Texas AG Paxton Solar Investigation: What It Means If You Signed With
Sunrun, Freedom Forever, Lone Star Solar, or CAM Solar
On April 6, 2026, Texas Attorney General Ken Paxton announced a major initiative targeting widespread fraud by companies selling residential solar panel systems. Four companies received Civil Investigative Demands as part of the initiative — Sunrun, Inc., Freedom Forever LLC (doing business as Freedom Solar), Lone Star Solar Services LLC, and CAM Solar, Inc. If you signed a solar contract with any of these companies, this page explains what the investigation involves, what laws may apply to your situation, and what your next steps may be.
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What the Texas
AG Investigation Involves
The Office of the Attorney General issued Civil Investigative Demands (CIDs) to four named solar companies on April 6, 2026. A CID is a formal legal demand that requires the recipient to produce documents and answer specific questions during the investigation phase — it is the precursor that often comes before a lawsuit, though no lawsuit is required to follow.
According to the OAG’s announcement, the four named companies are collectively the subject of more than 100 formal complaints filed with the Office of the Attorney General, along with thousands more complaints posted online. The investigation focuses on alleged violations of the Texas Deceptive Trade Practices-Consumer Protection Act.
Specific Conduct Under
Investigation
The AG’s announcement cited several categories of alleged misconduct that the CIDs require the companies to address:
- Misrepresentations about energy-bill savings — what the salesperson promised the homeowner would save versus what the system actually produced
- Misrepresentations about solar panel system performance and efficacy
- Issues with equipment installation
- Contract terms, warranties, service plans, and marketing materials
- How the companies track changes to homeowners’ electricity bills to substantiate savings claims
- Sales representative compensation structures and the scripts used during door-to-door sales
Under Texas Business & Commerce Code §17.46 (the DTPA), false or misleading representations, failure to disclose material information, and unconscionable conduct are all actionable. A qualified attorney may review whether the homeowner’s specific experience may be a potential issue under §17.46(b).
The Four Companies Named in the
Investigation
Each named company has a different operating footprint and a different posture toward the investigation. The information below comes from public statements, court filings, and the OAG announcement itself. None of this constitutes a legal opinion about any particular contract — eligibility for a legal review depends on the specific facts of each homeowner’s situation.
Sunrun, Inc.
Based in San Francisco. Sunrun is the largest U.S. residential solar installer by market share. In response to the AG’s announcement, Sunrun publicly disputed being grouped with the other named companies and stated it had four complaints with the OAG over the prior two years, all resolved. Sunrun stated it intends to fully cooperate with the AG’s request for information.
Freedom Forever LLC
(dba Freedom Solar)
Dual corporate headquarters in Temecula, California and Las Vegas, Nevada. Freedom Forever was the second-largest U.S. residential solar installer in 2025 with approximately 6.1% market share. Nine business days after the AG’s announcement — on April 15, 2026 — Freedom Forever filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware (lead case 26-10522), listing estimated liabilities of $500 million to $1 billion. The company’s largest creditor is Mosaic Funding at approximately $114 million. The bankruptcy filing does not automatically cancel a homeowner’s contract, but it changes the practical mechanics of how complaints and warranty obligations get handled.
Lone Star Solar Services LLC
Headquartered in Houston. As a Texas-based installer named in the investigation, Lone Star is subject to the same Texas DTPA and SB 1036 framework as the out-of-state companies. The OAG has not publicly indicated a more advanced phase of investigation against Lone Star than against the others.
If You Signed With One of These Companies
- Sales promises that diverge from what the homeowner has actually experienced — bills that did not decrease, production that did not match the sales projection, or a federal tax credit that did not apply
- System performance issues that the company has not addressed — non-functioning panels, warranty claims that go unanswered, or installation defects
- Contract terms that may not have been adequately disclosed at sale — early termination fees, escalator clauses, the cancellation address, or financing structures
- Door-to-door sales experiences where cancellation rights may not have been clearly explained
- Forged or unauthorized signatures on financing paperwork — a category Texas Appleseed has documented in solar complaints
The Four Types of Texas Solar Contracts
(and Why They Matter)
Cancellation rights and remedies depend on which type of contract a Texas homeowner signed. The four most common are summarized below.
