Your New York Solar Contract Is Costing You More Than You Were Told. Here's What the AG's $275M Lawsuit Means for You.
The short version: Most New York solar leases have an escalator clause. It raises your payment 2.9% every year. Over 25 years, a $150 payment grows to more than $300. The New York AG sued solar companies for $275M in fraud. Big solar companies that worked in New York have gone bankrupt. Sunnova Energy is one of them. If your solar panels aren't saving what you were told, you have real rights. Start with a free Solar Relief Assessment to see what's actually in your contract.
The New York Attorney General just filed a $275 million lawsuit against the companies behind your solar contract. And the practices described in that lawsuit sound familiar to thousands of New York homeowners.
In March 2026, the NY AG sued Attyx Energy and SUNco - along with WebBank and Solar Mosaic, the lenders that financed the deals - for defrauding homeowners across the state. The allegations: promising "free solar," disguising loans as applications, and targeting low-income and senior homeowners. The company operated illegally under the name LGCY Power after the Public Service Commission revoked its license.
If you're a New York homeowner and your solar panels aren't saving you what you were told, this lawsuit tells you something important. The problem isn't just your contract. It's the way these contracts were sold across the entire state.
Your payments are going up. Your savings aren't coming through. And the company that knocked on your door and made those promises? They might be named in a state lawsuit right now.
The New York Attorney General Is Watching Solar
On March 17, 2026, New York AG Letitia James sued Attyx Energy (formerly SUNco). She also sued the company's two CEOs, plus the loan companies Solar Mosaic and WebBank. The AG said the fraud totaled $275 million from New York homeowners. The complaint says Attyx used bait-and-switch sales. They targeted low-income and senior homeowners. They used tablets to stop customers from reading financial documents. They hid lending fees in inflated system prices. And they kept selling under the name 'LGCY Power' after the state shut them down. An earlier case: Vivint Solar paid $1.95 million to the New York AG in January 2020.
This matters to you. State enforcement agencies have put it on the record. The same sales tactics used on New York homeowners are now named in court filings. If what your salesperson told you doesn't match your contract, you're not alone. You're not crazy. And you have options.
What's actually in your New York solar contract
Here's what most New York homeowners don't find out until they've been paying for a year or two: the deal you signed isn't the deal you were sold.
Your salesperson told you solar would lower your electric bill. But did they mention the escalator clause buried in your lease agreement? That's the line that raises your payment every year - by as much as 2.9%. On a 25-year lease, that turns a $150 monthly payment into more than $300!
Did they mention that New York's winters reduce your solar production for months at a time? If your savings projections used annual averages without showing you the seasonal swing, the month-to-month math doesn't add up.
Did your salesperson tell you what happens if your solar lender goes bankrupt? Sunnova Energy was one of the biggest solar loan companies in the country. They filed Chapter 11 on June 9, 2025 in Texas. The court approved their plan in November 2025. A company called SunStrong Management took over their contracts. Sunnova had about 500,000 customers across 21 states, including New York. If your New York solar loan or lease was with Sunnova, your account moved to SunStrong. Your payments didn't stop. But the service behind your system got restructured.
Sunnova is not alone. SolarInsure counted more than 100 solar company bankruptcies in 2024. SunPower filed Chapter 11 in August 2024. Titan Solar Power filed Chapter 7 in June 2024. Lumio Holdings filed Chapter 11 in September 2024. Freedom Forever filed Chapter 11 on April 15, 2026. Pink Energy and Vision Solar are on the same list. When the company behind your system goes under, your payments keep going. Your warranty usually does not.
Your rights under New York law
New York gives you real legal protections - and right now, the state is using them. Here's what your salesperson almost certainly didn't explain.
Your 3-day cancellation window. New York Personal Property Law 425-431 gives you the right to cancel a door-to-door sales contract within 3 business days. This is in addition to the federal FTC Cooling-Off Rule. If your salesperson didn't tell you about this right - and most don't - that affects the enforceability of your agreement.
The $275M AG lawsuit against Attyx/SUNco. In March 2026, the New York Attorney General filed a $275 million lawsuit against Attyx Energy and SUNco, plus WebBank and Solar Mosaic. The AG alleges these companies defrauded homeowners by promising "free solar," tricking consumers into loans disguised as applications, and targeting low-income and senior homeowners. The company continued operating illegally under the name LGCY Power after the PSC revoked its license. If your solar company used similar tactics, the AG's office is actively investigating.
General Business Law 349. New York's GBL 349 prohibits deceptive business practices and gives you a private right of action. You don't need to wait for the AG's office to act on your behalf - you can take legal action directly. If your solar company misled you about savings, contract terms, or what you were signing, this statute protects you.
Department of Public Service (DPS) oversight. New York's DPS oversees energy companies in the state. You can file a complaint directly with the DPS, and they investigate. This is a tool many homeowners don't know about.
Hidden dealer fees are a red flag in solar loans. Solar finance companies add dealer fees of 15 to 30 percent. They roll these fees into your loan balance. They don't list them as a separate charge. The federal Truth in Lending Act says every fee must be shown in writing. A hidden or mislabeled fee can be a legal violation. You've been paying interest on a fee nobody explained to you.
What you can do right now
You don't have to figure this out alone. Here are the first steps for New York homeowners.
