able to recover money for property damage caused by a defective solar installation. Potential losses could include reasonable repair costs and other documented expenses directly resulting from the damage.

Can I recover triple or punitive damages in a solar fraud case?

Possibly, but triple or punitive damages are not available in every solar fraud case. Some consumer-protection laws allow treble damages for qualifying violations, while punitive damages may require particularly egregious or intentional misconduct.

How long does a solar fraud damages claim typically take to resolve?

A solar fraud damages claim can take anywhere from months to years, depending on how the dispute is resolved. A negotiated settlement may move faster than litigation, which can involve discovery, motions, and potentially trial. The complexity of the claims, number of parties, and willingness to negotiate can all affect the timeline.

• A viable solar fraud claim requires proof of misleading or unauthorized conduct plus measurable harm; being unhappy with your savings is not enough reason to sue.