What To Do When Your Solar Company Goes Out of Business

October 23, 2024

With the recent closures of solar industry giants like Titan Solar Power and SunPower, many homeowners have been left withare stuck with systems that may not be working and no one to service them. When a solar company goes out of business, it negatively impacts not just the homeowners, but the reputation of the solar industry overall.

It’s frustrating for homeowners to call their original installer only to find out they’re no longer in business and unable to service the system they sold and had warrantied. While some out-of-business installers are honoring their warranties, many more leave homeowners hanging.

If your solar company goes out of business, your next steps depend on where in the installation process you are. In this guide we will help you navigate the waters and provide some valuable solutions.

My solar company went out of business, now what?

Despite record growth for the solar industry, since 2020, per PV magazine, the past year has seen a six-fold increase in residential solar installer bankruptcies compared to the last five years.

We’ve assembled and updated a list of companies that have gone out of business and the fully updated and complete list can be found here. The list includes names like:

Titan Solar Power
SunPower
Pink Energy (also know as Power Home Solar)
ADT Solar
Infinity Energy
ASA – American Solar Advantage
Vision Solar
Solcius
Kayo Energy
Lumio
Harness Power
Erus Energy
Suntuity Renewables

“Whenever a solar customer has no one to call for support, it damages the industry’s reputation and diminishes trust levels. As painful as it sounds, you can’t blame someone in this position for wanting to replace or remove their solar panels in the hopes that the same scenario will not be repeated”
Dean Chiaravallotti, CRO- Solar Insure

Regardless of whether your solar system is fully installed, in progress, owned, or leased, it’s important to take steps to protect yourself and prepare for future maintenance needs.

Documents You Need To Collect

Regardless of where you fall in the installation process or if you own the system or not, there are several documents that you need to collect and keep on file. These include:

Purchase or Lease Contract
Financing agreement (if applicable)
Permitting packet
Equipment data sheets (panels, inverter, battery)
Equipment Warranty Documentation
Inspection report (if installation has been completed)
Interconnection Agreement from utility
Incentive paperwork (if applicable for local incentives)
Permission to Operate confirmation (if the system has achieved PTO)

My Solar System Has Not Yet Been Installed

If your system is in the process of being installed or hasn’t yet been installed there will be more of a lift on you to have the work completed. First things first, make sure you have all the documents above, and if you can, inquire about where your project currently stands. Depending on where in the project lifecycle you are points you in the next direction. No matter where you are, you’ll need to begin looking for a new installer to complete your job.

If your solar project is in permitting, you’ll need to contact your city’s building department. Building permits typically have to have a contractor specified on them, and as your is out of business the permit may need to be withdrawn and resubmitted with the new contractor’s information. In rare cases, cities will allow you to edit the applications.

You will also need to contact your electric utility for the same reason as above.

If your project has an approved permit and is waiting to be installed, call the city building department and seek their guidance. They may be able to change the application to the new installer with some additional information about the company.

If you signed your contract shortly before the company announced it was going out of business and no work has been done on your system, you can likely cancel the entire agreement and begin again with a new installer. If you took out a loan for the system, contact the lender and explain the situation so they can help you cancel the financing.

My Solar System Has Been Installed But Does Not Have PTO

If your project install was complete but now the company is out of business, you’re almost all the way through but just have to get over one last hump – inspection.

Depending on the quality of work your solar installer did, you might be able to have the inspection and pass without needing a new installer intervention. However, it’s recommended that you contact a new solar install company and explain that you just need to pass inspection.

The new company may be able to assist you in the final steps or even come out to do an inspection of your system and ensure you’ll pass no problem. You (or the new company) will need to submit that passed report to the utility so you can achieve PTO. Inspections do expire, so if yours has already been done don’t delay in submitting the report.

My Solar System Is Fully Installed and Has PTO

what to do when solar company goes out of business

If you fall into this category of homeowner the actions required of you are minimal. Make sure you have the documents listed above, especially the interconnection agreement, inspection report, and any incentive paperwork.

If your system received permission to operate (PTO) shortly before the company announced its closure, you’ll want to be sure they filed everything with the utility and that your system is set to operate properly.

