Understanding State Attorney General Actions and Recent Residential Solar Crackdowns
June 22, 2026 No Comments
Read More » Your Southern California Edison bill went up and your solar contract isn’t keeping up. The promises about “never pay for power again” and the federal tax credit don’t match what you’re actually experiencing. Or you live in the City of Los Angeles on LADWP service and the salesperson told you NEM 3.0 applied to you — when it actually doesn’t, because LADWP has its own net metering rules. Either way, what was sold doesn’t match what was signed.
You are not alone — and you may not be stuck. California has the strongest residential solar consumer protection framework in the country, including the California Consumers Legal Remedies Act (CLRA, Civil Code §1750+), Business & Professions Code §17200 (Unfair Competition Law), SB 784 (effective January 1, 2026, extending cancellation periods to 5 days / 7 days for seniors), and Civil Code §1632 (contract language requirements). Submit your information below for a free intake — under 60 seconds. A Los Angeles specialist will collect the facts so qualified legal counsel may review whether you may be eligible for a legal review.
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Los Angeles is the largest residential solar market in the country — and also one of the most heavily door-to-door-canvassed markets in California. A critical distinction matters here: the City of Los Angeles is served by Los Angeles Department of Water & Power (LADWP), a municipal utility that is NOT subject to NEM 3.0 and still credits exported solar at retail rates. But most of LA County outside the city — large parts of the San Fernando Valley, San Gabriel Valley, South Bay, and East LA — is served by Southern California Edison (SCE), which IS subject to NEM 3.0 and now credits exported solar at avoided-cost rates roughly 75% lower than before April 15, 2023. We have spoken with many LA homeowners who were sold solar by sales teams that either confused or misrepresented which utility rules applied. We have also seen heavy door-to-door sales in Spanish-speaking communities — California Civil Code §1632 requires that if the sale was conducted primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, the contract must be translated into that same language. Failure to comply is a basis for rescission.
California’s Net Billing Tariff (NEM 3.0) took effect April 15, 2023 for PG&E, SCE, and SDG&E customers. Under NEM 3.0, exported solar is credited at California Avoided Cost Calculator (ACC) values — typically $0.05–$0.08/kWh — instead of NEM 2.0’s retail rate of approximately $0.30/kWh. That is roughly a 75% reduction in export compensation.
Systems that submitted complete interconnection applications before April 14, 2023 were eligible to be grandfathered into NEM 2.0 for 20 years — BUT only if the system received Permission to Operate by April 15, 2026.
That April 15, 2026 deadline has now passed. Systems that missed the deadline — often due to installer delays, permitting backlogs, or interconnection issues — are now subject to NEM 3.0 economics even though the contract was signed with NEM 2.0 expectations.
If a Los Angeles solar contract was sold on the promise of retail-rate net metering and the system is now under NEM 3.0, the savings projection that drove the sale may not match the bills now arriving. The California Supreme Court ordered the Court of Appeal to reconsider the legality of NEM 3.0 in August 2025; a ruling remains pending as of 2026
Los Angeles County residential solar customers fall into two very different regulatory worlds. LADWP customers (residents of the City of Los Angeles within LADWP’s service territory) are NOT subject to NEM 3.0. LADWP currently credits exported solar at retail rates and operates under its own separate net energy metering program — significantly more favorable than the IOU Solar Billing Plan. SCE customers (most of LA County outside the City of LA) ARE subject to NEM 3.0 and the Solar Billing Plan. If you live in Burbank you’re on Burbank Water and Power (also municipal, also more favorable). If you live in Pasadena you’re on Pasadena Water and Power (municipal). The patchwork of utilities in LA County means that sales pitches that didn’t accurately describe which utility’s rules applied to a specific homeowner’s address may have produced contracts based on inaccurate savings projections.
The patterns below come up repeatedly in intakes from Los Angeles homeowners. None of these alone guarantees that a contract qualifies for review — they are simply the facts most often described.
The salesperson promised the system would zero out the LADWP (City of LA) or SCE (Southern California Edison, most of LA County) bill, or generate a meaningful credit. After NEM 3.0’s April 15, 2023 transition, export credits dropped approximately 75% — and any Los Angeles homeowner whose system was sold on retail-rate net metering math but ended up under the Solar Billing Plan now sees a meaningful gap between projected and actual savings.
