Imagine the unthinkable happens.
Your solar installer goes out of business.
Okay. It’s actually not unheard of for solar companies to suddenly close in an industry as unpredictable as the solar industry. Many well-known solar companies have actually closed their doors in recent years due to economic challenges or from getting caught in policy shifts. And homeowners who find themselves in this tricky situation are left wondering what to do with solar panels on their roofs and no company to maintain them.
But if this is you….don’t fret!
Here is an overview of some next steps you can take if your solar installer goes out of business, so you can feel in control and determine the best way to ensure your solar panels are properly taken care of.
Solar Companies That Have Closed Recently (2024 – 2026)
Over the past two years, quite a few solar companies have closed their doors due to reasons like rising interest rates and shifting policies. Here are some prominent clean energy providers that closed in the 2024-2026 period:
- Sunnova
- Pink Energy
- Solar Mosaic
- SunPower
- Lumio Holdings
- Posigen
- Solgen Power
- Freedom Forever
- Titan Solar Power
- Solcius Solar
So What Do You Do If This Happens To You?
1. Don’t panic and gather your documents
First of all, take a deep breath. Your solar system is not doomed.
Even though solar companies can close their doors unexpectedly, your solar panels remain operational. The main question is simply who will take over the management or service of your panels.
So before you do anything else, make sure all your paperwork is in order.
Gather your original documents like your original contract, equipment info, financing contracts, system design and warranties. Also dig out any records of previous maintenance or repairs done on your system.
Having all the necessary documents on hand will make it much easier for another company to get up to speed if you decide to have them take over servicing of your solar panels.
2. Find out who can take over your system
The unfortunate reality is there’s a strong chance most companies won’t want to take over your system. This is because doing so often carries quite a bit of risk for them. For instance, simply doing repairs on a previously installed system incurs new costs and could actually make them lose money. Also, if the previous company did a poor job on the system install, the new installer could become liable for any defects in the system even if they try to fix them.
But this is still manageable! For one, find out if your original installer was either acquired by another company or even merged with one. In the case of an acquisition, the parent company is also known as a “successor company” and would now be responsible for honoring existing agreements between you and your previous installer. Your account would effectively be grandfathered into the successor company and they would formally take over your solar system. A great real-life example of this is how a few months after filing for bankruptcy in 2024, residential solar company Lumio Holdings Inc (and all its assets) were fully acquired by Zeo Energy, a Florida-based company specializing in residential solar and energy efficiency solutions.
However if that doesn’t pan out, consider simply searching for a new provider. As mentioned above, some companies may not be thrilled to take over an existing system due to the potential risks. In that case, signing up with a company that specializes in service and maintenance may be your best option.They can handle routine maintenance like panel cleaning, inverter inspection and damage checks. They could also help with tracking your system’s performance to ensure it continues to generate energy at maximum efficiency.
3. Understand your warranties
Even if your installer shuts down operations, having the correct warranty information provides you with the guidance you need to determine who can take over any claims regarding your system.
There are two types of warranties for you to watch out for:
- Manufacturer warranties: these are provided by the manufacturers of your solar equipment (ex: your solar panels and inverters). So even if your original solar company goes out of business, your manufacturer warranty could still be valid. If any issues come up with your equipment, this is the best resource to find who to contact for help.
- Workmanship warranties: this one comes from your installer’s side and safeguards the quality of your installation. This is one you want to pay attention to because if your installer goes out of business, the warranty may become invalid, forcing you to find a new installer to take over the care of your system. Still, confirm this is the case by checking all the necessary paperwork first.
4. Cover your bases and look into consumer protections
Whichever option you go with, make sure to do your due diligence.
Contact your local public utility commission and ask about any consumer protections that may exist for your situation. Some programs could assist you with warranty claims. Others can help you pursue financial claims or legal action needed for incomplete or faulty installations.
Also, if you do decide to go with a brand new installer, make sure to do your research before signing any agreement with them! Determine how long they’ve been in business, where they operate and look up any customer reviews you can find. You also need to confirm that they have the correct certifications and are properly licensed to handle your system and the equipment used with it.
Asking the right questions is imperative so you can feel confident that your solar system is well maintained by professionals, whether or not you end up having to deal with a similar situation in the future.
Losing your solar installer is not the end of the world! With the right approach and support, your panels can continue to work just fine for decades to come. If you are interested in learning more about residential solar or any of the other energy solutions we offer, reach out to our team and we will help you find the option for your needs!