NBC 10 I-Team: Several Rhode Island solar panel companies under investigation - Turn to 10

NBC 10 I-Team: Several Rhode Island solar panel companies under investigation

At least three solar panel companies are under investigation by the Rhode Island Attorney General’s Office following a flood of consumer complaints.

According to records obtained by the NBC 10 I-Team, Attorney General Peter Neronha's office received 107 complaints against solar panel companies last year, a 100% increase from the 48 complaints in 2022.

“We have really seen the complaints shoot up,” Neronha said.

The I-Team began investigating solar panel companies last year after an installation in West Warwick caused roof leaks, extensively damaging a woman’s home.

This past December, a Warwick family contacted us about a similar issue.

The I-Team helped both of those homeowners get refunds and repairs, but they just scratch the surface of consumer issues involving solar panel companies in Rhode Island.

SOLAR PANEL LAWSUIT

Smart Green Solar is being sued by the state for allegedly violating state law.

The complaint accuses the company of engaging in a pattern of unfair and deceptive trade practices in door-to-door solicitations and making unsolicited sales pitches for residential solar panel systems.

This past November, Neronha filed a motion to amend and supplement the initial complaint, building on previous allegations, and added two more company executives as defendants.

Steve Provazza, the chief of the Attorney General’s Office Consumer Unit, is heading the investigation into Smart Green Solar.

“People started doing their taxes, and they noticed that some of the promises they were made, or some of the things they were led to believe about the tax benefits of solar turned out to be a little misleading,” he said. “They were surprised they did not receive a larger tax return, or a check from the federal government, as they had been promised by the solar panel sellers.”

Smart Green is no longer the only company under the microscope.

INCREASE IN INVESTIGATIONS

“We do have other ongoing investigations into the solar panel industry,” Provazza said.

Neither Neronha nor Provazza would confirm which companies are being investigated, but said each company has had a pattern of complaints.

“We receive a lot of complaints from customers who are confused about the amount of energy production their system is creating,” Provazza said.

Other complaints include confusion over electric bills, installations that led to roof leaks, and federal tax breaks that never materialized.

In several cases, consumers have been told they would get 30% off the purchase price of a solar panel system through the Residential Clean Energy Tax Credit.

However, some consumers only received a portion of the credit or did not get the credit at all, as eligible consumers must have paid federal taxes within the year of installation to qualify.

“There are some taxpayers that because of their low income status don’t pay taxes or may not have to pay a lot of taxes,” Neronha said. “If you don’t have a tax bill you can’t get a credit, and that is not very well explained if it’s explained at all.”

RESEARCHING SOLAR COMPANIES

Dozens of solar panel companies operate in the region, but checking their qualifications isn't always easy.

Rhode Island offers this list of solar companies with active Renewable Energy Professional certificates, but doesn't publicly list solar companies that operate under licensed electrical contractors, which is all you need to sell solar.

The list that's available is updated on a quarterly basis, which means it's not always accurate.

When we checked a couple of months ago, it included several companies that had expired licenses.

With few state regulations or consumer protections in place, the solar industry has been referred to as the wild, wild west.

“When you are dealing with a solar panel company, there are very few things spelled out that they have to disclose to you,” Provazza said.

That’s why consumers need to review agreements carefully and know exactly what they're paying for.

“You don’t have to take the deal on the day it’s presented to you at your doorstep,” Neronha said. “You have three days to change your mind and that’s an important consumer right we have under Rhode Island law and it shouldn’t be forgotten.”

REGULATING SOLAR

There is legislation at the State House that would regulate the solar industry.

The House approved a bill last week that would require solar companies to register both their business and a roster of all sales personnel in Rhode Island.

It would also require criminal background checks for all principal officers and sales representatives, and require companies to follow city and town rules for door-to-door sales, along with federal telemarketing rules.

The state Department of Business Regulation would also play a bigger role in overseeing solar companies. The legislation would give DBR the authority to investigate complaints, impose administrative penalties, revoke registrations, and order violators to cease and desist.

That bill is now headed to the Senate, which has already passed companion legislation.

In the meantime, Neronha’s office has posted advice and guidelines for what consumers should consider before signing up for solar.