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Quick answer: The BBB operates dispute resolution services that are distinct from filing a complaint and distinct from the arbitration clause in your contract. Mediation puts a trained neutral between you and the company to reach a voluntary agreement; the BBB reports that around 80% of its mediation cases end in a signed agreement. Arbitration produces a written decision with reasons. Cost is low, typically free for accredited businesses and around $150 for non-accredited ones depending on the amount in dispute, and the BBB aims to resolve within about 60 days. Two important limits: availability varies by local BBB, and unless a pre-dispute clause applies, the business must agree to participate.
How this differs from your contract's arbitration clause
These get conflated constantly, and they are not the same thing at all.
Contractual arbitration. The clause in your solar agreement, typically requiring disputes to go to a commercial provider such as AAA or JAMS. It is generally mandatory, often waives your right to sue or join a class action, and carries meaningful fees. It is imposed on you by the contract.
BBB dispute resolution. A separate, voluntary, low-cost service. It exists whether or not your contract mentions the BBB, and using it is generally your choice rather than an obligation.
Check what you would be agreeing to before you sign anything. BBB arbitration can be binding, under its conditionally binding rules the business agrees the decision is legally binding once the consumer accepts it, subject to limited review. That may be exactly what you want, or it may foreclose options you would rather keep. If the amount at stake is significant, have an attorney look at the agreement to arbitrate before you sign it, not after.
Mediation versus arbitration
Mediation. A trained mediator helps both sides reach their own agreement. The mediator does not decide who is right and cannot impose an outcome; they reframe the problem and help the parties find a landing point. Nothing binds you unless you sign. The BBB reports roughly 80% of its mediation cases end in a signed agreement.
Arbitration. A neutral arbitrator hears both sides and issues a written decision with reasons. It resembles a simplified hearing rather than a negotiation.
For most solar disputes, start with mediation. The typical solar grievance is not a clean legal question with a right answer; it is a mismatch between what was promised and what was delivered, where the useful outcome is a negotiated adjustment: a partial refund, a system modification, remedial work, or a release. Mediation is built for exactly that. Arbitration is better where there is a genuine factual dispute someone needs to decide.
The two real limitations
Worth knowing before you invest effort, because they determine whether this route is open to you at all.
1. Availability varies by local BBB. Dispute resolution programmes are administered regionally and not every BBB office offers the same services. Contact the BBB serving the company's location to confirm what is actually available.
2. The business generally has to agree. Absent a pre-dispute arbitration clause that has been properly agreed, both parties must consent to arbitrate. A company that simply declines cannot be compelled into BBB arbitration.
A refusal is still informative. If a company declines free or low-cost mediation of a documented complaint, that refusal is itself worth recording. It tends to read poorly in a subsequent regulatory complaint, and it tells you the informal route is exhausted so you can stop spending time on it.
Note also that a defunct company cannot participate in anything. If your installer has liquidated, this route is closed and your attention belongs on the finance company and regulators instead. See our bankruptcy list.
When it fits a solar dispute and when it does not
Good fit: installation defects or incomplete work; a roof leak the installer is not addressing; a production shortfall where the calculation is disputed; a promised rebate or incentive never delivered; billing errors; unresponsive warranty service from an operating company; and disputes where the amount at stake does not justify litigation.
Poor fit: the installer has gone out of business; your real dispute is with the finance company rather than the installer; you are alleging fraud with substantial damages; you may want to join a class action; or the sums involved warrant an attorney and formal proceedings.
Watch the limitation period. Alternative dispute resolution does not generally stop the clock on your statute of limitations. If you are approaching a deadline for a legal claim, get advice about preserving it before committing months to a voluntary process.
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How to start
1. File the BBB complaint first if you have not. It is the usual entry point and frequently prompts a response on its own.
2. Ask specifically about dispute resolution. Contact the BBB serving the company's location and ask what mediation or arbitration is offered and what it costs in your case.
3. Confirm the cost and who bears it. Services are generally free for accredited businesses and around $150 for non-accredited ones depending on the amount in dispute.
4. Read the agreement to arbitrate carefully. Establish whether the outcome binds you, and on what terms.
5. Expect roughly 60 days. The BBB states it makes every effort to reach final resolution within that window unless law provides otherwise.
Preparing your case
These processes reward organisation more than argument. Bring documents, not grievances.
WHAT TO ASSEMBLE
The signed contract and every addendum · the original sales proposal and savings projection · the truth-in-lending disclosure if financed · all written communication in date order · production data from your monitoring portal alongside the guaranteed figures · utility bills from before and after installation · photographs of any defect, dated · and a one-page chronology.
Decide your number before you walk in. Know what outcome you would accept and what you would refuse. The most common mistake in mediation is arriving with a grievance instead of a proposal. A specific, justified figure, anchored to documented loss rather than to how the experience felt, is far more likely to produce a settlement.
If a production guarantee is central to your dispute, our guide to shortfall payout calculations covers how to check the company's arithmetic before you present it.
Share a few details and we will connect you with solar contract exit companies that may be able to help. Free, no obligation.
Frequently Asked Questions
Is BBB arbitration the same as the arbitration clause in my solar contract?
No. Your contract's clause typically requires disputes to go to a commercial provider such as AAA or JAMS, is generally mandatory, and often waives your right to sue or join a class action. BBB dispute resolution is a separate, voluntary, low-cost service that exists whether or not your contract mentions the BBB.
Does BBB arbitration cost anything?
Costs are low. BBB mediation and arbitration services are generally free for accredited businesses and around $150 for non-accredited businesses, depending on the size of the amount in dispute. Confirm the figure with the BBB serving the company's location, since programmes are administered regionally.
Can a solar company refuse BBB arbitration?
Generally yes. Unless a pre-dispute arbitration clause has been properly agreed, both parties must consent, and a company that declines cannot be compelled. A refusal is still worth recording, since declining free or low-cost mediation of a documented complaint tends to read poorly in a later regulatory complaint.
Is a BBB arbitration decision binding?
It can be. Under the BBB's conditionally binding rules, the business agrees the decision is legally binding once the consumer accepts it, subject to any limited right of review under state or federal law. Read the agreement to arbitrate before signing, and if significant sums are involved have an attorney review it first.
Should I use BBB mediation or arbitration for a solar dispute?
Mediation usually suits solar disputes better, because the typical grievance is a mismatch between what was promised and delivered where the useful outcome is a negotiated adjustment rather than a ruling. The BBB reports around 80% of its mediation cases end in a signed agreement. Arbitration suits genuine factual disputes needing a decision.
Related Reading
Disclaimer, Not Legal Advice: This article is informational only and is not legal advice. BBB dispute resolution programmes are administered regionally and availability, rules, and fees vary by local BBB office. Rules vary by state and by contract. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. Anyone considering action should consult a qualified consumer-rights attorney before agreeing to any binding process first. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.