Pink Energy (Power Home Solar) Bankruptcy: Homeowner Guide

The Pink Energy collapse is, in many ways, the most dramatic cautionary tale in the residential solar industry. Thousands of homeowners were reportedly left with underperforming systems, unfulfilled warranties, and ongoing loan payments — while the company faced legal action from federal and state regulators. This guide covers what happened, where things stand now, and what you can do.

What Happened to Pink Energy

Pink Energy, previously operating under the name Power Home Solar, was one of the largest residential solar installers in the southeastern United States. Based in Mooresville, North Carolina, the company reportedly installed solar systems for tens of thousands of homeowners across multiple states. Here's the reported timeline of events:

The collapse of Pink Energy serves as a stark reminder of the risks in the residential solar industry. In our assessment, the company's downfall was precipitated by a combination of alleged deceptive practices, rapid overexpansion, and a product quality crisis — though the company denied many of these allegations.

The FTC Lawsuit

According to public records, the Federal Trade Commission filed a lawsuit against Pink Energy (and its founder) in October 2022, alleging widespread deceptive practices. The FTC complaint reportedly alleged:

• Misleading savings claims. According to the FTC filing, Pink Energy representatives reportedly told consumers they would save significant amounts on their energy bills — sometimes claiming systems would "eliminate" their electric bills entirely — when the company allegedly knew these claims were not substantiated.
• False performance representations. The complaint reportedly alleged that the company made exaggerated claims about system energy production that were not supported by the actual equipment specifications.
• Deceptive financing practices. According to the filing, some consumers were reportedly misled about the terms of their solar financing agreements.
• Failure to honor cancellation requests. The FTC reportedly alleged that the company sometimes made it difficult for consumers to exercise their right to cancel within the cooling-off period.

State Attorney General Actions

In addition to the FTC's federal action, multiple state attorneys general reportedly took action against Pink Energy. According to reports, the following states were among those that filed complaints or took enforcement action:

• North Carolina — The company's home state AG reportedly filed a consumer protection action
• South Carolina — The AG reportedly sued alleging violations of the state's consumer protection laws
• Ohio — The AG reportedly took action against the company
• Virginia — Reports indicate the AG investigated consumer complaints
• Other states — Additional states reportedly investigated or took action against the company

These state-level actions may result in additional remedies for consumers. If you're a Pink Energy customer in any of these states, contact your state attorney general's office for information about available relief. How to file FTC and state complaints →

Key Allegations Against Pink Energy

Based on the FTC complaint, state AG filings, and extensive consumer reports, the allegations against Pink Energy generally fell into several categories:

Energy Savings Misrepresentation

According to numerous consumer complaints and the FTC filing, Pink Energy sales representatives reportedly told homeowners their solar systems would produce far more energy than they actually did. Consumers reported being told they would "eliminate" their electric bills, only to find their bills were reduced by a much smaller amount — or in some cases, not reduced at all.

Equipment Quality Issues

Many Pink Energy customers reportedly experienced problems with their solar equipment, particularly after Generac reportedly ended its partnership with the company. According to consumer reports, common issues included:

• Inverter failures and malfunctions
• Systems that stopped producing energy entirely
• Monitoring systems that did not accurately reflect production
• Roof leaks and installation defects

Unresponsive Customer Service

According to consumer complaints, many Pink Energy customers reported extreme difficulty reaching the company for service, warranty claims, and cancellation requests — especially in the months leading up to the company's closure.

Financing Concerns

Some consumers reportedly alleged that they were not fully informed about the terms of their solar financing, including monthly payment amounts, interest rates, and the total cost over the life of the loan.

Impact on Warranties and Service

With Pink Energy no longer operating, its own warranty and service obligations are effectively unfulfilled. Here's what this means practically:

Pink Energy's Installation Warranty

Pink Energy's workmanship and installation warranty is, in practical terms, unenforceable since the company has ceased operations. If you have installation-related issues (roof leaks, wiring problems, mounting failures), you'll generally need to hire a local solar installer to address them at your own expense — though you may be able to recover these costs through legal proceedings.

