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SunRun Deceptive Marketing Class Action Lawsuit

By Matt O’Donnell


SunRun Inc.SunRun Inc. has been hit with a class action lawsuit alleging the San-Francisco-based solar energy company deceived consumers into leasing SunRun solar panels by making misleading claims about their cost savings and about the increasing costs of electricity.

Plaintiff Shaw Reed alleges in the SunRun class action lawsuit that the company misled consumers into believing they could save money on “rising electricity costs” by using SunRun solar panels despite the fact that the energy prices at Southern California Edison began dipping or plateauing after 2008.

“The central premise of SunRun’s uniform marketing campaign is that increases in electricity prices will result in cost savings by installing the SunRun Solar system,” Reed says in the SunRun class action lawsuit. “But SunRun deceptively states with certainty something that is inherently unknowable.”

Reed further alleges in the SunRun class action lawsuit that the company was operating without a business license from 2007 to February 2012. The class action lawsuit is seeking a refund on customer fees from contracts entered into before 2012.

The SunRun class action lawsuit also claims company agents misleadingly told consumers they could terminate their SunRun contracts if they move.

The SunRun class action lawsuit is brought on behalf of all persons and entities in the state of California who entered into a solar power contract with SunRun prior to February 2012. It is also seeking to represent a subclass of all Class Members who were told by SunRun that they could terminate their contracts without further obligation if they moved.

The SunRun Class Action Lawsuit case is Shawn Reed v. SunRun Inc., Case No. BC498002, Superior Court of the State of California, County of Los Angeles.

UPDATE 6/29/13: A federal judge has refused to dismiss the SunRun Deceptive Marketing Class Action Lawsuit, allowing it to move forward.


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Updated June 29th, 2013


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  • Faraz Khan February 18, 2013

    I have been cheated by Sunrun Verengo Solar, they lied to me about savings and now I am stuck in a 20 year contract that just adds to my old pre solar panel energy costs and makes my monthly spending almost double.

    I am very upset and would appreciate legal advice to resolve this problem with Sunrun. I want out of this contract and I want them to remove my solar panel system and repair the roof on my NEW home without any cost.

    Thank you

    Faraz Khan

  • John Moore March 19, 2013

    I paid Sunrun $10,000 up front to pay for the installation of their panels, with the understanding that my only financial obligation was to pay the small monthly cost of electrical use to PG&E. This did happen for the first year, then I got a “round-up” bill for $1,000 from P.G.&E. Meanwhile, my wife informed me that she was getting a monthly bill from Sunrun, supposedly to pay for every kwh that the panels were producing. None of this was in the conversation before I signed the contract, otherwise I never would have signed. Now they tell me that I owe them over $5,000. For what? They won’t explain. They have not posted any of the checks I have sent them in the last four months and are threatening to turn off my electricity.
    Help! How do I join this lawsuit?
    John P. Moore

    • Horse December 26, 2013

      I worked for then in 2012,sun run and verengo teach their sales teams to be deceptive in order to close deal. if you got a a prepaid contract then you should not have to pay anymore money other than the 10 thousand you paid up front, it sounds like your rep might have sized the system to small.

  • Larissa April 17, 2013

    I have been with Sunrun’s customer for almost 2 years. I did want to cancelled the contract but come to find out I had 3 days to cancelled. The contract was signed Saturday. How is that given me enough time to write them a letter to cancelled when it won’t get there on time. It will be too late! Done deal stuck with them for 20 years. And also there isn’t any of my initial to sign or circle when to cancelled. I haven’t save any montly bill from my energy bill. Yes I feel misleading, taken advantage especially when someone who is under middle class people. My bill hit the roof, I couldn’t pay it. For some reason, I don’t know what happens and why it went so high. There is a class action going on in CA. They are working on it. We have to wait to get an OK from the Supreme Court. I cannot afford to have a lawyers. At this point I want to get out of the contract too. Just don’t know how. I set it Go Fund Me as well. It really hurts. When I pay little by little. They threaten to my info to Collection Agency