File a complaint with the New York Attorney General. Go to https://ag.ny.gov/consumer-frauds/filing-consumer-complaint. Or call 1-800-771-7755. Filing is free. The AG's office reads every complaint.
Compare what the salesperson told you to what's in your contract. In most cases, the two don't match. That gap is what makes a case.
Pull your utility bills from the last 12 months. Add up what you're paying the utility plus what you're paying for solar. Compare that to what you'd pay the utility alone. If the numbers don't work, that's a real gap — not just a feeling.
Find the escalator clause and the dealer fee in your contract. These two lines cause the biggest gap between what you were sold and what you're paying. You can spot both by reading your own paperwork.
Every contract is different. But the first step is the same for everyone. Understand what you signed. Solar Home Advocate built the free Solar Relief Assessment for this exact moment. Someone walks through your contract with you in plain English. They tell you your options.
You Signed a Solar Contract in New York. Find Out What It's Actually Costing You.
The New York AG is already taking action against solar companies in your state - a $275 million lawsuit filed in March 2026. You have strong legal protections, including a private right of action under GBL 349. A free Solar Relief Assessment helps you understand what's in your contract, what went wrong, and what you can do about it for you and your family.
[Get free Solar Relief Assessment →](https://solarhomeadvocate.com/free-assessment?utm_source=substack&utm_medium=article&utm_campaign=state-guide&utm_content=new-york)Get free Solar Relief Assessment →**
No charge. No obligation. No high-pressure pitch.
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"Sal says: A 2.9% escalator clause nearly doubles your payment over 25 years. The New York AG sued solar companies for $275M in fraud. Sunnova Energy filed Chapter 11 in June 2025. If you signed a solar contract in New York, these facts hit your math and your warranty."
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Frequently Asked Questions
What are my rights if I signed a solar contract in New York?
Did a salesperson come to your home? If yes, you have a 3-day right to cancel. That's under N.Y. Personal Property Law §427 (Door-to-Door Sales Protection Act) and the federal FTC Cooling-Off Rule. New York also has New York General Business Law §349 (deceptive acts or practices). That law covers unfair or deceptive sales tactics. You can file a complaint with the New York Attorney General. Go to https://ag.ny.gov/consumer-frauds/filing-consumer-complaint or call 1-800-771-7755. If your salesperson didn't tell you about the 3-day cancel rule, that can affect your contract.
Has New York sued any solar companies?
Yes. On March 17, 2026, New York AG Letitia James sued Attyx Energy (formerly SUNco). She also sued the company's two CEOs, plus the loan companies Solar Mosaic and WebBank. The AG said the fraud totaled $275 million from New York homeowners. The complaint says Attyx used bait-and-switch sales. They targeted low-income and senior homeowners. They used tablets to stop customers from reading financial documents. They hid lending fees in inflated system prices. And they kept selling under the name 'LGCY Power' after the state shut them down. An earlier case: Vivint Solar paid $1.95 million to the New York AG in January 2020.
How does the escalator clause affect my New York solar contract?
Most New York solar leases have an escalator clause. It raises your payment about 2.9% every year. On a 25-year lease, a $150 payment grows to more than $300. New York's average electricity rate is about 28.37 cents per kilowatt-hour in early 2026. That's well above the national average of 17.45 cents. New York's utility rates are climbing fast. That makes your solar math a close call. Utility rates haven't always gone up 2.9% a year. So your solar payment can climb faster than your would-be utility bill. Your savings shrink instead of grow.
What happens if my New York solar company went bankrupt?
SolarInsure counted more than 100 solar company bankruptcies in 2024. Big names include SunPower (Aug 2024), Sunnova Energy (June 2025), Titan Solar Power (June 2024), Freedom Forever (April 15, 2026), Pink Energy (Oct 2022), and Vision Solar (Dec 2023). If your installer went bankrupt, your contract still stands. Your payments still go out. But the workmanship warranty usually dies with the company. The panel maker's warranty (often 25 years) still exists. But filing a claim without an active installer is hard.
Can I cancel my New York solar contract?
Did the salesperson come to your home? Then New York law gives you 3 business days to cancel. That's under N.Y. Personal Property Law §427 (Door-to-Door Sales Protection Act) and the federal FTC Cooling-Off Rule. If those 3 days have passed, you may still have options. Did they skip the cancel notice? Did they use deceptive sales tactics? Did your loan hide fees? Any of those can open a path to cancel. It depends on your specific contract and how it was sold.
What are hidden dealer fees on a New York solar loan?
Solar finance companies add dealer fees of 15 to 30 percent to your loan. They roll the fee into the principal. They don't list it separately. That means you pay interest on fee money that went to the solar company. Not to your panels. The federal Truth in Lending Act says every fee must be listed clearly. A hidden fee can be a federal violation. That's one of the strongest paths to renegotiate or exit a solar loan.
How do I file a solar complaint in New York?
Go to the New York Attorney General's website at https://ag.ny.gov/consumer-frauds/filing-consumer-complaint. Or call 1-800-771-7755. Filing is free. Write down what the salesperson told you at the sale. Save your contract. Save any texts, emails, and voicemails with the installer. If you have a solar loan, keep your loan paperwork. A formal complaint creates a record. That record strengthens any legal review later.