Vivint Solar to pay $4.3 million to settle California customer deception claims

Vivint Solar has agreed to a $4.3 million settlement with district attorneys’ offices in five California counties, including San Diego, to resolve allegations of deceptive marketing and misleading contract terms.

The settlement includes $1.3 million in civil penalties and investigation costs. Additionally, the company will establish a $3 million restitution fund for eligible customers who signed contracts between August 2016 and October 2020.

Prosecutors alleged that Vivint Solar employees misrepresented the terms of power purchase agreements and failed to provide full disclosures to consumers. Specific allegations included sales representatives falsely claiming an affiliation with local utility companies and making misleading promises about potential savings on electricity bills.

Vivint Solar is now a subsidiary of Sunrun. While Sunrun was not a party to the lawsuit, prosecutors noted that both Vivint and Sunrun cooperated with the investigation to reach the settlement.

The settlement involving Vivint Solar serves as a stark warning for the rapidly expanding U.S. residential solar industry, particularly within the critical California market. The move signals an aggressive pivot by regulators toward heightened oversight of high-pressure and deceptive sales tactics—issues that have fueled consumer grievances for years.

The coordinated intervention by five California District Attorneys marks a strategic shift from isolated litigation to a systemic enforcement effort. By targeting specific allegations—including "bait-and-switch" pricing schemes and the deliberate obstruction of contract cancellations—prosecutors are establishing a clear regulatory precedent. The message to the industry is unequivocal: predatory sales maneuvers will no longer be tolerated under the guise of green energy expansion.

For Sunrun, the industry leader that acquired Vivint, resolving these legacy legal challenges is a prerequisite for maintaining its market reputation. Although the company did not directly oversee the conduct in question, it must now navigate the fallout to preserve consumer confidence. While the establishment of a $3 million restitution fund provides a mechanism for remediation, the true impact of the settlement will depend on the efficacy of consumer outreach and the volume of claims successfully processed.

This case carries significant weight for California homeowners, particularly within the state’s extensive Vietnamese-American community. From the residents of Little Saigon to the entrepreneurs behind local nail salons and phở restaurants, many look for solar solutions to offset rising utility bills and maximize the money sent back home as remittances. However, these same families and small business owners are often targeted by deceptive sales tactics promising "no-cost" energy that never materializes. Seniors and those navigating language barriers are especially at risk of being pressured into signing complex contracts they don't fully understand. Whether you are a long-term homeowner, a newcomer on an H-1B or EB-5 visa, or someone here under TPS or F2B status, it is crucial to protect your financial interests. Vietnamese consumers in the affected counties should immediately check their eligibility for compensation from the $3 million settlement fund.