This sounds too good to be true, was one of Brenda Ortiz’s first thoughts when a salesman showed up at her front door in Riverside County, California, in October 2018. He was with Vivint Solar, Ortiz recalled him saying, and was working with her local utility, Southern California Edison, to find people who qualified for free solar panels.
Ortiz declined the offer. But she heard from neighbors that the salesman came back, stopping at homes along her cul-de-sac. One day, he swung by Brenda’s house and found her husband, Carlos, working in the garage. Carlos said he had been toying with the idea of getting a solar system, and he thought the salesman’s pitch to slash their electrical bill sounded good. He signed a power purchase agreement—a 20-year contract to pay Vivint Solar for power generated by the solar panels.
When the first bills came in, the couple realized their power costs were going up, not down. “I was literally physically ill,” Brenda Ortiz told FairWarning.
For the first time, they took a close look at their 16-page contract. They recalled the friendly salesman saying they would pay only for the power they used. But the contract said they would be charged for all the power produced by the panels. The salesman could not be reached for comment.
The Ortizes said they considered draping tarps over the panels to stop them from producing energy. But when they read their contract, they learned that even if the panels were disconnected, Vivint Solar would bill them for the estimated energy that would have been generated.
Frustrated, Brenda called the company to terminate the contract. She said she was shocked to learn that it would cost about $26,000 to cancel. She and her husband were trapped.
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The solar industry has enjoyed massive growth in recent years. In 2016, it hit the milestone of one million installations in the U.S.; in 2019, it reached 2 million, and if current trends hold, there will be over 4 million by 2023.
With the world facing a mounting climate crisis linked to the burning of fossil fuels, the rapid growth of renewable energy is a huge positive. But the solar market isn’t all sunshine. Over the last decade, consumer complaints against U.S.-based solar companies have multiplied.
The Ortizes home in Riverside County (photo by Brenda Ortiz).
Hundreds of complaints to the Better Business Bureau cite grievances ranging from damaged roofs to poor customer service. Among them are claims that salespeople misrepresented the terms of power purchase agreements or leases. Some homeowners say they were tricked and locked into 20-year contracts that can’t be broken, short of paying the solar company tens of thousands of dollars.
“It’s ground zero for consumer protection violations these days,” said Andrew Milz, a Pennsylvania attorney who represents clients fighting with solar companies. “When you have young, motivated salesmen going door to door with vast amounts of research and data and information on the consumers… it’s just a recipe for abuse.”
In recent years, no company has racked up more complaints than Vivint Solar, a dominant player in the market. In October 2019, the Better Business Bureau reported that Vivint had 774 complaints over the past three years—well more than either Sunrun Inc. or Tesla-owned SolarCity Corp., two leading competitors [In July 2020, Sunrun acquired Vivint; see editor’s note]. Vivint’s rating with the BBB is B+. Ratings are based on several factors, including volume of complaints and how companies respond to them.
Vivint refused requests to interview company executives. In response to a list of questions about specific consumer complaints, lawsuits and company practices, Vivint replied with a prepared statement that said the company doesn’t tolerate deception or fraud, and that it maintains a robust internal compliance system.
“We interact with more than a million consumers each year through our direct-to-home sales model, and are proud of the solar energy solutions that we provide,” the statement said. “As a consumer-facing business, from time to time we receive complaints or are involved in consumer disputes. We take allegations of wrongdoing, no matter how small, seriously and thoroughly investigate all allegations.”
Founded in 2011 as part of the Utah-based residential security firm, Vivint Smart Home, Inc., Vivint Solar is now a separate publicly traded company. It operates in 22 states and the District of Columbia, competing with long-established industry titans like Sunrun and SolarCity. Last year, Vivint was the second largest residential solar installer in the U.S., with over 188,000 cumulative installations as of December 2019, and $341 million in revenue. The company’s social media is filled with testimonials from satisfied customers.
