July 19, 2017 Thomas B. Pahl Acting Director Bureau of Consumer Protection Federal Trade Commission 600 Pennsylvania Avenue, NW Washington, DC 20580 Re: Violations of the Federal Trade Commission Act Dear Acting Director Pahl, Campaign for Accountability (CfA), respectfully requests the Federal Trade Commission (FTC) open an investigation into companies that lease and sell rooftop solar panels to consumers across the United States. A review of the extensive consumer complaints filed with the Federal Trade Commission (FTC) as well as those filed with multiple state attorneys general reveals that many of these companies have engaged in false and deceptive marketing in potential violation of the Federal Trade Commission Act. FTC Oversight Last summer, the FTC hosted a one-day public workshop entitled Something New Under the Sun: Competition & Consumer Protection Issues in Solar Energy, which explored consumer protection issues stemming from the installation of rooftop solar panels on residential properties.1 Then-FTC Chairwoman Edith Ramirez stated in her opening remarks that she hoped the public workshop would “help policymakers assess how best to protect consumers in connection with their purchase, installation, and use of rooftop solar.”2 Consumer protection is all the more urgent in light of the astounding growth of the residential solar panels industry. Thomas Kimbis, the interim president of the Solar Energy Industries Association (SEIA) told the conference, “it took 40 years to celebrate the one millionth solar panel in the United States, which we proudly did [in 2016], and yet, it's only going to take 24 months to hit that second million.”3 1 Something New Under the Sun: Competition & Consumer Protection Issues in Solar Energy, Federal Trade Commission, June 21, 2016, available at https://www.ftc.gov/news-events/events-calendar/2016/06/something-newunder-sun-competition-consumer-protection-issues. 2 Workshop Transcript, Something New Under the Sun: Competition & Consumer Protection Issues in Solar Energy, Federal Trade Commission, at 4, June 21, 2016, available at https://www.ftc.gov/system/files/documents/public_events/943943/solar_workshop_transcript.pdf. 3 Id. at 161. 611 Pennsylvania Ave., S.E. #337 • Washington, D.C. 20003 • (202) 780-5750 campaignforaccountability.org During a panel entitled “Shining the Light on Consumer Protection Issues and Rooftop Solar,” consumer and industry groups identified several consumer protection issues in the solar industry. Specifically, panelists discussed problems stemming from confusing contracts that require binding arbitration, false and misleading advertisements, and the financial manipulation of long-term lease agreements.4 Shennan Kavanagh, the deputy chief of the Massachusetts Attorney General Office’s Consumer Protection Division raised concerns about whether consumers understand the possible consequences of selling a home that has rooftop solar panels installed. She also noted that solar companies offer contracts where tax credits are assigned to the company itself, not the consumer, but the consumer is often unaware of the arrangement.5 Following up on the FTC workshop, watchdog groups submitted comments. Public Citizen questioned the arbitration clauses included in rooftop solar contracts and noted solar leasing arrangements pose “significant financial risks for families.”6 The National Consumer Law Center (NCLC) also weighed in, urging the Consumer Financial Protection Bureau (CFPB) to protect low-income consumers citing, among other things, a dramatic increase in leases for solar panels “and extensive complaints of false claims as to the savings with such panels and the terms of the leases.”7 Following up on these actions, CfA launched an investigation into the issues raised by Public Citizen and NCLC, submitting open records requests in a number of states, as well as to the FTC, seeking complaints pertaining to the sale or leasing of residential rooftop solar panels and their installation from 2012 to the present.8 CfA’s review reveals that American consumers have identified numerous companies that have provided poor or inadequate service, falsely represented the savings the customers would realize from solar power, lured them in with low price quotes that later proved to be false, required them to sign confusing contracts, and/or performed shoddy installation of the solar panels. SEC Investigation Following CfA’s investigation, the Securities and Exchange Commission (SEC) launched its own inquiry into whether solar companies are masking the number of customers who have cancelled contracts after signing up for rooftop solar systems.9 Investors use this cancellation metric as one way to gauge the quality of a company’s products and services. While the SEC’s action is a positive development, the agency is charged with protecting shareholders, not 4 Id. at 154. Id. at 165. 6 Letter from Tyson Slocum, Energy Program Director, Public Citizen, to Edith Ramirez, Chairwoman, Federal Trade Commission, August 22, 2016, available at https://www.citizen.org/sites/default/files/federal-tradecommission-comments-solar-consumer-protections-august-2016.pdf. 7 National Consumer Law Center, Comments to the Consumer Financial Protection Bureau regarding Arbitration Agreements, at 29, August 22, 2016 available at https://www.nclc.org/images/pdf/arbitration/comments-arbitrationagreements-2016.pdf. 8 https://campaignforaccountability.org/cfas-investigation-into-the-solar-industry/. 9 Kirsten Grind, SEC Probes Solar Companies Over Disclosure of Customer Cancellations, The Wall Street Journal, May 3, 2017, available at https://www.wsj.com/articles/sec-probes-solar-companies-over-disclosure-of-customercancellations-1493803801. 