Ellison sues Utah solar energy companies, alleging Minnesota consumers defrauded

Minnesota is suing a set of Utah-based solar panel companies and executives who are alleged to have used high-pressure sales tactics and misleading advertising to persuade Minnesotans to buy their products.

Almost 400 Minnesotans around the state reported deceptive sales practices by the companies Brio Energy, Bello Solar Energy, Avolta Power Inc. and Sunny Solar Utah and the companies’ executives, Minnesota Attorney General Keith Ellison said Tuesday in announcing the lawsuit. The residents faced a combined financial impact of millions of dollars after they missed out on promised tax credits or rebates from utility companies, Ellison said.

Salespeople for the solar companies gave inaccurate assessments of the benefits customers would see from buying the panels and asked them to sign contracts with short cancellation windows without customers’ knowledge that they were buying the products, the state’s complaint said. And as a result, the consumers paid more for the panels than they would through other vendors or faced excessive cancellation fees and legal threats from the companies.

Customers also reported that the groups didn’t install solar panels on the timeline that they promised at the time of purchase and blamed state utilities or other entities for the delays.

Other states have issued warnings to the companies, but Minnesota was believed to be the first to file suit against them.

Assistant attorneys general reviewed dozens of customer reports, along with training materials from the companies before bringing the lawsuit that alleges the companies and three of their executives violated Minnesota’s consumer protection, false advertising and deceptive trade practices laws. They called on the court to bar the companies from using deceptive practices and to offer restitution to those impacted by the misleading sales tactics, as well as civil penalties for the groups.

“Minnesota homeowners believe they were making investments in their homes, saving money on their utility bills, and were contributing to a healthier climate and environment. Well, their good intentions were taken advantage of, which is why we’re here today,” Ellison said. “They were scared by unscrupulous companies that use their deceptive tactics to defraud.”

Training materials from the solar panel sales companies showed that employees were trained to mislead customers in order to make their sales. The materials used logos or promotions including utility companies without the approval of those companies, attorneys involved in the filing said. Despite receiving cease and desist letters from customers who’d been threatened with lawsuits and from the state, the company’s sales tactics and threats to sue customers who failed to pay cancellation fees continued.

Ellison encouraged consumers to vet vendors with the Minnesota Department of Commerce or Better Business Bureau before making a purchase, be wary of vendors that press for quick transactions with few details, and reach out to the Attorney General’s Office if they feel they’ve been subject of a scam.