Vivint Solar to Pay $4.3M Over Misleading Customer Claims

Settlement resolves allegations of deceptive sales practices by the rooftop solar company.

Published on Feb. 24, 2026

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Vivint Solar has agreed to pay $4.3 million to settle allegations of consumer protection violations, including misrepresenting contract terms and making false claims about customer bills, in power purchase agreements sold in California between 2016 and 2020. The settlement includes $3 million for a restitution fund to compensate eligible customers.

Why it matters

This case highlights ongoing concerns about deceptive marketing practices in the solar industry, which has seen rapid growth but also faced scrutiny over high-pressure sales tactics and misleading claims. The settlement aims to provide restitution for affected customers and enforce stronger consumer protections.

The details

Under the terms of the settlement, Vivint Solar will pay $1.3 million in civil penalties and investigative costs, and establish a $3 million restitution fund for eligible California consumers who entered into power purchase agreements with the company between August 2016 and October 2020. Allegations included Vivint misrepresenting its relationship with local utilities and making false claims about customers' ability to cancel contracts or that their bills would be lower.

  • The alleged violations occurred between August 3, 2016 and October 8, 2020.
  • The settlement was reached on February 23, 2026.

The players

Vivint Solar

A rooftop solar company that was acquired by Sunrun in 2020.

San Diego District Attorney's Office

One of the five California district attorney's offices that brought the consumer protection case against Vivint Solar.

Summer Stephan

The San Diego District Attorney who said Vivint Solar engaged in "misleading and aggressive tactics" to ensnare customers.

Sunrun

The solar company that acquired Vivint Solar in 2020, though Sunrun was not a party to the law enforcement action.

Wyatt Semanek

A Sunrun spokesperson who said the company is "committed to complying fully with the agreement" and "promptly addressing any remaining customer concerns."

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What they’re saying

“When companies use misleading and aggressive tactics to ensnare customers, as in the case of this solar company, they are engaging in unfair competition and other consumer protection violations and will be held responsible under the law.”

— Summer Stephan, San Diego District Attorney (San Diego Union-Tribune)

“The timeframe of the allegations is before Sunrun's acquisition of Vivint Solar. While Vivint Solar denied any wrongdoing, we are pleased to have resolved this matter with a solution that puts customers first.”

— Wyatt Semanek, Sunrun Spokesperson (San Diego Union-Tribune)

What’s next

Vivint Solar will notify eligible consumers about the $3 million restitution fund and the process for submitting claims, with deadlines for doing so.

The takeaway

This settlement highlights the need for stronger consumer protections and oversight in the rapidly growing solar industry, to ensure companies are not misleading or deceiving customers about the terms and costs of their products and services.