5 consumers. As it is the FTC’s mission to protect consumers, the commission should open an inquiry into the widespread abusive tactics of the rooftop solar industry. Background In response to CfA’s Freedom of Information Act request for complaints pertaining to the sale or leasing of solar panels and their installation on the roofs of customers’ homes from 2012 to the present, the FTC released a total of 1,219 complaints.10 Consumers identified numerous companies that had provided poor or inadequate service, falsely represented the savings the customers would realize from solar power, lured them in with low price quotes that later proved to be false, required them to sign confusing contracts, and/or performed shoddy installation of the solar panels. The majority of these FTC complaints are separate and apart from the complaints consumers have filed in states, often with their attorneys general. FTC complaints – like state complaints – reveal that many consumers allege solar companies have pledged installation of rooftop solar panels would result in significantly lower monthly utility bills, but those savings never materialize. For example, one customer (57039798) wrote that he signed an agreement with GCI Solar for a lease with Clean Power Finance, acting as an agent for MySolar Management, to provide solar power to his home. The customer was told to expect a reduction of between $15-to-$35-a-month on his electric bill. In fact, however, the consumer reported paying $325 more in electric costs during the first year with the new system, leaving him “disappointed and disturbed with the dishonesty” of the solar company. He told the FTC that, “going green was that worst choice he could have made for his family.”11 In another complaint (57181428), a consumer stated that he purchased a solar system from GCI Solar System after the company convinced him the system would save him money, but again, the pledged savings never materialized and, instead, his monthly electricity bills had increased. When he contacted the company, he was told he was required to pay $97 every month for 20 years regardless of how the system performed.12 Many customers claimed that companies deceived them into signing misleading contracts and required them to adhere to the contracts’ terms without delivering the promised services. In a complaint about Sunrun, one customer (46446599) reported that she had been deceived into signing up for services that the company failed to provide. Then, when attempting to cancel the service, she was informed that she could not because she had signed a 25-year contract with the company that could not be terminated absent a fee.13 One SolarCity customer (75036329) reported that the company lied about several aspects of its contract. Among other things, an agent told the customer that the contract could be easily 10 The allegations in a number of the complaints released were unrelated to solar panels. Complaint against GCI Solar/MySolar Management/Clean Power Finance, October 22, 2014, attached as Exhibit A. 12 Complaint against CGI Solar, October 29, 2014, attached as Exhibit B. 13 Complaint against Sunrun, June 11, 2013, attached as Exhibit C. 11 cancelled for a $500 fee; that SolarCity would replace the solar panels every five to seven years; and that the rate listed in the contract was the maximum amount the customer would be charged. After the panels were installed, the customer discovered all these statements were false: he was charged a higher rate than promised and had no way to rescind the contract without purchasing all the equipment at a cost of $24,500.14 Another SolarCity customer (54901504) said the company tricked her into signing a 20year lease for solar panels when she thought she had simply requested an onsite consultation. She alleged that the sales representative had misled her, failing to properly explain the terms of the agreement. Then, when she tried to cancel the contract, neither the sales representative nor the regional manager would process her request, leaving her without “peace of mind” that the contract had been cancelled.15 Several customers reported problems trying to either buy or sell a home on which solar panels were installed.16 One SolarCity customer in Arizona (64512932) reported the company’s sales agent had lied to persuade her family to install solar panels by telling them that if her husband’s job required them to relocate and sell their house, SolarCity would allow them to either transfer the panels to a new home for a $1,000 fee, retrieve the panels at no charge, or transfer the panels to new owner. 17 When her husband considered a transfer to Boise, Idaho, the family discovered that none of promised options were available. When contacted, SolarCity refused to respond even ignoring a complaint filed with the company’s consumer complaint division. A Vivint Solar customer (69516444) reported that she had trouble refinancing her home mortgage because she had installed solar panels on her home.18 The customer said the solar panel contract she signed did not adhere to FHA guidelines, making it impossible for her to refinance her mortgage. When she tried to add an addendum to the contract to meet FHA guidelines, the company refused to sign the agreement. Another Vivint customer (45984955) customer reported that the company came to his house and opened an inquiry into his credit account without his permission.19 A Sunnova customer (70880500) alleged the company had prevented the family from settling their father’s estate. Because the solar