Bankrupt panel manufacturer 1SolTech has agreed to pay penalties and compensation amounting to more than US$7.7 million after it admitted putting 'Made in USA' labelling on Chinese-made modules.
As part of its ongoing bankruptcy case, the company has agreed to pay a US$5 million civic penalty as well as more than US$2.7 million for previous customers.
The company has admitted that it mislabelled panels and also falsely claimed that they had attained UL 1703 certification.
According to the court documents:
“Defendant 1SolTech acknowledges that it advertised and sold solar panels as having met certification and testing standards, when the panels had not been certified,” and “acknowledges that it bought solar panels that were manufactured in China, and advertised and resold the Chinese panels as being ‘Made in the USA by 1SolTech’”.
Further penalties were lodged against some of the company’s former management team.
It is unclear how much of the money will be recovered.
The settlement also includes a commitment by the collapsed company to contact customers who bought its second generation panels, in order to warn them of a possible fire risk.