Southern Solar Is Gone. Your Legal Rights Are Not.
Southern Solar LLC — also known as SolaTrue of Dallas-Fort Worth — filed Chapter 7 bankruptcy in September 2025 in the Northern District of Texas (Case No. 25-43461). The company is being liquidated. There is no reorganization plan. There is no one answering the phone.
If you are a former Southern Solar customer, you are not alone. Hundreds of Texas homeowners are in the same position: solar panels on the roof, a loan payment every month, a 25-year warranty that no one will honor, and no idea what to do next.
Here is what you need to know: Southern Solar’s bankruptcy does not eliminate your legal claims. Under federal and Texas law, you likely have claims against the company that financed your solar loan — and those claims survive the bankruptcy.
What Happened to Southern Solar?
Southern Solar Power operated across Texas, installing residential solar panel systems and arranging financing through third-party lenders like GoodLeap, Mosaic, Sunlight Financial, and others. The company also operated under the name SolaTrue.
In late 2023, Southern Solar was acquired by SolaTrue. By 2025, the combined entity had collapsed. Southern Solar LLC filed Chapter 7 bankruptcy on September 11, 2025, in the U.S. Bankruptcy Court for the Northern District of Texas (Fort Worth Division).
Chapter 7 means liquidation — the company’s remaining assets are being sold to pay creditors, and then the company ceases to exist. There is no restructuring. There is no plan to resume operations.
For homeowners, this means:
- No warranty service. Your 25-year workmanship warranty is effectively worthless — there is no company left to honor it.
- No customer support. There is no one to call about broken panels, roof leaks, or system malfunctions.
- No buyback program. If a sales rep promised to buy back your panels, that promise died with the company.
- Your loan payments continue. The lender still expects payment every month, even though the company that sold you the system is gone.
You Still Have Legal Options
Southern Solar may be gone, but your solar lender is not. And under federal law, your lender is legally responsible for the fraud and misrepresentation committed by Southern Solar.
This is because of a federal regulation called the FTC Holder Rule. Every consumer loan contract arranged by a seller — including every Southern Solar loan agreement — is required to contain a specific provision that says:
ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF.
This provision is in your loan agreement. It means your lender — whether that is GoodLeap, Mosaic, Sunlight Financial, or another company — stands in the shoes of Southern Solar. Every lie the sales rep told you, every promise that was broken, every violation of Texas law — your lender is legally responsible for all of it.
Common Southern Solar Complaints
Our firm has represented numerous former Southern Solar customers. The complaints we hear are remarkably consistent:
“They said my electric bill would be zero.”
Southern Solar sales representatives routinely promised homeowners that their electric bills would be eliminated or reduced to nearly nothing. In reality, most homeowners continue to pay substantial electric bills on top of their new loan payment.
“They promised me a tax refund check.”
Sales reps told homeowners they would receive a $10,000 to $30,000 tax refund after installing solar panels. The federal solar Investment Tax Credit (ITC) is a tax credit — not a cash refund. Many homeowners owed little or no federal income tax and received nothing. Others were told to turn the credit over to the lender.
“They said they would buy back the panels.”
Homeowners were promised a buyback program — that if they were unsatisfied, Southern Solar would purchase the panels back. This program never existed.
“They said they would reimburse my loan payments.”
Some homeowners were promised 12 to 18 months of loan payment reimbursements. These reimbursements stopped early or never arrived at all.
“They never got my system turned on.”
Some systems were installed but never received Permission to Operate (PTO) from the local utility, meaning they were never connected to the grid and never generated power.
“They put a lien on my house.”
Your lender filed a UCC-1 financing statement — a lien — on your property to secure the solar loan. Many homeowners were never told about this lien. It can prevent you from selling or refinancing your home.
Your Legal Claims Under Texas Law
Texas has some of the strongest consumer protection laws in the country. As a Southern Solar customer, you may have claims under:
Texas Deceptive Trade Practices Act (DTPA)
The DTPA prohibits false, misleading, or deceptive acts in consumer transactions. Every broken promise listed above is a potential DTPA violation. If your solar company lied about your electric bill savings, your tax refund, or a buyback program, those are actionable claims under the DTPA.
What you can recover under the DTPA:
- Your actual economic damages (the difference between what you were promised and what you received)
- Up to three times your economic damages if the conduct was committed knowingly
- Attorney’s fees and court costs
Texas Home Solicitation Act (THSA)
If a Southern Solar sales representative came to your home uninvited — a door-to-door sale — the Texas Home Solicitation Act applies. The THSA requires a 3-day cancellation period and prohibits the seller from arranging financing within 5 business days of the purchase agreement. If your purchase agreement and loan agreement were signed on the same day (which was common), the contract may be void under Texas law.
Fraud
Separate from the DTPA, you may have common-law fraud claims if Southern Solar made false representations of material fact that they knew were false when they made them.
What We Can Do for You
Arnell Law represents Texas homeowners in solar panel fraud cases. We have tried these cases in front of judges and juries — and we have won.
Our results include:
- $500,000 jury verdict in a solar panel fraud trial
- Loan cancellations — eliminating the remaining balance on the solar loan
- Lien removals — terminating the UCC lien so homeowners can sell or refinance
- Cash recoveries — monetary damages paid directly to our clients
We handle Southern Solar cases on a contingency fee basis. You pay nothing unless we recover money for you.
Frequently Asked Questions
Does Southern Solar’s bankruptcy mean I can’t sue anyone?
No. While you generally cannot sue Southern Solar directly (the bankruptcy stay prevents it), you can bring claims against your solar lender under the FTC Holder Rule. Your lender is legally responsible for Southern Solar’s fraud and misrepresentation.
I’m still making loan payments. Should I stop?
Do not stop making payments without legal advice. Missing payments can affect your credit and trigger collection activity. Contact us for a free consultation to discuss your specific situation.
What if my solar panels aren’t working?
This strengthens your legal claim. If your system is not functioning, not producing power, or was never activated, you are paying for a product that does not work — while the company that installed it no longer exists.
What if I already paid off my solar loan or sold my house?
You may still have a claim. If you paid off the loan — including being forced to pay it off when you sold your home — you may be able to recover those payments as damages.
How long do I have to file a claim?
The statute of limitations for DTPA claims in Texas is two years from the date you discovered (or should have discovered) the deceptive act. Do not wait — contact us as soon as possible.
What lenders financed Southern Solar systems?
Southern Solar used several third-party lenders, including GoodLeap, Mosaic (now bankrupt), Sunlight Financial (now bankrupt), and others. Regardless of which lender holds your loan, the Holder Rule applies.
Free Consultation
Were you a Southern Solar or SolaTrue customer? Call us today for a free, no-obligation consultation. We will review your situation and explain your legal options.
Arnell Law, PLLC
Phone: (214) 390-2075
Serving homeowners across all of Texas.