Nivo Solar Lawsuit and Bankruptcy: Loan Relief and FTC Holder Rule

There is no class action against Nivo Solar on record. The Cypress, Texas residential installer filed Chapter 7 bankruptcy on June 30, 2025 and shut down, leaving one known consumer lawsuit pending in Arkansas and homeowners across six states holding loans on systems with no warranty support. If you are searching for a Nivo Solar lawsuit because your system has failed or your payments have climbed, your realistic options are a claim under the FTC Holder Rule against the lender that financed your installation, a filing in the Chapter 7 case, manufacturer warranty claims on the equipment itself, and complaints to state and federal regulators.

What Happened to Nivo Solar

Nivo Solar LLC filed for Chapter 7 liquidation on June 30, 2025 in the U.S. Bankruptcy Court for the Southern District of Texas in Houston, case number 4:25-bk-33752. The filing reported $3.94 million in liabilities against $564,953 in assets. The meeting of creditors took place on August 14, 2025, and the deadline to file claims was December 15, 2025.¹ Allison D. Byman is the trustee.

The company sold residential solar panel installations, battery storage, and roofing in Texas, Oklahoma, Florida, Kansas, Missouri, and Arkansas.² It used a dealer model, with third-party salespeople pitching homeowners door to door, outside lenders arranging financing, and subcontractors doing the actual installation. The Better Business Bureau logged 58 complaints against Nivo Solar over three years, with 22 unanswered at the time of closure.³ Customers reported that promised bill elimination never materialized, that monthly payments rose (in one case from $228.70 to $327.25), and that installations caused roof leaks or stopped working entirely. Individual contract amounts ran roughly $50,000 to $60,000.⁴

In September 2024, the Arkansas Residential Contractors Committee fined Nivo Solar $5,000 for operating in the state without a proper license.²

The Arkansas Lawsuit Against Nivo Solar

The one known lawsuit specifically naming Nivo Solar was filed in Clark County Circuit Court in Arkansas by attorney Todd Turner on behalf of plaintiff Felicia Smith. It names Nivo Solar LLC and Solar Mosaic LLC as defendants and alleges violations of the Arkansas Home Solicitation Act and the Arkansas Deceptive Trade Practices Act.²

The complaint alleges that Nivo Solar’s salesmen were persistent despite the plaintiff’s initial objections, failed to provide required contract documentation, failed to inform the consumer of her right to cancel, and failed to provide the cancellation forms mandated by state law. It further claims the panels do not function as promised and that the defendants refused to remove them when the plaintiff attempted to cancel. The suit seeks to have the contracts declared null and void, plus damages and attorney fees. As of early 2026 the case was still active.² The automatic stay triggered by Nivo Solar’s bankruptcy affects how claims against it can proceed, but the case was pled against both the installer and the lender.

Why Your Loan Still Exists After the Bankruptcy

Nivo Solar’s bankruptcy does not cancel your solar loan. The debt is held by a third-party lender, not by the installer, and lenders continue collecting whether or not the system works.

A common lender for Nivo Solar customers was Solar Mosaic LLC, known as Mosaic. Mosaic filed its own Chapter 11 bankruptcy in June 2025 and was acquired by Solar Servicing LLC, a subsidiary of Forbright Bank, with its reorganization plan confirmed in September 2025. Mosaic has stopped originating new loans, but told existing borrowers that payment terms and schedules are unchanged and that they should keep paying as before.⁵ A Consumer Financial Protection Bureau report found that lenders like Mosaic participated in embedding “dealer fees” in loan principal amounts, sometimes adding 10 to 30 percent or more above the actual cash price of the installation.⁶

So your installer is gone, your lender has changed hands, and the loan has survived both. That is the position the Holder Rule exists to address.

How the FTC Holder Rule May Help You

The FTC Holder Rule, codified at 16 CFR 433, requires certain consumer credit contracts to include language making the lender subject to the same claims and defenses the consumer could raise against the seller. If Nivo Solar committed fraud, misrepresented savings, or breached its contract with you, those claims can generally be raised against the lender financing the deal. That can mean reducing or canceling the loan balance. Affirmative recovery of money already paid is generally capped at the amount the consumer paid under the contract.⁷

Courts have applied the rule inconsistently, and some require the consumer to have a separate right to rescind the underlying transaction before granting affirmative recovery.⁷ The Arkansas lawsuit’s structure, suing the lender alongside the installer, reflects this approach. Any homeowner considering it should pull their original loan contract, check for the required Holder Rule notice, and consult a consumer attorney in their state. Stopping loan payments without legal advice is risky, since the loan is still contractually enforceable until a court or the lender says otherwise.

Warranties, Complaints, and Other Steps

Equipment warranties from the manufacturers of your panels and inverters may still be valid even though Nivo Solar is gone. Using them generally requires hiring a third-party solar service company to diagnose the system and submit the claim, and that cost falls on you.

File a proof of claim in the Chapter 7 case if you have not already; the formal bar date was December 15, 2025, but late claims may still be worth filing with the trustee’s office given that the case is classified as having assets. Recovery for individual homeowners is likely to be small given the $3.94 million in liabilities against $564,953 in assets, but filing preserves whatever share exists.¹

File complaints with the agencies that are actively watching this industry. In August 2024, the FTC, CFPB, and Department of the Treasury jointly released consumer guides on solar financing and scams. Consumers can file complaints at reportfraud.ftc.gov or at consumerfinance.gov/complaint.⁸ Also file with your state attorney general; the Texas AG’s office received 2,448 solar-related complaints between January 2018 and June 2024, an 818 percent increase over that period, and Mosaic was among the companies specifically identified in those complaints.⁹

The Wider Texas Investigation

In April 2026, Texas Attorney General Ken Paxton announced an enforcement initiative targeting fraudulent and deceptive practices by solar companies, issuing civil investigative demands to Freedom Forever, SunRun, Lone Star Solar, and CAM Solar covering energy bill claims, warranties, marketing materials, and contract terms.¹⁰ Nivo Solar was not named in that round, and because the company has liquidated, a state enforcement action against it is unlikely to produce consumer restitution. Attorneys general in at least 13 other states filed solar-related legal actions between 2022 and 2024.⁹ For Nivo Solar customers, the practical path to relief runs through the lender, not the defunct installer.

1
InfoRuptcy. Bankruptcy Case Nivo Solar LLC
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Arkadelphian. Arkadelphia Attorney Files Lawsuit Against Solar Panel Company for Unlawful Sales Tactics
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Better Business Bureau. Nivo Solar BBB Complaints
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Better Business Bureau. Nivo Solar BBB Complaints Page 2
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PV Magazine USA. Bankrupt Residential Solar Loan Provider Mosaic Is Acquired
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Consumer Financial Protection Bureau. Issue Spotlight Solar Financing
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National Consumer Law Center. Protecting and Improving the Best Thing the FTC Has Ever Done the Holder Rule
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National Consumer Law Center. New Initiatives Empower Consumers Seeking Solar Power
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Texas Appleseed. Solar Panel Report
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Texas Attorney General. Attorney General Ken Paxton Launches Major Initiative to Combat Widespread Fraud by Companies Selling Solar Panels