New York City filed a lawsuit against Radiant Solar seeking $20 million in penalties and restitution. The Department of Consumer and Worker Protection filed the case with the Office of Administrative Trials and Hearings.
The city alleges the company committed 3,448 violations of the administrative code. Radiant Solar is the largest home improvement contractor in the city by volume of permits.
The complaint alleges the company used deceptive marketing to sell residential solar systems. The city claims Radiant Solar advertised an A+ rating from the Better Business Bureau while holding an F rating.
Inspectors found the company failed building inspections at least 50 times. Some customers reported property damage and systems that never produced electricity. Other homeowners reported that the company failed to file the necessary paperwork with Con Edison to interconnect the systems to the grid.
Financing practices are a core part of the legal action. The city alleges Radiant Solar enrolled customers in loans without their consent. The lawsuit claims the company padded loan totals with undisclosed fees. It also alleges the company misled homeowners about the value of the federal tax credit.
Sales representatives reportedly told customers the credit was a guaranteed check rather than a non-refundable tax offset.
The city seeks $18.3 million for consumer restitution and $1.7 million in civil penalties.
The investigation found that the company targeted low-income neighborhoods and elderly residents. The filing describes a pattern of high-pressure sales tactics. Some residents signed contracts on tablets without being allowed to read the fine print.
The city alleges the company often used a third-party lender to finance these systems. The lawsuit claims Radiant Solar received kickbacks from these lenders for every loan originated.
This legal action follows a trend of increased scrutiny on the residential solar industry. State attorneys general in several regions have opened similar investigations into sales and lending practices. The New York State Energy Research and Development Authority (NYSERDA) provides oversight for solar installers in the state. Radiant Solar had been a participant in several state-sponsored programs.
The city is asking for the immediate revocation of the company’s home improvement contractor license. If the court rules in favor of the city, Radiant Solar would be barred from operating in the five boroughs.
The company has not yet released a formal statement regarding the specific allegations in the complaint. This case represents the largest consumer protection action ever taken against a solar installer in New York City.
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