The district attorneys of San Francisco, Alameda County, and three other counties settled a lawsuit with a solar energy supplier to resolve allegations the company, Vivint Solar, misrepresented details when selling its services. 

The company did not admit liability but agreed to pay $1.3 million in civil penalties to end the consumer protection complaint that was filed in Riverside County Superior Court. 

It also agreed to establish a $3 million fund to pay restitution to anyone with a valid restitution request from the company, according to a news release from the San Francisco District Attorney’s Office. 

Vivint installs and maintains residential solar systems and sells the energy they generate to the customer at a set price. 

The company, which has since been sold to Sunrun Inc., was accused of offering misleading “Purchase Power Agreements,” called PPAs, by misrepresenting its relationship with a local utility company, the associated costs and savings, and a customer’s ability to cancel their contract or service. 

The stipulated judgement the company agreed to also prohibits it from engaging in other deceptive behavior, such as running credit checks without a customer’s consent; opening customer accounts without having a written agreement; providing the contract in the language the agreement used to negotiate; enforcing a so-called “liquidated damages” provision in contracts, which the San Francisco DA’s Office called illegal. 

“Installing a solar system on your home is an important financial decision,” said San Francisco District Attorney Brooke Jenkins. 

“Although consumers can benefit from the purchase of household solar energy, companies selling such products have a duty to be honest and upfront, particularly about the savings a customer might reasonably expect to receive and the company’s affiliation, if any, with the local utility,” Jenkins said. 

The agreement requires Vivint to notify customers about the stipulated judgement and the option to pursue restitution. Eligible claims include contracts or agreements made between August 3, 2016, and October 8, 2020, according to the San Francisco DA’s Office. 

The counties of Riverside, San Diego and Fresno also joined the complaint.