OPTIONS FOR STRANDED SOLAR PROJECTS
After Sullivan abruptly closes, other companies, state may be able to help
Sullivan Solar, one of the largest and most well-known rooftop solar installers in the San Diego area, suddenly locked its doors two months ago, leaving some of its customers in the lurch.
Since the company has not returned voicemail messages and emails, many stranded Sullivan customers worry where to go and what to do should something go wrong with their already-installed solar systems. And customers who were in the midst of having a new installation put into place aren’t sure what to do next.
The good news is that factory warranties on most solar equipment remain in place, regardless of whether the installer is still in business. Plus, other San Diego solar companies say they are happy to help Sullivan customers.
But the bad news is some Sullivan Solar customers may be out of luck, depending on circumstances.
“Most of these folks that currently have existing systems, they don’t have to worry about that equipment being serviced because we can take care of it,” said Michael Powers, co-founder of Stellar Solar, an Oceanside company in business for more than 20 years. “For the people who were in the middle of getting equipment installed, it’s really unfortunate that this happened because it doesn’t leave them with a lot of good choices, unfortunately, just as with any business that fails.”
A mainstay in the San Diego rooftop solar business since 2004, Sullivan Solar Power abruptly locked the doors of its main office in Miramar in October, leaving no word as to why.
About a month later, the company’s CEO and founder, Daniel Sullivan, was arrested by U.S. Marshals on charges of stalking an ex-girlfriend.
Sullivan pleaded not guilty to three felony counts of stalking and six misdemeanor counts of disobeying a restraining order and was held in custody at the Vista Detention Facility in lieu of $1 million bail. In two subsequent bail review hearings, his attorney told Superior Court judges that Sullivan was unavailable to appear before the court because he has been admitted to Tri-City Medical Center in Oceanside. No reason was given for the hospitalization.
Sullivan is due back in court on Jan. 6 for another bail review hearing.
As for the company, as of Thursday, a search of court records does not show Sullivan Solar Power filing for bankruptcy.
Where customers can start
“The challenge here is for a consumer who signed a contract with one contractor — in this case, Sullivan,” said Bernadette Del Chiaro, executive director of the California Solar & Storage Association, the Sacramentobased trade group that represents nearly 600 solar companies in the state.
“Getting another contractor to wade into that and step up is not an easy thing but given the circumstances, we have really good contractors (in San Diego County) who are willing to kind of stick their necks out and help a customer get their solar systems permitted, interconnected and completed — wherever they are in the process.”
To connect with the trade group’s member companies, customers can fill out a form at the California Solar & Storage Association website’s Consumer Protection Hotline at https://calssa.org/ consumer-protection-hotline.
Warranties and equipment
Powers of Stellar Solar said if Sullivan customers have problems with their panels, inverters, monitors or other equipment, those items are typically covered by the factory warranty of the company that manufactured them. He recommends contacting a local solar installer. “We can handle the servicing of any of that stuff that comes up and we
get reimbursed from manufacturers so it’s not really out-of-pocket for us or the customer,” Powers said.
To make sure the equipment is covered, Powers said customers can send a digital photo of the item they have questions about and “we would know whether or not that’s one of the manufacturers that we can work with.”
Battery recall and shutdown
A number of Sullivan Solar customers have raised concerns about their system’s batteries. Back in November 2020, LG Chem (now known as LG Energy Solutions or LGES) issued a recall for home batteries for overheating and posting a risk of fire and harmful smoke emissions.
In an email to the UnionTribune, one Sullivan Solar customer attached a letter he received from the company in August saying Sullivan Solar put customers’ LG batteries “in a state of hibernation,” out of an abundance of caution.
The letter went on say that “Our Owner/CEO, Daniel Sullivan, believes strongly that the batteries should remain in a state of hibernation (until) a clear and concise resolution can be put in place.”
With Sullivan Solar not
answering phone calls or messages, customers with battery issues say they are at a loss.
In an email to the UnionTribune, LG Energy Solutions encouraged Sullivan Solar customers to reach out to them about their LG RESU batteries at resuservice@lgensol.com or (888) 737-8104.
Customers should verify that their home battery is up to date and fully operational and if customers contact any local installers, ask them if they are LG RESU certified before allowing them to service the battery.
“Any non-certified contractors working on LG products is a safety concern, not authorized by LGES and will void the product warranty,” the email said.
Potential help from the state
Installing a rooftop solar system costs tens of thousands of dollars and some unfortunate Sullivan Solar Power clients did not get their installations completed before the company shut its doors.
“Certainly any of the other (San Diego area) installers can come in and complete the job,” said Powers of Stellar Solar. “Whether they can do it without additional cost to the customers is another question. It kind
of depends on where things were with Sullivan as far as how much of the installation they completed.”
Some projects only need an inspection from the municipal authorities of a given jurisdiction before an installer can turn on the system, Powers said. Other projects need more work.
One homeowner in Sabre Springs told the Union-Tribune he’s already spent $34,000 on a project that was 80 percent done before Sullivan stopped work.
The Contractors State License Board — a division of California’s Department of Consumer Affairs — has recently instituted a Solar Recovery Fund designed to help homeowners who were “financially harmed by a solar contractor because of poor workmanship, project abandonment, or unlawful business practices.”
Consumers can receive as much as $40,000. The program is budgeted for $5 million — $1 million to the board for administrating the fund and $4 million for consumer reimbursement.
Claim forms in English or Spanish can be found on the license board’s website: Solar Smart - CSLB (ca.gov), under the last item “Solar Energy System Restitution Program.”
Some customers have
had liens placed on their properties because Sullivan Solar hired subcontractors to work on their projects but did not get paid. The license board’s website has a page on “Understanding Mechanics Liens” that may prove helpful.
The board suspended Sullivan Solar Power’s license on Nov. 4 for “failure to comply with an outstanding civil judgment” — referring to a case in which a homeowner in Jamul took the company to small claims court, won a $5,065 judgment in April but did not get paid.
A review of agency records by the Union-Tribune last month discovered the license board issued five citations against the company this
year totaling $19,000 for violations that included abandoning projects before they were completed, taking a down payment and not starting work, failing to pay “for materials or services after having received sufficient funds to do so” and not cooperating with an investigation.
Sullivan Solar paid $10,000 of the fines. The remaining $9,000 from two citations are listed as pending, meaning either the company did not pay the fines or appealed them.