For consumers, a sharp decline in the cost of solar panels and tax breaks like the federal Solar Investment Tax Credit have made it easier to purchase panels outright. But companies like Vivint also have offered customers leases and power purchase agreements. Under the latter option, a company agrees to design, install and maintain panels on a consumer’s property for little or no upfront cost. The consumer pays for whatever power is generated each month, but depending on local and state programs, they may be able to save money on their bill by selling the excess power back to the utility grid. The solar company, which owns the panels, receives tax incentives and can sell renewable energy certificates.
Because solar power is seen as so unambiguously good, some consumers may abandon caution when sales reps come calling. Along with the many customers who have done their bit for the environment and seen their power bills shrink, there are some, like the Ortizes, who mourn the day they put their name on a contract.
Amid such complaints, several states have taken action against Vivint.
On January 6, the company agreed to a $1.95 million settlement with New York’s attorney general following an investigation of Vivint’s business practices. The attorney general had accused the company of using deceptive sales pitches and said some of its panel installations had caused property damage. Vivint did not admit liability in settling the case.
The agreement followed another last October with the New Jersey attorney general’s office, which had charged Vivint with failing to deliver promised energy savings. In that case, Vivint agreed to pay nearly $122,000 and change some of its sales practices.
In March 2018, New Mexico’s attorney general lodged a scathing complaint against Vivint, claiming its sales reps misled consumers by telling them that 20-year contracts would save them substantial amounts of money. According to the suit, the company deliberately made its power purchase agreement opaque. Vivint has denied wrongdoing and has countersued, saying the attorney general has violated public record rules by withholding documents sought by the company.
“It seems like Vivint [Solar] is still one of the worst actors in the industry,” said Daniel Stevens, executive director of the nonprofit watchdog organization Campaign for Accountability. In 2018, the group sent letters urging state attorneys general in California, Arizona, Nevada, New York and Texas to investigate rooftop solar companies, with an emphasis on Vivint.
In lawsuits, complaints and interviews with FairWarning, customers have accused Vivint representatives of lying to them, duping elderly homeowners, forging emails and signatures on contracts and running unauthorized credit checks.
On consumer review sites like Yelp, consumers fumed about spending months trying to reach customer service agents to fix disconnected panels and incorrect bills.
“Perhaps the worst customer service I’ve ever experienced in my life,” wrote John D. of Alexandria, Virginia, on Yelp.
“They will violate their contract, promise you refunds you will never get, and give you crap products they will not uninstall,” wrote Kahlan A. of Las Vegas, Nevada.
“If they find out you’re calling to cancel, they’ll put you on hold and then avoid you. For days. And days,” wrote Crystal D. of Kapolei, Hawaii.
“I have been over billed and talked in circles for the past 7 months… I am now considering this to be a fraud situation and will be seeking legal representation,” wrote Tena R. of Stockton, California.
The solar industry wants to ensure that consumers aren’t ripped off by bad actors, said John Smirnow, general counsel and vice president of market strategy for the Solar Energy Industries Association. But, he added, customer grievances are also a natural byproduct of the industry’s growth.
“Solar is taking off,” Smirnow said, noting that tens of thousands of systems have been installed in California alone. As the industry expands and attracts more customers, he said, “the more issues and concerns you’re going to see from consumers.”
John Masone said snow that piled up on his solar panels slid off and destroyed a metal roof and wooden deck (photo by Masone).
This is little comfort to several Vivint customers, who told FairWarning they have been battling the company for months. John Masone, a Massachusetts resident who bought a house that came equipped with Vivint panels, told FairWarning that Vivint failed to bill him for two years, then began calling him demanding thousands of dollars. He offered to pay for the energy he used in exchange for terminating the contract and removing the panels, but the company refused.
“I am in a standoff,” he said in an email.
A Vivint sales rep in Northern California who asked to remain anonymous because the company hadn’t authorized him to speak said the company in recent years has improved training of its sales force.
“So many of the problems that have been in the past are being solved,” he said, adding that some employees were recently fired because they failed to follow sales protocols. To prevent misrepresentations, he added, salesmen are periodically called on during trainings to perform their pitches so they can be refined, if needed.
“Frankly, I wonder how people can do things wrong and cheat,” he said.
