Texas Attorney General Solar Investigation:
What Texas Homeowners Should Know

On April 3, 2026, Texas Attorney General Ken Paxton announced an initiative against alleged fraud and deceptive practices in the residential solar industry. The Office of the Attorney General issued Civil Investigative Demands to Sunrun, Freedom Forever (d/b/a Freedom Solar), Lone Star Solar Services, and CAM Solar.

On April 3, 2026, the Office of the Texas Attorney General announced a major initiative targeting alleged fraudulent and deceptive practices in the Texas residential solar industry. As part of the initiative, the OAG issued formal Civil Investigative Demands to four named companies: Sunrun, Inc.; Freedom Forever, LLC (referenced by the OAG as doing business as Freedom Solar); Lone Star Solar Services LLC; and CAM Solar Inc. According to the OAG’s announcement, the four companies are collectively the subject of more than 100 formal complaints filed with the OAG along with thousands of additional reports posted online.

The investigation is examining alleged violations of the Texas Deceptive Trade Practices-Consumer Protection Act (Business and Commerce Code Chapter 17). The OAG specifically identified the following categories of alleged conduct: misrepresentations about energy bill savings; misrepresentations about the efficacy of solar panel systems; misrepresentations about equipment implementation; and the companies’ contract terms and policies. The OAG’s announcement called the initiative “only beginning” and signaled additional enforcement activity may follow.

For Texas homeowners who have a contract with any of the four named companies — or who believe they were misled by any Texas residential solar retailer regardless of whether the company has been named in this investigation — the announcement raises a practical question: what does this mean for me, and what may my options be? This page is general background on the investigation. A qualified Texas-licensed attorney is the appropriate person to evaluate how any of this may apply to a specific homeowner’s contract.

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What the Texas Announced
Attorney General

Austin Solar Contracts

On April 3, 2026, the Office of the Texas Attorney General published a press release announcing what Attorney General Paxton described as a major initiative to combat widespread fraud by companies selling solar panel systems. The announcement was specific in three important ways.

Four companies named

The OAG named the following four companies as recipients of Civil Investigative Demands:

  • Sunrun, Inc. — the largest U.S. residential solar installer by market share.
  • Freedom Forever, LLC — referenced by the OAG as doing business as “Freedom Solar.” Texas news outlets including ABC13 Houston have noted that the trade name “Freedom Solar” is used by multiple unrelated companies in Texas and that the OAG’s investigation is specifically of Freedom Forever, LLC.
  • Lone Star Solar Services LLC.
  • CAM Solar Inc.
Austin Solar Contracts

Texas homeowners with contracts from companies NOT on this list are not the subject of this specific investigation. However, the underlying Texas laws — the DTPA, the Home Solicitation Transactions Act, SB 1036, and federal Truth in Lending Act — apply to every residential solar contract in Texas regardless of which company sold or financed it. A qualified attorney may review whether any of these laws may apply to a contract from any Texas solar company.

Solar Contract Rights

Statutory basis SB 1036?

The OAG identified the Texas Deceptive Trade Practices-Consumer Protection Act, Business and Commerce Code Chapter 17, as the principal statutory basis for the investigation. The DTPA prohibits false, misleading, or deceptive acts and practices in consumer transactions. Section 17.46(b) of the DTPA lists specific categories of prohibited conduct, including misrepresenting characteristics, benefits, or uses of goods or services and failing to disclose material information. Section 17.50 allows actual damages plus up to three times damages for knowing violations, plus attorney’s fees and court costs.

Scope of conduct being examined

The OAG identified the following specific categories of allegedly deceptive conduct being investigated:

  • Misrepresentations regarding savings for consumers on their energy bills.
  • Misrepresentations regarding the efficacy of solar panel systems (i.e., whether the systems perform as promised).
  • Misrepresentations regarding equipment implementation (i.e., what equipment was installed versus what was promised).
  • The companies’ terms and policies (i.e., what is in the contracts and whether those terms were disclosed).

Document categories demanded under the CIDs

According to publicly available reporting on the investigation, the Civil Investigative Demands require the four companies to produce specific categories of documents. These include:

  • Compensation structures and pay records for door-to-door sales representatives.
  • Sales scripts and marketing materials used by sales representatives.
  • Customer contracts and contract templates.
  • Warranty terms, service plans, and post-sale service records.
  • The formulas and methodologies used by the companies to determine and represent customer energy bill savings.
  • Records of how the companies tracked actual changes in customer electricity bills against the savings promised at the point of sale.

