This story is a part of the CBJ’s Newsmakers edition. This year-end wrap-up from the staff of the Corridor Business Journal is a compilation of the year’s most noteworthy articles and projects, as told through stories that appeared in the bi-weekly issues of the CBJ.
This was the first of a five-story series, detailing the closure of Moxie Solar and its implications. Originally published in February 2023.
Once a rising star in the solar industry, Moxie Solar failed to adequately care for its customers and properly install solar facilities for its clients, a Corridor Business Journal investigation finds.
Moxie Solar was a North Liberty-based solar installation company founded in 2008 by CEO and president Jason Hall. First operating under the name Greenhall Industries, the company flourished in a burgeoning industry and diversified into other renewable energy ventures, including VERV Auto Sales, a used electric vehicle dealership.
This investigation explores the underlying strategic business decisions behind the company’s rapid expansion and sudden demise, leaving installation crews unable to fulfill orders while leadership forged ahead with lofty goals of constructing a mixed-use entertainment district, solar panel manufacturing facility and more.
Moxie customers detailed their experience with the company, including many who are unlikely to recoup damages in full. With Moxie’s permanent closure Dec. 5, some customers are on the hook for tens of thousands of dollars and few options to remedy the situation.
Former employees blamed poor decision-making (in some cases acknowledging the luxury of hindsight) from leadership — a team that included Mr. Hall, his wife Jenn Hall, his sister and senior vice president Lee Anne Dicecco, and COO Travis Eichelberger, the current CEO of upstart True Solar Iowa — as well as struggles obtaining equipment and an organizational structure unable to cope with a massive surge of sales as primary factors for the disarray. These factors, and more, caused a staggering number of complaints to hit the desk of the Better Business Bureau and state attorneys general across the country.
Documents shared with the CBJ show Moxie made recurring errors in engineering plans, was unreliable with meeting previously agreed-upon timelines and ignored customer concerns for months, among other problems.
An out-of-state investment group attempted to save the cash-stricken company in 2022, but the group closed Moxie’s doors for good, later claiming in a lawsuit the previous ownership team misrepresented the value of assets and liabilities by more than $6.5 million prior to the acquisition.
Creditors allege Moxie, at a minimum, breached contracts. In another case, one equipment supplier claims the owners used a real estate-focused tax deferment strategy that unjustly enriched Mr. Hall under an entity called Ralos Eixom LLC — Moxie Solar spelled backward.
In this multi-part investigative series, we look at how Moxie Solar rose to prominence, the company’s grand ambitions, how it attempted to resolve a cash flow crisis spiraling out of control, the lawsuits key players now face, as well as look at what former Moxie leadership is up to now.
The CBJ spoke to former employees, affected customers, industry professionals and government officials for the exclusive stories.
Mr. Hall and Ms. Dicecco did not respond to multiple interview requests.
Newsmakers update
A year later, customers still in the dark after Moxie fallout
Jeremy Zumbach, a veteran and resident of Marion, is a former Moxie customer the CBJ interviewed back in February. As of this update, Mr. Zumbach has received no resolution from the company. “Never received a dime,” he said.
“As part of the bankruptcy proceedings, I provided all my details to the court in Wisconsin, which is where they decided to file the case in Madison,” said Mr. Zumbach.
He said when the company initially went out of business, he decided not to pursue litigation, thinking it would be pointless considering the business filed for bankruptcy. The average customer — whom he referred to as an unsecured creditor — got the short end of the stick. Distributors and government agencies were given priority over everyone else, he said.
“I wish the courts would’ve sent us something saying you are entitled to zero dollars due to XYNZ, but we got nothing,” he said.
ECG Solar, an Anamosa company, stepped in and provided free labor and solar equipment to Mr. Zumbach after word got out about his predicament.
“I feel bad because I was somewhat made right, whereas many others are about tens of thousands of dollars that have nothing to show for it,” he said.
Patricia Davis Prichard, of North Carolina, is one of those customers owed thousands of dollars. Ms. Prichard and her husband entered into a $69,000 contract with Moxie in early 2021. In a February CBJ article written by Noah Tong, Ms. Davis Prichard stated she had called Moxie’s North Carolina service line for two years with no luck, and said she took time off work without pay five times only for installation crews to never show up. As of this update, there has been no resolution for the Prichards, either.
Panels that were installed were not connected properly, panels on the garage are still precariously loose and the installation has caused leaking, batteries delivered were obsolete and could not be installed, and while they were upcharged for high-quality products, cheaper products were used in the
installation.
“They’re car salesmen, but for solar,” said Ms. Davis Prichard.
Ms. Davis Prichard said they have a consultation with an attorney Dec. 8 on legal recourse for SunPower, which had Moxie install its equipment, and Sunlight Financial, which financed the loan and paid Moxie in full for a completed project which was never finished to begin with.
“If an attorney can’t help us, we’re at an impasse,” she said. “(We) don’t have the financial ability to pay.”
“It’s been 2 ½, three years of absolute nightmare,” she said.
Former employee learns from Moxie’s mistakes
Former Moxie COO Travis Eichelberger has since branched off and created his own solar company, True Solar, which has employed former Moxie employees and gained an estimated 65 former Moxie customers, finishing their installations.
To differentiate themselves from Moxie and be successful, True Solar has aimed small and performed the work themselves, rather than use subcontractors.
“Our largest focus is staying small, and staying selective,” said Mr. Eichelberger. “We don’t want to do it all, and we don’t want to grow just to grow. We’d rather simply do a very good job for each customer and project that we decide to take on.”
Mr. Eichelberger said the company has been “well received,” but also experienced numerous inquiries after Moxie closed its doors regarding the relation between the two companies. “The association is understandable,” he said.
Eric Hartmann, attorney with Lane & Waterman LLP who is familiar with the case, said New Moxie Solar, LLC filed for receivership in Dane County, Wisconsin in January.
“All known creditors and claimants were provided notice, including instructions regarding submission of a proof of claim,” he said in an email to the CBJ. “I am not able to comment upon the status of the receivership proceedings or the status of pending litigation.”
The Iowa Attorney General’s office could not be reached for comment. As of this update, the Iowa courts report approximately $830,000 in compensation is being sought from former Moxie customers in Iowa alone.
— Annie Barkalow
