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Solar Servicer Investigations: What SunStrong and Spruce Power Mean for California Homeowners

Solar Servicer Investigations: What SunStrong and Spruce Power Mean for California Homeowners

If your original solar installer went bankrupt and your loan or lease got handed off to a company you never signed up with, you're not alone — and now regulators are paying attention. Two solar servicing companies, SunStrong Management and Spruce Power, are currently facing state investigations tied to complaints from homeowners about billing, warranty, and customer service failures. If you're still trying to understand why your SunPower contract ended up with SunStrong in the first place, this is the enforcement backdrop to that story.


What Is SunStrong Management and Why Is It Under Investigation?


SunStrong Management is the entity that now manages solar loans, leases, and power purchase agreements that customers originally signed with Sunnova and SunPower before both companies filed for bankruptcy — the same transfer we break down in our SunPower cancellation guide. Connecticut Attorney General William Tong opened a formal investigation into SunStrong on March 17, 2026, after the state received roughly 65 consumer complaints. LegalClarityLegalClarity

Homeowners say SunStrong has failed to honor warranties, doesn't respond to complaints, and charges a $10 monthly fee just to see their own system's production data. On February 27, 2026, Tong's office sent SunStrong a civil investigative demand requesting comprehensive records on how customer systems were transferred, contract terms, quality-control mechanisms, and complaint history. Connecticut DMVConnecticut DMV


Regulators aren't the only ones asking questions. The law firm Chimicles Schwartz Kriner & Donaldson-Smith is separately investigating potential class action claims against SunStrong over failure to honor warranties and unauthorized fees. One BBB complainant described an audit of their billing portal that allegedly showed SunStrong compressing a standard 30-day billing cycle into 18- and 20-day cycles to pull payments forward — the kind of documented discrepancy we walk homeowners through building in our guide to filing a solar complaint with the CSLB, CPUC, AG, and DFPI. ChimiclesBetter Business Bureau


Why Did Spruce Power Settle With Connecticut for $100,000?


Spruce Power's case, triggered by complaints about billing, customer service, and warranty issues after Spruce acquired a portfolio of solar contracts from NRG Energy, already resolved. The $100,000 settlement, filed in Hartford Superior Court on March 12, 2026, also requires Spruce to refund improper charges and reform its billing practices. Connecticut DMVConnecticut DMV


Is This Just a Connecticut Problem?


No. Solar Insure tracks close to two dozen major solar companies that went bankrupt as of January 2026, many with multi-state operations, driven by higher interest rates, financing cash-flow problems, and reduced net metering rates in states like California. For the fuller list, see our roundup of California's solar company bankruptcies and how each affects existing contracts. Yahoo Finance


California is arguably ground zero. SunPower's August 2024 bankruptcy affected nearly 600,000 residential customers, and Sunnova's June 2025 filing added hundreds of thousands more — many bought in during the NEM 2.0 era and are now stuck with a servicer they never chose. If NEM 3.0 misrepresentation is already part of your story, a bankrupt servicer just adds another layer to the case. LegalClarity


What Should You Do If Your Loan Was Transferred to SunStrong or Spruce Power?


Pull your original contract and compare it against what you're currently being billed — the same documentation standard behind the FTC Holder Rule, which means a bankrupt or sold installer doesn't give the new loan holder a clean slate on the original salesperson's promises.


Filing with your state AG and the BBB creates a paper trail even without an active investigation in California yet — and it's a required first step outlined in our complaint-filing guide. A servicer taking over a bankrupt company's contracts doesn't inherit unlimited authority to alter billing or deny warranties without your consent.


You don't have to fight SunStrong or Spruce Power alone. These aren't isolated billing glitches — they're the same pattern regulators in multiple states are now building cases around, and every documented complaint strengthens the position of homeowners still stuck in these contracts. If your solar loan or lease was transferred without your consent, if warranties are being denied, or if you're being billed for a system that isn't producing, get a free contract review from our team today. We've helped over 500 California homeowners cancel or renegotiate contracts with Sunrun, SunPower, Sunnova, and Vivint Solar — no hidden fees, every case attorney-reviewed.


Call (213) 579-5156 or start your review online now.

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