Commonwealth of Virginia
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Jason S. Miyares
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Richmond, Virginia 23219
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Attorney General Miyares Joins Nine States in Urging Five Solar Lending Companies to Suspend Loan Payments, Interest for Pink Energy Customers
Richmond, VA – Attorney General Jason Miyares today joined a coalition of nine attorneys general in sending a letter to Dividend Solar Finance, GoodLeap, Cross Riverbank, Sunlight Financial, and Solar Mosaic urging these solar lending companies to suspend loan payments and the accrual of interest for customers who financed the purchase of solar power systems from Pink Energy and have not received a working solar power system. The attorneys general also ask the lenders to assist Pink Energy customers who are experiencing other functionality and installation issues.
"Many Virginians were caught off-guard by Pink Energy's sudden bankruptcy. As a result, affected consumers are stuck paying loans on ineffective or unusable solar panels in addition to their electric bill. By joining this coalition, we're trying to ease the strain on Virginians' wallets while actively investigating the situation,” said Attorney General Miyares.
To protect consumers in Virginia, Attorney General Miyares launched an investigation into Power Home Solar dba Pink Energy after receiving complaints regarding the company's alleged deceptive business practices. On October 7, before the investigation was complete, Pink Energy filed for bankruptcy.
In their letter, the attorneys general explain that many of the complaints received by their offices allege that Pink Energy made "false representations regarding the systems' capabilities and anticipated electric bill reduction.”
As a result, consumers "who were led to believe they were making an environmentally friendly and financially prudent decision by purchasing a solar power system from Pink, are now stuck making loan payments 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 misrepresented eligibility for state or federal tax credits that could be used to satisfy the loan agreements with these solar lenders, leaving many consumers in a precarious financial position. The attorneys general write, "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. 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).”
Attorney General Miyares joined attorneys general from Kentucky, Illinois, Indiana, Michigan, North Carolina, Pennsylvania, South Carolina, and Tennessee in signing the letter.
View the letter here.