Thomas Powers, a former Vivint Solar sales representative from Arizona, said the company took pains to train its sales force to behave ethically. But some sales reps could be “overzealous” about finding creative ways to land customers, he added.
“We had some guys… they’d wear outfits that made you look like you worked for the utility company,” Powers said. Higher-ups in the company put a stop to this once they discovered it, he said.
This practice was detailed by lawsuits in several states, which said Vivint salespeople falsely claimed to be affiliated with local utilities, including Atlantic City Energy, Baltimore Gas & Electric, Pacific Gas & Electric and San Diego Gas & Electric.
Southern California Edison sued Vivint in November 2017 for trademark infringement after receiving “numerous complaints” about claims made in door-to-door solicitations in Southern California. The utility claimed that some sales representatives told customers they were “from Edison” or “in partnership” with the utility, while others allegedly counterfeited Edison logos and trademarks. In at least one case, salesmen were caught on a doorbell camera making misleading claims, according to the lawsuit.
The case settled in April 2018 after Vivint, without admitting blame, agreed to avoid any misrepresentations.
A former Vivint sales rep still working in the renewable industry described what she viewed as unethical marketing tactics. The ex-employee, who requested anonymity, said she was instructed to call potential customers who had already spurned Vivint’s sales appeals, and didn’t want follow-up calls.
“So that sucked, because all I could do was say ‘I’m sorry, I’ll mark here to make sure you aren’t contacted.’ But meanwhile I already know they’ve sent this list (of phone numbers) to other people,” she said. The employee also shared a script that she received during her training that emphasizes the money homeowners can save with solar.
In a video of a sales training session, at one time posted on Vivint’s Vimeo account, Jed Wintle, a salesman, instructed other reps to avoid detailed explanations, and to walk away from potential customers who ask probing questions. By selling people on the concept, he said, customers won’t ask about the fine print of a contract before signing.
Customers don’t read documents, he said, adding, “I could slide in anything I want. I wouldn’t. But I could.”
Wintle’s training advice appears at odds with a separate Vivint video on ethical standards. That video cautions against exaggerating the benefits of tax credits by suggesting the customer will get a “bag of cash.” In his video presentation, Wintle repeatedly likened tax benefits to “free money” and “bags of cash.” The videos were publicized in November 2019 by the investigative news outlet The Capitol Forum.
Although Vivint says it pitches power purchase agreements to consumers with strong credit scores, the former sales rep said she was encouraged to target low-income homeowners.
“They literally said to us they will ask you less questions and feel less entitled to information to compare their options,” she said.
A class action lawsuit filed in December in federal court in San Francisco also accuses Vivint of targeting low-income people. Two plaintiffs enrolled in a state program that already provides discounted electric rates to low-income customers were persuaded to sign Vivint power purchase agreements, according to the complaint. The brief stated that when one plaintiff who experienced problems with Vivint’s billing tried to have the panels removed, the company demanded about $40,000. The other plaintiff claimed that Vivint convinced her terminally ill father, who was already receiving subsidized rates, to sign a 20-year power purchase agreement. According to the suit, he died one year later, and when his daughter tried to rescind the contract Vivint said it would cost $21,000.
In March, the court ordered most of the plaintiffs to pursue their claims in arbitration.
Melissa Knight standing in front of her home in Williamstown, New Jersey (Photo courtesy of Knight).
In a deposition taken in a New Jersey case in 2019, Vivint sales rep Philip Chamberlin admitted that he entered incorrect email addresses for potential clients to temporarily keep them from receiving electronic copies of their power purchase agreements. Chamberlin said he learned the tactic through other sales representatives, according to the deposition.
Court papers filed in the case claimed that Vivint and Chamberlin had forged the signature of the plaintiff, Melissa Knight, and had engaged in similar frauds on at least six other occasions. Vivint denied the claims in Knight’s suit and filed a counterclaim demanding her unpaid bills. The court ordered the case to arbitration, which Knight has appealed. FairWarning was unable to reach Chamberlain.