Many Los Angeles homeowners who signed contracts between 2020 and 2023 expected to be grandfathered into NEM 2.0 for 20 years. To retain NEM 2.0 status, the system had to receive Permission to Operate (PTO) by April 15, 2026. Permitting delays, inspection backlogs, interconnection queue issues, or installer non-performance pushed some systems past the deadline. Those systems are now on NEM 3.0 — at meaningfully lower export economics than what was sold.
A salesperson said the homeowner would receive a federal tax credit (often quoted at 26% or 30% of system cost). The homeowner then learned at tax time that they did not qualify — for example, because they did not have sufficient federal tax liability, or because the system was leased (in which case the credit goes to the lessor). Misrepresenting tax credits is a basis for action under the California Consumers Legal Remedies Act (CLRA, Civil Code §1750+).
California Civil Code §1632 requires that if the negotiation of a sale was conducted primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, the contract must be provided in that same language before signing. Many Los Angeles solar contracts were sold to Spanish-speaking homeowners with English-only contracts. When §1632 is violated, the buyer has a right of rescission.
Every California solar installer must be licensed by the Contractors State License Board (CSLB). The CSLB license must be the correct classification (typically a C-46 Solar Contractor or C-10 Electrical Contractor). Contracts performed by unlicensed contractors are generally not enforceable under California Business & Professions Code §7031. Los Angeles homeowners can verify any contractor’s license at cslb.ca.gov.
Production estimates given at the point of sale do not match what the system has actually generated over time. Heat, smoke, fog, shading, or roof orientation issues that weren’t disclosed during the sale may have always made the production estimate unreachable. When the gap between sales-claim production and actual production is significant and persistent, that may be reviewable.
A Los Angeles homeowner sells the home and the buyer refuses to assume the solar lease or PPA. The deal stalls or falls through. Title companies sometimes flag UCC-1 financing statements filed in connection with the solar transaction — these are filed against the solar equipment, not against the home, but they can complicate sale and refinance transactions.
The homeowner signed at the kitchen table after a long pitch. The salesperson did not adequately explain the right of cancellation under California Civil Code §1689.5–1689.7. Under SB 784, effective January 1, 2026, the cancellation period for home solicitation sales was extended from 3 business days to 5 business days (and from 5 to 7 business days for buyers age 65 or older). When the required cancellation disclosures were defective, the period may not have started running.
California requires solar providers to give every prospective customer the CPUC Solar Consumer Protection Guide and collect the customer’s signature on it before installation. Failure to provide the Guide, or providing it in a language different from the one the sale was conducted in, is a compliance violation. Los Angeles homeowners can check whether they were given a properly signed Guide.
Los Angeles has excellent solar resource — but several real-world conditions reduce actual production from sales-claim estimates. Marine-layer fog along the coastal strip, heavy smog accumulation in the San Fernando Valley, occasional wildfire smoke that reduces production for weeks at a time, and tree-shaded mature neighborhoods all matter. Production estimates that ignored these factors — common in fast-paced door-to-door sales — often overstated annual generation. Persistent production shortfall, by itself, does not automatically establish anything, but it may be relevant to a review of how the system was sold.
California has the country’s most extensive consumer protection framework for residential solar. None of these laws guarantees a contract will be cancelled — eligibility depends on the facts. A qualified attorney reviews how these laws may interact with a Fresno homeowner’s specific documentation.
Prohibits any unlawful, unfair, or fraudulent business practice. Provides a separate cause of action that overlaps with the CLRA. Remedies include restitution and injunctive relief. UCL claims have a 4-year statute of limitations.
Prohibits unfair and deceptive consumer practices. Allows actual damages, punitive damages, attorney’s fees, and equitable relief including contract rescission. §1770 lists 28 specific prohibited practices including misrepresenting characteristics of goods or services, advertising goods with intent not to sell them as advertised, and inserting unconscionable contract provisions. §1782 requires a 30-day pre-suit notice before damages may be claimed.
Extends California’s home solicitation cancellation period from 3 business days to 5 business days for buyers under age 65, and from 5 business days to 7 business days for buyers age 65 or older. SB 784 also adds disclosure requirements for home improvement and solar financing transactions and imposes new requirements on financing sources for contractor and dealer oversight.
