New York has filed a lawsuit alleging a $275 million solar fraud scheme involving misleading sales tactics and hidden financing terms. The case raises concerns about transparency in residential solar and how trust impacts long-term industry growth.
New York Alleges $275 Million Solar Fraud Targeting Homeowners
On March 17, 2026, Attorney General Letitia James sued Attyx (formerly SUNco), its two CEOs, and its lending partners Solar Mosaic and WebBank. Attyx operates nationwide, offering home solar installations and other home improvement services.
The case is ongoing, but the allegations raise serious concerns about how solar systems were marketed and financed.
How the Scheme Allegedly Worked
According to the New York Attorney General’s office, Attyx used misleading sales tactics to promote solar installations, roof replacements, and home upgrades as “free” or heavily subsidized through government incentives.
In many cases, those incentives did not apply as described. Some customers did not qualify for the tax credits used in the sales pitch. Others were not informed how those credits actually worked.
Customers were then encouraged to sign contracts, often electronically, without clear disclosure that they were entering into long-term financing agreements. Some believed they were signing preliminary documents such as applications or credit checks, when in fact they were agreeing to full purchase and loan contracts.
Hidden Costs and Loan Structures
The lawsuit also alleges that costs were inflated and structured in a way that obscured the true price. Fees were embedded into the total system cost, making it difficult for customers to understand the effective interest rate or total repayment amount.
Many of the affected customers were low-income households, seniors on fixed incomes, or homeowners who did not file taxes and could not benefit from the credits being presented as savings.
The state estimates the total value of the scheme at nearly $275 million in New York alone.
Regulatory Concerns
The case also involves allegations of regulatory evasion. After being ordered by the New York Public Service Commission to stop marketing solar systems in 2025, Attyx allegedly continued operations under a different name, LGCY Power.
The state is seeking to cancel affected contracts, return funds to homeowners, and prevent similar practices going forward.
What This Means for the Industry
This case is still being litigated, and no final determination has been made. But the allegations highlight a broader issue in the residential solar market.
Trust is a key part of adoption. When financing structures are unclear or sales practices are misleading, it can undermine confidence in the broader industry.
Solar is often positioned as a way to reduce energy costs and improve financial stability for households. If those outcomes are not delivered transparently, the long-term impact extends beyond individual projects.
The outcome of this case will likely influence how residential solar sales and financing are scrutinized going forward.
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