panels on their father’s house had been leased, Sunnova placed a lien on the house, preventing the complainant from selling it.20 When the complainant inquired how much it would cost to buy the panels out right, so that the company would lift the lien, Sunnova refused to respond to the complainant’s inquiries. Finally, an elderly couple who bought panels from SolarCity (58545912) complained they had agreed to purchase solar panels in October 2013 but had not yet received them as of 14 Complaint against SolarCity, August 4, 2016, attached as Exhibit D. Complaint against SolarCity, July 19, 2014, attached as Exhibit E. 16 Oregon customers reported similar problems to the Oregon Attorney General. See http://www.documentcloud.org/documents/3527129-CfA-Oregon-Solar-Letter-W-Exhibits-3-29-17.html. 17 Complaint against SolarCity, July 22, 2015, attached as Exhibit F. 18 Complaint against Vivint Solar, February 11, 2016, attached as Exhibit G. 19 Complaint against Vivint Solar, May 21, 2013, attached as Exhibit H. 20 Complaint against Sunnova, January 22, 2016, attached as Exhibit I. 15 December 2014.21 After signing the contract, they didn’t hear from SolarCity for several months, after which, the company notified them that they would have to pay $1,500 to replace their roof where the solar panels would be installed. After challenging the company’s assessment, SolarCity agreed to replace the roof for free. Several additional months later, the company told the couple that they would be charged $7,000 for an upgrade they had not requested. More than a year after they signed the contract, the couple told the FTC, they still had not received their solar panels. Potential Violations of Law As you know, Section 5(a) of the Federal Trade Commission Act, 15 U.S.C. § 45, prohibits unfair or deceptive acts or practices in or affecting commerce. Misrepresentations or deceptive omissions of material fact constitute deceptive acts or practices prohibited by Section 5(a) of the Act. In numerous instances, in connection with the advertising, marketing, promotion, offering for sale or lease and the sale or lease of solar panels, solar companies have represented, directly or indirectly, expressly or by implication, that consumers will save money on their utility bills by installing solar panels. Further, it appears that in numerous instances, solar companies have failed to disclose, or to disclose adequately to consumers, material terms and conditions of the offers made to them, such as what would happen when a consumer wanted to sell a house that included leased solar panels, consumers’ rights to rescind the contracts, and the costs associated with rescission. Such failures may constitute a deceptive act or practice in violation of 15 U.S.C. 45(a). The complaints reflect the harsh reality that solar companies operating across the country often take advantage of particularly vulnerable populations. Many of the complaints CfA reviewed were filed by the elderly, veterans, and people for whom English was not their native language. As a result, the impacts of these apparently fraudulent practices are all the more devastating, leaving low-income customers or those living on fixed incomes with even higher monthly utility costs and loans that often exceed what they can afford to pay, and plunging them into a cycle of debt. Conclusion Solar companies operating across the United States are employing a variety of strategies and practices that may enhance their bottom line, but are leaving customers frustrated, unhappy, and facing even bigger utility bills. Laws like the Federal Trade Commission Act protect against the kinds of fraudulent practices that seem so prevalent in the solar energy industry, but their utility depends on more aggressive enforcement. 21 Complaint against SolarCity, December 8, 2014, attached as Exhibit J. CfA therefore requests that the FTC launch a national investigation into the consumer practices of solar energy companies, drawing on the many examples found in the complaints lodged with the commission. If these companies have violated federal law, they must be held accountable. Sincerely, Daniel E. Stevens Executive Director Encl. EXHIBIT A Reference Number Created Date Complaint Source 57039798 10/22/2014 FTC Call Center Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date English Complaint Consumer N JBROWN 10/22/2014 Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name Mail 10/22/2014 04/10/2014 N (b)(6) Consumer Middle Name Consumer Last Name (b)(6) Consumer Salutation Consumer Address, Line 1 Consumer Address, Line 2 (b)(6) (b)(6) Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Alta Loma CA California USA UNITED STATES (b)(6) Consumer Address, ZIP Code Extension Company Name Company Normalized Name Company Address, Line 1 Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code GCI Solar MySolar Management Clean Power Finance GCI Solar MySolar Management Clean Power Finance 201 Mission St Flr 11 San Francisco CA California USA USA USA UNITED STATES UNITED STATES UNITED STATES 94105 Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name Company Rep Middle Name Company Rep Last Name jpatterson@cleanpowerfinance.com solarservicehelp.com Garret Steve Adams Olszewski Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Sales agent Unknown 04/10/2014 Unknown Complaint Info Initial Response Date Complaint Info Amount Requested Method Complaint Info Amount Requested Value Complaint Info Amount Paid Method Complaint Info Amount Paid Value Complaint Info Product Service Code Complaint Info Product Service Description Complaint Info Law Violation Code Complaint Info Law