Three lawsuits in California that accuse Vivint of abusive sales tactics single out the same salesman, Tyler Williams. A case filed in 2018 in Alameda County, California, claimed that Williams forged the signatures of an 86-year old woman and her daughter on a power purchase agreement. Vivint has denied the allegations, and court records show the case is pending.
Another 2018 case filed in San Diego on behalf of an elderly widow accused Williams and another sales rep of forging her husband’s signature on a work order to install solar panels on a home she owned. According to court records, Vivint agreed to remove the solar panels after learning that her husband had died in 2015, three years before the work order was signed. Vivint denied the claim of fraud, and the case ended in a confidential settlement.
Williams was named in a third suit in San Diego in 2018. The plaintiff said that a different Vivint salesman falsely claimed to be working for a local utility, and said she qualified for free solar panels. She said that her signature was forged on a power purchase agreement, which was also signed by Williams—a man she said never met. Vivint argued that the lawsuit was based on a lie because the plaintiff admitted signing the power purchase agreement in an email and urged the court to allow the case to proceed to arbitration. The case was settled for a confidential sum at the end of 2018.
Vivint did not respond to written questions about the lawsuits involving Williams, who is listed as a licensed sales rep for Vivint by the California Contractors State License Board. In 2018, when the three lawsuits were filed, Williams appeared in a San Diego TV spot promoting Vivint, and in a podcast said he managed over 400 Vivint sales reps on the West Coast. Efforts to reach Williams were unsuccessful.
Many complaints about Vivint to the Better Business Bureau are from consumers in California, the country’s biggest solar market
About 36 percent of the power from Vivint panels is generated in California, according to the company’s most recent annual report. Vivint is poised for further growth in the state, thanks to a new law that, with some exceptions, requires solar panels on new single-family homes. But the company has also seen opportunity in the highly publicized failure of big utilities to avoid blackouts caused by fires.
“It’s interesting, we knock on millions of doors a year at this company, and in California, it’s the highest penetration outside of Hawaii,” said Vivint Solar CEO David Bywater during a November 2019 earnings call. “But every door now is a fresh door again,” he said, partly because of the PG&E blackouts. “And so it kind of resets the market and allows you to go back and have a conversation again.”
Vivint has pledged to change some of its business practices in California. As part of a court settlement, the company said it will give sales pitches and contracts in the same language, following complaints about Spanish speaking customers getting contracts written in English.
Last year, California began requiring companies to give consumers a solar disclosure document, which is to be included in every contract. The document lists the cost of the system, contact information for the contractors licensing board and notice of a three-day right to cancel.
“As an industry, we do have an obligation to be proactive and educate consumers about the disclosure forms, and to make sure consumers are informed so when they’re talking to an installer they’re asking the right questions,” said Smirnow of the Solar Energy Industries Association.
Brenda Ortiz said she and her husband are still trying to come to an arrangement with Vivint Solar.
Among other things, Brenda said, Vivint wanted her husband to sign a non-disparagement clause, which would bar him from speaking about the company.
“I don’t want to stop telling people,” Ortiz said. “I don’t want to reach a point where I have to sign something that says I can’t say anything about Vivint.”
To potential buyers, she added, “For god’s sake, read the contract.”
Editor’s Note: In early July, 2020, Vivint was acquired by its top rival, Sunrun, in a $3.2 billion deal. The merger makes Sunrun the undisputed master of the door-to-door solar installation market, even as the industry grapples with a significant downturn in sales because of the coronavirus and a reduction in federal tax incentives.
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I was bamboozled into thinking leasing panels from Sunrun would save me money. I was never told Pace/Hero loan goes on Tax Roll. I’ve paid 800 and up on my true up also pay 245 to lease panels have never produced enough energy.Now salesman from Vivint\Sunrun shows up saying he can eliminate the true up bill because I never should’ve had one my system too small so want me to PPA for 20 yrs add more color panels at 122 a month. WTF WE NEED HELP. I am disabled and husband disabled just got put of hospital they didn’t care.
Any class action lawsuits that are in process, please let me know as well. Horrible experience with Vivant for all the same reasons listed in other comments. I’d love to see this corporate penalized.
