How One Company Is Allegedly Scamming Its Solar Panel Customers
More and more people are installing solar panels, and one company saw that as an opportunity to scam its customers.
Solar energy has been in the spotlight lately, as more people switch to alternative energy sources. But like most emerging technology, folks are searching for ways to capitalize on the environmentally friendly product. And as the industry gets crowded, some sellers are facing backlash from customers. Earlier this year, Pink Energy faced hundreds of complaints as well as an investigation by the Missouri Attorney General. After multiple reports, the North Carolina-based solar panel maker said they aren’t to blame and filed a federal lawsuit against another company for their role in customers’ frustrations.
Since 2020, Pink Energy (formerly known as Power Home Solar) worked with a company called Generac which provides generators and energy products to residential buyers. Now, the solar panel manufacturer filed a federal lawsuit against its partner. In the suit, Pink Energy blames the company for its valuation decreasing by more than half-a-billion dollars. “As of September 2021, PHS had obtained a business valuation of $1.05 billion. By June 2022, PHS’s business valuation had plummeted to $452 million,” the lawsuit via WECT 6 reads.
That’s a massive loss for a company that previously received accolades in the solar energy industry. According to the lawsuit, Pink Energy ranked seventh among the top 228 residential solar contractors nationwide in Solar Power World’s 2021 classification. The solar panel company has also grown to serve approximately 35,000 customers and has made the Inc. 5000 list of America’s fastest-growing companies in four of the last five years. The court documents also state that Pink Energy’s devaluation is a direct and proximate result of the harm Generac’s defective products have caused to its business and reputation.
Generac has not responded to the allegations at this time, but a spokesperson for the company addressed the situation in a statement to WECT 6, saying they are disappointed by the allegations being made by Pink Energy. “We have taken notice of recent news reports and articles citing customer concerns with Pink Energy’s marketing practices and service support,” the representative said. “We expect all our independent dealers and solar panel distributors to act with integrity and meet high standards in providing customer services and proper product installation.”
The federal suit has been filed in Virginia’s Western District. The solar panel company is asking that they be awarded damages that are worth millions. While Pink Energy has been in business for years, several new companies are joining the fray. Firms like Cape Fear Solar Systems also provide clean energy services. It’s just on a much smaller scale. Speaking about the market, Sales Manager Gabe Amey said that the competition is healthy. But when companies with little experience get into solar energy, customers are affected.
“This is not something where anybody can just jump off the street and start selling this [solar panels] equipment,” he told the publication. “But it’s one of the things that we’re finding is that, as the technology improves, interest continues to grow. People continue to want to get into this industry. And that’s great, that’s exciting.” However, he noted that sellers need to have the knowledge and training to provide people with the service they deserve.