What a Civil Investigative Demand Actually Means

This is one of the most misunderstood parts of the announcement, and it matters for setting expectations. A Civil Investigative Demand (CID) is a formal pre-litigation tool used by state attorneys general. Under the Texas DTPA, the Attorney General is authorized to issue CIDs to investigate suspected violations of the Act. A CID is not a lawsuit, it is not a finding of guilt, and it is not a court order cancelling any individual homeowner’s contract.

A CID IS

A formal request for documents and information

Issued pre-litigation to investigate whether a violation occurred

Generally binding on the recipient under threat of court enforcement

Authorized by Texas Business & Commerce Code §17.61

A CID IS NOT

A lawsuit or court action

A finding of wrongdoing or guilt

An order to cancel any individual homeowner's contract

A guarantee that a lawsuit will follow

Where a CID can lead depends on what the investigation produces. Possible outcomes include the OAG closing the investigation without action; the OAG entering into an Assurance of Voluntary Compliance with one or more companies (an agreement to change practices without admitting violations); or the OAG filing civil enforcement action seeking penalties, injunctive relief, restitution for consumers, or other remedies. As of the publication date of this page, the investigation is ongoing and no public disposition has been announced.

IMPORTANT: THIS IS A STATE ENFORCEMENT ACTION — NOT A CLASS ACTION

The Texas Attorney General’s investigation is a state enforcement action. It is separate from any individual homeowner’s private legal options. If the OAG ultimately obtains restitution for affected homeowners, that may benefit some Texas homeowners — but historically, state enforcement actions do not result in every affected homeowner automatically being made whole.

Texas homeowners who believe their contract may be reviewable should not assume the AG investigation will resolve their individual situation. The investigation does not pause statutes of limitations, does not stop the homeowner’s payment obligations, and does not cancel any individual contract. Homeowners who want their specific contract evaluated generally pursue that on a case-by-case basis through their own legal review.

Freedom Forever's April 15, 2026 Bankruptcy Filing

Nine business days after the Texas Attorney General’s April 3, 2026 announcement, Freedom Forever, LLC filed for Chapter 11 bankruptcy protection in the United States Bankruptcy Court for the District of Delaware (lead case 26-10522). This is a significant development that materially affects what Texas homeowners with Freedom Forever contracts may be facing.

Key facts of the Freedom Forever filing

  • Filing date: April 15, 2026.
  • Court: United States Bankruptcy Court for the District of Delaware. Lead case number: 26-10522.
  • Filing type: Chapter 11 reorganization.
  • Estimated assets: $100 million to $500 million.
  • Estimated liabilities: $500 million to $1 billion.
  • Largest creditor: Mosaic Funding (a major solar financing company), with claims reported at approximately $114 million.
  • Market position at time of filing: According to Wood Mackenzie, Freedom Forever was the second-largest U.S. residential solar installer in 2025 with approximately 6.1% of the residential market by share.

What Chapter 11 means for Texas homeowners with Freedom Forever contracts

Chapter 11 is a reorganization bankruptcy, not an immediate liquidation. In a Chapter 11 case, the debtor company generally remains in operation while it attempts to renegotiate debts and restructure its business. However, recent Chapter 11 filings in the residential solar industry — including by Sunnova, the original SunPower, Lumio, and PosiGen — have in several cases resulted in liquidation or substantial asset sales rather than the company emerging intact. For Texas homeowners with Freedom Forever contracts, the bankruptcy creates several practical issues that a qualified attorney may need to evaluate:
  • The automatic stay under 11 U.S.C. §362 may affect a homeowner’s ability to take certain legal actions against Freedom Forever during the bankruptcy proceedings.
  • Workmanship warranties and service commitments issued by Freedom Forever itself may be at risk of being modified, delayed, or discharged through the bankruptcy.
  • Equipment manufacturer warranties (panels, inverters, batteries) are generally issued directly by the manufacturers — JA Solar, Trina Solar, Silfab Solar, Enphase, and others — and are typically not affected by an installer’s bankruptcy.
  • Customer claims against Freedom Forever for misrepresentation or DTPA violations may need to be filed as proofs of claim in the bankruptcy proceeding.
  • Financing on the system — typically held by a third-party lender like Mosaic, GoodLeap, Sunlight Financial, or Service Finance Company — is generally not discharged by the installer’s bankruptcy and typically remains the homeowner’s obligation.
A qualified attorney evaluates these issues on a case-by-case basis. The interplay between the Texas AG investigation, Freedom Forever’s bankruptcy, and an individual homeowner’s contract is complex and fact-specific.

Affected by the Freedom Forever bankruptcy?