Violation Description Complaint Info Statute Code Complaint Info Statute Description Complaint Info Topic Code Complaint Info Topic Description $0.00 Unknown $0.00 0808 Home Appliances DDM Deception/Misrepresentation P FTC Act Sec 5 (BCP) MAIL: Consumer writes that he signed an agreement with GCI Solar for a lease with Clean Power Finance acting agent for MySolar Management to provide solar power to his home and to achieve a minus $15 to $35 per month to his electric company. Consumer states that he is now paying $325 more in electric costs the first year with the system. Consumer is disappointed and disturbed with the dishonesty of "benefits" and "leases" that are being sold to consumers concerning solar which is nothing but a gimmick and a way for the solar industry to take advantage of individuals who put their trust in these programs. He states that going green was that worst choice he could have made for his Complaint Info Comments family. Consumer includes supporting documentation. Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded N Complaint Info CRA Dispute Resolved N Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? No EXHIBIT Reference Number Created Date Complaint Source 57181428 10/29/2014 FTC Call Center Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date English Complaint Consumer N VROMERO 10/29/2014 Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name Phone 10/29/2014 08/01/2013 N (b)(6) Consumer Middle Name Consumer Last Name (b)(6) Consumer Salutation Consumer Address, Line 1 (b)(6) Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Fresno CA California USA UNITED STATES (b)(6) Consumer Address, ZIP Code Extension Company Name Company Normalized Name GCI Solar GCI Solar Company Address, Line 1 Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code USA UNITED STATES Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number 888 4247652 Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name Company Rep Middle Name Company Rep Last Name Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method I Initiated Contact 08/01/2013 Phone: 800/888 number Complaint Info Initial Response Date Complaint Info Amount Requested Method $97.00 Complaint Info Amount Paid Method Credit Card Complaint Info Amount Paid Value $97.00 Complaint Info Product Service Code 0808 Complaint Info Product Service Description Home Appliances Complaint Info Law Violation Code DDM Complaint Info Law Violation Description Deception/Misrepresentation Complaint Info Statute Code P Complaint Info Statute Description FTC Act Sec 5 (BCP) Complaint Info Amount Requested Value Complaint Info Topic Code Complaint Info Topic Description Consumer stated he purchased a GCI Solar System. Consumer was told from this company he wouls save money if the item was purchased. Consumer stated he is not saving money, in fact he is paying more money. Consumer stated he contacted the company about the issue and was informed they would take care of teh issue in which they have yet to do so. Consumer stated it's been over twon months and nothing has taken further action. Consumer stated he was told he would have to pay them 97 dollars every money for 20yrs. Consuemr was referred to the Complaint Info Comments AG. Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded N Complaint Info CRA Dispute Resolved N Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? No EXHIBIT Reference Number Created Date Complaint Source 46446599 06/11/2013 FTC Call Center Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date English Complaint Consumer N NRUIZ 06/11/2013 Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name Phone 06/11/2013 05/30/2011 N (b)(6) Consumer Middle Name Consumer Last Name (b)(6) Consumer Salutation Consumer Address, Line 1 (b)(6) Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Irvington NJ New Jersey USA UNITED STATES (b)(6) Consumer Address, ZIP Code Extension Company Name Company Normalized Name Company Address, Line 1 Sun Run Solar Co Sun Run Solar Co 45 Fremont St Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code San Francisco CA California USA UNITED STATES 94105 Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number 415 5806900 Company Phone, Extension Company Email Company Website lehum@runrunhome.com www.sunrunhome.com Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name (b)(6) Company Rep Middle Name Company Rep Last Name (b)(6) Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Unknown 05/30/2011 Unknown Complaint Info Initial Response Date Complaint Info Amount Requested Method Complaint Info Amount Requested Value Complaint Info Amount Paid Method Complaint Info Amount Paid Value Complaint Info Product Service Code Complaint Info Product Service Description Complaint Info Law Violation Code Complaint Info Law Violation Description Complaint Info Statute Code Complaint Info Statute Description Complaint Info Topic Code Complaint Info Topic Description $12000.00 Not Reported $0.00 3002 Creditor Debt Collection DDM Deception/Misrepresentation P FTC Act Sec 5 (BCP) Consumer states that she obtained services from Sun Run Solar Co. Consumer states that when attempting to cancel the contract due to the fact that the services were not being provided she was informed that she was unable to cancel the contract because it was made to be a 25 year contract. Consumer states that she was informed that she would have to pay a certain amount of money in order to terminate the contract. Consumer states that the co is deceptive due to the fact that she Complaint Info Comments was charged for services that were not provided. Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded N Complaint Info CRA Dispute Resolved N Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? No EXHIBIT Reference Number Created Date Complaint Source Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name Consumer Middle Name Consumer Last Name Consumer Salutation Consumer Address, Line 1 Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Consumer Address, ZIP Code Extension Company Name Company Normalized Name Company Address, Line 1 Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name Company Rep Middle Name Company Rep Last Name Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Complaint Info Initial Response Date Complaint Info Amount Requested Method Complaint Info Amount Requested Value Complaint Info Amount Paid Method Complaint Info Amount Paid Value Complaint Info Product Service Code Complaint Info Product Service Description Complaint Info Law Violation Code Complaint Info Law Violation Description Complaint Info Statute Code Complaint Info Statute Description Complaint Info Topic Code Complaint Info Topic Description Complaint Info Comments Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded Complaint Info CRA Dispute Resolved Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? 75036329 08/04/2016 FTC Online Complaint Assistant (CIS) English Complaint Consumer N FTCCIS-FTCUSER 08/04/2016 CRSS\nlazar 08/08/2016 Internet 08/04/2016 12/22/2015 N (b)(6) (b)(6) (b)(6) Phoenix AZ Arizona USA UNITED STATES (b)(6) SolarCity SolarCity 3055 Clearview Way San Mateo CA California USA UNITED STATES 94402 888 7652489 www.solarcity.com Sean Lanier Inside Energy Specialist 12/22/2015 Phone: other $0.00 $0.00 0808 Home Appliances Z DDM Other (Note the Violation in the Comment Field) Deception/Misrepresentation Z P Rule\Other FTC Act Sec 5 (BCP) I was a victim of fraudulent sales and business practices. SolarCity deceived me, causing me to misunderstand my contract, which I signed under false pretenses. When talking with the sales rep, Sean Lanier, I was told several things about my contract that were not true. The main issues are listed below. 1) Sean stated that there is a $500 break lease fee regarding the 20-year lease. 2) Sean stated that SolarCity replaces/upgrades the panels every 5 to 7 years at no cost to me.3) Sean stated that the rate I see on the contract is the most I can be charged in that month. Meaning that if I use X amount of energy and the cost of using X amount would be more than my fixed rate. I would only be charged the fixed rate, otherwise it is based off of what I use. 4) Sean stated that they have a few options when it comes to selling your house while under contract. He stated the if the buyer wants they can take over the contract. If the buyer doesn't want solar then it's built into the contract that I can break my lease at no cost to me. None of these statements made by Sean are true. There is nothing close to these statements in the contract. There is no way to break the lease without having to purchase the solar system, currently valued at $24,500. SolarCity will not replace or upgrade the panels at all. I am charged a fixed monthly fee which increases every year at a rate of 2.9% for 20 years. When I sell my home I must include the current price of the solar system in the cost of the home or I can choose to pay out of pocket. These are the reasons I went with SolarCity and signed the contract that was given to me by SolarCity. When I found out that none of these statements were true, I told SolarCity I didn’t want the system and that they need to take their equipment off my property. I was told they can’t do that and that I am stuck in the lease for the next 20 years. I asked to speak to a manager and I was then transferred over to Jack Kilar, he stated the same thing, and could only offer up an apology.SolarCity can do two things to correct this. They can honor what I was told in the very beginning, draft a new contract that has all of the promises that Sean made, and I continue to use them. If that isn’t an option, SolarCity can get their equipment at no cost to me and restore my roof to its preexisting form. Other-Other Update No EXHIBIT Reference Number Created Date Complaint Source 54901504 07/19/2014 FTC Online Complaint Assistant (CIS) Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name English Complaint Consumer N FTCCIS-FTCUSER 07/19/2014 CRSS\lgalyean 07/22/2014 Internet 07/19/2014 07/13/2014 Y (b)(6) Consumer Middle Name Consumer Last Name (b)(6) Consumer Salutation Consumer Address, Line 1 (b)(6) Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Las Vegas NV Nevada USA UNITED STATES (b)(6) Consumer Address, ZIP Code Extension Company Name Company Normalized Name Company Address, Line 1 Solar City Solar City 3055 Clearview Way Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code San Mateo CA California USA UNITED STATES Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number 650 6381028 Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name Michael Company Rep Middle Name Company Rep Last Name NA Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Customer Service Rep In Person 07/13/2014 Phone: 800/888 number Complaint Info Initial Response Date Complaint Info Amount Requested Method $25000.00 Complaint Info Amount Paid Method Bank Account Debit Complaint Info Amount Paid Value $0.00 Complaint Info Product Service Code 9000 Complaint Info Product Service Description Other (Note in Comments) Complaint Info Law Violation Code Z DDM Complaint Info Amount Requested Value Complaint Info Law Violation Description Complaint Info Statute Code Complaint Info Statute Description Complaint