Solar Sales Deception: The Momentum Solar Model
Momentum Solar, a New Jersey-based residential solar installer that expanded nationally before filing for bankruptcy in 2023, faces class action lawsuits and individual consumer fraud claims alleging systematic deception in its sales practices. The company grew rapidly by deploying door-to-door sales teams who, plaintiffs allege, used high-pressure tactics, misrepresented savings projections, promised installation timelines and equipment quality that weren't delivered, and obscured the actual financing costs associated with solar lease and power purchase agreement products.
The solar industry's consumer protection problem is well-documented: door-to-door sales of complex financial products (20-25 year solar leases or PPAs) creates significant information asymmetry, and unscrupulous companies have exploited this asymmetry by presenting optimistic savings projections, downplaying escalating payment clauses in long-term contracts, and failing to disclose that the homeowner does not own the panels under lease arrangements (affecting home sale and refinancing). Momentum's specific alleged conduct includes: presenting energy savings projections based on utility rates that would not reflect customers' actual rate plans; misrepresenting equipment quality and installation timelines; using contract signing pressure tactics; and failing to adequately disclose lease payment escalation clauses.
Momentum's Bankruptcy and What It Means for Claims
Momentum Solar's Chapter 11 bankruptcy filing in 2023 creates a complicated claims landscape. Pre-bankruptcy contract and consumer protection claims become bankruptcy claims subject to the automatic stay, meaning lawsuits cannot proceed outside the bankruptcy court without relief from the stay. Consumers with claims against Momentum need to file proofs of claim in the bankruptcy proceedings to preserve their rights. The bankruptcy trustee and any reorganization plan determine how creditors (including consumer claimants) are compensated. Related: other consumer fraud cases involving company financial distress.
How to File a Claim or Get Help
If you believe you qualify based on the eligibility criteria outlined above, the next step is a free consultation with an experienced attorney who handles this case type. Most plaintiff-side attorneys offer no-cost initial evaluations and work on contingency, meaning you pay nothing unless your case results in a recovery. Bring any relevant documentation to your consultation: receipts, medical records, correspondence, or any evidence of the harm you experienced.
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Before You Act
Thinking About Filing a Claim?
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Momentum Solar Lawsuit: Your Legal Rights Explained: Frequently Asked Questions
Answers to the most common questions about this case and your legal options.
What is Momentum Solar accused of in the lawsuit?
The lawsuits allege Momentum Solar sales representatives misrepresented energy savings projections, concealed important lease terms including payment escalation clauses, failed to disclose that leased panels are not owned by the homeowner, promised installation timelines and equipment specifications that were not delivered, and used high-pressure door-to-door sales tactics.
Did Momentum Solar go out of business?
Momentum Solar filed for Chapter 11 bankruptcy protection in 2023. The bankruptcy affected its ongoing operations and ability to honor warranties and service obligations. Consumers with existing Momentum Solar systems should check the bankruptcy court filings for information about warranty coverage and service providers.
How do I file a claim against Momentum Solar in bankruptcy?
File a proof of claim in the Momentum Solar bankruptcy case through the bankruptcy court's claims process. Search PACER (pacer.gov) for the Momentum Solar bankruptcy case to find the case number, filing deadlines, and claims procedures. Consumer fraud claims are generally unsecured claims in bankruptcy. The amount you receive depends on available assets and claim priority.
I have a Momentum Solar lease, what happens now that they're in bankruptcy?
Your solar lease agreement may have been assigned to a third party or may be administered through the bankruptcy estate. Check any communications from the bankruptcy trustee. You should also verify: who is responsible for monitoring and maintenance of your system, who holds the lease going forward, and whether your lease was included in any reorganization or asset sale.
Can I cancel my Momentum Solar lease?
Solar leases are generally 20-25 year contracts with specific termination provisions. The bankruptcy may create grounds for early termination depending on whether Momentum has materially breached its obligations. Consult a consumer protection attorney who handles solar contract disputes to evaluate your specific lease terms and cancellation options.
Legal Disclaimer
This article is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. Lawsuit eligibility, settlement amounts, and case status are subject to change as litigation develops. Always consult a licensed attorney in your jurisdiction before making legal decisions. LawsuitWatch is an independent journalism publication and is not a law firm. LawsuitWatch may receive referral compensation from affiliated legal service providers, which does not influence editorial content.