Equipment Manufacturer Warranties

The silver lining is that warranties from the equipment manufacturers are typically separate from the installer's warranty:

• Panel manufacturers (such as Silfab, Hanwha Q Cells, or others used by Pink Energy) generally stand behind their own product warranties.
• Generac — Many Pink Energy systems reportedly used Generac inverters and batteries. Generac's warranty obligations are separate from Pink Energy's. Contact Generac directly for warranty support.
• Other inverter manufacturers — If your system uses a non-Generac inverter, contact the manufacturer directly.

Your Solar Loan Obligations

This is one of the most painful aspects of the Pink Energy situation for many homeowners: they may be stuck making payments on a solar loan for a system that doesn't perform as promised, from a company that no longer exists to service it. However, there may be avenues for relief:

Holder-in-Due-Course Defenses

Under the FTC's Holder Rule, if there is a specific notice in your financing agreement, you may be able to raise defenses against the financing company for claims you would have had against Pink Energy. This is a complex legal area — consult a qualified attorney.

Loan Dispute Options

• File a complaint with the lender. Detail the problems with your system and how they relate to Pink Energy's representations.
• Contact the CFPB. The Consumer Financial Protection Bureau handles complaints about consumer lending. File at consumerfinance.gov.
• Explore state lending laws. Your state may have specific protections for consumers in situations where the goods or services financed were misrepresented.
• Consider legal action. An attorney can evaluate whether you have viable claims against the financing company based on the circumstances of your loan origination.

Common System Problems Reported

Based on our research into consumer complaints, Pink Energy customers have reported a range of system issues. If you're experiencing any of these, document them thoroughly:

Your Options as a Pink Energy Customer

Option 1: Get Your System Working

If your system has issues, the most immediate priority may be getting it repaired and producing energy. Contact equipment manufacturers for warranty support, and hire a local licensed solar installer for repairs that aren't covered by manufacturer warranties.

Option 2: Pursue Legal Claims

Many Pink Energy customers have pursued legal action. Options include:

• Joining or monitoring the FTC case for potential consumer redress
• Contacting your state AG to participate in any state-level enforcement action or settlement
• Filing individual claims against the company through the bankruptcy case
• Pursuing claims against the financing company if there are grounds under the Holder Rule or state law
• Consulting with a class action attorney to explore group litigation options

Find a solar panel lawyer →

Option 3: Explore Contract Exit

If you have an ongoing solar loan and a non-functioning or underperforming system, exiting the arrangement may be possible through legal channels. This is complex and typically requires professional assistance.

• How to get out of a solar panel contract →
• Best solar cancellation companies →

Option 4: File Complaints Everywhere

Even if you've already filed complaints, filing with additional agencies creates a stronger paper trail and increases pressure for resolution. File with:

• Your state attorney general
• The FTC (ReportFraud.ftc.gov)
• The CFPB (consumerfinance.gov)
• Your state contractor licensing board
• The Better Business Bureau

Complete guide to filing FTC solar complaints →

Filing Complaints

If you haven't already filed complaints about your Pink Energy experience, now is still a good time. Consumer complaints play an important role in enforcement actions and potential settlements. Here's where to file:

Legal Options and Resources

Given the scale of the Pink Energy situation, there are several legal avenues that may be available to affected homeowners. Based on our research:

FTC Enforcement and Consumer Redress

If the FTC prevails in its case, there may be a consumer redress fund established to compensate affected homeowners. The amount and timing would depend on the outcome of the legal proceedings and any settlements reached.

State AG Settlements

State attorney general actions sometimes result in settlements that include consumer restitution. Monitor your state AG's website for updates if your state has taken action against Pink Energy.

Private Legal Action

Many attorneys across the affected states have been handling Pink Energy cases. Options include:

• Individual lawsuits against the company, its executives, and potentially the financing companies
• Class action litigation on behalf of groups of affected consumers
• Arbitration if your contract includes an arbitration clause

Frequently Asked Questions