Info Topic Code Complaint Info Topic Description Other (Note the Violation in the Comment Field) Deception/Misrepresentation Z P Rule\Other FTC Act Sec 5 (BCP) I first was contacted by Solar City at a Best Buy location where they tried to persuade me to schedule a consultation. I told them I would think it over first. I then received an advertisement in the mail and inquired further by phone. During the Phone call I spoke to one of their Sales representives named Michael who verified my qualifications for the program and asked that I Electronically sign a doument in order to proceed with a consultation and onsite survey. Michael did not make it clear that the document I was electronically signing was actually a legally binding 20 year lease. I feel that this represents misleading and deceptive sales tactics.The next day I requested that the cancellation of this contract be processed immediately according to the terms of the contract and neither Michael nor his regional manager were willing to process the written request I subitted by email. I would like to have peace of mind knowing that this Complaint Info Comments contract is actually cancelled . Other-Other Update Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded Complaint Info CRA Dispute Resolved Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? No EXHIBIT Reference Number Created Date Complaint Source Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name Consumer Middle Name Consumer Last Name Consumer Salutation Consumer Address, Line 1 Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Consumer Address, ZIP Code Extension Company Name Company Normalized Name Company Address, Line 1 Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name Company Rep Middle Name Company Rep Last Name Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Complaint Info Initial Response Date Complaint Info Amount Requested Method Complaint Info Amount Requested Value Complaint Info Amount Paid Method Complaint Info Amount Paid Value Complaint Info Product Service Code Complaint Info Product Service Description Complaint Info Law Violation Code Complaint Info Law Violation Description Complaint Info Statute Code Complaint Info Statute Description Complaint Info Topic Code Complaint Info Topic Description Complaint Info Comments Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded Complaint Info CRA Dispute Resolved Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? 64512932 07/22/2015 Consumer Financial Protection Bureau (b)(6) English Complaint Organization N CFPB-USER 07/22/2015 CFPB-USER 07/29/2015 External Agency 07/22/2015 Y (b)(6) (b)(6) (b)(6) (b)(6) (b)(6) VAIL AZ Arizona USA UNITED STATES (b)(6) SolarCity SolarCity 3055 Clearview Way SAN MATEO CA California USA UNITED STATES 94402 3130 Lending: Other Institutions CFPB Issue Type: Shopping for a loan or lease --- What Happened: My husband and I were interested in leasing so referred to a sales agent named, Aparna, at Solar City. She came to our home and was very nice. At our kitchen tab lease-option and services provided by Solar City. She did a nice presentation on her tablet with detailed graphics o potential layout of the leased panels, the benefits of solar in Arizona and broke down the payments and fees. Our o year lease commitment. My husband is a federal employee and we have moved several times in the past three yea and buy different homes. We expressed this concern to Aparna and she verbally assured us that should my husband would have three options: 1) Sell the panels with the home, 2) Ask Solar City to move the panels to our new home f 3) Tell them of the reason for our breaking the lease, and at no charge, Solar City would come out and pick up the p terminating the contract at that time We agreed that sounded perfect and the benefits of the system seemed to fi agreed, she ran a quick credit check, had the lease contract e-mailed via docu-sign to my tablet and everything was at that time. The installation process was frustrating and lengthy but our system was installed and operational with months or so and we have been happy with the product thus far. Our issue is that upon consideration of a transfer our copy of our contract and discovered the options Aparna assured us, were in fact, not true. It turns out, you are 20 year lease agreement, no matter the reason. They will not just come pick up the panels and should you choose to a new home, it is to be done at your expense with absolute no breakdown of what the cost will or could be. I att on numerous occasions with no response and I attempted to file a complaint with the customer service departmen received no follow-up. Meanwhile, it appears we are completely committed to a 20 year financial obligation to Sol risk of being sent to collections for over $38,000, the price they assess our system to be. We feel foolish for having sales agent in our home and electronically signing documents on a small computer screen without taking the time t electronic contract. But, we also feel this is not the first time they have done this and it was purposely meant to dis into a contractual obligation that we were not properly informed of at the time. My husband and I respectfully req into the sales practices of Solar City. --- Fair Resolution: My husband and I would like Solar City to honor the three o their sales agent. We would like the contract amended to include these options, provide an actual option of termin what exact costs can and will be incurred to relocate a system should an uncontrollable work transfer occur. At the like Solar City to amend their sales practices so that people fully understand