Nashville Attorney General Skrmetti today joined a coalition of eight attorneys general, led by Kentucky Attorney General Daniel Cameron, in sending a letter to Dividend Solar Finance, GoodLeap, Riverbank, Sunlight Financial and Solar Mosaic. The letter urges these solar providers to suspend loan payments and interest accrual for customers who financed the purchase of a Pink Energy solar system and did not receive a working solar system. The attorneys general are also asking the lenders to assist Pink Energy customers experiencing other functionality and installation issues.
“This office is committed to protecting consumers in Tennessee from unlawful and unlawful business practices,” said General Skrmetti. “Companies that defraud customers through false statements must and will be held accountable. I am proud of the dedication of our Consumer Protection team in investigating this matter.”
The Attorney General of Tennessee signed this letter following a deluge of complaints filed by consumers before Pink Energy abruptly ceased operations and filed for bankruptcy on October 7, 2022. Several consumer complaints have also been filed since the bankruptcy filing, mainly from consumers concerned about having to continue paying for a solar system that is not working as promised. In their letter, the attorneys general explain that many of the complaints received by their offices allege that Pink Energy has “made false statements regarding the capabilities of the systems and the anticipated reduction in electricity bills.”
As a result, consumers “who thought they were making an environmentally sound and financially sound decision by purchasing a solar power system from Pink are now stuck paying loans for an underperforming or non-functioning solar power system on top of their monthly electric bill. ”
The coalition also notes that consumers have alleged that Pink Energy has misrepresented consumers’ potential eligibility for tax credits. Many of the lenders’ financing arrangements assumed that even the ineligible consumers could use their 26% credit for a lump sum payment.
However, as the attorneys general outline in the letter: “For many consumers, failure to receive the promised tax credits means they are unable to pay the necessary lump sum required to prevent your business, or an affiliated lender, substantially increases their monthly loan. payment. These consumers relied on Pink Energy’s statements regarding the tax credits to decide that they could afford the terms of their loan, and the increased monthly payments were beyond their budget – especially when the solar system malfunctioned (or failed altogether). not). ).”
Attorney General Skrmetti joined attorneys general from Kentucky, Illinois, Indiana, Michigan, North Carolina, Pennsylvania, South Carolina and Virginia in sending the letter.
View the letter, https://www.tn.gov/content/dam/tn/attorneygeneral/documents/pr/2022/pr22-47-letter.pdf.
#22-47: Tennessee joins multi-state coalition urging five solar companies to suspend loan payments for Pink Energy (aka Power Home Solar) customers