Since 2023, more than 100 U.S. solar companies have filed for bankruptcy or ceased operations, leaving thousands of homeowners uncertain about their warranties, service agreements, and financing. If your installer, financier, or servicer is one of them, here is what you need to know.
What Happens to Your Warranty?
Most solar installations come with two separate warranties: an equipment warranty from the panel or inverter manufacturer, and a workmanship warranty from your installer. When an installer goes bankrupt, its workmanship warranty typically becomes difficult or impossible to enforce, since there is no longer a company to honor it. Equipment warranties from manufacturers may still be valid, but you will likely need to pursue a claim directly with the manufacturer rather than through your original installer.
What Happens to Your Loan or Lease Payments?
If you financed your system through a loan, lease, or power purchase agreement (PPA), your payment obligations typically continue even if the installer goes out of business — the financing company is usually a separate entity from the installer. However, if the financing company itself has filed for bankruptcy, your account may be transferred to a new servicer, or you may need to participate in the bankruptcy proceeding to protect your interests.
What Are Your Options?
- Review your original contract for any assignment, warranty, or arbitration clauses.
- Check whether your system’s equipment manufacturers are still operating and honoring their warranties directly.
- Determine whether the bankruptcy filing includes a claims process you can participate in.
- Get an attorney-supported review of your specific documents before assuming you have no recourse.
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