If the negotiation of a sale was conducted primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean, the contract must be translated into that same language before signing. Failure to comply gives the buyer a right of rescission. This protection applies to door-to-door solar sales.
Every California solar installer must be licensed by the Contractors State License Board. Typical required classifications are C-46 (Solar) or C-10 (Electrical). Contracts performed by unlicensed
contractors are generally not enforceable. License status can be verified at cslb.ca.gov.started running.
The California Public Utilities Commission requires solar providers to give every prospective customer the Solar Consumer Protection Guide (Version 4, published 2025) and collect the customer’s signature on it before the system is interconnected. The Guide must be provided in the language in which the customer was initially contacted. Failure to comply is a compliance violation.
Federal law requiring lenders to disclose APR, finance charges, and payment terms. For certain home-secured loans, TILA provides a three-day right of rescission. Whether TILA applies to a specific financed solar transaction depends on how the loan was structured.
The California Attorney General’s Office maintains a Public Inquiry Unit that accepts complaints about deceptive business practices. The California Department of Consumer Affairs (DCA) oversees the Contractors State License Board (CSLB), which licenses and disciplines solar contractors.
Los Angeles homeowners with concerns about a solar transaction can file complaints with multiple agencies — the CSLB (cslb.ca.gov), the CA Attorney General (oag.ca.gov), the California Department of Financial Protection and Innovation (dfpi.ca.gov, which oversees solar financing), and the CPUC.
Filing an agency complaint and pursuing private legal remedies under the CLRA, B&P §17200, or contract law are not mutually exclusive. Multiple paths can be pursued in parallel
The homeowner submits the intake form on this page or calls 888-918-2083. No payment, no obligation, no commitment. The intake collects the basic facts: contract type, solar company, date of sale, what was promised.
The homeowner provides their solar contract, any finance or lease agreement, recent LADWP bills, sales materials still in their possession (brochures, text messages, emails, the signed CPUC Solar Consumer Protection Guide if available, recordings of the sales presentation if any), and any prior communications with the installer or finance company.
If the case meets initial criteria, documentation may be reviewed by attorneys at Consumer Advocacy Law Group. The attorney determines whether the homeowner may qualify for further legal review under CLRA, B&P §17200, contract law, or other applicable authority. SCRC does not perform legal analysis.
If the law firm accepts the matter, the homeowner enters a fixed-fee engagement directly with Consumer Advocacy Law Group. The fee is disclosed in full before the homeowner agrees to anything. No hourly billing, no contingency on outcome.
California homeowners sometimes assume that submitting an intake gives them permission to stop making payments on their solar lease, loan, or PPA. That is not the case.
Continuing to make payments is generally the safest course of action until a qualified California-licensed attorney has reviewed the contract and provided specific advice. Stopping payments without legal advice may result in default, damage to credit, collections, or other consequences that could complicate the case the homeowner is trying to bring.
The law firm engaged by the homeowner — not Solar Cancellation Resource Center — is the only party who can advise on payment decisions specific to the homeowner’s situation
SCRC does not charge for the intake itself. If a law firm accepts the matter, the homeowner enters a fixed-fee engagement directly with the firm. The fee is disclosed up front before the homeowner agrees to anything. The fixed-fee model means the homeowner knows the full legal cost in advance — unlike hourly billing (unpredictable) or contingency (percentage of recovery).
Take this intake quiz to see whether your situation may qualify for legal review.
Possibly. California has multiple legal avenues a homeowner may have for cancellation, depending on the facts. The right of cancellation for home solicitation sales under California Civil Code §1689.5–1689.7 was extended by SB 784 (effective January 1, 2026) to 5 business days for buyers under 65 and 7 business days for buyers age 65 or older. Beyond the cancellation window, contracts may be voidable if the seller violated California consumer protection laws — including the Consumers Legal Remedies Act (Civil Code §1750+), Business & Professions Code §17200 (Unfair Competition Law), Civil Code §1632 (language requirements), or CPUC solar consumer protection rules. A qualified attorney may review the homeowner’s documentation to determine whether any of these may apply.