what they are committing themselves No EXHIBIT Reference Number Created Date Complaint Source 69516444 02/11/2016 FTC Call Center Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date English Complaint Consumer N RLOY 02/11/2016 Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name Phone 02/11/2016 02/05/2016 N (b)(6) Consumer Middle Name Consumer Last Name (b)(6) Consumer Salutation Consumer Address, Line 1 (b)(6) Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Brockton MA Massachusetts USA UNITED STATES (b)(6) Consumer Address, ZIP Code Extension Company Name Company Normalized Name Vivint Solar Vivint Solar Company Address, Line 1 Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code USA UNITED STATES Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number 877 4044129 Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name Derek Company Rep Middle Name Company Rep Last Name Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Rep Phone 02/05/2016 Phone: other Complaint Info Initial Response Date Complaint Info Amount Requested Method $0.00 Complaint Info Amount Paid Method Unknown Complaint Info Amount Paid Value $0.00 Complaint Info Product Service Code 0700 Complaint Info Product Service Description Home Repair Complaint Info Law Violation Code DDM Complaint Info Law Violation Description Deception/Misrepresentation Complaint Info Statute Code P Complaint Info Statute Description FTC Act Sec 5 (BCP) Complaint Info Amount Requested Value Complaint Info Topic Code Complaint Info Topic Description Consumer called to report that she has been refinancing her home and was to close a few weeks ago and she was advised that Vivit Solar does not meet FHA guidelines. Consumer says the attorney tried to draw up an addendum for them to sign and the Solar company refused to sign holding up her closing on her home. Consumer says the Underwriters have contacted FHA and the purchase Complaint Info Comments agreement does not meet FHA Guidelines Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded N Complaint Info CRA Dispute Resolved N Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? No EXHIBIT Reference Number Created Date Complaint Source 45984955 05/21/2013 FTC Call Center Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date English Complaint Consumer N CBOURKEWALTER 05/21/2013 Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name Phone 05/21/2013 05/11/2013 Y (b)(6) Consumer Middle Name Consumer Last Name (b)(6) Consumer Salutation Consumer Address, Line 1 (b)(6) Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Bowie MD Maryland USA UNITED STATES (b)(6) Consumer Address, ZIP Code Extension Company Name Company Normalized Name Vivint Vivint Company Address, Line 1 Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code USA UNITED STATES Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name (b)(6) Company Rep Middle Name Company Rep Last Name (b)(6) Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Unknown 05/11/2013 Unknown Complaint Info Initial Response Date Complaint Info Amount Requested Method Complaint Info Amount Requested Value Complaint Info Amount Paid Method Complaint Info Amount Paid Value Complaint Info Product Service Code Complaint Info Product Service Description Complaint Info Law Violation Code Complaint Info Law Violation Description Complaint Info Statute Code Complaint Info Statute Description $0.00 Unknown $0.00 9004 Unauthorized Debits or Charges for Unknown Products DDM Deception/Misrepresentation P FTC Act Sec 5 (BCP) Complaint Info Topic Code Complaint Info Topic Description the consumer wanted to file a complaint about a solar panel company, Vivint, that came to his house and opened an inquirey into his credit account without Complaint Info Comments their permission. Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded N Complaint Info CRA Dispute Resolved N Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? No EXHIBIT I Reference Number Created Date Complaint Source Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date 70880500 01/22/2016 Consumer Financial Protection Bureau (b)(6) English Complaint Organization N CFPB-USER 01/22/2016 Updated By Updated Date Agency Contact Complaint Date External Agency 01/22/2016 Transaction Date Member of armed forces or dependant? Consumer First Name Consumer Middle Name Consumer Last Name Consumer Salutation Consumer Address, Line 1 Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Consumer Address, ZIP Code Extension Company Name Company Normalized Name Company Address, Line 1 (b)(6) (b)(6) (b)(6) (b)(6) (b)(6) (b)(6) (b)(6) ORLANDO SCOTTSDALE AZ AZ Arizona Arizona USA USA UNITED STATES UNITED STATES (b)(6) (b)(6) Sunnova Solar Energy Sunnova Solar Energy 20 E Greenway Plaza 475 Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code HOUSTON TX Texas USA UNITED STATES 77046 Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name Company Rep Middle Name Company Rep Last Name Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Complaint Info Initial Response Date Complaint Info Amount Requested Method Complaint Info Amount Requested Value Complaint Info Amount Paid Method Complaint Info Amount Paid Value 3130 Complaint Info Product Service Description Lending: Other Institutions Complaint Info Product Service Code Complaint Info Law Violation Code Complaint Info Law Violation Description Complaint Info Statute Code Complaint Info Statute Description Complaint Info Topic Code Complaint Info Topic Description CFPB Issue Type: Managing the loan or lease --- What Happened: My father passed away and I am trying to settle his estate. He has a leased solar electrical system on his house and I would like to invoke the buyout option so I can purchase it outright before sale and have the lein removed from his home. I have called the company, Sunnova, two times per day for over a week and nobody can ever give me the total and how to go about paying it off. They are holding up the settling of the estate. They say they will email me the information or call me back and never do.