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Texans file growing number of complaints against solar companies - KEYE TV CBS Austin

KEYE TV CBS Austin · last updated

Texans file growing number of complaints against solar companies | KEYE

AUSTIN, Texas — More Texans are adopting clean energy, but a warning before you invest in solar panels; hundreds of Texans are filing complaints with the State of Texas after they say some companies misled and misinformed them about their solar investment.

"They made it sound so great, so we did it," said Renee Morgan who lives in Florence, Texas.

CBS Austin met Renee and her husband, Wayne, on the day their solar panels were being temporarily removed. The homeowners needed a new roof following damage from a recent hailstorm. The couple called CBS Austin frustrated because their solar company said they couldn't remove the panels for six to nine months. The Morgans hired someone else to take them off, but that was just the latest hurdle in their ongoing struggle.

"I wish I would have done more research," Renee Morgan said. She explained a sales representative told them investing $50,000 in solar would lower their electric bill and a hefty tax credit would help offset the cost.

"When I initially got the contract, before signing it, it showed where the payment would go up. I was like, 'Look. If that’s the case, I don’t want to do this. I'm backing out. I'm not signing,' and he’s like, 'No. No. No. You’re going to get this big tax credit and it's going to be $12,000 and you can put that toward what you owe and then your payments won't go up,'" Morgan said. The conversation happened in writing through text messages Morgan showed CBS Austin she still has saved.

However, the Morgans later learned they weren't eligible for the tax credit and now they're stuck paying over $200 per month for solar panels with an electric bill that hasn't budged one bit.

"I get that I signed that contract and we're liable for this money. I get that. I understand that. I'm not disputing that. That was my stupidity. I should have done my research. I should have stuck to my guns," Morgan said.

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The company the Morgans used is called Lumio-- well known for making door-to-door sales in Texas. A records request CBS Austin filed with the Texas Attorney General's Office returned more than 20 complaints against Lumio in 2022. In those complaints, consumers allege "false statements, gross exaggerations" and guarantees for 30 percent tax credits.

CBS Austin contacted Lumio directly. They told us they cannot guarantee tax credits and state that in their contracts. They also said they were taking the Morgans allegations seriously and had opened an internal investigation.

Texas attorney Charles Moster has 88 clients in lawsuits against various solar panel companies and lenders. He says solar is great but you shouldn't enter into business with just anyone.

"The consumer is stuck with their prior electric bill plus a loan and they have a greater liability than they ever had before," Moster said.

"There are tax credits but not everyone qualifies for them, and you really need to know that on your own ahead of time?" CBS Austin asked. "Absolutely, and if they say it's a refund they’re lying through their teeth," Moster said. He isn't taking new solar panel cases but suggests the state attorney general's office should step in.

A records request shows from January 2020 to November 2023 the number of complaints filed with the Texas AG about solar panels is rising.

Requests Filed with Texas Attorney General Abut Solar Panels:

In the last year, dozens of states have taken action against solar companies. CBS Austin called and emailed the Texas Attorney General's Office asking, "As more state attorney generals take renews action against solar sales companies, what steps is Texas taking to protect consumers?" Four weeks later we still had no response.

"Why are we not protecting our people? What is going on behind the scenes?" Moster asked.

Behind the scenes, Renee Morgan was recently diagnosed with cancer making the ordeal with solar panels a burden she can't tackle alone.

"I've had to pass things off to [my husband] because I can't do it. It’s just too hard. I’m struggling and I know we're not the only people struggling the economy is horrible right now, but this is just added craziness we didn’t need," Renee said.

If you want to invest in solar panels for your home, here are some things you should do first:

"Some utility companies don’t give you anything. It’s a wash. If you produce extra stuff that you don’t use, then... you don’t really get anything out of it," explained Preston Prevost who runs PV National, a solar maintenance and aftercare company. Prevost said he's often meeting new clients who are disappointed with their solar output.

"I would attribute a lot of it to ignorance and lack of education coming from the people that are actually selling you the system," he said. Lastly, regular maintenance and cleaning are necessary and often required in solar contracts or any warranties can be null and void.

"I just wish people knew that they need to have somebody local that they can call on and rely on to come out and basically handle any problems that come their way," Prevost said.

Related Knowledge Center: ENERGY BASICS: solar

State of Play

Declining costs and government encouragement have resulted in a rapid increase in solar energy production in the United States over the past 10 years, although solar’s share remains small: 1.6 percent of all electricity generation in 2018. That rapid growth is projected to continue.

More informationabout ENERGY BASICS: solar