Solar Loan "Bait-and-Switch": Homeowners Claim Hidden Costs

Case Overview: A class action lawsuit accuses solar financing entities Sungage Financial, NBT Bank, authorized solar installers, and PG&E of a deceptive scheme that left California homeowners with inflated loans, hidden fees, and unsellable homes.

Consumers Affected: U.S. consumers who entered solar financing agreements with Sungage Financial, LLC and/or NBT Bank, N.A. since 2018.

Court: U.S. District Court for the Eastern District of California

A class action lawsuit accuses solar financing company Sungage Financial and its partners, including NBT Bank, authorized solar installers, and utility giant PG&E, of running a deceptive financial scheme that left California homeowners saddled with hidden costs and loans they couldn’t escape.

According to the lawsuit, families lured in by “0% interest” solar loans and promises of easy transfer to future homebuyers later discovered that their actual loan amounts were inflated by tens of thousands of dollars. 

These undisclosed fees, the lawsuit claims, were deliberately concealed to exploit federal clean energy tax incentives, transforming what should have been environmentally conscious investments into financial traps.

Lawsuit Details How "Transferable" Loans Became a Trap

Clovis resident Cameron Beatty, who brought the class action case, says he joined thousands of homeowners who believed they were making a smart switch to solar amid soaring electricity bills. 

But when he tried to sell his home, Beatty found that his supposed “transferable” loan couldn’t actually be passed to buyers. Instead, buyers would have to apply for entirely new loans at steep interest rates, often 9.99%, making his home virtually unsellable.

Beatty and others were also misled about the total cost of their systems. Sales reps refused to provide itemized breakdowns, and when he eventually uncovered the true figures, he realized he had taken out a loan for over $82,000 to cover a $63,000 system. 

The nearly $20,000 difference, he alleges, was funneled into hidden dealer fees not disclosed in loan documents or reflected in the system’s value.

Deception by Design: Exploiting Tax Incentives Alleged

The complaint details a systematic scheme, alleging the companies violated federal lending laws by disguising finance charges to make solar systems seem cheaper while still pocketing inflated sums. These inflated loan amounts were then falsely presented as qualifying for federal solar tax credits, even though finance charges are ineligible under the law.

Defendants also allegedly built urgency into their sales pitch by exploiting rising PG&E electricity rates and rolling back favorable solar compensation policies, pushing customers to act quickly before incentives changed. 

According to the lawsuit, this pressure was coupled with a refusal to disclose actual component or installation costs, a tactic that appears to be widespread in the solar financing industry.

A Pattern Across the Solar Industry

The lawsuit isn’t the first of its kind. The Legal Aid Society recently sued five other solar companies for alleged similar tactics, misleading homeowners, especially seniors and low-income families, into signing costly loan agreements with false promises of savings. 

Also last year, SunPro Solar faced a separate class action for harassing consumers with robocalls in violation of federal law.

In this lawsuit, Beatty wants to represent anyone who entered a solar financing agreements with Sungage Financial, LLC and/or NBT Bank, N.A. since 2018. He is suing for breach of contract, fraudulent inducement and intentional non-disclosure, violation of the Truth In Lending Act, and more, and is seeking damages, restitution, rescission, lien expungement, injunctive relief, fees, costs, and interest.

Case Details

• Lawsuit: Beatty v. Sungage Financial, LLC, et al.
• Case Number: 1:25-at-00443 
• Court: U.S. District Court for the Eastern District of California 

Plaintiffs' Attorneys

• Jason M. Ingber (Ingber Law Group)

Have you financed solar panels with Sungage Financial or NBT Bank? Share your experience with hidden costs below.