  • A. Turk June 19, 2013

    I was missled by my salesperson that I was leasing the solar panels for a fee that was less than my monthly electric bill to Edison. He was right about my monthly bill being less than my level pay charge to Edison, but he totally lied about the leasing. I am NOT paying SunRun for the leasing of their solar equipment that thy designed and placed on my roof. Rather I am being charge a per Kilowatt rate for the solar energy that is produced by their solar tiles and then I owe them an annual RECONCILIATION CHARGE of $450 for producing more solar energy than they had predicted. I have no problem with letting them use my roof to produce solar power for the area. But I was never told ab out the annual charge for overproducing solar energy from a system that they designed and placed on my roof. I want out of this contract now! Others have contracts with other solar companies in my area and they donot pay any annual charge whatsoever!

    A. Turk

  • Michael Holloway June 19, 2013

    We were misled and the contract was misrepresented by the SunRun salesperson Joseph Aredondo. He said we were leasing the equipment but we are actually purchasing KW’s from SunRun’s system. He said Edison would pay us for the production over what we used at .12 per KW. They only pay .04 for a KW that we pay sunrun .21 for. Mr. Aredondo never mentioned reconciliation which is paying Sunrun for KW we don’t even use. See below
    1. There is a 2.9% annual increase. While it is in the contract, the cost of production for SunRun doesn’t go up every year. I believe this is legal but certainly unjustified fee.

    2. Besides the annual increase there could be a clause that states Sunrun can increase the rate per kilowatt at their discretion.

    3. If you sell your home while in your 20 year term and the new homeowner does not agree to the lease, you are liable for the remainder balance of the lease… so this could mean 10’s of THOUSANDS of DOLLARS depending on the size of your system and the remaining term of your lease. The previous homeowner said that she was told that if they sell their home and the new homeowner did not want the system then they would remove it with no questions asked and no penalties…

    4. You must pay for all energy your system produces even if you do not use it. They will estimate how much energy the system will produce but if it produces more….guess who is paying? YOU and for 20 Years…. regardless of if you need/or use it… Southern California Edison may purchase back the energy but they pay you pennies on the least they do at this time….

    5. There are other not so consumer friendly clauses in the contract pertaining to maintenance, damage, etc.

    Buyer beware with SunRun. I blame myself for not reading the contract thoroughly or asking all of the right questions. This is a great deal for the pirates of Edison and SunRun and not so good for the working people that continue to be oppressed by big government and their money laundering energy companies.

  • Marshall Boyer October 1, 2013

    Sunrun/Verango mislead my wife and I about how much our system would cost us every year. The salesman told us that we would save $50-$100 per month if we installed the system. Pay Sunrun contract is .24KW on my 5200KWH/yr system for an average of $111 month bill. They told me to pay Edison $20-$30 a month to even out at the end of the year. Put those two numbers together minus my $225 average monthly bill without solar the previous year and my savings were supposed be around $75 month. And for no money down, it was a no brainer. After the first year, I had to pay Edison an additional $1100 along with the $20 I’d been paying them a month. My system overproduced 1300KWH so my average bill went up to appox. $140. Long story short, NO SAVINGS WERE RECORDED MY FIRST YEAR AND SUNRUN SAID THAT WAS EXPECTED. SLEAZY BUSINESS BY VERANGO/SUNRUN. Very misleading and deceptive. Email me if you are in the same circumstance. I am willing to take this to court.

    • Steve J January 12, 2014

      Marshall, and the rest of you, I too feel ripped off. I was lied to by the sales person who sold the panels, I wont go into detail but it was obvious for a few reasons, the one that made the light go on when I found out shortly after signing the contract the salesperson was fired. Reading contracts is sometimes hard to understand, so I asked the important questions, what is my out of pocket expense, what is my monthly bill to SUNRUN, and how much will I pay extra to the electric company, in my case PG&E. I was told about an extra $50 at most per month, so doing the math I figured I would break even yet be able to keep the house cool(it gets hot here)plus, I was locked in at a fixed rate. I thought ok, the monthly is about the same, I wont have to worry about PG&E increases except SUNRUNS 2.9% annually, this is good. The salesperson told me I could use as much electricity as I wanted before 11 PM and after 7 PM, so we did, cooled the house etc. etc. After the first year we owed PG&E $800 for a true up amount and about $300 to SUNRUN for overproduction?? What?? Why am I paying for overproduction, who came up with the expected amount?

