A coalition of eight attorneys general, including Pennsylvania Attorney General Josh Shapiro, is calling on solar companies to suspend loan payments on solar power systems from Pink Energy.
The coalition sent a letter to Dividend Solar Finance, GoodLeap, Cross Riverbank, Sunlight Financial, and Solar Mosaic, asking them to suspend loan payments and interest accrual for customers who financed solar systems from Pink Energy but still don’t have a working solar power system. The coalition is also asking the lenders to help Pink Energy customers experiencing other solar energy functionality and installation issues.
“Pink Energy ripped off consumers and is hiding behind bankruptcy,” said Attorney General Shapiro. “Lenders who want the solar power sector to grow should help consumers obtain relief now while Pink Energy’s bankruptcy process continues. Consumers made good-faith choices to heat and power their homes and should not be trapped in loans for a product that wasn’t delivered.”
Earlier this year, Shapiro started an investigation into Power Home Solar after getting customer complaints about the company’s deceptive business practices. Power Hole Solar does business as Pink Energy, Shapiro’s office said. Before the investigation was concluded, Pink Energy closed its doors and filed for bankruptcy.
Shapiro said in the letter that complaints alleged that Pink Energy made “false representations regarding the systems’ capabilities and anticipated electric bill reduction” and that, as a result, consumers were led to believe they were “making an environmentally friendly and financially prudent decision by purchasing a solar power system from Pink.” Instead, Shapiro said, customers got stuck making loan payments for underperforming on non-functioning solar power systems in addition to their electric bill.
The letter also alleges that Pink Energy misrepresented eligibility for state or federal tax credits that could be used to satisfy the loan agreements with solar lenders, leaving Pink Energy customers in a precarious position.
“For many consumers, not receiving the promised tax credits has left them unable to make the necessary lump sum payment required to keep your company, or an affiliated lender, from substantially increasing their monthly loan payment,” the letter said. “These consumers relied on Pink’s representations regarding the tax credits in deciding that they could afford the terms of their loan, and the increased monthly payments are beyond what their budgets could handle – especially when the solar power system is not functioning properly or at all.”
The coalition was joined by Attorneys General from Kentucky, Illinois, Indiana, Michigan, North Carolina, South Carolina, Tennessee, and Virginia.