NEM 3.0 (officially called the Net Billing Tariff or NBT) is California’s net metering policy that took effect April 15, 2023 for PG&E, SCE, and SDG&E customers. Under NEM 3.0, exported solar energy is credited at California Avoided Cost Calculator values — typically $0.05–$0.08/kWh — rather than the retail rate (~$0.30/kWh) used under NEM 2.0. The result is approximately a 75% reduction in export compensation. A Los Angeles solar contract sold on retail-rate net metering math but now billed under NEM 3.0 may produce meaningfully less savings than what was projected at the point of sale.
April 15, 2026 was the final deadline for solar systems that had submitted complete interconnection applications before April 14, 2023 to receive Permission to Operate (PTO) and retain NEM 2.0 grandfathering for 20 years. Systems that did not reach PTO by that date are now subject to NEM 3.0 economics — even if the contract was signed years earlier. Los Angeles homeowners whose installers delayed installation, permitting, inspection, or interconnection may have lost the NEM 2.0 grandfathering they were sold. A qualified attorney may review whether installer non-performance leading to a missed grandfathering deadline may be a potential basis for relief.
The California Consumers Legal Remedies Act (CLRA, Civil Code §1750 et seq.) prohibits a list of specific unfair or deceptive practices including misrepresenting the characteristics of goods or services, representing that goods have characteristics they do not have, and advertising goods with intent not to sell them as advertised. The CLRA allows actual damages, punitive damages, attorney’s fees, and equitable relief including contract rescission. Civil Code §1782 requires a 30-day pre-suit notice for damages claims. Whether the CLRA applies to a specific Los Angeles solar contract is fact-specific.
A bill that went up instead of down is the most common reason Los Angeles homeowners contact us. By itself, a higher bill does not automatically establish anything legally. But it is often a sign that what was represented during the sale — production estimates, savings claims, net metering math, escalator clauses — may not match what the contract actually says or what the system actually delivers. A qualified attorney may review the gap between the sales claim, the contract documents, and the actual performance to determine whether that gap may be reviewable under California consumer protection law.
Yes — California Civil Code §1632 specifically requires that contracts negotiated primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean must be translated into that same language before signing. If the sales pitch was in Spanish but the contract was English-only, the homeowner generally has a right of rescission. This protection applies to door-to-door solar sales. Los Angeles homeowners who experienced this scenario should preserve any sales materials, recordings, or witnesses to the language used during the sale.
Every California solar installer must be licensed by the Contractors State License Board (CSLB), typically as a C-46 Solar Contractor or C-10 Electrical Contractor. Contracts performed by unlicensed contractors are generally not enforceable under California Business & Professions Code §7031. Los Angeles homeowners can verify any contractor’s license status at cslb.ca.gov. If the installer was unlicensed, improperly licensed, or had their license suspended, that may be a basis for legal review.
UCC-1 financing statements are sometimes filed by solar companies or finance companies in connection with a solar transaction. UCC-1 liens are filed against the solar equipment, not against the home itself. In practice, however, they can complicate a home sale because title companies and mortgage lenders sometimes raise concerns. Many Los Angeles homeowners contact us specifically because a UCC-1 surfaced during a sale or refinance and they want documentation reviewed by qualified legal counsel before the closing date.
No — and you should not stop payments on your own. Continuing to make payments is generally the safest course of action until a qualified California-licensed attorney has reviewed the contract and provided specific advice. Stopping payments without legal advice may result in default, collection activity, and credit consequences that can complicate any case the homeowner is trying to bring. Decisions about payments are made later, with attorney guidance, only if the case moves forward.
The initial intake is free. If a legal review path is offered after documentation is reviewed, the homeowner is presented with a fixed-fee structure in writing before they decide whether to engage with the law firm. The fixed fee is disclosed in full up front. No hourly billing, no contingency.
The intake form takes under 60 seconds. There is no cost to submit. There is no obligation at any step. A Los Angeles specialist will follow up to collect the documentation, which may be reviewed by Consumer Advocacy Law Group, the independent law firm partner.
Takes under 60 seconds. Speak to a Jacksonville specialist today.
Call: 888-918-2083
BBB A+ Rated • Fixed Fee • Partnered with Consumer Advocacy Law Group
