TAMPA, Fla. — A North Tampa man who wanted to own solar panels said he discovered his "lease" agreement was actually a rental, which raised questions for him about transparency in solar financing contracts.
Chappy Floyd said he decided to install solar panels after Hurricane Milton hit in 2024. He claimed his goal was simple: own the panels that would make his home more eco-friendly.
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Last December, Floyd found a system financed through EnFin, a residential solar financing company. Under the arrangement, his contract for the panels is with EnFin, and they paid the installer.
"The interest rates were very high so I was trying to decide whether I wanted to finance or lease and it made more sense with a traditional lease option of a 5-year lease option and then a buyout," Floyd explained.
Floyd claimed both the installer and financer confirmed the agreement would be what he expected: a lease.
"I had confirmation from the installer confirmation from the finance that yup this would be what I would expect it to be, a lease," Floyd said.
Nearly a year later, Floyd said the panels are generating the energy he wanted, but when he looked into his buyout costs, he discovered the contract wasn't what he thought.
"The structure of my lease was actually a rental agreement," Floyd said. "This is something that was totally novel to me.”
Cars are a common thing, and many customers see a distinction between a lease and a rental. With a car lease, customers pay over time, then have the option to buy for a fixed price or trade it in. With a rental, there is no expectation of ownership; customers return the vehicle at the end of the agreement.
“I think it's a big awareness issue for people getting into this situation," Floyd said.
Tampa Bay 28 Consumer Investigator Susan El Khoury looked into Floyd's 56-page contract and found the word "lease" appeared 177 times, while "rent" was never mentioned. Halfway through the document, it stated, "this lease is not a contract to sell the System to you or a contract to sell you the energy the System generates. EnFin owns the System."
The contract's purchase option further explained the system can be bought after the full lease of more than $104,965.20 is paid off. Then, to buy the system, the contract said the customer would have to pay an additional fee, either the full lease terms again but with a 5% discount, or fair market value to be determined by a third-party appraiser hired by EnFin. Of those two values, the contract said the customer would have to pay the greater value.
"None of the money I put into the terms had anything to do with the purchase," Floyd said.
Floyd hired a lawyer and reached a settlement with EnFin after speaking with Tampa Bay 28. The settlement terms are confidential.
EnFin did not respond to multiple requests for comment. Tampa Bay 28 called and spoke with a customer service employee, who stated they could not continue the call.
EnFin’s website includes a section on "Levelized Power Purchase Agreements," explaining how EnFin owns the system while customers make monthly payments to use it.
Joshua Horton, a lawyer specializing in solar cases who worked with Floyd but cannot discuss case details due to the settlement, said these agreements aren't consumer-friendly.
"I don't think it's possible for an average consumer to be able to comprehend the transaction at its full," Horton said. "I would take any contract to an attorney before I sign anything with a solar contractor.”
Horton said customers should understand what they're paying, since solar contract amounts typically exceed the system's actual cost.
"There's disclosures not being made where the actual money is going," Horton explained. "There’s a dealer fee built into the contract whether it be a lease or a loan so the amount you're agreeing to pay is not the actual amount going to the contractor for what's being installed on your property.”
In Floyd’s case, his lease contract is for $104,965.20, and the contract would require him to nearly double that cost to buy the panels, but Floyd claimed a text message chain with his installer shows the system costs a fraction of that amount.
"My system cost $55,000 which included the solar panels, a power wall, three for battery backup along with the gateway and the installation," Floyd said.
Floyd said he remains happy he switched to solar, but he wanted to shed light on what happened to him.
"If we have an agreement to buy something at a certain price, I just want that agreement to be honored," Floyd said.
Solar financing companies aren't always subject to the same rules as traditional lenders. Florida created a "Financial Technology Sandbox" as an environment for new financial ideas and services to be put into practice, separate from standard regulations.
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