Solar Contract Cancellation Defense Attorneys

We Defend Credit Unions and Solar Companies from Solar Exit Lawsuits

With decades of experience defending Texas businesses, Hendershot Cowart P.C. represents credit unions, lenders, and solar companies against aggressive plaintiff firms targeting your legitimate business practices. We bring deep understanding of consumer finance and equipment financing laws to solar contract cancellation claims. 

While predatory law firms promise consumers easy contract cancellations, we help legitimate solar businesses defend against frivolous claims and protect your operations.

On This Page:

• Rise of Solar Contract Cancellation
• Common Contract Exit Claims
• Our Approach
• Take Action

The Rise of Solar Contract Cancellation Claims

Predatory law firms are aggressively recruiting residential solar energy customers who regret their purchases, making sweeping claims about industry-wide fraud and deceptive practices. These firms use mass advertising campaigns to target “regretful” solar customers, filing form complaints that allege violations without understanding industry-specific practices.

Many of these complaints are based on fundamental misunderstandings of legitimate business practices and federal regulations. The result? Legitimate solar businesses face costly litigation over standard industry practices that comply with applicable laws.

Common Contract Exit Claims Used Against Solar Lenders and Businesses

These plaintiff firms consistently mischaracterize standard industry practices as fraudulent conduct. They make broad allegations without understanding the nuances of equipment financing, UCC-1 liens, or the specific requirements that apply to solar equipment transactions versus traditional real estate financing.

We defend solar lenders, retailers, salespersons, and installers against these common solar exit contract claims:

Truth in Lending Act (TILA) Defense

The Claim: Plaintiff firms allege undisclosed “dealer fees” violate federal lending laws.

The Reality: Legitimate financing arrangements include fully disclosed fees that are properly included in finance charge calculations. When fees are transparently disclosed and properly documented, TILA requirements are met.

Our Defense Strategy: We conduct comprehensive TILA compliance reviews, audit documentation practices, and aggressively defend properly disclosed financing arrangements. Our attorneys understand the difference between legitimate disclosed fees and actual TILA violations.

Income Tax Fraud Claims Defense

The Claim: Allegations that solar pricing violates IRS guidelines for tax credits.

The Reality: These complaints often ignore the inclusion of battery backup systems, inverters, and other legitimate equipment costs. Plaintiff firms frequently misapply or rely on outdated IRS cost-per-watt figures without understanding the full scope of modern solar installations.

Our Defense Strategy: Our approach includes comprehensive analysis of system components and pricing justification, directly challenging plaintiff’s oversimplified cost assumptions, working with industry experts as necessary.

Improper Lien Practices Defense

The Claim: Suggestions that lenders failed to comply with Home Mortgage Disclosure Act (HMDA) and Real Estate Settlement Procedures Act (RESPA) requirements.

The Reality: Solar equipment financing typically involves UCC-1 liens on the equipment itself, not real estate liens. When properly structured, solar financing arrangements fall outside RESPA and HMDA requirements.

Our Defense Strategy: We clearly distinguish between equipment and real estate financing, educating courts and juries on proper UCC-1 filing practices and demonstrating that our clients follow industry-standard practices that comply with applicable law.

Breach of Contract Claims Defense

The Claim: Allegations that companies failed to fulfill promises made in contracts, such as guaranteed energy savings or system performance.

The Reality: Solar system performance depends on numerous factors including weather patterns, roof conditions, and energy usage habits. Properly drafted contracts include appropriate disclaimers and realistic performance projections based on industry standards.

Our Defense Strategy: We review contract language and performance guarantees, analyze actual system performance against realistic expectations, and present expert testimony on industry-standard performance metrics and variables affecting solar output.

Deceptive Trade Practices Act Defense

The Claim: Broad allegations that solar companies engaged in deceptive or misleading practices in their sales presentations.

The Reality: Standard solar industry sales practices, when properly executed, provide accurate information about system performance, costs, and benefits. Many DTPA claims are based on unrealistic consumer expectations rather than actual deceptive practices. 

Additionally, financing entities are separate from solar installation companies and are not liable for solar merchants' actions, representations, and business practices. Standard financing arrangements do not create warranty obligations or liability for equipment performance.

Our Defense Strategy: We examine the sales materials and processes of our solar company clients for compliance, document proper disclosure practices, and challenge plaintiff claims with evidence of transparent, accurate sales presentations. 

For lender defendants, we challenge attempts to hold financing entities liable for merchant conduct and establish appropriate liability limitations based on the financing relationship.

Home Solicitation Sales Act Defense

The Claim: Violations of cooling-off periods for door-to-door sales, allowing consumers to cancel contracts within specified timeframes.

The Reality: Many solar sales occur through referrals, online inquiries, or showroom visits rather than unsolicited door-to-door contact. When door-to-door sales do occur, proper cancellation notices and cooling-off periods can be appropriately implemented.

Our Defense Strategy: We analyze the actual sales initiation method, review compliance with notification requirements, and distinguish between true door-to-door sales and other legitimate sales approaches.

Our Approach to Solar Contract Litigation: Proactive Defense and Risk Management

Your business success is our priority. We design defense strategies that allow you to continue serving customers while we handle the legal challenges.

Our goal is to stop frivolous claims before they disrupt your operations:

• Immediate Response. When your business faces solar contract cancellation claims, time matters. We provide rapid assessment of incoming claims and demands, early intervention to prevent escalation, and coordinated response strategies across multiple claims and plaintiffs.
• Comprehensive Legal Defense. If claims become litigation, we prepare a defense strategy that combines industry-specific expertise in solar financing and equipment practices with a comprehensive understanding of applicable regulations. We can defend claims from multiple plaintiffs in jurisdictions throughout Texas and in federal courts.
• Risk Prevention and Compliance. We don’t just defend individual cases – we protect your business model and operations. We can help strengthen your practices through contract review and improvement, staff training on proper disclosure practices, and ongoing compliance monitoring and updates. Prevention is always more cost-effective than defense.

If you receive demand letters or complaints, contact us immediately. Time-sensitive response requirements mean delays can harm your defense options.

Take Action: Protect Your Solar Business Today from Predatory Contract Exit Claims

Don’t let aggressive plaintiff firms disrupt your legitimate business operations. 

Call (713) 783-3110 to schedule an initiation consultation. We can assess your risk and defense options and immediately jump into action with cost-effective legal strategies that de-escalate the legal rhetoric and help protect disputed transactions.

Let us shoulder the legal burden so you can focus on serving your customers and growing your solar business.