Texans file thousands of complaints over solar panel deals; state oversight promised

Investigative Summary

Texas is leading the way in solar power installations, but KXAN investigators found a growing number of Texans are filing solar panel-related complaints with the Office of the Texas Attorney General. Some consumers have even turned to KXAN for help trying to understand long-term contracts. State lawmakers have heard concerns too, and promise oversight is coming with key legislations which became laws last year.

AUSTIN (KXAN) — Jason Perez remembers how persistent the salesperson was in pitching him solar panels at his door.

“He came by multiple times, probably five or six, before I agreed to sit down and go over everything,” Perez recalled.

Perez was exploring ways to manage rising electric bills at his Corpus Christi home, especially during the summer months. He said during several conversations with the Lumio salesperson, he was promised big savings.

“I was told that the system would pay for itself and even generate a profit over time, that it would provide power during outages without additional equipment, that all service and repairs would be handled by the installer, and that my energy costs would significantly decrease,” Perez explained in an email to KXAN investigators.

Perez added in the email that none of those promises have happened.

Lumio has not responded to KXAN investigators about Perez’s case.

A growing number of Texans shared similar complaints with the Office of the Texas Attorney General, saying that they were misled about solar energy savings, incentives and overall costs when signing long-term contracts for solar panels.

Complaints and investigations

Documents Perez shared show he signed a 25-year agreement in October 2022 for nearly $100,000 with solar financing company Sunlight Financial. He said Lumio handled the sale and installation of his panels.

“After installation, the system did not perform as expected. Instead of saving money, my monthly costs increased. Between the solar loan payment and utility charges, I now pay significantly more than I did before—sometimes close to double,” Perez said.

Additionally, he said part of the system is not functioning, and he has no way to get it repaired because Lumio is no longer in business.

READ: Austin Energy hopes to increase its solar footprint

“I was never notified,” Perez said. “This is a major issue because the warranty and service support were key reasons I agreed to the system. Without the installer, that warranty is essentially meaningless.”

Lumio filed for bankruptcy in September 2024, and its assets were acquired by Zeo Energy.

A spokesperson with Zeo tells KXAN investigators that the company did not acquire any Lumio projects completed prior to the bankruptcy. In a statement, the spokesperson added that Zeo purchased from the Lumio bankruptcy the right to finish a certain number of Lumio projects that had been sold but were not yet completed.

“Zeo has no contractual or other relationship with Lumio customers whose projects were completed before the bankruptcy,” said the Zeo spokesperson in a statement. “Zeo does not have the contractual right or legal ability to service Lumio systems completed before the bankruptcy, or any projects it did not acquire.”

KXAN investigators also reached out to the Lumio salesperson. He said he lost his job with the company after the bankruptcy and added that transparency was a priority for him.

“Whenever I would bring a proposal to a customer I would always be open and very honest about what exactly you were getting whenever it came to purchasing the solar panels. I never misled or made promises I wasn’t able to uphold,” the former Lumio salesperson said. “I would always tell the customer to read everything detailed in the contract and if warranties, pricing, equipment, labor or if it simply didn’t make sense for them to go forward with the purchase, I personally would tell customers to walk away from the deal.”

Perez said after Lumio’s bankruptcy, he sent a certified, notarized letter to his solar financing company outlining his concerns and demanded the removal of the solar panels, reimbursement of all payments and compensation for all costs required to repair roof damage caused by the installation.

A Sunlight Financial spokesperson responded in a statement, writing that “system performance or sales representations are the responsibility of the installer, not the lender or Sunlight.”

“Sunlight Financial takes customer concerns seriously. We have previously reviewed this matter and responded to related regulatory inquiries initiated by the borrower. The loan agreement is separate from the installer’s installation agreement, and system performance or sales representations are the responsibility of the installer, not the lender or Sunlight,” the statement reads.

The statement added, “the borrower’s obligation to repay the loan is not dependent on system performance, which is standard for home improvement financing. We understand the installer is no longer in business, and Sunlight is willing, though not obligated, to help connect the customer with appropriate support resources, including the manufacturer of component parts of his solar energy system.”

