Exclusive: Alleged victim speaks out about “nightmare” Portage solar panel, finance scheme
Sat, August 15, 2026 at 12:49 PM
FILE PHOTO JUNE 03, 2025: In an aerial view, solar panels are seen on the roof of a home. (Photo by Justin Sullivan/Getty Images)
PORTAGE, Mich. —Michigan Attorney General Dana Nessel has sued a bankrupt Portage solar company, its owner and several finance companies
The lawsuit alleges a deceptive sales and lending scheme that targeted roughly at least 1,600 Michigan homeowners, leaving them with broken or unfinished solar systems and debt
Sean Hephner, a Michigan resident who said he is among the customers who filed complaints with the attorney general, said his experience matches the allegations in the lawsuit
“Oh it’s been a nightmare since day one,” Hephner said
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The lawsuit, filed in the U.S. District Court for the Western District of Michigan in July, names Climax Solar, owner Joshua Thompson, and the lenders that financed the company’s residential installations
It alleges federal violations under the Consumer Financial Protection Act, state violations under the Michigan Consumer Protection Act and the Michigan Home Solicitation Sales Act, along with claims of common-law fraud and unjust “enrichment.”
Nessel’s office says the scheme involved an estimated $81 million in financed transactions
According to the complaint, Climax sales representatives promised homeowners lower utility bills, use of federal tax credits, and quick installation
However, the lawsuit describes what it calls a “pitch, sign, fund, fail, and collect” model
Nessel says consumers were rushed through electronic contracts and financing paperwork in a single visit, and lenders released funds based on paperwork and project milestones before systems were actually finished, connected to the grid or approved by utility companies to operate
Many customers were left with systems that were unfinished, underperforming, unsafe, or never turned on, the lawsuit alleges
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Some reported property damage, missing permits, failed inspections and even rising monthly payments, all while remaining on the hook for both their regular utility bills and their solar panel loans
The complaint also alleges Climax and its lenders hid more than $22 million in financing costs inside the price of the systems without disclosing them as finance charges
Those dealer and platform fees averaged more than 27% of the amount financed, according to the lawsuit, inflating loan balances and monthly payments while making advertised interest rates appear lower than the true cost of borrowing
“Climax Solar and its financial partners targeted vulnerable homeowners who just wanted to lower their utility bills and left them with broken promises and massive amounts of debt,” Nessel said in a statement announcing the lawsuit
The AG’s office told News Channel 3 in an email that it has received complaints from numerous Michigan communities, including:
Ada, Battle Creek, Belding, Brooklyn, Clarksville, Clinton, Constantine, Detroit, Flint, Galesburg, Harrison, Hudson, Jackson, Kalamazoo, Laingsburg, Lansing, Midland, Montrose, Newaygo, Onondaga, Stanton, Taylor, Vandalia, and Vicksburg
The AG’s office told News Channel 3 in an email it has received complaints from numerous Michigan communities. (WWMT)
Court records show Climax filed for Chapter 7 bankruptcy on April 24, 2024, and is no longer operating
Sean Hephner of Hudson told News Channel 3 he’s been fighting Climax Solar and its lenders for several years
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“We are, as a matter of fact, part of that lawsuit. But I guess the lawsuit is only at the beginning stages right now, because it just filed it in the courts,” he said
Hephner said Climax Solar told its financing partner there had been 27 panels installed on his roof, but he says only 23 ever arrived, and are sitting in his yard
“They lied about the contract to the finance company,” Hephner said
Hephner also said a lien was placed on his home without his knowledge, and that after his contract was sold to a new creditor, a second lien followed
He said his utility bills still run $100 to $150 a month during summer and $400 to $600 in winter
The case remains in the early stages and no court date has been set
Nessel’s office said anyone who believes they were a victim of Climax Solar can still file a complaint with the Michigan attorney general
