Your Tennessee Solar Contract Is Costing You More Than You Were Told. Here's How to Fix It.
The short version: Most Tennessee 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. In November 2022, Tennessee joined a group of state AGs. Big solar companies that worked in Tennessee have gone bankrupt. Pink 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.
There is a solar company that sold thousands of systems across Tennessee - in Nashville, Memphis, Knoxville, and towns in between - and it no longer exists.
Pink Energy (formerly Power Home Solar) had major operations across the state before filing for bankruptcy in October 2022. If they installed your panels, your contract is still active. Your payments are still due. But the company behind the warranty? Gone.
And here's what makes Tennessee different from most states: much of the state is served by the Tennessee Valley Authority. TVA's rate structures and grid policies are unique. If your salesperson didn't account for how TVA territory works when they projected your savings, those numbers were wrong before the ink dried.
Your payments are going up. Your savings aren't coming through. And the company that knocked on your door? It might not be around to answer your call. More than 100 solar companies filed for bankruptcy in 2024 alone, according to SolarInsure. Sunnova - one of the largest residential solar companies in the country - filed Chapter 11 in June 2025.
The Tennessee Attorney General Is Watching Solar
In November 2022, Tennessee joined a group of state AGs. They sent a letter to five solar lenders asking them to pause loan payments for Pink Energy customers. The lenders: Dividend Solar Finance, GoodLeap, Cross River Bank, Sunlight Financial, and Solar Mosaic. An earlier Tennessee-based case: Kentucky v. Solar Titan USA. Kentucky won an appeals court ruling that the state can sue out-of-state solar scammers wherever they cause harm.
This matters to you. State enforcement agencies have put it on the record. The same sales tactics used on Tennessee 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 Tennessee solar contract
Here's what most Tennessee 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 how TVA's rate structure and local power company policies affect your actual savings? TVA territory doesn't work the same as a standard utility market. If your salesperson used a one-size-fits-all savings calculator, the numbers were built on the wrong foundation.
And did they tell you what happens when the company behind your contract goes bankrupt? If Pink Energy installed your system, you already know. Your payments continue. Your warranty is gone. And filing a claim without your original installer is an uphill fight.
Your rights under Tennessee law
Tennessee gives you real legal protections. Here's what your salesperson almost certainly didn't explain.
Your 3-day cancellation window. If a solar salesperson came to your home and you signed the contract there, federal law (the FTC Cooling-Off Rule) gives you 3 business days to cancel with no penalty. If your salesperson didn't tell you about this right - and most don't - that affects the enforceability of your agreement. Pull out your contract. If there's no cancellation notice on the front page, that's your answer.
Tennessee Consumer Protection Act. TCA §47-18-104 prohibits unfair and deceptive trade practices. If your solar company made misleading claims about savings or contract terms, this law applies. The Tennessee AG's Division of Consumer Affairs investigates complaints - and solar complaints are rising across the state.
TVA territory and your savings math. Much of Tennessee is served by the Tennessee Valley Authority through local power companies. TVA's rate structures and policies affect how solar interacts with the grid. If your salesperson didn't account for TVA-specific policies when projecting your savings, those numbers don't hold. This is one of the most common gaps between what Tennessee homeowners were told and what they're experiencing.
Pink Energy's Tennessee collapse. Pink Energy was a major presence in Tennessee before going bankrupt. If your system was installed by Pink Energy, your contract is still active - but the company isn't. You have options you don't know about. The first step is understanding what your contract says and who holds it now.
No state solar tax credit. Tennessee does not have a state income tax on earned income and does not offer a state solar tax credit. That means your savings case relied entirely on the federal credit and utility offset. If those numbers were inflated, the deal never made financial sense. Did your salesperson explain this, or did they let you assume there were state incentives backing the math?
Hidden dealer fees in your loan. Did you finance your solar system with a loan? If so, the lender probably added a dealer fee. These fees are usually 15 to 30 percent of your loan. They get hidden in your balance. You pay interest on money that went to the solar company. Not to your panels. Federal law (the Truth in Lending Act) says every fee must be clearly shown. If yours wasn't, that can be a legal violation.
What you can do right now
You don't have to figure this out alone. Here are the first steps for Tennessee homeowners.
File a complaint with the Tennessee Attorney General. Go to https://www.tn.gov/attorneygeneral/working-for-tennessee/consumer/file-a-complaint.html. Or call 615-741-3491 / Consumer Affairs 1-800-342-8385. 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 Tennessee. Find Out What It's Actually Costing You.
Tennessee homeowners have rights under both federal and state consumer protection law - and TVA territory means your savings math deserves a hard second look. 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=tennessee)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. Pink Energy shut down in October 2022. If you signed a solar contract in Tennessee, 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 Tennessee?
Did a salesperson come to your home? If yes, you have a 3-day right to cancel. That's under T.C.A. §47-18-701 et seq. and the federal FTC Cooling-Off Rule. Tennessee also has Tennessee Consumer Protection Act (T.C.A. §47-18-101 et seq.). That law covers unfair or deceptive sales tactics. You can file a complaint with the Tennessee Attorney General. Go to https://www.tn.gov/attorneygeneral/working-for-tennessee/consumer/file-a-complaint.html or call 615-741-3491 / Consumer Affairs 1-800-342-8385. If your salesperson didn't tell you about the 3-day cancel rule, that can affect your contract.
Has Tennessee sued any solar companies?
Yes. In November 2022, Tennessee joined a group of state AGs. They sent a letter to five solar lenders asking them to pause loan payments for Pink Energy customers. The lenders: Dividend Solar Finance, GoodLeap, Cross River Bank, Sunlight Financial, and Solar Mosaic. An earlier Tennessee-based case: Kentucky v. Solar Titan USA. Kentucky won an appeals court ruling that the state can sue out-of-state solar scammers wherever they cause harm.
How does the escalator clause affect my Tennessee solar contract?
Most Tennessee 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. Tennessee's average electricity rate is about 13.1 cents per kilowatt-hour in early 2026. That's well below the national average of 17.45 cents. So the gap between your solar payment and your utility bill was small from the start. 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 Tennessee 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 Tennessee solar contract?
Did the salesperson come to your home? Then Tennessee law gives you 3 business days to cancel. That's under T.C.A. §47-18-701 et seq. 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 Tennessee 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 Tennessee?
Go to the Tennessee Attorney General's website at https://www.tn.gov/attorneygeneral/working-for-tennessee/consumer/file-a-complaint.html. Or call 615-741-3491 / Consumer Affairs 1-800-342-8385. 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.