Texas Attorney General Ken Paxton has opened a solar panel lawsuit in Texas against San Antonio-based CAM Solar Inc. and is investigating three other residential solar companies for deceptive sales practices, and individual homeowners who were misled have their own claims available under the Texas Deceptive Trade Practices-Consumer Protection Act regardless of what the state does. What you can recover, and how you have to pursue it, depends on when you signed, what your contract says about arbitration, and whether the company that sold or financed your system is still in business.
What the Attorney General Has Filed
On May 20, 2026, the AG’s office sued CAM Solar Inc. in Bexar County District Court, alleging violations of the Texas Deceptive Trade Practices Act. The petition accuses the company of misleading homeowners about energy savings and tax-credit eligibility, installing defective systems (including panels that reportedly detached from a roof during a storm), failing to honor warranties, charging undisclosed fees for warranty service, and leaving customers paying financing on non-functioning systems. One allegation stands out: the state says CAM Solar added family members as primary borrowers on financing agreements without proper consent or disclosure.1KXAN. AG Sues San Antonio Solar Company Alleging Fraudulent Sales Practices
The state is seeking injunctions, record preservation, identification of all affected Texas consumers, restitution, and civil penalties of up to $10,000 per violation.2Texas Attorney General. Attorney General Ken Paxton Sues San Antonio-Based Solar Company for Fraudulent Sales of Solar Panel Systems
One complication for CAM Solar customers: the original CAM Solar Inc. voluntarily ceased operations in November 2025. Two months earlier, an entity called CAM Solar 2.0 LLC bought the original company’s assets, including its name, website, customer database, and phone number. The new entity’s owner has said it “did not assume liabilities” from the original company. The AG’s lawsuit names only CAM Solar Inc.3San Antonio Express-News. Texas AG Ken Paxton Sues CAM Solar in San Antonio
The AG has also issued Civil Investigative Demands to three other residential solar companies: Freedom Forever, LLC (referred to by the AG as “Freedom Solar”), Sunrun, Inc., and Lone Star Solar Services LLC. The demands require each company to hand over marketing materials, contracts, warranties, service plans, and documents showing how they track customer electricity-bill savings.4Texas Attorney General. Attorney General Ken Paxton Launches Major Initiative to Combat Widespread Fraud by Companies Selling Solar Panel Systems Sunrun has said it is cooperating and objected to being grouped with other companies; the AG’s office has separately said Sunrun accumulated 123 complaints over five years.5CBS News Texas. Texas Investigation Into Rooftop Solar Industry
An AG action does not compensate you directly. Restitution ordered by a court in a state case can reach affected consumers, but if you want damages for your own contract you generally need to pursue your own claim.
What You Can Sue For Under Texas Law
The Texas Deceptive Trade Practices Act lets a consumer sue a solar company for economic damages and mental anguish, and for triple damages if the violation was knowing. Attorney fees may be recoverable. The statute of limitations is two years from the date you discovered, or reasonably should have discovered, the deceptive practice.6Solar Panel Fraud. Solar Panel Fraud – Texas DTPA Information
Common theories in solar cases are fraud and misrepresentation, breach of contract, and DTPA claims. Facts that support them include false statements about how much your electricity bill would drop, misrepresentations about the 30 percent federal Investment Tax Credit (which is non-refundable and depends on your actual tax liability), forged signatures, unauthorized email accounts created to push through DocuSign documents, and undisclosed “dealer fees” built into loan principal.7Consumer Financial Protection Bureau. Issue Spotlight: Solar Financing
Two contract clauses will shape what you can actually do. Many solar contracts include binding arbitration clauses that prevent you from filing in court or joining a class action, pushing you into one-on-one dispute resolution. Non-reliance and merger clauses attempt to disclaim any verbal promises a salesperson made; under Texas law these are not always enforceable when you can show you were actively misled. Pull your contract and read both provisions before deciding how to proceed.
Documenting a Financing Claim
If your dispute involves the loan rather than only the equipment, specific facts strengthen a DTPA case. Compare the cash price you were quoted to the financed price on your loan documents; the gap is the dealer fee, and installers are frequently forbidden by lenders from disclosing it. Check whether your loan re-amortizes to a much higher monthly payment if you don’t make a lump-sum payment (typically 30 percent of principal) within about 18 months. Look for a UCC-1 lien filed on the equipment: it appears on title searches and can block a home sale. In Texas, UCC-1 filings expire after five years unless renewed, and there is no statutory 30-day removal-by-notice process.8Cities Real Estate Blog. Solar Panel UCC Liens Are Killing Home Sales in DFW
PACE financing is a separate risk: it ties repayment to property tax assessments and carries lien priority that can result in foreclosure, and Fannie Mae and Freddie Mac generally refuse to back properties with PACE liens.
