Major Solar Companies That Have Failed
The following major solar companies have filed for bankruptcy or ceased operations, leaving customers without support:
| Company | Year | Affected Customers |
|---|---|---|
| SunPower | 2024 | Thousands |
| Titan Solar Power | 2024 | 50,000+ |
| Pink Energy (Power Home Solar) | 2022 | 30,000+ |
| Sungevity | 2017 | 15,000+ |
| SunEdison | 2016 | Commercial |
| Vivint Solar | Acquired | 200,000+ |
What Happens When Your Solar Company Goes Bankrupt
Warranties Become Worthless
The company's workmanship warranty and service guarantees are no longer enforceable. Equipment warranties from manufacturers may still apply.
No More Customer Support
You lose access to monitoring systems, maintenance services, and technical support for your solar installation.
Payments May Continue
If your lease or PPA was sold to a third-party investor, you may still be obligated to make payments even though the installer is gone.
Liens Remain on Property
UCC-1 financing statements filed against your property remain in place, potentially complicating home sales or refinancing.
System Issues Are Your Problem
Any repairs, maintenance, or system failures become your responsibility to address and pay for.
5 Steps to Take Immediately
If your solar company has filed for bankruptcy or ceased operations, take these steps right away:
1. Document Your System
Take photos of your solar installation, inverter serial numbers, and any visible issues. Save all contracts, correspondence, and payment records.
2. Check Your Financing Structure
Determine if you have a lease, PPA, or loan. Find out if your contract was sold to a third-party investor, as this affects your obligations.
3. Contact Your Utility Company
Ensure your net metering agreement is still active. Your utility should continue crediting you for excess power regardless of the installer's status.
4. Review Your Warranty Coverage
Check if panel and inverter manufacturers offer separate warranties. These may still be valid even if the installer is bankrupt.
5. Consult a Consumer Protection Attorney
An attorney can review your contract, identify legal options for exit, and determine if you have grounds to stop payments or remove liens.
Your Legal Options
Bankruptcy can actually create opportunities to exit your solar contract. Here's why:
- Breach of Contract: The company's inability to provide promised services (monitoring, maintenance, warranty support) may constitute a material breach, giving you grounds to terminate.
- Failure of Consideration: If you're paying for services that can no longer be provided, the contract's fundamental purpose has failed.
- Consumer Protection Claims: If the company engaged in deceptive practices before bankruptcy, you may have claims that survive the bankruptcy.
- Lien Removal: An attorney can help remove UCC-1 liens from your property, especially if the underlying contract is voidable.
Frequently Asked Questions
What happens to my solar panels if the company goes bankrupt?
Your solar panels remain on your roof and continue to generate electricity. However, your warranty becomes worthless, you lose access to monitoring and support, and you may still be obligated to make payments to a third-party financier who purchased your contract.
Do I still have to pay for my solar lease if the company is bankrupt?
It depends on your contract structure. If your lease was sold to a third-party investor (common practice), you may still owe payments. However, the bankruptcy may provide legal grounds to challenge or exit the contract, especially if the company failed to fulfill its obligations.
Can I get out of my solar contract if the company went bankrupt?
Yes, bankruptcy often creates legal opportunities to exit your contract. Grounds may include breach of warranty, failure to provide promised services, or the company's inability to fulfill contractual obligations. An attorney can review your specific situation.
What solar companies have gone bankrupt?
Over 100 solar companies have filed for bankruptcy since 2023, including SunPower, Titan Solar, Pink Energy (formerly Power Home Solar), Sungevity, SolarCity (before Tesla acquisition), and many regional installers. The industry has seen significant consolidation and failures.
Who is responsible for my solar system warranty now?
When a solar company goes bankrupt, warranties are typically worthless unless another company acquires the assets and honors them. Panel manufacturers (like LG, Panasonic, or Qcells) may still honor their equipment warranties separately from the installer's workmanship warranty.
Can I remove solar panels from a bankrupt company?
Removing panels is complex. If you own the system outright, you can remove them. If you have a lease or PPA, the panels may be owned by a third party with a lien on your property. Removing them without resolving the contract could result in legal action.