For active maintenance of future problems, you’ll likely have to hire a new solar company to perform maintenance. Some companies “honor” their workmanship warranties even after they go out of business by hiring a company to handle their maintenance, but that doesn’t mean it will be cost-free. Expect to pay for future labor costs.

If your system was leased, be sure to inquire about how the lease will function. Many leases or power purchase agreements go through a third-party company and would continue uninterrupted much like if you took out a loan. Your previous installer may have a third party they hire out to perform maintenance, or you may need to hire your own company to perform maintenance.

Monitoring

Additionally, make sure you have monitoring access from the manufacturer. Monitoring your system can sometimes happen through your installer’s portal, but is most often done directly from the manufacturer’s monitoring portal.

Without monitoring access, it will be much harder to know if your system is performing properly or if it needs maintenance. It’s also important to note not having monitoring can void your inverter warranty and have effects on production-based incentives.

Incentives

If your state or local community has incentives outside of the federal tax credit, make sure to contact the state agency in charge of the program and speak with them. They can guide you to a new solar company or another agency they work with to ensure your incentive obligations are fulfilled.
Many states have advocacy organizations that you can contact to help you in the event your solar installer goes out of business. Organizations like the Solar Energy Industries Association and state variants of that ground help homeowners and the industry alike.

What Happens My Warranties?

Solar systems come with warranties from the equipment manufacturers and from the company that installed the system.

Typically, the only warranty provided by the company is the workmanship warranty. Workmanship warranties are warranties given to guarantee the work done by the installers during the installation. These typically protect against improper installation, any damage done to the home during installation, and sometimes roof penetrations. When a solar company goes out of business, the workmanship warranty is typically voided. Important to note that workmanship warranties do not normally cover labor costs.

If the company you worked with provided an independent warranty like Solar Insure’s SI-30 Solar or SI-30 Total, you can contact Solar Insure and our expert team will connect you with another certified solar provider in your area to complete any maintenance at no cost to you.

Warranties on equipment will be unaffected by solar installer insolvency since those warranties come from the manufacturer directly. Homeowners may need to work through an installer to claim those warranties though as they often require testing and evidence of faults.

Ongoing Maintenance

As was mentioned above, once you’ve figured out how to get the system installed and collected all your paperwork there is still the need for ongoing maintenance. Solar systems are full of complex electric components that will likely need maintenance sometime over their 25-year lifetime.

Our extensive data repository gives us insight into equipment and the failure rates of that equipment. Our data indicates that in teh first two years, less than 1 in 800 microinverters experience failures, while approximately 1 in 350 string inverters experience failures in the same timeframe.

Click here to read our full report on inverter reliability.

While you can go and hire a new company to take over your system, there is an easier solution that provides far more comprehensive coverage…

SolarDetect By Solar Insure For Residential Solar

SolarDetect by Solar Insure brings back the support residential solar owners have been lacking. Backed by long-term protection, the new warranty helps reestablish confidence for those abandoned in the solar ownership process.

SolarDetect is a one-of-a-kind program that keeps homeowner’s systems running smoothly and protects their investment for the long term. SolarDetect helps protect homeowners with:

Proactive Monitoring: advanced software continuously monitors your solar system’s performance, detecting any anomalies or potential issues, and allows us to take immediate action and provide timely service to ensure your system operates at its best.
Complete Coverage: comprehensive coverage for your solar panels and inverters. Whether it’s a malfunction or a performance issue, our service guarantees that you’ll receive the support you need to keep your system up and running.
Low Deductible: If a claim needs to be made, our deductible is only $100. This means you won’t be burdened with high out-of-pocket expenses when you require assistance.
Affordable Pricing: Gain access to top-tier monitoring and warranty services. Compared to the potential costs of repairs or replacements, our service offers exceptional value and ensures your solar system’s longevity.
Reliable Insurance Partner: We’ve partnered with Zurich Insurance, a trusted industry leader, to provide you with the backing of a renowned insurance company. This means you can have confidence in the reliability and financial stability of our warranty coverage.

SolarDetect is currently available to residential customers in California, New Mexico, Texas, Arizona, and Utah with service to more states being added in the future. Visit the SolarDetect webpage and submit your application to get your coverage back.

Don’t leave your solar investment unprotected. Learn more about Solar Insure’s offerings and how SolarDetect can safeguard your future at solarinsure.com.

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