Try buying a home that’s 2 years into a solar lease with Vivint! The 6 year early purchase is mentioned in the 20 year lease, but the terms are vague and the lease states in bold letters that the purchase of the system is not possible. “THIS AGREEMENT IS FOR THE LEASE OF A SOLAR ENERGY SYSTEM BY US TO YOU, AND NOT FOR THE SALE OF ENERGY, THE SYSTEM, THE SYSTEM INTERESTS, OR A SOLAR ENERGY DEVICE.” I’ve learned that the purchase price is not disclosed until the 6 year mark, which means you blindly take over the lease until that point without knowing if the early purchase will be worth it. That makes it really difficult for both home owner and prospective buyer because the system cannot be properly valued when the lease transfer is made. In addition, the website they provide in the lease agreement stating how the system is to be valued only describes it in terms of the energy produced – this is not anywhere close to the value of the equipment (panels, inverter, wiring, and mounting infrastructure).
This is my Vivint Solar nightmare……..I too am in this Vivint Solar situation. This is just the tip of the iceberg
I live in New Mexico and I got my roof replaced and of course I had to get the panels removed for this process, and I never got those panels put back on my new roof. I continue to get emails charging me each month, although I can’t figure out how I am being charged for panels I no long have. I did contact The Attorneys Generals Office here in New Mexico back in 2018 and I guess they are still dealing with the lawsuit…..as they keep telling me that they not able to provide and information to me. In the meantime, Vivint has placed a lien on my house……and the way I found out is because I refinanced my house in 2020 and I had to get Vivint to remove the lien until the refinance went through. What a nightmare!!!!
Same issues with me as well and I also live in Riverside C.A. Any class action lawsuits going on that I can join? Any help on the matter will help.
I am also having similar issues as discussed in this article. How can I get involved in the class action lawsuits?
I am having the same problems as most of you on here. I have been lied to by the Vivint salesperson who came to my home. What can we do to get out of the Power Purchase Agreement that I was lied to about.
Hello
I just read all of the horrible article and have been the told the same lies. What can we do to get out of the contract?
Same story here. Signed contract 12/19/19 and still not up and running. No one contacts us, $1200 damage to garage, etc.
customer service is horrible. How can we get a class action lawsuit????
Tesla bought Vivint in Massachusetts and that salesman duped my 78 year old mother, same exact story as Virginia Webb post above.
Tesla wants 10k to let her out.
She has dementia, and the salesman made up a fake email address for my mother in order to complete the sale.
I want to get in on a class action
I think most of us have the same problem; why don’t we get together in a lawsuit to get rid of the contract, that with lies they make us sign. I think if we get together we can do more.
I was waiting for the final response from Vivint Solar but they said they cannot upgrade my system.
The sales person told me I can upgrade my system whenever I want if my NV Energy bill is higher than then Vivint Solar bill.
I sent them the bill statements and now they are saying to upgrade my system it’s not adding more panels ( it was what the sales guy said ) but they need to install a new system ( second system ) and not just add more panels, but for that, the minimum is 8 panels and what I need now is around 3-4.
So since I’m not able to upgrade my system as the sales guy said. I’m filing a complaint against Vivint Solar to remove all equipment ( I already turned off the system )
The absolute worst company ever. Talk about being totally screwed over. They only communicate with me through auto generated emails and won’t answer the call to talk to a real person. Hoping and praying this company goes belly up and karma bites them in the ass soon
I’m in the same boat, but luckily I only added 7 panels to lower my ‘tru-up’…..but feel still lied to.
I am having the same problem. Is there any action against Vivint
I am having the same problem as all of you in this page. If anyone has some info on how to sue these guys please let me know. I am tired of over paying these guys. The salesmans are a bunch of liars and their customer service sucks. Please if anyone has some info on how to terminate the contract or sue these guys please let me know! Thank you!
All solar companies have issues. The real issue is most people do not know how to figure out their electric bill and most sales reps are young and do not explain the financials correctly. Because if they did Homeowners would realize Solar Panels are the deal of a century. Especially since the price of the utilities power is going up significantly. You will read articles like this in 10 years and realize you made a mistake not buying those solar panels and Vivint and all the other Solar companies had your best interests in mind.
