What to know about Moxie Solar following the company's closure

Moxie Solar, a North Liberty-based solar company, has closed following over a year of complaints and lawsuits lodged against the company by customers.

The prominent company had a large footprint in the Iowa City-area and marketed itself as one of the top country's top solar companies in an industry seeing rapid growth as investment in renewable energy options increase. The company also employed several key figures in the community and worked closely with local governments to install some of the county's most significant solar arrays.

A Press-Citizen investigation in March uncovered an increasing number of complaints and profiled the company's struggles as it attempted to recover. The company ultimately announced it was closing shortly after being bought by an investment firm from Chicago.

Here's what you need to know about Moxie Solar and what happens next as the company closes its doors permanently.

What is Moxie Solar?

Moxie Solar is a North Liberty-based solar company founded in 2008 that operated in 27 states and employed at least 45 people in Johnson County from its location at 323 W Cherry St. in North Liberty.

The company contracted to install solar panels and electric vehicle charging stations on homes, businesses, farms and other locations. Its services include working with solar panels, inverters, energy storage batteries and electric vehicle charging stations, plus monitoring software from brands like LG, Panasonic and Tesla, according to the Better Business Bureau.

Some of the most prominent solar arrays in Johnson County were installed by the company including one on Tiffin City Hall, another that helps power the North Liberty Streets Department, and the array powering Johnson County's secondary roads department building.

The company was helmed by CEO Jason Hall until recently when he split from the company following several lawsuits and consumer complaints. It also previously employed North Liberty Mayor Chris Hoffman and prominent business owner Mark Nolte before the two left.

Who owned Moxie Solar and what happened to its previous ownership?

Before Hall left Moxie Solar, the company was bought by Chicago-based investment firm Lorentzen Investments and put under new management under COO Travis Eichelberger and CFO Keith Fuglaar. Pugh, Hagan and Prahm lawyer Siobhan Briley said the firm intended to salvage the company with its investment.

Hall was CEO for years before he left, shepherding the company through a period of major growth from a local solar company to one the company often bragged on its social media and website was one of America's top solar companies.

Hall is now seeking investors for his new company, MSI Diversified Inc. according to Briley, but she said she doesn't know what Hall intends the company's operations to be.

Why is Moxie Solar closing?

Moxie Solar has come under fire from customers across the country who have submitted consumer complaints to the Iowa Attorney General and some filing lawsuits against the company. The dozens of complaints and at least two lawsuits largely all echo each other and allege inaction by the company during the COVID-19 pandemic on projects many had already paid thousands of dollars for.

Moxie Solar also lost its A+ rating and accreditation with the Better Business Bureau, which received 50 complaints in the last year from upset customers.

The company attributed the issues it was facing with macro-economic problems faced by almost every other business during the COVID-19 including inflation, worker shortages, supply-chain shortages with key components and raw materials. The company said those struggles combines with increased demand for solar panels ended up hurting its ability to complete projects in a timely manner

Briley said when the new investors came into the company earlier this year, they anticipated having to invest a certain amount of money. She said the obligation of the company exceeded what they planned to invest and they weren't in a position to provide that level of investment.

"Just given a number of factors, including the effect on small business of COVID, they just didn't have the resources to get Moxie back on its feet from all of the financial hits and obligations it had taken," Briley said.

Moxie Solar also seemingly gave up on a planned $10 million manufacturing plant.

Are other solar companies experiencing the same problems as Moxie Solar?

Larry Steffen, the owner and executive of Dubuque-based Eagle Point Solar and sits on the board of and helped found the Iowa Solar Energy Trade Association, said it is unfortunate what happened to his competitor and doesn't wish ill will on the company but there's a mess that needs to be cleaned up and his company is willing to help.

Steffen confirmed that over the last year the solar industry has dealt with supply chain issues, delays in paperwork from utility companies and local governments, which is not unique to the solar industry alone. He said this seemed to be exacerbated by the supply-chain issues of the economy during the COVID-19 pandemic resulting in some projects not being able to be done in a timely fashion.

"We all dealt with it and I think it's how you handle that and the message you send to your customers about delay. If there's going to be delays due to utility of equipment shortages, that has to be relayed to the customers in a timely fashion," he said.

Steffen said the solar energy industry is doing well despite Moxie Solar's struggles and said if a solar company isn't busy, they probably aren't a good solar company. He said this includes Eagle Point Solar and others in Iowa.

What happens to customer's contracts as the company closes?

Briley said the company is engaging in the statutory "wind-down process" and will be conducting an orderly shutdown with all that entails under law. Articles of dissolution had not yet been filed with the Iowa Secretary of State as of Monday, but the business's location at 323 W Cherry St. was devoid of activity just after 9 a.m. Monday morning.

Under the wind down process, the company will address obligations it has and money owed to secured creditors and unsecured creditors. It's unclear whether unsecured creditors, which don't have the same protections, will be paid back the money Moxie Solar owes them for incomplete projects.

Steffen told the Press-Citizen many former customers have reached out to his company for help, support and to see if the company will finish projects. He said the company is doing its best to help through it's service department.

What lawsuits are pending against the solar company?

There are two major civil lawsuits filed against Moxie Solar in Iowa. One is from North Liberty residents Josh and Mackenzie Bates who claim the company failed to deliver and install an Enphase Encharge 10-killowatt battery and failed to install the correct racking system and specific skirting for the array on their property. The couple is asking the court to enter judgment against Moxie Solar for damages, attorneys’ fees, and any other relief the court deems just.

The couple's August contract with the solar company details a $42,682 project to be paid for in two installments. The lawsuit alleges Moxie Solar failed to install the correct racking system that month and acknowledged the mistake in December.

This lawsuit is scheduled for a Sept. 2023 trial.

Axiom Consultants, an engineering consulting and design firm in Iowa City, filed a lawsuit in September against MSI Diversified Inc., doing business as Moxie Solar, alleging the solar company did not make full payments for services Axiom provided the company, including structural support products and electrical line evaluations, totaling $42,605, between July 2021 and April 2022.

Axiom alleges in its lawsuit the solar company did not respond when it demanded payment in full or in increments of $5,000 plus interest on or before Sept. 15, 2022. The company also never made a payment, Axiom alleges.

The lawsuit alleges breach of contract and unjust enrichment. Axiom has asked for a jury trial.

In an answer to the lawsuit, lawyers for Moxie Solar denied any wrongdoing. They said Axiom failed to state a claim for which relief can be granted and blamed Axiom for any injuries or damages.

How can Moxie Solar customers file a consumer complaint about the company or seek help from the Iowa Attorney General's Office?

The office of the Iowa Attorney General's Consumer Protection Division allows people to submit complaints about merchandise or services by a company. The office's website provides a guide on how to complain effectively and gives tips on what to include in a complaint.

The office advises that the customer first attempt to resolve complaints directly with the company before coming to the Iowa AG.

An online consumer complaint form is available at https://www.iowaattorneygeneral.gov/for-consumers/file-a-consumer-complaint/complaint-form. A printable form is also available for download on the Iowa AG's website.

George Shillcock is the Press-Citizen's local government and development reporter covering Iowa City and Johnson County. He can be reached at (319) 214-5039, GShillcock@press-citizen.com and on Twitter @ShillcockGeorge

This article originally appeared on Iowa City Press-Citizen: What to know about Moxie Solar as the North Liberty company closes