As solar sales grow across South Texas, officials urge homeowners to carefully review contracts and financing agreements
By Kingsville Independent News Staff
Texas Attorney General Ken Paxton has filed a lawsuit against San Antonio-based CAM Solar Inc., alleging the company engaged in deceptive and fraudulent sales practices involving residential solar panel systems sold to Texans.
The lawsuit, announced Thursday, follows a broader state investigation into solar panel companies after the Office of the Attorney General said it received more than 100 consumer complaints related to solar installations, financing agreements, and energy savings claims.
According to the state, complaints included allegations of defective or nonfunctioning systems, improper installations, undisclosed maintenance or warranty fees, unanswered service requests, and continued financing obligations for systems that allegedly failed to perform as promised.
In one complaint referenced by the state, solar panels reportedly detached from a homeowner’s roof less than a year after installation, causing property damage to both the homeowner’s property and a neighboring property.
The lawsuit alleges CAM Solar violated the Texas Deceptive Trade Practices Act by misleading consumers through deceptive marketing and sales practices.
“This solar panel company lied to and deceived Texans with its fraudulent and deceptive sales tactics,” Paxton said in a statement released by his office.
The state is seeking restitution for affected consumers, civil penalties, and a court order prohibiting the company from continuing the alleged practices.
While the lawsuit focuses on a San Antonio-based company, solar marketing and installation efforts have become increasingly common across South Texas and the Coastal Bend in recent years, particularly as homeowners look for ways to reduce electricity costs during periods of rising energy demand and high summer temperatures.
Door-to-door solar sales, online advertisements, and financing offers promising long-term savings have become more visible throughout Texas communities, including smaller cities and rural areas.
Consumer advocates often recommend homeowners carefully review financing agreements, warranty terms, maintenance responsibilities, and projected energy savings before signing solar contracts.
What homeowners should ask before signing a solar agreement
As residential solar systems become more common across Texas, experts recommend homeowners take time to understand both the installation process and the financing terms attached to many solar agreements.
One of the first questions homeowners should ask is who actually owns the system. Some agreements involve loans, while others function as leases or power-purchase agreements. Ownership can affect tax credits, maintenance responsibilities, and even the process of selling a home later.
Homeowners are also encouraged to ask whether projected energy savings are guaranteed. While many companies provide estimates, actual savings may vary depending on energy usage, weather conditions, utility rates, and equipment performance.
Questions about repairs and maintenance are equally important. Consumers should ask who handles service calls, whether maintenance visits are included, and if additional warranty or service fees apply after installation.
Roof condition can also play a role in long-term costs. Older roofs may require repairs before installation, and removing panels later for roof work can become expensive.
Financing agreements should also be reviewed carefully. Consumer advocates recommend homeowners understand interest rates, cancellation policies, monthly payment obligations, and whether financing contracts continue even if equipment problems occur.
Tax-credit claims should also be verified independently. While federal solar incentives may be available, eligibility can depend on individual tax situations.
Experts also recommend researching companies before signing contracts by checking reviews, requesting local references, and reviewing complaints filed with consumer protection agencies.
Potential warning signs may include high-pressure sales tactics, promises of “free” solar systems, requests to sign immediately, or vague explanations regarding financing and warranties.
The Office of the Attorney General stated its investigation into additional solar companies remains ongoing. The lawsuit had not yet been resolved as of publication.