SunStrong Dropped Production Guarantees: Do You Still Have to Pay? [Guide]

Disclaimer This article is for informational, public reporting, and consumer education purposes only and does not constitute formal legal advice. If you are facing credit threats, collections, or contractual disputes, consult an attorney licensed in your jurisdiction.

Overview

Across Reddit, Solar Power World comment sections, and Better Business Bureau complaint boards, thousands of former Sunnova Energy and SunPower customers are reporting the exact same shocking customer service exchange.

*"My solar panels have been dark for five months. When I called SunStrong Management to demand my contractual lost-production guarantee refund, the representative told me: 'The bankruptcy court let us drop all lost-production compensation and workmanship warranties. But you still have to pay your monthly bill in full, or we will report you to the credit bureaus.'"*

           THE SUNSTRONG PERFORMANCE GUARANTEE STANDOFF
           
  [Sunnova Ch. 11 Bankruptcy]  ──>  [Asset Sale to Solaris / GoodFinch]
     (June 2025 Filing)                  (Servicing Moved to SunStrong)
             │                                         │
             ▼                                         ▼
  [SunStrong Drops Production True-Up] ──> ["You Must Keep Paying Full Rent"]
    (Customer Allegation / Dispute)         (Threatens Negative Credit Reporting)
             │                                         │
             ▼                                         ▼
  [Connecticut AG Investigation] ──────>  [Total Failure of Consideration]
    (Feb 27, 2026 Record Demand)             (Executory Contract Defense)

Is this legal? Can a successor servicer strip away the central benefit of your 25-year solar agreement—guaranteed electricity production—while simultaneously demanding that you continue paying $150 to $400 per month under threat of credit destruction?

The public record reveals that nothing has been legally proven or ruled in SunStrong's favor on this issue. In fact, state regulators and federal consumer protection statutes provide powerful tools for homeowners to push back against unilateral contract modifications, unauthorized monthly fees, and coercive debt collection. (See our analysis of SunStrong Management and SunPower bankruptcy servicing).

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Key Takeaways

• Customer Allegations vs. Legal Rulings Customers allege that SunStrong representatives orally claim the bankruptcy court released them from performance guarantees. However, no court finding or regulatory ruling has established that SunStrong can collect full lease payments while refusing maintenance. (See our guide on solar production guarantees denied due to shade or weather and SunPower bankruptcy servicing rights).
• The $10 Monthly "Data Fee" Consumers report that SunStrong has unilaterally imposed a new $10/month fee for production monitoring data that was never agreed to in their original Sunnova or SunPower contracts.
• Active State AG Investigation On February 27, 2026, the Connecticut Attorney General issued a formal civil investigative demand to SunStrong Management following roughly 65 consumer complaints regarding dropped warranties, unresponsiveness, and the $10 fee.
• The Doctrine of Mutual Consideration Under standard contract law governing executory leases and PPAs, a lessor cannot disclaim its affirmative duty to deliver working equipment while demanding full contractual consideration from the lessee.

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What Actually Happened in the Sunnova Bankruptcy?

To understand your rights, you must understand the corporate paper trail:

1. Sunnova’s June 2025 Chapter 11 On June 8, 2025, Sunnova Energy International filed Chapter 11 in the Southern District of Texas (Case No. 25-90160) with over $10.6 billion in debt.
2. The Asset Sale to GoodFinch / Solaris Assets In July and September 2025, the bankruptcy court approved the sale of Sunnova’s residential lease and PPA portfolios to affiliates of GoodFinch Management operating through Solaris Assets LLC.
3. Servicing Reassigned to SunStrong Management Servicing of these residential accounts was transitioned to SunStrong Management, which also took over legacy portfolios from SunPower.

While bankruptcy sale orders routinely shield the purchaser of corporate assets from unsecured pre-petition liabilities (such as past money debts owed to suppliers), an executory lease contract cannot be cherry-picked to keep the cash flow while deleting the lessor’s ongoing operational obligations.

If SunStrong acquired the contract, it stands in the shoes of the lessor. If it repudiates the performance guarantee, it has fundamentally breached the agreement.

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The Public Enforcement Record: What Regulators Are Doing

Homeowners are not fighting this battle in isolation. Two major public legal actions are actively examining SunStrong's practices.

1. Connecticut Attorney General Civil Investigative Demand

On February 27, 2026, Connecticut Attorney General William Tong issued a formal records demand to SunStrong Management. The state’s consumer protection investigation focuses on approximately 65 formal complaints alleging:

• Refusal to honor inherited production guarantees and service warranties.
• Widespread unresponsiveness leaving systems offline for six months or longer.
• The unauthorized imposition of a $10 monthly fee to access production monitoring data that was previously included in the contract.

SunStrong publicly responded that it intends to cooperate with the Attorney General and "clarify our role," but the investigation remains open and active.

2. Dalton v. SunStrong Management (Federal FDCPA Litigation)

In federal court in California, consumers filed Dalton v. SunStrong Management (S.D. Cal., Case No. 3:25-cv-01960) under the Fair Debt Collection Practices Act (15 U.S.C. § 1692). The lawsuit challenges deceptive collection conduct, unlawful fee assessments, and debt threats against homeowners disputing non-functional systems.

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The Legal Reality: Can They Make You Pay for a Dead System?

When SunStrong representatives tell you that "you still have to pay or we will ruin your credit," they are relying on consumer fear rather than sound legal authority.

