WARNINGConsumer alert, published November 11, 2026
Michigan Attorney General Dana Nessel issued a consumer alert on Nov. 10, 2026, urging homeowners to do their homework before going solar. Her office says buyers should check the company, the contract and the loan terms before they sign. The warning applies to any Michigan homeowner hearing a solar sales pitch.
Run the numbers
What is happening
The Michigan Department of Attorney General’s Nov. 10 press release lays out a simple message. Solar can work for some homes, but the savings are not automatic.
According to the release, savings vary by home. They depend on the price of the system, the loan payments and the utility rates where you live. A system that pays off for one neighbor may not pay off for you.
The alert follows a major case. On July 15, 2026, Nessel filed a federal lawsuit in the Western District of Michigan against Portage-based Climax Solar, its owner Joshua Thompson, and the lenders that financed its customers. That is according to a Michigan Department of Attorney General press release from the same date.
The suit accuses the company and its lenders of a deceptive financing scheme. It alleges the scheme affected about 1,700 Michigan consumers and about $81 million in financed transactions. It also alleges more than $22 million in hidden financing costs that were not disclosed as finance charges. These are allegations. They have not been proven in court.
Court records show Climax filed for Chapter 7 bankruptcy in April 2024.
Nessel’s office has dealt with solar lending problems before. On Nov. 29, 2022, she joined 8 other states in urging five solar lenders to suspend loan payments and interest for Pink Energy customers.
What the warning covers
The Nov. 10 alert from the Attorney General’s office gives homeowners a short checklist.
Check the company. Research the company’s record and its state license before you agree to anything.
Do not count on tax breaks. The office says not to rely on promised tax breaks or credits. Whether you qualify for any credit depends on your own situation. A salesperson’s promise does not settle that question. A tax professional can.
Read the contract. Read the whole thing before you sign. That includes the loan terms, not just the panel price.
Ask how long the equipment will last. The office’s consumer protection page also says to check warranties and replacement costs. Panels, inverters and other parts may need repair or replacement during the life of your loan.
Talk to your utility. The office says panels may not cover all of your home’s electricity use. That means you may still get a utility bill on top of a solar loan payment. Ask your utility what to expect before you sign.
The Climax lawsuit shows why the financing matters. Hidden costs can sit inside a loan, not on the sales sheet. The suit alleges that is what happened to Climax customers.
How to spot it
The Attorney General’s solar consumer alert page lists these red flags, along with points drawn from the Nov. 10 release:
- A sales pitch that promises guaranteed tax breaks or credits
- A company that won’t give you time to review the contract before you sign
- Savings claims that don’t account for your system price, loan payments and utility rates
- Vague answers about warranties, how long the equipment lasts or what replacement costs
- A company you can’t verify through its record or state license
- Loan paperwork you are asked to sign without seeing the full terms and costs
A tax credit is not a guarantee
The Attorney General’s office says not to rely on promised tax breaks or credits. If a salesperson says a credit will cover part of your loan, treat that as a sales claim, not a fact. Ask a tax professional whether you qualify before you sign. If you don’t qualify, you could owe the full loan amount anyway.
If you were targeted
- Stop and do not sign anything else. If you feel rushed, that is one of the red flags the Attorney General’s office names.
- Gather your paperwork. Keep the sales contract, loan documents, warranty papers, texts, emails and any written promises about savings or tax credits.
- Call your lender using the number on your loan statement, not a number a salesperson gave you. Ask for the full loan terms, including all finance charges. If money left your bank account in a way you did not expect, call your bank using the number on the back of your card.
- If you believe the deal was deceptive, contact the Michigan Attorney General’s Consumer Protection Team (details below).
- Talk to a lawyer about your contract and loan rights. If the payments are straining your budget, a nonprofit credit counselor can help you look at your options.
How to report it
The Michigan Department of Attorney General’s consumer protection page says former Climax customers who believe they were deceived can contact the Consumer Protection Team. You can call 877-765-8388 (toll-free) or 517-335-7599. You can also write to P.O. Box 30213, Lansing, MI 48909. An online complaint form is also available through the Attorney General’s office.
Other Michigan homeowners with concerns about a solar company can contact the same office. It is the state attorney general’s consumer protection office.
You can also report deceptive sales practices to the Federal Trade Commission at ReportFraud.ftc.gov.
If your complaint is about a solar loan, such as hidden fees or finance charges you were not told about, you can file a complaint with the Consumer Financial Protection Bureau at consumerfinance.gov/complaint.
Be careful with anyone who contacts you offering to recover money from a solar deal for a fee. The official channels above do not charge you to file a complaint.
Laws and regulations referenced
Links go to the official text on government sites.
Check, verify or complain
Sources
- Michigan Department of Attorney General press release (michigan.gov) michigan.gov · primary source
- Michigan Department of Attorney General press release (michigan.gov) michigan.gov · primary source
- Michigan Department of Attorney General consumer protection page (michigan.gov) michigan.gov · primary source
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