Top 10 Tips for Borrowers Struggling with Solar Loans

If you’re a homeowner managing a solar loan, you may have started off feeling optimistic about the promise of reduced energy costs and environmental benefits. However, for many individuals, that optimism has turned into frustration and stress as lenders for residential solar panel projects have declared bankruptcy or transferred loan portfolios to other entities. 

Borrowers often find themselves confused, wondering who owns their loan, whether their contracts are enforceable, and how to fight back against deceptive practices. This situation is not only emotionally taxing but can also have serious financial repercussions. 

Many borrowers affected by loans through companies like Sunnova, Solar Mosaic, and SunPower are grappling with rapidly changing circumstances as these entities file for bankruptcy and sell their loan portfolios to unidentified or affiliated investors. If you find yourself stuck in this frustrating position, it's important to understand your rights and your next steps. 

Attorney Macy D. Hanson at The Law Office of Macy D. Hanson, PLLC, based in Madison, Mississippi, has more than a decade of experience assisting borrowers just like you. Serving clients across the United States, Attorney Hanson is devoted to holding negligent and deceptive solar companies accountable. Keep reading to learn the top 10 steps and strategies every borrower should take to protect their finances and pursue legal justice. 

1. Identify the Current Loan Holder 

When solar lenders like Sunnova or Solar Mosaic go into bankruptcy and sell off their loan portfolios, it can create confusion among borrowers. Investigate and confirm the identity of the new owner of your loan or lease contract. 

This will often require reviewing notices sent to you or contacting the original lender or servicer for clarification. Without knowing who officially owns your loan, it becomes impossible to take meaningful legal action or fully understand your options. 

2. Document All Communications 

Keep a detailed record of all correspondence between you and the lender or servicer. This includes emails, letters, payment receipts, and phone call logs. 

These records can serve as critical evidence in court if you need to build a case against deceptive or illegal practices. If your original lender has gone bankrupt, retain all notices about the bankruptcy proceedings. 

3. Review Your Loan Agreement 

Take a close look at your original loan or lease agreement. Examine the terms for any potential breaches of contract, deceptive clauses, or predatory terms. 

Many solar borrowers discover hidden fees, escalating loan payments, or misrepresented savings in their agreements. Attorney Hanson frequently reviews loan agreements in such cases and helps clients better understand where their rights may have been violated. 

4. Understand Your State and Federal Rights 

Borrowers have protections under both state and federal consumer protection laws. For instance, legal actions like breach of contract or claims under the federal Truth in Lending Act may be applicable in your case. Attorney Hanson is experienced in consumer protection litigation. 

5. Check for Potential Loan Cancellation 

Many solar borrowers do not realize that loan cancellation may be a valid form of legal relief. If deceptive practices or misrepresentation played a role in your solar loan, you may be able to pursue cancellation through litigation. Attorney Hanson has successfully helped clients seek loan cancellations tied to improperly structured residential solar projects. 

6. Stay Current on Payments (If Possible) 

While you may feel frustrated making payments to an entity you never agreed to loan terms with, staying current on your loan is important to avoid late penalties, additional fees, or damage to your credit score. However, if you’re facing financial hardship, an attorney can help you determine if withholding payments may be an appropriate strategy in your case. 

7. Be Cautious About Refinancing or Selling 

Avoid making quick decisions to refinance or sell your solar loan without consulting an attorney. Predatory lenders or equity investors who purchase these loans may push aggressive offers that could trap you in worse financial situations in the future. An attorney can help you understand the long-term implications of any refinancing option. 

8. Connect with an Attorney 

Navigating the complex details involved in solar loan issues requires the insight of an experienced attorney. The Law Office of Macy D. Hanson, PLLC provides free consultations to borrowers across the U.S., addressing individual concerns and tailoring solutions to each unique circumstance. No borrower deserves to feel powerless; legal assistance can be a critical lifeline. 

9. Look for Class Actions or Group Litigation Opportunities 

Borrowers frequently find themselves in similar situations with the same lenders. Joining a class-action lawsuit may be a cost-effective way to seek collective relief. Many of these suits address systematic issues like deceptive lending practices, enabling borrowers to stand together and challenge bad actors in the solar industry. 

10. Stay Updated on Bankruptcy Proceedings 

If your lender filed for bankruptcy, stay informed about any updates related to the court proceedings. Bankruptcy cases can affect your loan terms, especially if loan portfolios are restructured or sold. Consulting with an attorney well-versed in solar litigation, such as Attorney Hanson, will help you understand how these legal shifts impact you directly. 

Seeking Support Against Deceptive Solar Loan Practices 

Borrowers struggling with solar loans tied to lenders like Solar Mosaic, Sunnova, and SunPower are not alone. Many homeowners find themselves blindsided by bankruptcies, unexplained investor sales, and rising payment obligations—all stemming from misleading promises made by solar installers and their financial partners. 

Thankfully, there are legal avenues to seek justice, and with experienced counsel, borrowers can regain control over their financial futures. To address these issues, The Law Office of Macy D. Hanson, PLLC, offers tenacious representation and serves as a steadfast advocate for borrowers nationwide. 

A free consultation with Attorney Hanson can be the first step toward understanding your options. Contact the firm today to learn more about protecting your rights, pursuing loan cancellation, or holding deceptive lenders accountable. Don’t wait until the burden becomes overwhelming; your financial recovery can start now.