    • John May 20, 2016

      I have just gotten my first bill. The only reply I got from the person I called was. Yes, you pay for the excess energy you produce.

  • Rubin V. March 19, 2014

    Yes. We have been deceived on how much we were going to save by Sunrun/Verengo Solar as well. The whole contract was misrepresented and we want our solar panels removed and get out of this contract. We are paying more for electricity now then without panels. In fact, we used to use our Jacuzzi before solar and we have not used it since we have had solar installed and our bills are still very high. We were informed that the Jacuzzi was covered in figuring out our amount of panels for savings. We even replaced all our lights throughout our house with LED light bulbs 7.5 watts and still we are paying more than we use to. All was misrepresented and incorrect facts were given. We would like information on any class action lawsuits out there.

  • Larissa June 6, 2014

    We all should start class action suit NOW! Start a website. Let get the word out. they need change the contract. What are we going to do about it. Let’s get together. They have FB, why not put the word out.

  • Mary June 8, 2014

    Why not take the wires out from the breaker. Or have the electrician to take it out for you.

  • Irene June 11, 2014

    I am with all ou you. I was also lied about contract with sunrun, promising me 50% or more of saving per month. They are a bunch of liers making money off our roofs and still charging us for what panels generate. If any off you have found legal help please notify me. Thank you.

  • Irene June 26, 2014

    I have contacted Elaine T. Buszewski, attorney at law, she is the one who is currently taking the class action lawsuit against sunrun. Maybe if all of us try contancting her, she can start one for our group. Her number is 213-330-7149 email I am still waiting for her reply, but I am hoping she will get back to me. I encourage all of you to contact her in hopes she can help all of us.

  • Robyn July 1, 2014

    I’m so glad that I found this site and I’m not the only one! We got or solar panals put on in December everything has been pretty much a lie, the amount they said it would be a month is over $50 more and when I called our rep was all ohhh it’s less when you get your taxes! Are you serious! Then me and my husband go to refi our house at Wells Fargo and they can’t even do a refi on our house while we have the solar on our house because it counts as a lein on our property until it gets paid off!! Are you serious the guy told us it was going on our property taxes! And when my husband had specifically asked that question he said no no it doesn’t affect anything like that at all it’s a program through the county that just adds onto your property taxes! I feel so cheated what a bunch of crooks!!

  • Victor Herbert September 17, 2014

    We have a complaint against them with the BBB.
    We signed a contract with Sun Run to put at least a solar system on our roof with the guarantee our electric bill to be lower. A 5,471 kWhs for $100. Mt.
    The system that they put on our roof has not meet the 5,471 kWhs on the contract and so they said that the system needs to be on the roof for one full year to get the whole picture. After one year later they are now saying they need two years and any kWhs the system is lacking they will pay us back .22 cent per watt which adds up to about $55. total. Meanwhile my total electric bill between Verengo and Edison is approximately $40. more per month times 12 months. Sun Run designed the system so that I would have a lower electricity bill each month like there radio ad states. I told them to add the 8 panels and change the 3,000 watt inverter to 5,000 watt inverter to bring the system to the 5,471 kWhs the contract states and they said that will take another contract.
    We are asking them;
    Put the system that I agree a 5,471 kWhs system. This system was sized by Sun Run to make my electric bill be lower the plans you drawn up and approved by Sun Run and I have no knowledge in how many panels I need on the roof or if the plans that were approved had enough panels. Sun Run used a 3,000 watt inverter 15 – 260watts panels and if you do the math 5,471 kWhs divided by 260 watts = 21 so Sun Run owes me 8 more panels and a 5,000 watt inverter for my system I signed up for and Sun Run claims that my electricity bill would be lower with their system on my roof.

  • Tom October 23, 2014

    sunrun rep lied too us as well. No savings, no maintenance even if your wiring from their install fails and melts wiring in the walls (which happened to us). No savings after 3 years (actually higher cost) and they are refusing to do any more cost analysis for us. No responses to problems. Every customer support call was responded to by a smug smartass who just wanted to hear only good stuff or they got snooty.

