What do I do if my solar installer goes out of business?

The solar industry is navigating a significant transition in 2026 following the expiration of the federal solar tax credit. That, paired with higher interest rates and energy policy changes, has left some solar companies struggling to stay in business in recent years. Major companies like Sunnova, Titan Solar Power, and ADT Solar have already gone under, leaving thousands of customers unsure of what to do with their solar panel systems.

In many cases, solar companies that file for bankruptcy are acquired by other installers, which tends to be good news for customers because acquisitions usually result in the least disruption to your service. But there are options for homeowners left with "orphaned" solar systems, whether due to an installer bankruptcy or any other issue.

If your installer isn't taken over by another solar company, one of the first things you should do is reach out to your solar panel manufacturer, said Michael Skipper, a service coordinator at Exact Solar. 

“Typically, it's a good rule of thumb to reach out to the manufacturer of the solar system to get a list of installers who are certified to work on their equipment,” Skipper said. “There are instances where if you don't have a certified installer working on your system, those warranties would be determined to be void.”

Making sure your warranty remains valid will offer you peace of mind as you navigate transferring your service to a new solar provider, if that's what you need to do.

The fact that a company has filed for bankruptcy doesn't necessarily mean that its customers will lose support for the products or services that they've purchased. In the U.S., filing for Chapter 11 bankruptcy sets off a reorganization process that allows the company to keep its business alive and pay its creditors over time. Historically with the solar industry, the buyer in many cases has taken over responsibilities such as upholding warranties.

If your solar equipment manufacturer itself files for bankruptcy, there are a few ways to avoid being left without a production or equipment warranty.

1. Buy an extended warranty

One option for hedging against solar manufacturer bankruptcy concerns is to purchase an extended warranty from your solar installer, which can cover everything from repairs to replacing your panels. This way, if your equipment manufacturer goes out of business, your installer is still contractually obligated to honor its warranty. Warranties will vary from company to company, so make sure to read the fine print so you understand what’s covered and what’s not. However, if both your installer and manufacturer end up bankrupt, you could risk losing any warranty protection.

2. Insure your solar installation

Many insurance companies now offer plans for renewable energy and solar; covering your installation with one of these plans will protect you from defective panels, decreasing output, and other damage to your solar array. While expensive, these policies can also cover installation and operations damage, power output, and general equipment health. It is important to remember that you may end up spending the same amount of money on replacing parts like inverters or single panels as you would entering an insurance agreement.

3. Buy from a warranty-insuring manufacturer

The safest way to prevent being left without a warranty from a bankrupt solar manufacturer is to buy your panels from a warranty-insuring manufacturer. A warranty-insuring manufacturer commits their warranties to be held up through third-party backing even if they declare bankruptcy.

Depending on whether you're working with a large, national installer or a local company only servicing areas near you, an installer bankruptcy may affect you differently.

Large-scale/national installers

Large solar companies declaring bankruptcy have been in the headlines recently, but this is certainly not the first time. Often, when a major solar company declares bankruptcy, the assets are purchased by other solar companies or an equity fund. When another company acquires a bankrupt solar company, it benefits because it’s able to acquire the existing customers without any additional costs. For example, when Sungevity went bankrupt in March 2017, Northern Pacific Group purchased the company, and Sunrun acquired the existing solar financing agreements. As part of the agreement, Sunrun became the solar service provider for Sungevity customers resulting in continuity of service. 

A similar outcome occurred with SunPower's 2024 bankruptcy. Complete Solar purchased some of SunPower's assets in a transaction that closed on September 30, 2024, and subsequently changed its name to SunPower, resurrecting the name of one of the US' longest-running solar companies. This means that most of SunPower's existing customers shouldn't have experienced any interruption in their service, as the new SunPower continues to honor existing warranties and service agreements.

Small/local installers

As with large installers, local companies facing bankruptcy will often be bought by a separate entity that will take responsibility for all the installer services initially promised to customers.This means that although the name of the company servicing your panels will change, the promised services won't.

However, not all small installers will be bought by a larger company. Because of this, it may be wise to consider investing in a solar panel operations and maintenance (O&M) plan. O&M plans are purchased through separate companies not involved in installing your solar panels. It means even if your local installer goes bankrupt, your O&M provider will still work to diagnose and repair issues your installer would have handled, such as cleanings, electrical systems maintenance, and general system inspections.

Just a reminder: Even if your installer goes out of business, your panels are still covered by the manufacturer’s equipment and production warranties. These warranties typically guarantee around 80% electricity production capacity over 25 years and materials coverage for 10 to 25 years. You can contact your equipment manufacturer, who will likely be able to connect you with a contractor who can diagnose and repair your damaged or faulty system for a one-time fee.

If you took out a loan to pay for your solar panel system, in most cases you’ll still be responsible for making your monthly payments and paying off the full amount you borrowed from your lender. Although in some rare cases, a change in the terms may be possible, according to Skipper.

“It’s worth reaching out to your loan provider to see if they’ll do any kind of loan forgiveness or modification,” he said, adding that he’s seen a handful of cases where a court ultimately ruled in favor of the customer and gave them a break when it came to their loan agreement.

The good news is that because you own your system, you have complete flexibility in choosing any certified solar contractor to perform maintenance or repairs. Your equipment manufacturer can provide a list of qualified service providers in your area who can work on your system while keeping your warranties intact.

If you have a solar lease or power purchase agreement (PPA), the situation is actually simpler than it is for system owners. Since you don't own the equipment on your roof, you're not responsible for maintenance, repairs, or finding replacement service providers.

With a lease or PPA, the solar company that owns your system is contractually obligated to maintain it and ensure it's producing electricity as promised. When a solar company with lease or PPA customers files for bankruptcy, these customer agreements are typically one of the most valuable assets acquired by the purchasing company.

This means:

• Your monthly payment terms stay the same (unless the agreement allows for modifications)

• The new company assumes all maintenance and repair responsibilities

• Your production guarantee remains in effect

• You continue to benefit from the electricity your system produces

If your leasing company goes bankrupt and isn't immediately acquired, contact them directly to understand the transition process. In most cases, you'll receive communication from both the old company and the acquiring company explaining how the handoff will work.

While the residential solar landscape has shifted, there are plenty of support options for orphaned systems. And ultimately, the fundamentals remain strong—solar continues to deliver substantial long-term savings through reduced electricity bills.