1. Total Failure of Consideration

A solar lease or Power Purchase Agreement is a bilateral contract. You agreed to pay a monthly amount in exchange for a functioning solar electric generator and guaranteed kilowatt-hours. When the lessor stops maintaining the hardware and refuses to credit you for lost production, the contract suffers from a total failure of consideration. Under basic contract law across all 50 states, one party's total material breach excuses the non-breaching party from continuing performance.

2. The $10 Monthly Fee Is an Unauthorized Charge

If your original Sunnova or SunPower agreement did not contain a provision allowing the servicer to charge an extra $10 monthly fee to view your system’s power output, imposing that charge mid-lease is a unilateral contract modification and an actionable violation of state Unfair and Deceptive Acts and Practices (UDAP) laws.

3. Credit Reporting Protections Under the FCRA

Under the Fair Credit Reporting Act (15 U.S.C. § 1681s-2), when a consumer formally disputes an account in writing based on seller breach and failure of consideration, a furnisher cannot report the account as an undisputed default. Falsely reporting an illegitimate debt exposes the collector to statutory civil penalties.

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4-Step Action Plan for SunStrong / Sunnova Customers

If SunStrong has refused your performance guarantee or demanded payment on a dark system, take these immediate protective measures.

  STEP 1: Document Downtime & Inverter Error Logs
    └── Download utility net-metering bills and capture photos of inverter fault codes.
         │
  STEP 2: Pull Your Original Executed Solar Agreement
    └── Locate the original "Performance Guarantee" and "True-Up Reconciliation" section.
         │
  STEP 3: Send a Certified Notice of Material Breach & Billing Dispute
    └── Demand lost-production credits and revoke consent for unauthorized fees.
         │
  STEP 4: File State AG and CFPB Complaints
    └── Reference Connecticut AG CID and SD Cal FDCPA docket in your regulatory filing.

Step 1: Calculate Your Lost Production Damages

Pull your electric utility statements from the months your system has been offline:

• Calculate the total kilowatt-hours promised under your Sunnova production schedule.
• Determine your out-of-pocket costs for drawing 100% of your power from the grid (your "dual bills").
• Take photographs of your inverter showing zero production or red fault lights.

Step 2: Review Your Contract's True-Up Clause

Locate your original contract. Standard Sunnova contracts contain an express "Production Guarantee" clause stating that if actual generation falls below 85% to 90% of the benchmark, the company must refund the difference per kilowatt-hour at the end of the annual cycle.

Step 3: Serve a Formal Written Dispute Letter

Do not dispute charges over the phone. Send a formal letter via Certified Mail Return Receipt Requested to SunStrong's corporate escalation desk:

• State that SunStrong is in material breach of the performance guarantee.
• Disclose your utility documentation proving non-generation.
• Reject the $10 monthly data access fee as an unauthorized charge.
• Instruct SunStrong to mark the account as "Disputed in Full" pursuant to the FCRA.

Step 4: Escalate to State and Federal Regulators

Submit formal complaints to:

1. Your State Attorney General’s Consumer Protection Division (if you live in Connecticut, reference AG Tong’s February 27, 2026 inquiry).
2. The Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov under "Solar Servicing Dispute."

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Sources and Official References

• Connecticut Attorney General: Consumer Protection Inquiry into SunStrong Management
• U.S. District Court, Southern District of California: Dalton v. SunStrong Management (Case No. 3:25-cv-01960)
• U.S. Bankruptcy Court, Southern District of Texas: In re Sunnova Energy International (Case No. 25-90160)
• Cornell Law LII: 15 U.S. Code § 1681s-2 (Responsibilities of Furnishers of Information)
• Cornell Law LII: 15 U.S. Code § 1692e (False or Misleading Representations under FDCPA)
• Federal Trade Commission: Report Deceptive Solar Practices

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FAQ

Can SunStrong really stop paying my lost-production guarantee because of bankruptcy?

Terminating contractual production guarantees during Chapter 11 bankruptcy represents a disputed customer grievance, not an established legal right. While SunStrong customer service representatives have told homeowners that the bankruptcy court allowed them to drop performance guarantees, consumer attorneys argue that a successor servicer cannot enforce lease payment obligations while refusing the essential consideration of the contract. State regulators, including the Connecticut Attorney General, are actively investigating these claims.

What is the $10 monthly SunStrong fee for production data?

SunStrong has introduced a $10 per month charge to access solar monitoring software and inverter data. Former Sunnova and SunPower customers report that this fee was never disclosed in their original agreements. Charging mid-contract fees without contractual authorization is being challenged as an unfair and deceptive trade practice.

Do I still have to pay SunStrong if my solar panels don't work?

You should not stop paying without sending a formal, written legal dispute. If you stop paying without documentation, SunStrong may initiate automated credit bureau reporting. However, by sending a certified notice of material breach and disputing the account under the Fair Credit Reporting Act, you establish legal defenses of total failure of consideration and preserve your rights against credit reporting violations.

Is there a class action lawsuit against SunStrong Management?

As of mid-2026, consumer class action law firms (including Chimicles Schwartz Kriner & Donaldson-Smith LLP) are actively conducting customer intake investigations regarding warranty failures, dropped production guarantees, and unauthorized fees. Additionally, individual litigation has been filed in federal court under the Fair Debt Collection Practices Act (Dalton v. SunStrong Management).

What should I do if SunStrong threatens to send me to collections?

Demand that SunStrong provide a complete debt validation package under the FDCPA, including the original contract, payment history, and proof of their legal authority to collect. File an immediate dispute with the CFPB and your state Attorney General, and provide proof that the system is broken and that SunStrong is in breach of contract.