Today, the Justice Department alleged Solar City overstated the cost of its solar energy properties by "submitting inflated claims on behalf of itself" to the U.S. Treasury Department.

As a result, the DOJ said company received more grant funding from the Treasury than they were supposed to.

SolarCity has agreed to pay out $29.5 million to settle claims, but the payment is not an admission of guilt.

As a part of the settlement, SolarCity has agreed to drop legal action they had against the U.S. government.

A SolarCity spokesperson released this statement:

“SolarCity accurately valued the solar energy systems in the applications it submitted for cash grants under the Treasury’s program, and it was entitled to the full amounts that Treasury ultimately approved and paid to the company after reviewing its applications."

The Justice Department's report said, beginning in 2009, SolarCity submitted thousands of Section 1603 claims on behalf of itself.

The settlement was the result of a joint investigation by the Treasury and the Civil Division's Commercial Litigation Branch.