Moxie Photo voltaic, a photo voltaic firm primarily based in North Liberty, has closed after a yr of complaints and lawsuits filed in opposition to the corporate by clients.
The well-known firm has a big footprint within the Iowa Metropolis-area and markets itself as one of many nation’s main photo voltaic corporations in an business that’s seeing speedy development as funding in renewable choices adjustments. that power will increase. The corporate additionally employs some key individuals locally and works intently with native governments to put in among the most vital photo voltaic arrays within the county.
A Press-Citizen investigation in March uncovered a rising variety of complaints and profiled the corporate’s struggles because it tried to get well. The corporate lastly introduced it was closing shortly after being purchased by an funding agency from Chicago.
Here is what you want to learn about Moxie Photo voltaic and what’s coming subsequent as the corporate closes its doorways completely.
What’s Moxie Photo voltaic?
Moxie Photo voltaic is a North Liberty-based photo voltaic firm based in 2008 that operates in 27 states and employs no less than 45 individuals in Johnson County from its location at 323 W Cherry St. in North Liberty.
The corporate contracts to put in photo voltaic panels and electrical car charging stations in properties, companies, farms and different places. Its providers embody work on photo voltaic panels, inverters, power storage batteries and charging stations for electrical automobiles, plus monitoring software program from manufacturers similar to LG, Panasonic and Tesla, in response to the Higher Enterprise Bureau.
A few of Johnson County’s most distinguished photo voltaic arrays have been put in by the corporate together with one at Tiffin Metropolis Corridor, one other that helps energy the North Liberty Streets Division, and the array that powers the secondary roads division in Johnson County. County.
The corporate was run by CEO Jason Corridor till not too long ago when he parted methods with the corporate after a number of lawsuits and client complaints. It additionally beforehand employed North Liberty Mayor Chris Hoffman and well-known enterprise proprietor Mark Nolte earlier than each left.
Who owns Moxie Photo voltaic and what occurred to its earlier possession?
Earlier than Corridor left Moxie Photo voltaic, the corporate was bought by Chicago-based funding agency Lorentzen Investments and positioned below new administration below COO Travis Eichelberger and CFO Keith Fuglaar. Pugh, Hagan and Prahm legal professional Siobhan Briley stated the agency supposed to avoid wasting the corporate from its funding.
Corridor was CEO for a number of years earlier than his departure, overseeing the corporate’s interval of main development from a neighborhood photo voltaic firm to at least one that the corporate typically touts on its social media and the web site one in every of America’s main photo voltaic corporations.
Corridor is now in search of buyers for his new firm, MSI Diversified Inc. in response to Briley, however he stated he does not know what Corridor’s intentions are with the corporate’s operations.
Why is Moxie Photo voltaic closing?
Moxie Photo voltaic has come below hearth from clients throughout the nation who’ve submitted client complaints to the Iowa Legal professional Common and a few have filed lawsuits in opposition to the corporate. The handfuls of complaints and no less than two lawsuits at giant all contradict one another and allege the corporate’s inaction throughout the COVID-19 pandemic on tasks which have already value hundreds -thousand {dollars}.
Moxie Photo voltaic additionally misplaced its A+ ranking and accreditation by the Higher Enterprise Bureau, which acquired 50 complaints final yr from disgruntled clients.
The corporate attributed the problems it confronted to the macro-economic issues confronted by nearly all different companies throughout the COVID-19 period together with inflation, labor shortages, supply-chain shortages of key components and uncooked supplies. The corporate stated the struggles mixed with elevated demand for photo voltaic panels harm its skill to finish tasks in a well timed method.
Briley stated that when new buyers entered the corporate earlier this yr, they anticipated to take a position a sure sum of money. He stated the corporate’s legal responsibility exceeded what they’d deliberate to take a position and so they weren’t ready to supply the extent of funding.
“Simply given a lot of elements, together with the small enterprise affect of COVID, they do not have the assets to carry Moxie again from all of the monetary hits and liabilities it is taken,” Briley stated.
Moxie Photo voltaic additionally seems to have halted a deliberate $10 million manufacturing plant.
Are different photo voltaic corporations experiencing the identical issues as Moxie Photo voltaic?
