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State investigates solar companies over claims of deceptive savings, contracts

Attorney General says companies may have violated Texas consumer protection law

85-year-old Don Midkiff says he's spending more than saving with 25 year solar panel contract. (Copyright 2026 by KPRC Click2Houston - All rights reserved.)

HOUSTON – The Texas Attorney General’s Office is launching an investigation into several solar companies operating in Texas, including Sunrun, focusing on whether customers were misled about costs, savings, and contracts.

Attorney General Ken Paxton says his office has received more than 100 formal complaints, along with thousands more online, tied to companies selling residential solar panel systems.

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At the center of the investigation are potential violations of the Deceptive Trade Practices-Consumer Protection Act. According to the Attorney General’s Office, investigators are examining whether companies “misrepresentations regarding savings for consumers on their energy bills, the efficacy of their solar panel systems, equipment implementations, as well as the companies’ terms and policies.”

Those companies are Freedom Forever LLC, SunRun Inc., Lone Star Solar Services LLC, and CAM Solar Inc.

The state has issued Civil Investigative Demands to multiple companies requiring them to turn over documents related to:

  • How they calculate and advertise energy savings
  • Warranty and service agreements
  • Marketing materials
  • Customer contracts and billing information

“Thousands of Texans have been targeted… and it’s imperative that these companies are held responsible for any lies or deceptive marketing,” Paxton said in a statement.

KPRC 2 has been reporting on similar concerns.

One of those cases involved Houston homeowner Frances Holt, who signed a contract with Sunrun after a door-to-door sales pitch promised lower energy bills and protection from outages. Instead, she says she ended up facing confusion, installation issues, and a shocking demand for more than $134,000 tied to her agreement.

Holt told KPRC 2’s Rilwan Balogun she felt pressured into signing a contract she didn’t fully understand and was never given a printed copy of the more than 40-page agreement.

After KPRC 2’s reporting, Sunrun issued a statement apologizing and agreed to remove Holt’s solar panels at no cost.

Since that report aired, multiple viewers have reached out with similar stories.

Consumer advocates say these complaints are not isolated.

Organizations like AARP Texas have warned that confusion around solar contracts and aggressive sales tactics have surged in recent years. State data shows complaints tied to residential solar issues increased dramatically between 2018 and 2023.

The Attorney General’s investigation does not automatically mean wrongdoing has been proven, but it signals increased scrutiny of an industry that has rapidly expanded across Texas.

If violations are found, the state could pursue legal action against the companies involved.

What you should know

State officials and consumer advocates say the investigation underscores a key message: homeowners should take extra care before signing solar agreements.

That includes:

  • Reviewing full contracts, not just summaries on a tablet
  • Verifying claims about energy savings
  • Researching companies and checking for complaints
  • Taking time before agreeing to long-term financial commitments

Consumers who believe they were misled can file complaints with the Texas Department of Licensing and Regulation, which oversees parts of the solar industry.