[co-author: Stephanie Kozol]*
On October 11, Connecticut Attorney General (AG) William Tong announced a $5 million settlement against bankrupt solar installation firm Vision Solar, LLC to resolve an unfair trade practices suit. Hartford Superior Court Judge Daniel Joshua Klau granted the state’s motion for the judgment, which was executed with a trustee for the company and previously approved by a U.S. bankruptcy court. In addition to the $5 million civil penalty, the company also agreed in the stipulation to certain changes in its business practices. However, the changes to its business practices are largely theoretical given that the company is in a liquidation bankruptcy.
In March 2023, Tong announced that his office was bringing an enforcement action against Vision Solar for allegedly violating state consumer protection laws by engaging in sales techniques that the AG claimed targeted vulnerable individuals. In its complaint, the state asserted that the company had engaged in predatory sales tactics and installed rooftop systems without permits or licensed workers, leaving residents with nonoperating solar systems. AGs in Arizona and Florida similarly filed their own consumer protection lawsuits against the company. Vision Solar subsequently filed for Chapter 7 bankruptcy on December 28, 2023, listing between $100 million and $500 million in estimated debt. At the time, the company listed more than 60 pending legal actions against it in state and federal courts in New Jersey, Florida, Pennsylvania, Arizona, Delaware, Michigan, and Massachusetts.
While bankrupt Vision Solar does not have assets sufficient to pay Connecticut, Tong expressed that the judgment should serve as a “clear warning” to solar installers engaging in the conduct alleged.
Why It Matters
Solar installation companies should expect continued scrutiny around their sales practices. Connecticut is just one of many states across the U.S. where solar installers are facing increased AG scrutiny.
*Senior Government Relations Manager
