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Solar Installation Company Facing Closure: A Cautionary Tale

Overview of the Company’s Downfall

A solar installation company, which initially emerged from a garage in Pasco and achieved a remarkable position on Inc. Magazine’s list of 5000 Fastest-Growing Private Companies in America, seems to be facing an unfortunate closure. Solgen Power, recently rebranded as Purelight Power, has announced the shuttering of its operations across Washington State. A notification issued by the state’s Employment Security Department under the Worker Adjustment and Retraining Notification Act sheds light on these troubling developments.

Job Losses and Employee Impact

Approximately half of the company’s workforce, which consists of 106 employees, will be laid off, with a significant concentration of these positions located at the firm’s office in west Pasco and its warehouse in Richland. The company’s letter to the state disclosed that the layoff date has been set for January 13, effectively giving employees a 60-day notice that commenced on November 13. Solgen Power has not provided any specifics regarding the reasons behind their closure, leaving many employees in uncertainty about their future.

A Significant Shift in Fortune

The impending closure signifies a dramatic decline for a company that once boasted a workforce of nearly 400 employees and featured operations spanning three states, complete with a lavish $6.2 million, 20,000-square-foot national headquarters located at 5715 Bedford St. Founded in 2017, Solgen Power experienced rapid growth, employing more than 300 individuals in its corporate, sales, and installation divisions by 2021. It was recognized as one of the fastest-growing companies in America, reaching an astounding 21,790% growth rate by that year.

Investment Plans and Promises Unfulfilled

In 2022, the company announced ambitious plans, including a $5 million investment to construct two additional facilities at the Port of Pasco’s Airport Business Center. The planned structures included a 100,000-square-foot operations facility and a 10,000-square-foot hangar designed for executive offices with direct airport access. However, state economic development officials had committed nearly $3 million to extend a taxiway and road based on conditions tied to Solgen Power’s lease signing, which now appears to be jeopardized.

Red Flags and legal Troubles

Despite its previous success, Solgen Power started to show signs of trouble as the company’s reputation began to falter. In 2022, it rebranded as Purelight Power amid rising customer complaints regarding deceptive sales practices and tactics. Furthermore, the firm vacated its headquarters and began leasing it out, relocating its operations to Medford, Oregon, according to reports from state labor officials.

Compounding these issues, Solgen encountered safety violations from the Washington State Department of Labor & Industries (L&I). Since 2021, the company underwent 11 inspections, leading to findings related to inadequate fall prevention safeguards. By August 2025, the total penalties owed to L&I exceeded $460,000, spotlighting the company’s challenges.

Class Action Lawsuits and Consumer Rights Issues

In 2023, Solgen Power faced a class action lawsuit initiated by former employees, claiming that the company illegally mandated noncompetition agreements as part of their employment terms and unlawfully restricted employees from seeking second jobs. Furthermore, a Longview couple filed a lawsuit against Solgen and their lender in 2024. Their attorney alleged that Solgen misled them into believing that an expensive solar panel installation would lead to significant reductions in their electricity bills. However, the reality presented a stark contrast, with monthly savings amounting to less than $20.

legal Strategies and Defenses

In defense of its actions, Solgen Power attempted to dismiss the lawsuit by asserting that the homeowners signed a contract laden with disclaimers that transferred all risk to them. The contract explicitly stated that the company was not accountable for claims regarding energy savings or efficiencies derived from the solar array, framing such information only for illustrative purposes.

Though this suit was settled out-of-court, it raised critical concerns regarding the industry’s sales practices, prompting state lawmakers to introduce stronger consumer protection measures aimed at preventing similar occurrences in the future. In October, the Washington State Department of Revenue also levied a judgment against the company for unpaid taxes, further underscoring the company’s financial distress.

The Role of AI legalese decoder: Navigating Complex Legalities

In an environment where legal disputes and complex contracts are prevalent, tools like AI legalese decoder can provide invaluable assistance. This platform helps individuals and businesses better understand the often convoluted legal language found in contracts and agreements, such as those presented by Solgen Power. By distilling legal jargon into more comprehensible terms, AI legalese decoder empowers consumers to make informed decisions and recognize potential pitfalls in contracts.

For former employees and customers of Solgen, utilizing AI legalese decoder could clarify the implications of noncompetition agreements or deceptive sales practices, enabling them to understand their rights and options better. This knowledge is critical as they assess their next steps amid the company’s impending closure and its potential legal ramifications. Thus, AI legalese decoder not only fosters awareness but also equips individuals with the tools necessary for navigating their legal responsibilities and rights in a complex marketplace.

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