--- Consumer Relationship with filer: Family member --- Fair Resolution: I would just like clear, written instructions on how much is owed on the solar system, and how to pay it off. I would also like the lien removed Complaint Info Comments quickly after this loan is paid off. Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded Complaint Info CRA Dispute Resolved Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? No EXHIBIT Reference Number Created Date Complaint Source Originator Reference Number Language Contact Type Data Source DNC? Entered By Entered Date Updated By Updated Date Agency Contact Complaint Date Transaction Date Member of armed forces or dependant? Consumer First Name Consumer Middle Name Consumer Last Name Consumer Salutation Consumer Address, Line 1 Consumer Address, Line 2 Consumer Address, Line 3 Consumer Address, City Consumer Address, State Code Consumer Address, State Name Consumer Address, Country Code Consumer Address, Country Name Consumer Address, ZIP Code Consumer Address, ZIP Code Extension Company Name Company Normalized Name Company Address, Line 1 Company Address, Line 2 Company Address, Line 3 Company Address, City Company Address, State Code Company Address, State Name Company Address, Country Code Company Address, Country Name Company Address, ZIP Code Company Address, ZIP Code Extension Company Phone, Country Code Company Phone, Area Code Company Phone, Number Company Phone, Extension Company Email Company Website Company Subject ID Type Code Company Subject ID Type Name Company Subject ID Issuing State Code Company Subject ID Issuing State Name Company Subject ID Issuing Country Code Company Subject ID Issuing Country Name Company Rep First Name Company Rep Middle Name Company Rep Last Name Company Rep Salutation Company Rep Comments Complaint Info Initial Contact Method Complaint Info Initial Contact Date Complaint Info Initial Response Method Complaint Info Initial Response Date Complaint Info Amount Requested Method Complaint Info Amount Requested Value Complaint Info Amount Paid Method Complaint Info Amount Paid Value Complaint Info Product Service Code Complaint Info Product Service Description Complaint Info Law Violation Code Complaint Info Law Violation Description Complaint Info Statute Code Complaint Info Statute Description Complaint Info Topic Code Complaint Info Topic Description Complaint Info Comments Complaint Info CRA Dispute Flag Complaint Info CRA Dispute 45 Days Flag - FOIA only Complaint Info CRA Dispute Responded Complaint Info CRA Dispute Resolved Complaint Info Complaint disposition provided? Complaint Info Complaint Disposition Complaint Info Cross Border Complaint? 58545912 12/08/2014 California, Attorney General (b)(6) English Complaint Organization N CA04-USER 12/08/2014 External Agency 12/08/2014 (b)(6) (b)(6) (b)(6) (b)(6) PIONEER CA California USA UNITED STATES (b)(6) SolarCity Corporation Solar City 3055 Clearview Way SAN MATEO CA California USA UNITED STATES 94402 888 7652489 customercare@solarcity.com 0700 Home Repair In October 2013 we signed up for solar with Solar City.....contracts were signed and time would go by and we would hear nothing.....from time to time we would get posts via the email with photos, and sometimes they would have to be initialed and sent back. Then nothing.....several months went by and we were notified that we would have to replace the roof where the solar panels would be placed, and the cost was something like $4500.00 but that they would pay a percentage of it and our cost would be $1500.00....Excuse me......we let them know that we would look to see if we could find someone to do it for a lower cost and again more months went by, and our thought was, what a scam.....later we learned from them that they would do the roof at no cost to us, and several months went by and we got a call that the roofer was coming and they did, and the roof was replaced. Again we wait and now we are waiting for the next step that eventually was done and now we had to wait for inspection by PGE.....which was done......I think I made the next call to ask what we were waiting on now and they informed me that the install would be the first week in December. Voila! We get a call this morning with this explanation......because of the upgrade, they needed to add something, and this would cost $7,000.00.....hahaha......I turned the phone over to my husband, and because of his knowledge, he let this person know that we were not running a business and that in no way did we need what they were trying to sell us.....the person on the other end was going to look into it......I begin to wonder how many would fall for this and end up paying for all that they offer.....I don't know what else to do, no money has exchanged hands here, but what is this My friend suggested that I contact you to tell you this story. We are now entering 2015 and we still do not have our solar panels as promised. We signed contracts.... We are senior citizens and don't have a lot of money. We were promised something and expected to receive all that was promised.....all these charges. OMG......just finish the job and get it working, that's all we are asking for. --- CA Source: Web Form --- CA Status: Closed No