Help! Company bankrupt, solar install not finished!

[GoingElectric]

Helping a friend (seriously!)

Around October my friend had solar rack and panels installed on roof, but the work was not finished.
And then contact was lost with the company. They even went to office in early December which looked to be empty.
Today (mid January) I verified it is indeed empty, notice by landlord they are locked out (of an almost empty office).

I told friend they need to stop any payment and file a lawsuit (at least there is no response to call and email) and let HOA know.


The question is, now what?
Panels on roof, wiring between panels may be complete, not 100% sure.
No inverter or controller or power box installed.

This in Houston, Texas area.
Company is... was in Stafford (Victory Solar)
House is in Cypress, Texas.

I will understand there will be reluctance by another company to touch an unfinished install.


(side note: I am rather surprised by this, as Victory had a bunch of years in business and solar work is booming.)

Open to any question.

[Mike 134]

Hopefully your friend has not paid much at this point?

[GoingElectric]

Hopefully your friend has not paid much at this point?

it was about $900.

[Mike 134]

it was about $900.

Fortunately, your friend didn't pay much up front, he's money ahead unless a mechanics lean has been filed for more money by either the contractor or his supplier. (Need to check your states laws how long they have to file after last day on the job). You just need to call around till you find someone to finish it.

[GoingElectric]

Fortunately, your friend didn't pay much up front, he's money ahead unless a mechanics lean has been filed for more money by either the contractor or his supplier. (Need to check your states laws how long they have to file after last day on the job). You just need to call around till you find someone to finish it.

"mechanics lean", will inform them.

They have it under a loan, so told them to get in contact with loan office and inform them of what's happening.
Will see how this is structured.

I company simply cannot be contacted, seems like they are abandoning the business?

[scrambler]

If they only paid $900 and all the panels are on the roof, chances are the panel provider has not been paid...

So there is a risk of a Lien being placed on his home to secure payment for the Panels, regardless of installation completeness. Not a good situation to end up in...

I am regularly amazed by how screwed up the solar industry is. The amount of crooks or incompetent companies out there is disturbing...

[GoingElectric]

If they only paid $900 and all the panels are on the roof, chances are the panel provider has not been paid...

So there is a risk of a Lien being placed on his home to secure payment for the Panels, regardless of installation completeness. Not a good situation to end up in...

I am regularly amazed by how screwed up the solar industry is. The amount of crooks or incompetent companies out there is disturbing...

Mike 134

Was informed as part of contract a lien was placed on house.
Took pictures of vacant office, found on white board a big list of other client projects.
I informed them they should find a lawyer just in case, as well as call loan company, and everyone else.

Looking at reviews, nearly 10 years of doing business they look to be competent company, or was.


And yes, there is a lot of sub par with solar companies.


Will keep update with latest, so we all know and could help others.

[scrambler]

Also, if this installation was financed with a loan, a proper loan should include insurance to cover this kind of situation.
The insurance should either cover paying the supplier and terminating the agreement, or paying for a new installer to complete the work.

Of course, anything in the hands of insurance is likely to prove difficult...

[GoingElectric]

Also, if this installation was financed with a loan, a proper loan should include insurance to cover this kind of situation.
The insurance should either cover paying the supplier and terminating the agreement, or paying for a new installer to complete the work.

Of course, anything in the hands of insurance is likely to prove difficult...

Thanks for that heads up, will be reading careful at everything and look for that.
Will be post updates when known.

[GoingElectric]

Also, if this installation was financed with a loan, a proper loan should include insurance to cover this kind of situation.
The insurance should either cover paying the supplier and terminating the agreement, or paying for a new installer to complete the work.

Of course, anything in the hands of insurance is likely to prove difficult...

Mike 134
Have contract
SUNLIGHT FINANCIAL, using the SUNLIGHT PROGRAM CONTRACT (version Jan 2021)

Panels are APTOS 370 and IQ8+ micros, 61 each. Rails, wires and conduit., nothing below roof line installed.

Almost everything I see written is for Contractor, no protections or rights for Customer. No Insurance on this document I can find.
Also everything is property of Contractor (Victory Solar) until it is fully paid for.