Perez isn’t alone in feeling helpless and frustrated. KXAN investigators have discovered an increase in solar panel-related complaints filed with the Office of the Texas Attorney General each year since 2020. In that time, the complaints have totaled more than 3,000, with nearly a fifth of those involving 10 different companies — all under active investigation, including Sunlight Financial, Perez’s solar financing company.

Chart showing the total number of solar-related complaints filed with Texas Office of the Attorney General for each year from 2020 through 2025. Source: Texas Office of the Attorney General. (KXAN Interactive/Dalton Huey)

For weeks, KXAN’s questions to the agency about those investigations have gone unanswered. Texans who have filed complaints, including Perez, said they’re still waiting to see if the agency will do anything to help them. In April, Attorney General Ken Paxton said in a press release that his office has launched a major initiative to crack down on companies that sell solar panel systems and are engaging in fraudulent and deceptive practices.

“Thousands of Texans have been targeted by companies selling solar panel systems, and it’s imperative that these companies are held responsible for any lies or deceptive marketing they use,” said Paxton. “This initiative to stop widespread fraudulent activity in the solar panel industry is only beginning, and my office will take legal action against any corporations breaking the law and scamming Texans.”

READ: Austin Energy sees new solar boost as Texas power demand doubles

Texas lawmakers, including State Sen. Judith Zaffirini, D- Laredo, pushed for oversight in the last legislative session after hearing about aggressive door-to-door tactics and false promises of “free” panels or eliminated electric bills.

“The number of complaints clearly reflects a serious and widespread problem affecting Texans. Even when the number of investigations is limited, consumers should continue to file complaints because doing so creates a record, helps identify patterns and supports enforcement efforts,” Zaffirini said.

‘How could I be so gullible?’

It’s why Patricia Olvera said she filed her complaint with the Attorney General’s office in February writing, “I want the panels removed, I want out of my financial agreement, I don’t want to have any cost towards me, and I want my roof restored.”

Olvera told KXAN investigators that she was also trying to save on her rising electric bills and thought she found a solution when she said a solar panel salesman with SolarEdge showed up at her door in Round Rock during the summer of 2024 and promised savings and incentives.

“I was told by him that I would initially be receiving a substantial amount during income tax time, an income tax credit. And I could either use that money towards doing a remodel to the home, or I could send it back to the finance company,” she said.

Olvera explained it sounded like a good deal, especially during a very difficult time in her life. She admits it had been hard to move forward after the loss of her son almost four years ago. Records Olvera shared with KXAN show that she signed a 25-year agreement with solar financing company Mosaic for nearly $33,000. The document also stated that another company — Freedom Forever — would install the panels.

In February, she sent an email to all the companies involved in her contract, claiming fraud and misrepresentation. Solar Servicing — which took over financing her loan after the original company, Mosaic, filed bankruptcy — responded, saying her dispute was investigated but the loan remains valid.

Mosaic and SolarEdge haven’t responded to KXAN investigators, and neither has the salesperson who sold Olvera the solar panels. The installer — Freedom Forever — said it’s aware of the situation and has been in touch with Olvera adding, “We remain committed to delivering a high-quality customer experience and take our customers’ feedback seriously. We will continue working directly with the customer to ensure they receive the quality of service Freedom Forever is committed to.”

Olvera said she’s still waiting to connect with the company about her options. More than a year ago, Olvera said she had a stroke and hasn’t been able to work, and most recently, her husband was diagnosed with colon cancer. She worries now she could lose her home if she can’t pay back her solar loan.

READ: ‘Unprecedented’: Austin Energy adds 18 MW of solar in 2025, is on track to meet 2027 goal

“Every day, every day, I look back, and I think, how could I be so gullible and trusting to these people,” she said.

Lawmakers promise oversight

Lawmakers are hopeful new laws will protect consumers and promote a more transparent and accountable residential solar market in Texas.