    I hate this bunch of crooks and would be very happy to join a class action. The 20+ years I have spent in the US Navy has given me less grief than 3 years with sun run away with your money.

  • Jenny January 15, 2015

    I’ve been a customer of SunRun for 4 years know and just like all of you, I wasn’t told about the Reconciliation charge until it showed up in my True-up bill. Since I’m stuck with them for another 16 years I just let it go until a few weeks ago. I happened to surf the net and went to Sun Run’s website. Now they have it advertised that Sun Run has FREE overproduction charge. Of course I called customer service to see if this applies to me and her response was “Sorry but only to new accounts”!! I told customer service how unfair this new rule to old customer and all she kept saying was “I agree with you and I’m really sorry”! I think that we all should ban together to make Sun Run apply this new rule to old customers moving forward.

    • S.T. in San Jose, CA May 31, 2015

      Thanks Jenny for that new information. Yes, it should go retroactive to prior customers. I hope they add that to this class action law suit. Also, I got an email from the attys in this filing above, Ive been automatically added to the class action for misrepresentation because I had my system installed in 2011. My rep told me that either a new buyer would assume the remaining years, or SIMPLY Sunrun would remove the system. I never heard that removing the system would mean that an entire buyout, around $23,000 would be on my head to pay. Sheesh! I saw that Solar City offers a third option, which is to move the panels to a new home, staying with that customer.. for a fee of course. I didnt find if Sunrun offered a move to a new home option.

  • Gater Eby July 1, 2015

    Just another story about being irritated and screwed over by Verengo/SunRun. My electric bills are routinely DOUBLE my original rates…. whether or not I am using the power. I pay $230 a month and it goes up each year. Verengo used a few oddball high months to determine the size of the system they installed in 2012… the year before my electric ran about $120 a month.I had my house for sale and lost two sales due to the lease. The best SunRun would offer me is to pre-pay the lease for my buyers, costing me an additional 25k+. I even tried to get the panels moved to my new house, and they could never tell me the price. They just didnt want to do it. I would join a class action suit in a flash. I was told rates were doubling soon, I was NOT told about the annual reconciliation fee (About $450 a year extra) and I wasnt told about the 3.9% raise each year. $230 a month isnt enough???? I want out.

  • Jeremy Leder July 15, 2015

    I’m in the same boat as everyone else here. Lied to and deceived by the con artist salesman. Not saving any money with SunRun. Would love to get out of that contract and get these panels off my roof.

  • Michael holloway March 10, 2016

    If anyone figures a way to stick it to Sunrun let me know. Whether its turning the panels off one day a week or a way to get out of the contract all together.

  • Vas April 20, 2016

    Irene, I know your comment has been almost two years but I was wondering if the attorney was able to get back to you? We want out of this contract. Thanks

  • Rubin V. May 18, 2016

    Yes, have you heard anything from an attorney?

  • Mandy Delaney June 13, 2016

    We should. All get together and start a class action even if it means finding a different attorney if this one is to busy or unwilling sunrun/verengo is owned by Edison under all kinds of subsidiaries which is more then just deceptive business practices it’s also ussery in the sense that they’re technically double-billing their billing us for having the solar panels that they get the power from. their billing us for using the power that they get off the solar panels that they have on our homes. so they’re using us to get the power and then making us pay to use the power that they’re getting from the use of our own homes ,power that they get from panels that they from the panels we pay for. So basically we’re paying to have the panels but they get the power and then we have to pay a second time to get the power that came off the panels that we paid for their double charging us and that’s more than just deceptive

  • Dino Balgemino September 11, 2016

    all the while i thought that “over-production” of these panels equate to banked electricity credited to our account…at least that was how it was explained to me by the representative of Verengo.

    he explained that “net-metering” meant any overproduction basically meant reversing the charge of the electric company, which could mean lower charges from them. i actually don’t see any summary in the billings of Sunrun…how do you know if total committed production of the panels are achieved at all?


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