The company, that traded across Australia as Australian Solar Panel and also operated an affiliate company called Euro Solar, has also been accused of faking video and written testimonials about their product using people who were not customers of the business.
Euro Solar director Nikunjkumar "Nick" Patel claims that they were "not trying to deceive anyone".
The ACCC claim that the companies are facing injunctions, fines and publication orders if they are convicted of violating federal consumer laws by making false and misleading claims.
The ACCC has initiated proceedings against the companies in the federal court in Adelaide with a scheduling conference set for July 8.
ACCC chairman Rod Sims said "Consumers should be able to rely on the accuracy of labels, especially when they are prepared to pay a premium for products made in Australia," he said.
"Australian consumers are increasingly relying on online consumer reviews to inform their purchasing decisions. Fake testimonials can mislead consumers...and harm competitors who do the right thing."
The Managing Director of Aussie Made Solar Gino Fiocco who reported the company to the ACCC told the Brisbane Courier Mail, "There are more sharks in this industry than there are in the ocean," he said.