Solar Lease
Why Texas homeowners want out
Solar Loan
Why Texas homeowners want out
Solar PPA
Why Texas homeowners want out
Cash Purchase
Why Texas homeowners want out
Texas Solar Cancellation collects information about all four contract types during intake. The contract type determines which Texas and federal laws may apply, and an attorney reviews that combination as part of the legal review.
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Special Note: The Freedom Forever Chapter 11 Filing
- The contract itself does not automatically disappear when an installer files Chapter 11 — but the homeowner’s remedies and the company’s obligations may be administered through the bankruptcy court
- Warranty service may continue or may transfer to a successor entity — depends on how the bankruptcy court structures any asset sale or restructuring plan
- If the homeowner financed the panels through a third-party lender (Mosaic Funding, GoodLeap, Sunlight Financial, etc.), the loan obligation is separate from the installer’s bankruptcy — the loan is owed to the lender, not to Freedom Forever
- Claims against the bankrupt installer may need to be filed in the bankruptcy case by specific deadlines (claims bar dates)
The Texas and Federal Laws That May Apply
None of the laws below guarantees a particular outcome. They are the legal anchors a qualified attorney may consider when reviewing a homeowner’s documentation.
Law
Texas DTPA (§17.46, §17.50)
Texas SB 1036 / Occupations Code Ch. 1806
Home Solicitation Transactions Act — Business & Commerce Code Ch. 601
Truth in Lending Act (TILA) — 15 U.S.C. §1601 et seq.
Texas Tax Code §11.27
A CID IS NOT
Prohibits false, misleading, or deceptive acts in consumer transactions. §17.46(b) lists specific examples including misrepresenting characteristics, failing to disclose material information, and unconscionable conduct. §17.50 allows actual damages plus up to three times actual damages for knowing violations, plus attorney's fees. §17.505 requires a 60-day pre-suit notice before filing.
Effective September 1, 2025. Provides Texas residents a 5-business-day right to cancel residential solar contracts without penalty. Requires the contract to include a cancellation address and the last day of the cancellation period. If those disclosures are missing, the cancellation window may not have started running. Mandatory TDLR registration for residential solar retailers and salespeople begins September 1, 2026.
Applies to door-to-door sales. Provides a 3-business-day right to cancel home solicitation sales. The seller must provide a written cancellation notice; failure to provide it may extend the cancellation period.
Federal law requiring lenders to disclose APR, finance charges, and payment terms. For certain home-secured loans, provides a 3-day right of rescission. If TILA disclosures were missing or wrong, the rescission window may extend to up to 3 years.
Owned solar systems may qualify for a 100% property tax exemption on the added value. Leased systems do NOT qualify. Some Texas homeowners sold a lease were told they would receive a property tax benefit they were never eligible for — a potential disclosure issue.
What to Organize Before Submitting an Intake
- Original signed solar contract and any addendums
- Financing paperwork — if a separate loan was used (Mosaic Funding, GoodLeap, Sunlight Financial, etc.)
- PACE financing documents, if applicable
- Sales emails — search the salesperson’s name and the company name
- Text messages with the salesperson or company
- Marketing materials, brochures, and savings projections shown at the sale
- Production reports from the system, if it has been operating
- Utility bills before and after installation — to document actual savings or the lack thereof
- Any correspondence with the solar company, including service or warranty requests
- Photos of the installed system
- Any complaint already filed with the Texas Office of the Attorney General, the Texas Department of Licensing and Regulation, the Better Business Bureau, or the homeowner’s REP
Homeowner Options
There is no single right path for every homeowner. The options below all exist; which makes sense depends on the homeowner’s situation, documentation, and risk tolerance.
