MENDON, Mass. — A Mendon family was left with an inoperable solar panel system for five months after their solar installer filed for bankruptcy just days before the project was scheduled to be completed.
Peter Magazzu signed a 25-year power purchase agreement worth more than $206,000, but the project stalled when installer Freedom Forever filed for bankruptcy in April.
“It’s frustrating,” Magazzu told Boston 25 when we visited him in late July. “We just want to get the panels turned on.”
Attorney Jennifer Bosco, who specializes in consumer energy issues, says higher interest rates and changing market conditions have created challenges for solar installers nationwide. Freedom Forever is among several solar installation companies that have filed for bankruptcy in recent years.
Bosco says federal protections can give consumers recourse against creditors in certain transactions when a seller fails to deliver as promised. The Federal Trade Commission’s Holder Rule preserves certain consumer claims and defenses against holders of covered credit contracts. Bosco says the rule applies to Magazzu’s situation.
“If a company installs your solar panels, they are not hooked up to the grid and then the company goes bankrupt, the lender who financed the panels actually bears legal responsibility,” Bosco said.
Under the terms of Magazzu’s agreement with solar finance company EnFin, EnFin would own the solar panels and cover the installation costs. In return, Magazzu would pay EnFin monthly for 25 years for the electricity the system generates.
Magazzu spent months making phone calls and sending emails to get help completing his solar project. He even retained an attorney.
After Boston 25 reached out to EnFin, Magazzu says the company stepped in and completed the project. Magazzu also says EnFin gave him a $1,500 credit after he asked for it.
In an email to Boston 25, an EnFin spokesperson said: “The Freedom Forever bankruptcy has created complications for customers, and we’re working hard to support these folks.”
The law firm representing Freedom Forever in bankruptcy court did not respond to requests for comment. Boston 25 couldn’t reach Freedom Forever by phone or email.
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