Texas families take on Houston-based solar company in arbitration case
Nearly a dozen Texas families are seeking compensation from a Houston-based solar company due to concerns about predatory business practices.
In February, the CBS News Texas I-Team revealed a pattern of complaints against Sunnova Energy, accusing it of preying on the sick and elderly by getting them to sign long-term payment plans for solar panels they can't afford.
Terry Blythe is among the 11 people now taking Sunnova to arbitration. She's seeking compensation for the grief she says they caused her late father and elderly mother. When her parents' home began to fall apart, Blythe rushed to move them out and to sell the property to pay for their care.
"We started contacting investors and they're like, they don't want to buy the house," Blythe said.
She said it wasn't the condition of the home driving away buyers, but what was on it. Blythe discovered a door-to-door salesman convinced her father, Willy Donahoo, to sign a $34,000 contract with Sunnova to put solar panels on the house.
"It had foundation issues, it had plumbing issues," Blythe said. "The last thing they needed were solar panels. But that's what they were sold with the promise of, 'You'll save money and you'll never have to pay anything.'"
Sunnova's contract with the Donahoos highlights the fact the panels cost nothing up front, with no signing or installation fee. It's not until 18 pages in that the total cost is spelled out. The contract also doesn't guarantee any electricity savings.
In an emailed statement to the I-Team, Sunnova wrote: "While we cannot discuss the specifics of these customer issues, we can confirm Willy Donahoo's issue was previously resolved."
But according to Blythe, Sunnova did nothing to help. Instead, she said the family had to cut the home's sale price by more than $30,000 — the value of the Sunnova contract — to finally sell it to an investor.
That was money, Blythe said, she needed to take care of her mother.
"We have been through a year and a half of pure hell," Blythe said.
Families join forces
Joshua resident Cynthia Hampton was featured in the I-Team's February report about Sunnova. Hampton believed her late father, who was receiving in-home hospice care, was tricked into signing a contract with Sunnova, leaving his children to settle the debt after his death.
After the report aired, Sunnova agreed to cancel Hampton's contract. But not those of the others featured.
"You shouldn't have to do 1,000 stories on 1,000 individuals to make it right," Blythe said.
As part of the initial investigation, the I-Team requested a list from the Office of the Texas Attorney General of customer complaints about Sunnova.
Blythe, who was also included in the February report, saw that and began to retrace the I-Team's steps.
"I wanted to find other people who'd been hurt," she said. "I found this group of people and basically asked, 'Have you been ripped off by Sunnova?'"
Jay Fannin of Hurst is one of those customers.
"I have higher electricity bills with solar panels than I did without," Fannin told the I-Team. "Every time I've reached out trying to get a correction to the problem, the answer is basically, 'You signed a contract.'"
Alexandra Umstadt and Richard Petras in Tarrant County are two others. The couple said they previously lived in Nevada and Massachusetts, where they had solar panels. But despite positive experiences in those situations, they are unhappy with their Sunnova contract.
"They pulled a bait and switch," said Umstadt. "They changed the production guarantee."
Now, the couple said they feel they were sold the solar panels under false pretenses, with no easy way out of the loan.
After contacting Fannin, Umstadt, Petras and several others, Blythe also found an attorney willing to take their case against Sunnova.
Mark Alexander believes the company's practices violate the Deceptive Trade Practices Act and that the company has committed breach of warranty and fraud.
He said he plans to attack them on all fronts.
Arbitration clause
Like many companies, Sunnova's contracts include an arbitration clause to keep customers from suing.
"It's really hard to get out of arbitration when it's in the contract," said Alexander.
Alexander said the arbitration process is quicker, more favorable to companies and, unlike a trial, keeps disputes under wrap.
"You can walk into a courtroom and watch any kind of trial — criminal or civil," Alexander said. "You can't just walk into our offices and watch an arbitration."
Arbitration settlements can be private, and according to Alexander, oftentimes include non-disclosure agreements to keep customers from sharing the details of their dispute and how much they've received.
Sunnova's response
In an emailed statement to the I-Team, Sunnova wrote in part: "Nothing is more important to us as a company than customer service. Our mission of powering energy independence hinges upon building positive and lasting relationships with our customers."
In that statement, Sunnova also wrote that it has "strong customer service ratings across leading, third-party sites."
The I-Team found mixed ratings for Sunnova online. The Better Business Bureau gives it a "C" grade. Solar Reviews gives it a 2.28 out of 5. EnergySage did give it a 5.
If you're interested in investing in solar panels, read our past story on what you need to know before signing a contract here.
