NYC DCWP Announces Major Action Against Solar Installation Firm

ON January 28, 2026, the New York City Department of Consumer and Worker Protection (DCWP) announced the filing of a lawusit against a solar panel installation company that allegedly defrauded New Yorkers “seeking a source of affordable renewable energy for their homes.”

To address a  purported scheme that allegedly “drove up utility costs for consumers across New York City,” DCWP is seeking at least $1,752,225 in civil penalties and approximately $18 million in restitution; to shut down the company; and to hold president and owner/operator personally liable.

According to the NYC DCWP, the company “presents itself as a full-service solar energy company that installs the panels and assists consumers in obtaining tax incentives.” Instead, as alleged by teh DCWP, the comany “engages in deceptive and illegal conduct throughout the entire lifecycle of its consumer transactions—including falsely advertising ‘immediate savings’ to consumers, signing consumers up for large loans without disclosing terms or obtaining consent, baking in an undisclosed ‘dealer fee,’ and operating without a license.”

According to the DCWP, the agency’s investigation “revealed that, in just the last five years, [the company] illegally promoted over $18 million in loans to at least 370 New York City consumers.   In dozens of cases, consumers first discovered how enormous their loans were only after [the company] had already received full payment of the loan through direct lender disbursements.”

The DCWP alleges that “of the $18 million in loans taken out in consumers’ names, approximately $3 million of this was comprised of hidden undisclosed ‘dealer fees’ the consumers never realized they were paying, and should not have been responsible for.”

[The company] “exploited New Yorkers looking to lower their energy costs and protect our environment,” saidDCWP Commissioner Sam Levine. “Our lawsuit aims to shut down this scheme, recover $20 million for consumers and taxpayers, and send a clear message that preying on New Yorkers will come with serious consequences.”

Details of the Complaint

As alleged in the complaint, which was filed in late January 2026, the company “exploits the complexity of solar panel financing, installation, and tax rebate systems.  Its business model depends on tricking consumers into signing up for loans to fund the installation project without their knowledge, or steering them to the company’s preferred lenders (a practice NYC law explicitly prohibits).  The business further bakes in an undisclosed “dealer fee,” which is nothing more than a kickback for preferred lenders.  The financing companies then send the loan proceeds directly to Radiant Solar and its president, which NYC law also prohibits.”

The company purportedly “provides shoddy, incomplete, or nonexistent solar panel installation that has left consumers with leaky roofs, structural instability, and other dangers in their homes.”  “As soon as it receives payment, [the company] ignores consumers’ complaints, abandons its responsibilities to secure the promised solar tax incentives, and refuses to fix its defective installations,” the NYC DCWP alleges.  As a result, “many impacted consumers now face unexpectedly high loan payments and ongoing high utility bills, without the offsetting solar energy production and tax benefits they expected,” the DCWP furhter alleges.

According to the DCWP, the agency received the first of dozens of complaints about the company in December 2021.  The investigation began in August 2024.

Importantly, this is New York City’s first legal action against an allegedly fraudulent solar panel installation company, and the most restitution DCWP is seeking on behalf of consumers in any home improvement contractor case.

In DCWP’s last major HIC case, DCWP secured $250,000 for consumers allegedly defrauded by a nationwide company that sells and installs flooring.  An FTC CID attorney can assist if your company is being investigated by a local, state or federal regulatory agency regading solar panel installation practices.

NYC Solar Panel Installation Company Regulation

In New York City, solar panel installation companies are licensed and regulated by DCWP as HICs.  HICs are one of the industries about which DCWP receives the most consumer complaints.

Solar panel installation companies in particular have become notorious for their abusive practices, taking advantage of consumers who want to embrace a shift to renewable energy and avail themselves of related tax incentives, according to the DCWP.

Richard B. Newman is an advertising practices attorney at Hinch Newman LLP. 

Informational purposes only. Not legal advice. This article is not intended to and should not be construed as legal advice. May be considered attorney advertising.

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