I can post the boilerplate here if wanted

[scrambler]

Is the leasing contract between the owner and the contractor (who owns the equipment), or between the owner and the bank??

Normally the person who fronted the money (the bank?) is the one who owns the equipment..,.

But at the end of the day the loan must be for a fully installed and operational system, so if it is not fully installed and operational, the owner should not be liable for a penny.

A lawyer needs to review the various contracts.

[peakbagger]

IMO, (not a lawyer) ultimately the contractor will go through chapter 7 or chapter 11 bankruptcy. If its chapter 7 the company is lquidated, the assets will be sold including the contracts to the highest bidder and someone else will buy the rights to the assets (and contracts if they have any value. Highly likely that whoever buys those assets will try to make a buck off them and will contact the OP and try to make a deal to finish the install for some cost. They will have paid pennies on the dollar. At that point it's up to the owner to decide if they want the equipment gone or the install completed. The cost to remove the equipment probably exceeds its salvage value so the OP should plan to bargain. Remember once the equipment is removed, its used and most likely will not qualify for federal rebate and the warranties may no longer apply as its used gear. Note if they do remove the equipment the OP has the right to insist that it be completely removed and repaired. Odds are a lawyer may need to be involved to assure that this happens as otherwise the new asset owner is going to grab the panels and rails and leave the roof mounts in place.

If its chapter 11, the contractor gets reorganized and at some point comes knocking on the door as the original contract may be still valid. Generally contractors get so far in crap that they just go chapter 7 and start up a new company.

[GoingElectric]

IMO, (not a lawyer) ultimately the contractor will go through chapter 7 or chapter 11 bankruptcy. If its chapter 7 the company is lquidated, the assets will be sold including the contracts to the highest bidder and someone else will buy the rights to the assets (and contracts if they have any value. Highly likely that whoever buys those assets will try to make a buck off them and will contact the OP and try to make a deal to finish the install for some cost. They will have paid pennies on the dollar. At that point it's up to the owner to decide if they want the equipment gone or the install completed. The cost to remove the equipment probably exceeds its salvage value so the OP should plan to bargain. Remember once the equipment is removed, its used and most likely will not qualify for federal rebate and the warranties may no longer apply as its used gear. Note if they do remove the equipment the OP has the right to insist that it be completely removed and repaired. Odds are a lawyer may need to be involved to assure that this happens as otherwise the new asset owner is going to grab the panels and rails and leave the roof mounts in place.

If its chapter 11, the contractor gets reorganized and at some point comes knocking on the door as the original contract may be still valid. Generally contractors get so far in crap that they just go chapter 7 and start up a new company.

scrambler

Thanks for feedback!

Some info on equipment installed.
Aptos Solar 370W Solar Panel 120 Cell DNA-120-MF26-370W
https://a1solarstore.com/aptos-solar...-120-mf26.html
$334 ea average

Enphase Energy IQ8PLUS-72-2-US (240V)
$180 ea average

Estimated total:
$514 per panel set
$31,354 for all 61.

Have no estimates on rack costs, don't know quantity needed, just the maker.
Can someone give me an estimate?

EVEREST 48-X RAIL
EVEREST XP COMP FLASH
EVEREST CROSSRAIL CLAMP

[GoingElectric]

Update to situation:

The financer of the project is Sunlight Financial Holdings, they have been made aware of situation and have "opened a case file".

I told my friend they need to fully renegotiate the project, since it was financed with both a battery and generator, but all the paperwork they have lists PV system.
The term was for a system 3x more than what is installed so far.

[GoingElectric]

Update:

They talked with 2 layers who said "Nothing can be done" (my reading is "We do not want to touch it"), and they are not getting any replies to letters sent to financial company.
I suggested they send registered letter saying they are not getting replies from the Financial company, assuming they are not interested, so will stop paying the loan.
See if the Fi company will respond and actually talk about it.

Meanwhile they contacted a local solar company who will finish the work, nice enough to improve the design.
After HOA approves, maybe in early June, and then to hookup to grid.