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Austin-area homeowners among thousands across the country having issues with bankrupt solar energy provider

The KVUE Defenders found that for dozens of Texans, including residents in the Austin area, turning to solar power has only cost them more.

AUSTIN, Texas — Conservationists have long claimed going green will not only help save the environment, but help save customers money on their utility bills.

But the KVUE Defenders found that for dozens of Texans, including residents in the Austin area, turning to solar power has only cost them much more. 

The Defenders were told by some customers that they've been forced to keep paying for solar panels that don't work. Investigative reporter Jenni Lee visited homeowners to see the issues in person.

At Al and Rose Reyes' southwest Austin home, getting a cup of ice, using the microwave or turning the lights on and off are supposed to be powered by solar panels. 

"Looks can be deceiving," Al Reyes said.  

For more than a year now, the Reyes' home has only looked like it's using solar energy.  

The couple said the panels and other equipment have yet to work since signing a contract with Power Home Solar in March 2022.      

The following month, Power Home Solar rebranded into Pink Energy. 

"We are not connected to the grid," Al Reyes said.

In Austin, connecting a solar installation to the state power grid depends on an Austin Energy inspection.

In June 2022, Austin Energy notified the Reyes family that their solar installation failed that inspection. 

"Our system was still not up," Al Reyes said. 

For weeks, the couple said they reached out to Pink Energy for help but got no response. 

"While he was calling, I sent emails," Rose Reyes said. 

"Nobody was returning our calls," Al Reyes added.

Until August, when Pink Energy sent a letter. 

 "A firmware update sent remotely by Generac to Pink Energy customers would initiate a lockdown error," Al Reyes recalled.

The solar company blamed its parts supplier, Generac, for faulty equipment and failing to fix the issue. 

Pink Energy filed a federal lawsuit against Generac that same month as thousands of customers across the country filed complaints against Pink Energy. 

The company shut down in September 2022 and filed for bankruptcy the following month. 

"I was in disbelief," Al Reyes said. 

The move left the Reyes family stuck with a non-working solar energy system that they've been paying for since July 2022. 

"'That's horrible,'" Al Reyes said, remembering his feeling about having to pay for the non-working system.

On top of the $249.31 owed monthly to the lender – an amount that is set to increase to $338.61 in October – the couple is also paying electricity bills. Something they were previously told they wouldn't need to do anymore.

"We're not getting the benefit that we were told we would get," Al Reyes said. 

Bastrop homeowner Justin Small is also having issues.  

"We've had it not working more than we've had it working," Small said. 

Small said his equipment only works part of the time. 

"Maybe 40% of the time," he said.

Like the Reyes family, Small contracted with Pink Energy in June 2021. 

It didn't take long for Small to realize something had gone foul. 

"Something's wrong," Small said. "We weren't saving anything when it came down to energy costs and what they stated, they really oversold, saying that, you know, we would have no electric bill whatsoever. And that was false."  

Small said paying electricity and the $417 per month for unreliable solar equipment has been a financial burden.  

He contacted his lender, Sunlight Financial, for options. They only gave him one. 

"And I said, 'Well, what if I just stop paying?' And she’s like, 'Well, we can technically repossess it, or we can foreclose on your house,'" Small said. 

Small and the Reyes family are among about 50 Texas consumers who have filed complaints against Pink Energy with the Texas Attorney General's Consumer Protection Division.

They join thousands of customers in nine other states – North Carolina, Kentucky, Illinois, Indiana, Michigan, Pennslyvania, South Carolina, Tennessee and Virginia – accusing Pink Energy of deceptive practices and leaving them without working solar installations.

As a result, attorneys general in those states have sent notices to five lenders – Dividend Solar FinanceSunlight FinancialGoodLeapSolar Mosaic and Cross River Bank – asking them to suspend loan payments. Those lenders include the three involved with Small and the Reyes family.

The Defenders wanted to know if the Texas Attorney General's Office plans to do the same.  The office wouldn't tell KVUE directly, but through a public information request, we learned that the office is considering litigation and investigating these complaints.   

While Pink Energy is in bankruptcy, customers aren't allowed to sue the company unless a judge grants permission.  But civil litigation attorney Alex Conant said under federal law, customers can hold lenders liable.

"The lender is now basically sitting in the same position as the actual seller of the product. And so, the claims that you would have against the seller, you can go after the lender," Conant said.

Conant recommended documenting everything in a letter and sending it to the lender.

"Outline every single issue that you have with the actual solar panels, why they're defective. 'You promise me a kilowatt return' or 'you promise me that my energy bill was going to come down to zero,'" Conant said.  

The Reyes family said their lender is trying to help, but that is unfortunately not the case for Small. 

"It has done nothing but cause stress," Small said.

By sharing what happened to them, Small and the Reyes family hope they can help others avoid getting left in the dark.  

"It was soul-crushing," Small said.

Conant said consumers should take an active role, contacting lenders to see how they can help find solutions, like re-negotiating contracts or finding another solar company to fix the solar panels. 

Conant also added that consumers should not stop payments to lenders in order to protect their credit scores and avoid lawsuits themselves.

Experts advise doing research online and checking with the Better Business Bureau and the Consumer Protection Division of the Texas Attorney General's Office for complaints before signing with any solar provider. 

KVUE reached out to Pink Energy, Dividend Solar, Cross River Bank and Sunlight Financial for answers. Dividend declined to comment, and we haven't heard back from the others.

Pink Energy's bankruptcy case is pending with more than 25,000 creditors, including consumers, seeking compensation.

If you live in Austin and are considering solar power, Austin Energy has a list of approved providers.  

Jenni Lee on social media: Facebook | Twitter | Instagram

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