When a Solar Company Goes Bankrupt: What Happens to Homeowners?

When the Installer Disappears

In recent years, several residential solar companies have filed for bankruptcy or abruptly ceased operations, leaving homeowners uncertain about what happens next.

When a solar company shuts down, questions arise quickly:

Who honors the workmanship warranty?
Who services malfunctioning panels?
Does financing continue?
What happens to monitoring systems?

Bankruptcy does not automatically cancel a solar agreement. In many cases, financing contracts remain active — even if the installer disappears.

The Immediate Impact on Homeowners

Reported concerns from affected homeowners include:

Inability to access customer support
Warranty claims going unanswered
Monitoring apps ceasing to function
Service appointments canceled indefinitely

If a system stops producing, homeowners may still owe payments under financing agreements.

This disconnect between service availability and financial obligation can feel deeply unfair.

Understanding the Legal Structure

Residential solar agreements often involve separate entities:

The installation company
A financing lender
Equipment manufacturers
Third-party monitoring services

If the installer declares bankruptcy:

The lender may still own the loan.
The panel manufacturer warranty may still apply.
Service obligations may transfer — or may not.

The outcome depends entirely on the contract structure.

Warranty Versus Workmanship

Two types of warranties typically exist:

Equipment warranty (panels, inverters)
Workmanship warranty (installation quality)

If the installer provided the workmanship warranty and dissolves, homeowners may struggle to enforce it.

Equipment warranties usually remain intact — but filing claims can be complex without the original installer.

Financial Obligations Continue

Solar loans are often held by financial institutions separate from the installer.

Even if the installer closes, loan payments typically remain enforceable unless:

The contract provides specific termination clauses
The system is permanently nonfunctional
A negotiated settlement occurs

This separation surprises many homeowners.

If Your Solar Company Closed

If you are facing:

An installer that no longer responds
A bankrupt company
Unclear warranty coverage
Continued loan payments

It’s important to:

Identify the financing entity.
Locate your equipment warranty documentation.
Review your workmanship warranty language.
Determine whether servicing rights were transferred.

The structure of your agreement determines your options.

A Stabilizing First Step

Help Solar Exit works with homeowners navigating post-bankruptcy confusion.

We help clarify:

Who currently holds your contract
What warranty coverage remains enforceable
Whether renegotiation may be possible
What realistic next steps exist

Bankruptcy doesn’t automatically erase obligations — but it doesn’t eliminate options either.

Understanding the structure is the first move.

Industry Context

As solar markets mature, consolidation and company failures are not uncommon.

Homeowners benefit from reviewing:

Financial stability of providers
Warranty backstopping
Contract survivability clauses

Unfortunately, many only learn these lessons after a closure occurs.

Learn More

For additional context, review:

Public consumer-protection updates from your state Attorney General’s office
Bankruptcy docket filings for the installer or parent company
Warranty and servicing terms in your original contract package