You Can Sue Your Solar Lender for What Your Solar Company Did Wrong

Investing in solar energy seemed like the perfect choice. You were excited to reduce your electricity bills, adopt clean energy, and maybe even contribute to a greener planet. But somewhere along the way, things went wrong. 

Perhaps the solar company promised sky-high energy savings that never materialized, failed to complete the installation, or left you with defective equipment. To make matters worse, you're now stuck with a solar loan to pay off, even though the solar company didn't meet its promises.

If this sounds familiar, you're not alone. Across the country, numerous homeowners have been trapped in situations just like this—dealing with the fallout from untrustworthy solar companies while lenders demand payment for loans tied to faulty, incomplete, or undelivered systems. What you may not realize, however, is that you have legal options, and it’s not just the solar company that can be held responsible for this wrongdoing. 

You may also have the right to hold your solar lender accountable for the actions—or failures—of the solar company that originally sold and installed the system. Attorney Macy D. Hanson has dedicated significant time and effort to fighting for clients in situations like yours, helping you pursue justice and financial recovery. 

At The Law Office of Macy D. Hanson, PLLC, based in Madison, Mississippi, Attorney Hanson has over 10 years of experience representing clients nationwide. The office offers free consultations and strives to hold companies and lenders accountable. 

This article will explore the key legal principles that may allow you to sue your solar lender for the wrongs caused by your solar company. Specifically, there are three primary legal theories for holding lenders liable in these cases: the Federal Trade Commission’s Holder in Due Course Rule, the concept of a principal-agent relationship, and joint venture liability. 

The Federal Trade Commission’s (FTC) Holder in Due Course Rule 

One of the most significant tools available to protect consumers in loan-related disputes is the Federal Trade Commission’s Holder in Due Course (HDC) Rule. Under this rule, the lender (i.e., your solar loan provider) assumes the same liabilities as the company that sold or installed your solar system. This means that if the solar company engaged in deceptive practices, failed to deliver promised services, or breached its contract with you, the lender might also be held responsible for those actions. 

Simply put, the HDC Rule is designed to protect consumers from being stuck paying for any defective or undelivered products and services they financed. It makes sure lenders cannot turn a blind eye to the practices of the companies they partner with. If your solar company violated your rights or failed to fulfill its obligations, you may be able to file a legal claim against your lender under this rule. 

Principal-Agency Relationship 

The legal principle of a principal-agent relationship is another way to hold your solar lender accountable. A principal-agent relationship exists when one party (the agent) is authorized to act on behalf of another (the principal). 

When it comes to solar financing, many lenders work closely with specific solar companies, often establishing relationships that amount to an agency arrangement. For example, a lender might give the solar company authority to offer financing directly to customers or rely on the company to act as the lender’s representative during the sales process. If this type of relationship can be proven, then the lender (the principal) may be held responsible for the wrongful actions or misleading statements of the solar company (the agent). 

Building a case based on principal-agency law often requires careful investigation and legal knowledge. It’s essential to assess the contracts, communications, and other interactions between the lender and the solar company to determine whether agency liability applies. 

Joint Venture Liability 

The third legal basis for holding your solar lender liable is joint venture liability. A joint venture arises when two or more parties collaborate on a business effort with shared goals, risks, and profits. Many solar companies and lenders have close financial and operational ties, with both benefiting from the deals they make with consumers like you. While they may claim to be independent entities, their collaborative efforts might qualify as a joint venture under the law. 

If a joint venture exists, both parties may be held responsible for the other's actions. For example, if the solar company misrepresented the performance of its systems or failed to complete an installation, the lender could also share liability for those breaches. 

Proving a joint venture typically involves demonstrating shared decision-making, profit-sharing, or other indicators of a collaborative effort between the lender and the solar company. 

What Does This Mean for You? 

The laws surrounding solar contracts and loans can feel overwhelming, especially when you're already dealing with the frustration of a faulty or incomplete solar installation. However, you don’t have to face this battle alone. Attorney Macy D. Hanson has a deep understanding of the laws and principles that apply to these cases and has spent more than a decade helping consumers nationwide fight back against unfair practices. 

If your solar company failed to deliver and your lender is now demanding payment for a system that doesn’t work or doesn't exist, you may have strong legal options. Whether it’s through the FTC Holder in Due Course Rule, the principal-agency relationship, or joint venture liability, you hold your lender accountable for their role in your financial hardship. 

Take the Next Step 

At The Law Office of Macy D. Hanson, PLLC, you’ll find a dedicated, experienced solar fraud litigation attorney who will listen to your concerns, evaluate your case, and fight for your rights. Offering free consultations, Attorney Hanson helps consumers across the United States take on lenders and solar companies alike. You deserve justice and financial relief—and with the right legal support, you can achieve it. 

If you're ready to take action or want to learn more about your options, contact The Law Office of Macy D. Hanson, PLLC, today to learn how your solar lender can be held accountable for the mistakes your solar company made.