Las Vegas Sun

March 28, 2024

Bankrupt Las Vegas solar installer loses license to contract

Summerlin Energy Las Vegas, the subject of the largest investigation in the Nevada State Contractors Board’s history, had its license with the regulator revoked after a hearing today.

The firm filed for bankruptcy last month, facing a lawsuit from a supplier that claimed it was owed more than $700,000 for parts and complaints from customers who said Summerlin Energy failed to finish work on their homes. The board began receiving complaints from customers last fall. It now has more than 100 complaints.

The board had suspended Summerlin Energy’s license earlier this year, but an administrative law judge permanently revoked its license Wednesday after hearing from board investigators and sustaining 48 causes of action against the company.

It is unlawful to operate as a contractor without a license.

Wednesday’s hearing lasted two hours but only dealt with a sliver of the complaints related to Summerlin Energy. It concerned nine complaints, such as abandonment of the project and failure to pay suppliers. Several Summerlin Energy customers, who served as witnesses, testified that the company had failed to install or complete the installation of solar panels, even when they had paid hefty deposits or the cost of the entire project.

Solar panels can cost as much as $50,000.

Summerlin Energy did not send a lawyer to the hearing. One of the individuals listed on Summerlin Energy's license did send a lawyer to argue that he was not involved with the complaints. That matter was not resolved Wednesday, and the hearing on that issue will continue at a later date.

Customers have few options for recourse. The board has a recovery fund, but it is capped at $400,000. Many customers believe they are unlikely to see any funds from the bankruptcy. Customers could, however, pursue separate litigation against the company.

In addition to customers, at least two companies had filed complaints with the contractors board, which was established in the 1940s. Both matters were taken up at Wednesday’s hearing.

Summerlin Energy had failed to pay the two companies — Sun Valley Electric Supply Co. and Soligent — for equipment and solar panels that the companies had supplied and delivered to Summerlin Energy. Sun Valley Electric said it was owed more than $725,000 and Soligent said it was owed about $500,000 in missed payments.

The missed payments have had a trickle-down effect on customers.

Both suppliers have placed liens, ranging from $1,000 to more than $20,000, on Summerlin Energy customers’ homes, which is a statutory right of subcontractors. This has put some customers in the position of having to pay twice, once to Summerlin Energy for the panels and a second time to the subcontractor for the lien.

As of early March, the two companies had cumulatively placed more than 150 liens on homes, according to Clark County records.

According to its bankruptcy filing, Summerlin Energy had clients in Arizona, California and Texas. The contractors board in California said it had an open investigation targeting the firm.

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