Your SolarCity Lawsuit Questions Answered
Having problems with SolarCity? If so, you might be looking for ways to get compensation. Maybe they haven’t held up their end of the deal, or their salesperson wouldn’t get you out of a contract. Now you want to know if you can sue.
Below are some of the most common questions like these and more.
As of 2022, Deanna Nixon serves as the CEO of Tesla Energy, which took over SolarCity in 2016.
SolarCity was headquartered in San Mateo, California. SolarCity is now part of Tesla, which is headquartered in Austin, Texas.
Yes, SolarCity, which was purchased by Tesla Solar, is a legitimate company. However, legitimate companies can still make mistakes or have issues with the products and services they provide. If you have a problem with SolarCity, you can speak with an attorney to see whether you have grounds for a legal case for compensation.
No. However, Tesla Solar, the company that took over SolarCity, is ranked the eighth most reliable solar company in the United States, according to Forbes.
Tesla Solar took over SolarCity in 2016.
Yes, it is. Tesla converted it into Tesla Energy which has continued to offer solar panels. SolarCity was originally founded by the cousins of Elon Musk, and Musk sat on the board of directors for Tesla Solar and SolarCity. When SolarCity began experiencing financial issues and lawsuits, Musk invested in the company and acquired it.
Technically yes, but in the form of Tesla Energy. SolarCity provides the differentiated solar solutions, while Tesla Energy provides Powerwall and Powerpack storage units.
If you were a SolarCity customer, you have to go through Tesla Solar for support, by choosing one of the following options:
There are several groups of laws that apply to SolarCity, which is now part of Tesla Solar, namely the Federal Trade Commission (FTC) regulations, safety standards, consumer financial protection laws, and state consumer protection laws. All of these are designed to protect you against unfair goods or services and unsafe business practices or services.
The Federal Trade Commission is responsible for interpreting and enforcing laws protecting you as a customer against harmful business products, abuse, financial fraud, or deception. When it comes to solar companies, they heavily regulate marketing practices to prevent false advertising and deceptive pricing.
Safety standards obviously apply to physical safety for all products and services provided by SolarCity, and these come in many forms, like the International Residential Code, International Fire Code, National Electric Code, and Interconnection Standards.
Then there are the financial protection laws. A lot of solar installation agreements involve loans for the cost of installation and purchase. Laws like the Truth in Lending Act set requirements for what information must be provided to consumers and how.
Door-to-door sales for solar panel installation by companies like SolarCity and Tesla Solar are governed by many Federal and state laws. Most of these laws are overseen by the FTC and state regulators.
The “Cooling Off” rule is perhaps the most important. With this rule, you are allowed three days from the time you sign an agreement to change your mind and cancel it. This rule applies no matter where you sign the agreement. If you signed the agreement inside your home with a door-to-door salesperson, you legally have to tell them that you know you have this right.
If you sign an agreement in your home, it has to include the following information:
If any of that information is missing or you change your mind about the contract, you can speak with an attorney about canceling.
You have many ways you can file a complaint against SolarCity, depending on what it is you are looking for and what your situation is:
An attorney can go over your case details with you and help you determine which complaint type is best.
People sue SolarCity, which was purchased by Tesla Solar, for a variety of reasons. Employees sue companies over bad business practices like termination agreements or overtime. Customers sue over things like solar panel defects, misrepresentation, or breach of contract.
In one example, a civil suit was filed by former employees stating that SolarCity made fake sales records to trick shareholders into believing the value of the company was higher than it was.
If you have an issue with SolarCity, a lawyer can help you determine what legal options you have and whether you can sue.
If you have an issue with SolarCity, you might be able to sue SolarCity (or their parent company Tesla). But what this process looks like will vary depending on your contract with SolarCity and what you were asking for in compensation. Your best resource here is to speak with an attorney who can go over your situation with you and give you legal advice.
Your contract and what you are seeking in compensation will determine how many options you have.
An attorney can help you determine which option is best given your issue, your contract, and what you want in compensation.
This depends on your circumstances. You’ll have to review your contract with SolarCity as well as the state laws where you live, something a lawyer can help you do. If you have grounds for a case and the company has broken the law or harmed you financially, a lawyer can help you pursue a claim and maximize your compensation.
Every contract can be different, so it’s up to you to look at the specific terms and agreements of your SolarCity agreement. You can work with an attorney to help you review your contract and determine whether arbitration is required.
SolarCity was involved in several class action lawsuits by shareholders over its acquisition by Tesla.
If you are eligible for a SolarCity class action lawsuit that is ongoing, the court will typically try to notify you through the mail with instructions on how you can verify your eligibility and proceed.
You might find it difficult to cancel your contract with SolarCity, now part of Tesla Solar, because cancellation policies vary so widely from one contract to the next. SolarCity has to abide by the FTC’s three-day “cooling off” period. There are a few other situations where you might be able to cancel your contract, such as:
An attorney can help you review what legal options you may have to cancel SolarCity based on your situation and your contract.
Even if SolarCity (now owned by Tesla) hasn’t broken its legal obligation to you, there are other ways to get out of or break your contract.
You can speak with an attorney about what options you have based on your situation and your contract with SolarCity.
Not paying SolarCity, which was purchased by Tesla Solar, can result in a different legal action based on the type of loan you have and whether you put up collateral.
Secured loans are secured (you promise to pay) with collateral (which is then taken by the lender if you can’t pay the loan amount). If you have any equity in your home, you might use a home equity line of credit or take out a home equity loan. Home equity loans get repaid in installments. Home equity lines of credit serve as revolving credit that you can reuse multiple times as long as you pay it back. If you don’t pay your secured loan, the company can take back the solar panels and any other equipment. If you continue not to pay, they can foreclose on whatever collateral you use.
Unsecured loans don’t have any type of collateral, but that doesn’t mean there isn’t follow-up legal action for non-payment. SolarCity can send your debt to a collection agency, report you to credit reporting agencies for non-payment, and potentially sue you personally for the remaining amount.
Yes, if you don’t pay your SolarCity loan, it can hurt your credit score.
When you take out a new debt of any kind, it gets reported to credit agencies. So do all of the payments associated with that debt. Generally with solar loans each time you make a payment on time, it lowers things like your debt-to-credit ratio and reflects positively on your credit score. But each time you make a late payment or fail to make a payment at all, it reflects poorly on your credit score. If you miss multiple payments in a row, your loan might be sent to a debt collector, which can significantly hurt your credit score.
If you have a SolarCity loan that is impacting your credit, you should know about your rights under laws, including the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.