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by TAMARA SACHARCZYK, NBC 10 NEWS
WARWICK, R.I. (WJAR) — Black mold filled the attic of Michael Pella-Sabourin's home after a roof leak went undetected for months.
"We're in the bathroom and there was a puddle of water on the floor," Pella-Sabourin said. "We ended up with black mold."
A contractor's report found the costly damage was caused by improperly installed solar panels.
"There are pictures of where they put nails in. They didn’t put any kind of silicone on it to block the water from coming in, and it's all across the entire stretch where the solar panels are," he said.
It's a story the NBC 10 I-Team has covered before, but now with a new development: Smart Green Solar, the company that installed the panels, has shut down.
"Come to find out all the numbers are disconnected," Pella-Sabourin said. "I contacted the Better Business Bureau, and they said that they had gone bankrupt."
His case comes as an I-Team investigation found at least a dozen solar companies in the region have closed over the past year, leaving some customers without answers or protections.
Like many solar agreements, Pella-Sabourin’s contract included a warranty for the panels and insurance coverage for installation issues — protections that may no longer apply if the company is out of business.
The Rhode Island Department of Business Regulation says it received 15 complaints over the past year related to solar companies closing. While companies must register with the state, regulators cannot require contingency plans for sudden shutdowns.
The I-Team tracked down Smart Green Solar owner Jay Gotra, who claims he's trying to help Pella-Sabourin file what would effectively be a retroactive insurance claim.
"This isn't a warranty issue. This is improper work that was performed," Gotra said. "We did more than 3,500 solar installations in Rhode Island. To say we were perfect would be far from the truth. But in situations like these, we were able to have our insurance policies cover these things."
Gotra said the now defunct company no longer carries insurance but believes a claim could be filed based on coverage at the time of the installation.
"We don't have insurance right now. This is because when the incident happened back in the day, we did have insurance policies at the time," he said.
He acknowledged that other homeowners in similar situations have limited options.
"Unfortunately, if more homeowners have this issue now, that is something you’d have to put through your insurance policy because we are not in business," Gotra said.
Asked whether bankruptcy allowed him to avoid responsibility, Gotra said, "No. I wish I could get off scot-free. I left with millions of dollars in loans."
Gotra blamed the company's closure on financial pressures tied to solar lending along with a state lawsuit filed by the Rhode Island Attorney General's office accusing his company of deceptive practices.
Bankruptcies among financing firms such as Solar Mosaic and Sunlight Financial have prompted the closure of solar companies across the country. Industry analysts say many solar lenders relied on capital markets and loan securitization, leaving them vulnerable when interest rates rose and demand weakened.
According to Solar Insure, more than 100 solar companies have closed since 2023.
"When banks start suffering, they pull back," Gotra said. "They don't care who goes under."
Gotra said customers still have 25-year warranties on their solar equipment, though they may be responsible for service costs.
Pella-Sabourin said he still has no guarantee the retroactive insurance claim will succeed and is calling for stronger consumer protections.
"The public is not informed of the consequences of this, that if these companies go out of business, it's all on you," he said.
The NBC 10 I-Team will continue to follow this story.
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