I’m in New Mexico and have been duped by Vivint and am looking for legal advice as I would like to file a lawsuit. I’m a disabled veteran someone please help.
My bank showed that the check I wrote was cashed. Vivint is saying they never got it?? Since we’ve been with the company it’s been a damn nightmare! I don’t save any money at all! Plus at the end of the year if you haven’t paid extra on your electric bill, you must come up with the full balance for the electric company. This is the worst company taking advantage of seniors. I just want out of this mess! I pay Vivint $500.00 then turn around and pay the utility company $250.00. Where is the savings? I can eliminate $500.00 each month! They’re not nice at all.
These people are criminal. there has to be a way to shut them down. There has to be a way for some consumer advocacy. Do I need to contact the State Attorney General? Any information would be greatly appreciated.
An elderly family member was also duped by this company. He was 75 when he signed. For those of you who have bought a home with this system on it, and agreed to take over the contract, please note: you cannot change the sq. ft or footprint of your home without paying the to uninstall, re-install and also allow new panels (at a new 20 year contract) to produce the amount of energy that they feel your home should produce. You cannot sell your home without the new buyers taking on the contract and you have to pay it out. The contract states that he cannot be a part of any class action lawsuit against them. My family member and his wife need assistive living now and we need to sell the house sooner than later and this is just a problem. :( His bills are not lower. Last year the settle up bill was $650 owed to the electric company and that is after him making monthly payments all year long. However, the elderly folk said that the salesman “was a very nice young man” who even shared Thanksgiving dinner with them!! Talk about crude!
I signed for these Vivint solar panels when I bought this house . Know one told me they were leased. I found out when a Vivint tech came to work on them. I asked about the cost of this repair. He said, it’s included in your lease. This was the first time I ever heard that word used in regards to these panels. I thought I was taking over the loan from previous owners. I never lease anything. My bills are so high . I called vivant and their answer was , I believe you are saving SOME money. I wanted out as I felt bamboozled. They said I would have to pay over 40,000 dollars. I am so upset with them for not telling me I was leasing and about the cost. I have months I pay over 400 and I still get an electric bill that trues up in September. How will I ever sell my home ? I thought I was doing a good thing and that this would be a positive selling point. I need help on how to fix this problem like everyone else. I am 70 and on a fixed income. Help!!!!
Salesman told me. it will lower bill each month. But My bill is higher x3 than my regular electric bills. Before im pay $80-$150. Now im paying $250-$330. I really want to cancel the contact but I can’t. No paper bills. No customer service. The salesman disappeared. No answering the phone. They keep lie to us. I need a help.
I have similar problems with Vivint solar company. I just bought a home already equipped with this company panel. My Realstate agent told me .it will lower your bill each month. NO. My bill is three time higher than my neighbor…I hope attorney general of California. We need your help. This company is lies. Fraud.
I live in San Diego and have the exact same problem. Would you know how to get in touch with Brenda Ortiz? I’m interested in filing a law suit and would love to see how many people I could get to go with me.
Thank you Eli for this excellent article on the worst player in the solar market. I own a solar company in Northern California and we appreciate companies like Vivint that make it very easy for us to sell solar. All we do is not screw them.
The good news is there are dozens of highly rated companies in the solar business, and it is sad that it is such a buyer beware market. Companies like Vivint hurt the entire solar industry and force the government to intervene.
I was just notified by the Costco buyer that they are partnering with Vivint in So Cal and I sent this article to the buyer. Thank you again and keep up the great work!
Has the attorney general in Riverside County been involved with taking any actions against Vivint?
if they think that is bad customer service,try at&t or hughesnet. all based in india and cannot speak english properly.
It seems that solar panels have become the timeshares of the 21st century; an alluring concept combined with deceptive high-pressure sales. Perhaps the “get out of solar” business will become as popular as the “get out of your timeshare” business.
At some point, shouldn’t the government RICO these guys? After all, their business model seems to depend on deceptive and corrupt practices.