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What Texas Homeowners Affected by the Investigation Should Consider

Whether the named-company status applies to a specific homeowner, several practical steps generally make sense regardless of how the OAG investigation ultimately resolves.

Gather and preserve your documentation

Document preservation is the single most important step a Texas homeowner can take. If the OAG investigation results in a settlement or restitution program, eligibility typically requires evidence of the original contract and the sales representations made. The core documents to gather are:
  • The signed solar sale or lease agreement, including any addenda or amendments.
  • Financing paperwork from any third-party lender (Mosaic, GoodLeap, Sunlight Financial, Service Finance Company, or others).
  • The original sales proposal or “design document” showing promised savings and system production.
  • Emails, text messages, voicemails, or any other correspondence with the salesperson — particularly any communications where savings, tax credits, or system performance were discussed.
  • Utility bills from the 12 months before the system was installed and every month since installation, sufficient to compare actual savings against the savings promised at the point of sale.
  • Production data from the system monitoring app or the inverter manufacturer’s portal, sufficient to compare actual production against promised production.
  • Photographs of the installation, including any damage, improper workmanship, or visible deviations from what was promised.
  • Any marketing materials — door hangers, mailers, flyers, websites, brochures — that described the program.
If documents cannot be located, the homeowner can request copies in writing from the solar retailer and from the lender. Under federal law, consumers generally have a right to receive copies of documents they have signed.

Understand the Texas DTPA pre-suit notice requirement

If a homeowner’s situation may give rise to a Texas DTPA claim, Section 17.505 of the Texas Business and Commerce Code requires that the consumer provide written notice to the defendant at least 60 days before filing a DTPA lawsuit. The notice must describe the consumer’s specific complaint and the damages sought. This is built into the timeline of any DTPA matter and explains why even straightforward DTPA cases generally take at least a few months from start to filed lawsuit. A qualified attorney handles the pre-suit notice if the matter proceeds.

Do not stop making payments without legal advice

Texas homeowners sometimes assume that being named as part of an AG investigation, or having a contract with a company in bankruptcy, gives them permission to stop making payments on their solar lease, loan, or PPA. That is not the case. The AG investigation does not pause any individual contract. Freedom Forever’s bankruptcy does not discharge a homeowner’s obligations to a third-party lender that financed the system. Continuing to make payments is generally the safest course of action until a qualified Texas-licensed attorney has reviewed the contract and provided specific advice.

Consider whether a legal review of your contract is appropriate

For Texas homeowners who believe they were subjected to the categories of conduct identified in the OAG investigation — misrepresented savings, misrepresented system performance, misrepresented equipment, or undisclosed contract terms — a legal review of the specific contract by a qualified attorney is the most direct way to evaluate options. The legal review may consider:
  • The Texas DTPA — Business and Commerce Code §17.46(b) and §17.50.
  • SB 1036 / Texas Occupations Code Chapter 1806 — for contracts signed on or after September 1, 2025.
  • The federal Truth in Lending Act — for financed transactions.
  • The Texas Home Solicitation Transactions Act — for door-to-door sales.
  • State-law contract claims for breach of contract, breach of warranty, or fraud.
  • Bankruptcy considerations — if the installer is Freedom Forever or another company in bankruptcy.

How Texas Solar Cancellation
May Help

Texas Solar Cancellation  is a marketing and intake service focused on Texas residential solar contract matters. We are not a law firm, we do not represent any party in the OAG investigation, and we do not provide legal advice. Our role is limited and specific:

We collect and organize Texas homeowner contract documentation.

We connect qualifying homeowners with attorneys who can help handle Texas solar contract cancellation matters.

The legal review and any subsequent legal action are performed by the attorneys at the law firm, not by Texas Solar Cancellation.

The intake review is free and creates no obligation. If the case meets initial criteria and the law firm accepts the matter, the homeowner enters a fixed-fee engagement directly. The fee is disclosed in writing before the homeowner agrees to anything. Detailed information on the process is available on the How It Works page.

Frequently Asked Questions About the Texas AG Solar Investigation

The questions below come up most often during Texas homeowner intakes related to the OAG investigation. Answers are general information only — they are not legal advice.

When did the Texas AG investigation start?

On April 3, 2026, the Office of the Texas Attorney General publicly announced the initiative and the issuance of Civil Investigative Demands to four named solar companies. The investigation itself was opened earlier — the OAG noted at the time of the announcement that the four companies were collectively the subject of more than 100 formal complaints filed with the OAG along with thousands more posted online. As of the date this page was last updated, the investigation is ongoing.

Which solar companies were named?

