Additional Information for Solar Mosaic LLC

On February 6. 2023, the Attorney Generals of Tennessee and Kentucky filed a lawsuit that included Solar Mosaic LLC dba Mosaic (CASE 3-23-cv-00046).

The suit stems from Mosaic’s affiliation as the lending company used by Solar Titan customers to finance solar panel projects. According to court documents, Mosaic allowed Solar Titan, as its agent/and or service provider, to solicit its loans without providing consumers with the written disclosure required by the Truth in Lending Act explaining their total repayment obligations.  It was also alleged that Mosaic structured it’s financing in a way that facilitates Solar Titan’s misrepresentations to consumers, misrepresented that consumers would still be fully indebted to Mosaic even if the sale was procured through misleading sales practices, and of routinely ignoring cancellation requests made within the 3 days allowed to rescind their contract. It is also alleged that Mosaic disbursed funds to Solar Titan prior to consumers receiving operational solar systems.

The case is currently pending.  This company’s rating is currently and NR due to a pending government action.

On April 14, 2023 Solar Mosaic provided BBB with the following response:

Mosaic and Solar Titan USA are two separate companies with unrelated ownership. Mosaic provides financing for homeowners to allow them to purchase solar or home improvements. Solar Titan USA is a national solar panel installation company. Solar Titan USA did not act as Mosaic’s agent when loans were made to consumers. 

While Mosaic is named in the lawsuit, there was no temporary restraining order sought against Mosaic and it is not subject to any court order. There is a temporary restraining order against Solar Titan USA.

Mosaic is committed to being clear and transparent with consumers when providing financing options for residential home improvement projects and seeks to confirm that consumers understand the terms of their loans. A number of the allegations in the complaint regarding Mosaic are inaccurate, and the company is working with customers to understand and resolve issues raised regarding transactions with Solar Titan USA. Mosaic is also committed to working with the Attorneys General of Tennessee and Kentucky to resolve the matter.

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government’s allegations, which have not yet been proven.

On March 7, 2024, the Minnesota Attorney General filed a lawsuit against Solar Mosaic LLC. (Case 27-CV-24-3558) along with 3 other solar lending companies, alleging the companies violated Minnesota state law pertaining to deceptive trade practice, deceptive lending and of charging high rates of interest.

According to court documents it is alleged that Solar Mosaic deceived consumers into taking out loans with the false promise of low interest rates and applying hidden fees that increased the cost incurred by borrowers.

The investigation found that Solar Mosaic dictated how solar companies market and sell their loans. The arrangements between the company and some installers had consumers believing they were entering into loans with low interest rates. It is alleged that consumers were not given the true cost of financing their projects as the upfront fees were added to the balance of the loan and were not included in sales proposals, included in the “finance charge” or the calculated annual percentage rate listed in the loan documents. The suit alleges that between 2017 and 2023, Solar Mosaic charged a total of $12,666,727.44 in upfront fees to Minnesota consumers.

BBB received the following response Solar Mosaic:

The company states they are disappointed that the Attorney General chose to file this complaint against a number of businesses in the solar lending space, including Mosaic. The complaint mischaracterizes dealer fees and whether they have been appropriately handled in loan disclosures. In addition, at a basic level, the complaint takes issue with standard practices throughout the solar lending industry which, if prohibited, would severely constrain consumers looking for options to finance solar projects. Mosaic intends to defend itself in the litigation.

The case is currently pending.