How a major solar company uses misleading tactics to sell energy systems that can cost $40,000 or more, according to insiders, legal claims, and leaked memos
- Powerhome Solar, a fast-growing solar company in the US, has been accused in lawsuits of misleading customers into buying solar-energy systems.
- The company has exhibited a pattern of inflating the benefits of its products, interviews with a dozen current and former employees, a review of legal records, and internal documents suggest.
- A Powerhome representative said in a statement that the company would never allow its employees to engage in misleading sales practices.
For years Jim and Beth Rickenbaugh had resisted putting solar panels on top of their brick home in Charlotte, North Carolina. They wanted to wipe out their utility bill, but the price seemed too steep.
Then, in late 2016, the couple came across a deal they felt they couldn't refuse.
A salesman from Powerhome Solar visited their home and offered them a solar-energy system for no upfront cost that he said would nearly erase their utility bill, according to the Rickenbaughs. They'd just have to make monthly payments for the panels that would be no more than the savings on their electricity bill from Duke Energy, they said.
In 2017, the Rickenbaughs signed up, agreeing to pay more than $15,000 for their system. Then they waited for their bill to plummet. It didn't.
In the months after the panels were installed, the energy savings were "a fraction" of those promised by the sales rep, according to a complaint in a class-action lawsuit the Rickenbaughs filed against Powerhome last year.
Now the couple say they're stuck with two pricey bills — one for the panels, and one for electricity from Duke Energy.
"Power Home's executives designed its sales process to intentionally mislead customers into believing they would experience a guaranteed drop in their energy bills," the complaint says.
The Rickenbaughs are not the only ones complaining.
A review of additional legal records, interviews with 12 current and former employees, and internal company documents we obtained reveal additional accusations of misleading sales practices at Powerhome Solar. We also found suits alleging misleading sales practices that were filed against ISI Alarms NC, an alarm company that was run by Powerhome's founding CEO, William Jayson Waller.
"Powerhome Solar's sales and marketing teams are provided comprehensive training (and continuing training and education) as to proper execution of their responsibilities, and POWERHOME SOLAR has robust compliance protocols and policies to ensure that all their efforts comply with applicable requirements," the spokesperson said.