Utah based Elan Solar sued by state regulators

OREM — Imagine paying thousands of dollars for solar panels but having them not work. It’s the situation facing more than 100 customers of a Utah solar company, according to a new lawsuit filed by the Utah Division of Consumer Protection.

In the lawsuit, regulators state Elan Solar and its CEO, Kevin Colarusso, “failed to provide full-service solar installations to at least 140 consumers, leaving them with nonfunctioning systems.”

“Most of these consumers made or continue to make loan payments for systems that do not work for more than six months,” the lawsuit states. “Some consumers have been making loan payments for over eighteen months, with nothing to show for it.”

Some customers, identified by only initials in the filing, were assured reimbursement that they did not get, the lawsuit states.

In addition to nonfunctioning systems, the 28-page lawsuit lists several examples of ways Elan Solar allegedly misled its customers, including misrepresenting the cost of its systems and consumers’ future savings.

Utah Division of Consumer Protection Director Katie Hass said they don’t take filing lawsuits against businesses lightly but they felt it was necessary in this case to prevent more homeowners from paying Elan for solar systems they may not get.

“The Division of Professional Licensing revoked their license several months ago, but they’re still out there,” Hass said.

Elan Solar’s website was active Wednesday and its phone line was answered when Get Gephardt called.

As for customers who didn’t get what they paid for, Hass said they are seeking damages which is “close to $1 million” based on the victims that the division knows about — but she suspect it could be more. She says the division invites other Utah consumers who feel like they are victims of Elan Solar’s business practices to file a complaint at this website: db.dcp.utah.gov/complaints.html.

“This is very important. We can only seek damages on behalf of consumers who have actually complained to the division,” Hass said.

Reached for comment, Elan’s CEO Kevin Colarusso wrote of the lawsuit: “My attorney just received the lawsuit this afternoon and has not been able to review it. They are simply allegations. We have 3 weeks to file an answer. We have no comment since we have not been able to review it yet.”

Last Friday, Hass said her division also served Elan Solar with a cease and desist.

By email Colarusso told Get Gephardt:

We are in full compliance and we are not selling or installing under Elan Solar since we received the documents last Friday from Utah Consumer Protection. It is my understanding that you made a phone call to our customer support line; Our customer service representative was not fully informed on the documents we received last Friday.

Get Gephardt first reported on some of Elan’s alleged victims last June.

Flavio Sampallo showed Get Gephardt how the panels installed on his West Valley City were not hooked up leaving him making payments on a $48,000 solar loan in addition to having to pay his regular Rocky Mountain Power bill.

It was the same story for Luis Lopez who said he a nonfunctioning system for about a year and a half..

Sampallo and Lopez were two of 11 who emailed Get Gephardt stating they have paid for a product they were not receiving.