Where to File Complaints
Filing complaints does two things: it feeds ongoing investigations, and in some channels it opens direct resolution routes.
- Texas Attorney General, Consumer Protection Division.
- Texas Department of Licensing and Regulation, for contracts entered after September 1, 2025.
- The FTC and the Consumer Financial Protection Bureau.
- The FBI, through its “TX Solar Panel Fraud Investigation Questionnaire,” which targets consumers who obtained panels between 2021 and 2024 and asks about “free government subsidized program” pitches, unauthorized loans, and promised credits or rebates that never materialized.9FBI. TX Solar Panel Fraud Investigation Questionnaire
Private settlements do happen. Sunrun customers Brian Blake and Sandra Dolan reached a settlement with the company that included cancellation of their contract and $15,000 in damages.5CBS News Texas. Texas Investigation Into Rooftop Solar Industry
If Your Installer or Lender Went Bankrupt
Several major players in Texas have filed for bankruptcy, and this changes what you can pursue and against whom.
A bankruptcy filing triggers an automatic stay on legal proceedings against the debtor. You generally cannot sue the bankrupt entity outside the bankruptcy court, but you may still pursue third-party installers or lenders that are not in bankruptcy.10Prevost Law Firm Blog. Solar Mosaic Bankruptcy Updates
Sunnova Energy filed Chapter 11 on June 8, 2025. Through a court-supervised sale, Solaris acquired substantially all of its assets, and SunStrong Management took over servicing, billing, and maintenance for most customer systems; Sunnova’s website states existing contract terms remain unchanged.11Sunnova. Sunnova – Home
Lumio Holdings filed Chapter 11 in September 2024, later converting to Chapter 7 liquidation, with a sale of its assets to Zeo Energy approved in November 2024. A class action was filed, but mandatory arbitration clauses in many Lumio contracts block class participation.12Prevost Law Firm Blog. Lumio Solar
Solar Mosaic filed Chapter 11 on June 6, 2025. Forbright Bank’s subsidiary, Solar Servicing LLC, acquired the company and took over existing loan servicing; Mosaic stopped originating new loans.13Kroll Restructuring. Mosaic Sustainable Finance Corporation The key point for Mosaic borrowers: Mosaic previously tried to block application of the FTC Holder Rule to its loans, but 22 state Attorneys General opposed that attempt and it was withdrawn. The Holder Rule lets you assert claims against whoever holds your loan for the seller’s misconduct, so a claim against your installer for fraud or defective installation can be raised as a defense or offset against Solar Servicing LLC as the current loan holder.10Prevost Law Firm Blog. Solar Mosaic Bankruptcy Updates
Consumers have reported difficulty reaching Solar Servicing, receiving auto-generated responses, and encountering staff who say they cannot see communications previously sent to Mosaic. Keep copies of every prior communication with the original lender.
SB 1036: What Changed and When It Applies
Governor Abbott signed Senate Bill 1036 on June 20, 2025, and the first wave of protections took effect September 1, 2025. The law applies to contracts signed after that date; older contracts fall under prior law, so if you signed in 2023 or 2024, SB 1036’s specific cancellation rights and disclosure rules do not retroactively help you, though DTPA claims remain available.14HCH Lawyers. Texas SB 1036: What Solar Retailers and Salespersons Need to Know
For qualifying contracts, SB 1036 requires that installation be done by a licensed electrical contractor whose name and license number appear in the contract, and it gives buyers five business days to cancel without penalty. If a third-party lender is affiliated with or referred by the solar retailer, the agreement must include a provision requiring the lender to cancel the loan if the sales agreement is canceled. Standardized cost and financing disclosures are required at sale.15Texas Department of Licensing and Regulation. Consumer Protection: Solar Panel Regulations
Beginning September 1, 2026, solar retailers and salespersons must register with the Texas Department of Licensing and Regulation. Civil penalties for violations can reach $50,000 per offense, or $100,000 for violations targeting victims 65 or older.16Texas Legislature. SB 1036 Bill Analysis
If you signed after September 1, 2025 and your contract lacks the required contractor licensing information or the standardized disclosures, that omission itself is evidence supporting a claim.