Larry Steffen, the proprietor and government of Dubuque-based Eagle Level Photo voltaic and who sits on the board of and helped discovered the Iowa Photo voltaic Vitality Commerce Affiliation, stated what occurred to his competitor is dangerous and does not wish to hurt the corporate. however there’s a mess that must be cleaned and his firm is keen to assist.
Steffen confirmed that final yr the photo voltaic business confronted provide chain points, delays in paperwork from utility corporations and native governments, which aren’t distinctive to the photo voltaic business alone. He stated this appears to have been exacerbated by supply-chain points within the economic system throughout the COVID-19 pandemic which resulted in some tasks not being accomplished in a well timed method.
“All of us cope with it and I believe it is the way you deal with that and the message you ship to your clients in regards to the delay. ,” he stated.
Steffen stated the photo voltaic power business is doing effectively regardless of Moxie Photo voltaic’s struggles and stated if a photo voltaic firm is not busy, they’re most likely not a very good photo voltaic firm. He stated that features Eagle Level Photo voltaic and others in Iowa.
What occurs to buyer contracts whereas the corporate closes?
Briley stated the corporate is taking part within the statutory “wind course of” and can conduct an orderly closure of all these concerned within the regulation. Articles of dissolution had not been filed with the Iowa Secretary of State as of Monday, however the enterprise location at 323 W Cherry St. no exercise after 9 on Monday morning.
Beneath the wind down course of, the corporate responds to its obligations and cash owed to secured collectors and unsecured collectors. It is unclear whether or not unsecured collectors, who haven’t got the identical protections, will probably be paid cash owed by Moxie Photo voltaic for incomplete tasks.
Steffen advised the Press-Citizen that many previous clients have reached out to his firm for assist, assist and to see if the corporate can full tasks. He stated the corporate is doing its finest to assist by its service division.
What lawsuits are pending in opposition to the photo voltaic firm?
There are two main civil lawsuits filed in opposition to Moxie Photo voltaic in Iowa. One is from North Liberty residents Josh and Mackenzie Bates who declare the corporate didn’t ship and set up an Enphase Encharge 10-kilowatt battery and failed to put in a correct system of racking and sure skirting for the array of their property. The couple requested the courtroom to enter judgment in opposition to Moxie Photo voltaic for damages, legal professional’s charges, and another reduction the courtroom deems simply.
The couple’s August contract with the photo voltaic firm detailed a $42,682 challenge to be paid for in two installments. The lawsuit says Moxie Photo voltaic failed to put in the proper racking system that month and acknowledged the error in December.
This case is scheduled for a trial in September 2023.
Axiom Consultants, an engineering consulting and design agency in Iowa Metropolis, filed a lawsuit in September in opposition to MSI Diversified Inc., doing enterprise as Moxie Photo voltaic, alleging the photo voltaic firm didn’t make full funds. for providers offered by Axiom to the corporate, together with structural assist merchandise and energy line inspections, valued at $42,605, between July 2021 and April 2022.
Axiom alleges in its lawsuit that the photo voltaic firm didn’t reply when it demanded cost in full or in increments of $5,000 plus curiosity on or earlier than Sept. 15, 2022. The corporate additionally by no means paid, Axiom says.
The lawsuit alleges breach of contract and unjust enrichment. Axiom requested for a jury trial.
In a response to the lawsuit, Moxie Photo voltaic’s attorneys denied any wrongdoing. They stated Axiom didn’t state a declare upon which reduction may very well be granted and blamed Axiom for any harm or injury.
How can Moxie Photo voltaic clients file a client grievance in regards to the firm or get assist from the Iowa Legal professional Common’s Workplace?
The Iowa Legal professional Common’s workplace Shopper Safety Division permits individuals to submit complaints about an organization’s services or products. The workplace’s web site supplies steerage on methods to make a grievance successfully and supplies recommendations on what to incorporate in a grievance.
The workplace advises that clients first attempt to resolve complaints immediately with the corporate earlier than going to the Iowa AG.
The web client grievance kind is on the market at https://www.iowaattorneygeneral.gov/for-consumers/file-a-consumer-complaint/complaint-form. A printable kind can also be accessible for obtain on the Iowa AG web site.
George Shillcock is the Press-Citizen’s native authorities and improvement reporter overlaying Iowa Metropolis and Johnson County. He may be reached at (319) 214-5039, GShillcock@press-citizen.com and on Twitter @ShillcockGeorge