Four companies were named in the OAG’s April 3, 2026 announcement: Sunrun, Inc.; Freedom Forever, LLC (referenced by the OAG as doing business as “Freedom Solar”); Lone Star Solar Services LLC; and CAM Solar Inc. The OAG specifically clarified “Freedom Solar” in reference to Freedom Forever, LLC — Texas news outlets noted that the trade name “Freedom Solar” is used by other unrelated Texas solar companies and that the investigation is of Freedom Forever, LLC specifically.

What law is the OAG investigating under?

The principal statutory basis for the investigation is the Texas Deceptive Trade Practices-Consumer Protection Act, Business and Commerce Code Chapter 17. The DTPA prohibits false, misleading, or deceptive acts and practices in consumer transactions. The OAG specifically identified misrepresentations about savings, system efficacy, equipment, and contract terms as categories of conduct under investigation.

What is a Civil Investigative Demand?

A Civil Investigative Demand (CID) is a formal pre-litigation tool authorized under Texas Business and Commerce Code §17.61. It is a formal request for documents and information that the OAG issues when investigating suspected violations of the DTPA. A CID is not a lawsuit, not a court ruling, and not an order to cancel any individual contract. The CIDs in this investigation require the four named companies to produce documents covering sales rep compensation, sales scripts, customer contracts, warranties, service plans, and savings-calculation methodologies.

Does the investigation automatically cancel my contract?

No. A Civil Investigative Demand is a formal request for information; it does not cancel any individual homeowner’s contract. The AG investigation is a state enforcement action that may, over time, result in penalties, restitution programs, or injunctive relief that affect the named companies broadly. Individual Texas homeowners who believe their contract may be cancellable generally pursue that on a case-by-case basis through their own legal review.

I have a contract with one of the named companies. What should I do?

The most important step is to gather and preserve your documentation — contract, financing paperwork, sales emails and text messages, utility bills, system production records, and any marketing materials. Even if you do not immediately pursue legal action, the documentation may be critical later if the OAG investigation produces a settlement or restitution program. Consider whether a legal review of the contract is appropriate. Do not stop making payments without specific legal advice.

What if my contract is with a company NOT named in the investigation?

The OAG investigation specifically names four companies. However, the underlying Texas laws — the DTPA, the Home Solicitation Transactions Act, SB 1036, and the federal Truth in Lending Act — apply to every residential solar contract in Texas regardless of which company sold or financed it. A qualified attorney may review whether any of these laws may apply to a contract from any Texas solar company, not just the named four.

Freedom Forever filed for bankruptcy. What does that mean for my contract?

Freedom Forever, LLC filed for Chapter 11 bankruptcy in Delaware on April 15, 2026 (lead case 26-10522), nine business days after being named in the OAG investigation. Chapter 11 is a reorganization, not an immediate liquidation. For Texas homeowners with Freedom Forever contracts, the bankruptcy may affect workmanship warranties and service commitments issued by Freedom Forever itself. Equipment manufacturer warranties (panels, inverters) are generally not affected. Financing on the system, typically held by a third-party lender, is generally not discharged by the installer’s bankruptcy and typically remains the homeowner’s obligation. A qualified attorney evaluates the specifics on a case-by-case basis.

Can I file a complaint directly with the Texas AG?

Yes. The Texas Office of the Attorney General accepts consumer complaints through its online portal at oag.my.texas.gov. Filing an OAG complaint is one option for Texas homeowners. It is separate from any potential private legal action under the DTPA, and it is also separate from filing a complaint with TDLR (the Texas Department of Licensing and Regulation, which regulates residential solar retailers under SB 1036 beginning in 2026). A qualified attorney may advise on whether and how filing an OAG complaint may interact with other legal options in a specific case.

How long will the Texas AG investigation take?

There is no fixed timeline. State enforcement investigations of this size and complexity typically take months to years to resolve. Possible outcomes include the OAG closing the investigation without action, entering into Assurances of Voluntary Compliance with one or more companies, or filing civil enforcement action. Texas homeowners who believe their individual contract may be reviewable should not wait on the AG investigation to decide whether to pursue their own legal review.

Will I get money back if the OAG sues these companies and wins?

Possibly, but not automatically. If the OAG ultimately obtains restitution for affected homeowners, eligibility typically depends on documentation of the original contract and the alleged misrepresentation. Some past state enforcement actions have produced restitution programs that paid out only to a portion of affected consumers, and amounts have varied considerably. There is no guarantee that any individual Texas homeowner will receive money even if the OAG prevails. This is one of the practical reasons many homeowners pursue private legal review in parallel.

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