Starting in September, the Residential Solar Retailer Regulatory Act, authored by Zaffirini, will require solar panel salespeople and companies to register with the Texas Department of Licensing and Regulation. The law will also prohibit salespeople from making misleading claims and guarantee a consumer’s right to cancel a contract within five business days of signing. Fines for violations could range between $50,000 to $100,000.

“Texas needs this law because Texans interested in solar energy deserve honest and transparent transactions, not deceptive sales tactics,” Zaffirini said by email to KXAN.

Zaffirini explained she’ll monitor the implementation of the new law and promises to revisit the issue during the next legislative session in 2027 to see if any additional safeguards are needed.

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Another bill she helped pass last session focuses on education. In February, the Public Utility Commission published online a new consumer solar guide for home solar systems. It includes what you should know before making an investment in solar panels and questions you should ask a salesperson, like: is my home a good fit for solar panels, and what are the payment options for buying or leasing solar panels?

Zaffirini said consumers should be cautious about unsolicited sales pitches, especially those promising “free” solar panels or claiming to be part of a government program. She added that they should review all contracts, ask questions, and avoid signing anything they do not fully understand. If consumers have concerns, they should file complaints with TDLR and keep records of all communications.

WATCH: TEJC webinar on deceptive solar panel practices in Texas

Lawmakers also wanted to raise awareness, especially among older Texans. The Texas Elder Justice Coalition — an advocacy organization — has heard from impacted families and recently held a webinar about deceptive practices impacting older and non-English speakers and ways to report fraud in the state.

How Texas compares nationwide

Stan Pipkin with Lighthouse Solar in Austin said he welcomes oversight.

“The bad actors need to be chastised or removed and or controlled. But let’s not lose sight that the technology and these systems have relevance and value. So, it’s really about making sure we deliver that value and safeguard it,” said Pipkin, CEO of Lighthouse Solar, which is a KXAN sales client.

He explained transparency is paramount for his company and a major reason why they don’t do door-to-door sales but instead rely on repeat customers and referrals.

“People contact us with an interest and then we take that and really understand what they want to achieve. So that may take a year. A door-to-door salesperson does not wait a year, so our team is patient,” he said. “We found that that produces the best relationship. For us, that provides a service that’s meant to last 25 years. That initial we’ll say dating period — we need to get it right.”

He explained that they’ve had to build a service department just to help families left stranded by other companies, “there’s a system that might be working not so well or might be just not functioning at all, and we come in, and we can repair it, or we can reestablish a warrantable system so we can bring it back up to speed.”

Solar Energy Industries Association (SEIA), a national trade group, also supports the consumer protection laws.

The association stated Texas is the fastest-growing solar market in the country with nearly 300,000 Texans installing solar on their homes, the third most of any state in the country. SEIA pointed KXAN to resources for consumers, including a residential consumer guide to solar energy and a guide to financing.

As families like Perez and Olvera try to figure out what can be done with their solar panels, thousands across the nation are also filing complaints federally. The Consumer Financial Protection Bureau, a federal agency aimed to “protect consumers from unfair, deceptive, or abusive practices,” has received more than 2,000 solar-related complaints over a decade, jumping from just 6 in 2015 to nearly 800 last year. The top three states listed in the complaints are Texas, California, and Florida.

Map showing the total number of solar-related complaints by state the Consumer Financial Protection Bureau has received since 2015. Source: Consumer Financial Protection Bureau. (KXAN Interactive/Dalton Huey)

Perez shared his federal complaint with KXAN. He recently moved to Austin for work, but has been having to travel to Corpus Christi to figure out what to do with the solar panels.

“What I am trying to do now is have this loan canceled and declared null and void due to the deceptive practices that were used to get me to sign the agreement,” he said. “Getting out of a contract like this should not be as difficult as it has been.”

KXAN Investigative Photojournalist Richie Bowes, Director of Investigations & Innovation Josh Hinkle, Digital Director Andrew Schnitker and Digital Special Projects Developer Robert Sims contributed to this report. 

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