Minnesota Solar Gardens Fined for Excessive Fees

ST. PAUL (WJON News) - Four community solar garden operations have paid about $85,000 in restitution for excessive early termination fees charged to Minnesota customers.

Attorney General Keith Ellison fined FastSun Solar LLC, Cypress Creek Renewables LLC, Generate Capital Inc., and Global Atlantic Financial Group Limited, for early termination fees that they charged customers. The settlement also forces the companies to no longer enforce the EFTs in current contracts, and are not allowed to include the unlawful EFT's in any new contracts.

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The A.G.’s office took action after receiving complaints from about 290 consumers that were charged between $250 and $500 a piece to terminate their contracts. The total reported was $84,328.

Community solar gardens are large solar power installations that produce energy for Minnesota’s energy grid, and in return, Xcel Energy provides the gardens credits that can be used to offset energy bills. Garden operators sell those credits to consumers to be applied to their power bills. While Minnesota law allows companies to charge an early termination fee, they are not allowed to be unreasonable, or if the damages can be calculated by other means, or if there other convenient ways to recoup the costs.

Attorney General Keith Ellison said the program is still a great way for homeowners to take advantage of green energy.

The community solar garden program is an innovative way for Minnesotans, whether renters or homeowners, to tap into the power of green energy without having solar panels installed on their own roofs. However, no matter how noble the cause, as an added safeguard, I encourage Minnesotans to read any contract they sign carefully for any potentially unfair terms that could be buried within those contracts. This Office stands ready to ensure that consumers aren’t subjected to illegal, deceptive, or unjust terms.

The four companies cited used the same company, CleanChoice Energy, to administer the contracts and all charged similar early termination fees to the customers.

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