Option 1: File a Complaint With the Texas OAG Directly
Option 2: Engage a Texas-Licensed Consumer Protection Attorney Directly
Option 3: Submit Documentation Through a Texas-Focused Intake Service
IMPORTANT: Do Not Stop Making Payments Without Legal Advice
Continuing to make payments on a solar lease, loan, or PPA is generally the safest course of action until a qualified Texas-licensed attorney has reviewed the homeowner’s documents and provided specific advice. Stopping payments without legal advice may result in default, damage to credit, collections, or other consequences. The decision to stop making payments must only be considered under advice and representation of a qualified attorney.
Frequently Asked Questions
These questions come up most often during Texas homeowner intakes. They are general information only and not legal advice.
What is a Civil Investigative Demand?
A CID is a formal legal demand issued by the Attorney General requiring the recipient to produce documents and answer questions during an investigation. It is part of the pre-litigation investigation phase under the Texas DTPA. The fact that a CID has been issued does not, by itself, mean a lawsuit will follow — but it signals that the OAG is actively examining the recipient’s conduct.
Does the AG investigation mean my contract is automatically cancelled?
No. The AG investigation is an enforcement action by the State of Texas. It does not, by itself, cancel any individual homeowner’s contract. The investigation may produce settlement terms, injunctions, or restitution orders down the line, but those outcomes depend on how the investigation resolves. In the meantime, a homeowner’s individual contract continues to exist, and any individual remedy generally requires a separate intake or legal review.
I signed with Sunrun (or Freedom Forever / Lone Star / CAM). What should I do?
Organize the documentation listed in this page and consider submitting an intake. Continue making payments until a qualified attorney has reviewed your situation and provided specific advice. If you have not already filed a complaint with the Texas OAG, you may want to consider doing so at oag.my.texas.gov — it adds to the public record and is independent of any private legal review.
Freedom Forever filed Chapter 11. Does that affect me?
It may. Bankruptcy filings trigger an automatic stay that pauses most active litigation. The contract itself does not automatically disappear, but warranty obligations, service obligations, and any individual claims may need to be administered through the bankruptcy court. If you financed your panels through a third-party lender like Mosaic Funding, the loan is owed to the lender, not to Freedom Forever — that obligation is separate from the installer’s bankruptcy.
What if I signed with a Texas solar company that is NOT named in the investigation?
The Texas DTPA applies to all Texas solar transactions, not just to the four named companies. Texas SB 1036, the Home Solicitation Transactions Act, and TILA apply regardless of which company sold the system. If there were misrepresentations at the sale or non-performance of the system, a qualified attorney may review whether the same legal framework may apply.
Is this investigation related to the federal investigations of solar companies in other states?
Attorneys general in at least a dozen other states have taken legal action against solar companies for similar conduct. The Texas investigation is separate but uses a similar legal framework — state consumer protection laws prohibiting deceptive trade practices. Multi-state coordination on solar enforcement is increasingly common.
How long will the AG investigation take?
There is no public timeline. Civil investigative demands are part of the discovery phase; the OAG may pursue settlement, file enforcement actions in court, or close the investigation. Investigations of this scope typically run for months or years. A homeowner’s individual situation does not need to wait for the AG investigation to conclude — individual legal review proceeds on its own track.
Should I file my own OAG complaint?
Filing a complaint at oag.my.texas.gov is free and adds to the OAG’s record. It is also independent of any private legal review. Many homeowners do both — file a complaint AND organize documentation for individual review. The OAG investigates patterns on behalf of the State of Texas; it does not represent individual homeowners or recover damages for individual homeowners.
Ready to See If You May Be Eligible for a Legal Review?
If you signed a solar contract with Sunrun, Freedom Forever, Lone Star Solar, CAM Solar, or any other Texas solar company where you believe there were misrepresentations at sale or non-performance afterward, organizing your documentation is a useful first step. A free intake is the fastest way to find out whether your situation may merit further review.
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