Installer Bankruptcy Risk Brushed Aside
We've been around for years and we're one of the biggest installers in the country. Our 25-year warranty means you're covered no matter what.
What's actually true
Several of the largest U.S. solar installers and lenders filed for bankruptcy between 2024 and 2026. When an installer disappears, its workmanship and roof warranties usually disappear too, but your loan or lease payments do not.
A solar system is a 25-year product often sold by companies that don’t last 25 years. Between 2024 and 2026, some of the biggest names in residential solar went bankrupt, and many homeowners were left with loan or lease payments but nobody to fix a leak or a dead inverter. Size and brand recognition are not protection. What protects you is knowing, in writing, who stands behind each part of your system if the installer is gone.
Why salespeople downplay it
A rep paid on commission has every reason to keep the conversation on savings, not on what happens if the company fails. “We’re the biggest” sounds reassuring. But the 2025 market shake-up showed that big companies fail too, especially after the federal homeowner tax credit (25D) ended for systems installed after December 31, 2025, which cut demand for cash and loan sales.
What actually happened (2024-2026)
These are court and press-documented failures from our installer research:
| Company | What happened | What customers were left with |
|---|---|---|
| SunPower (original) | Chapter 11, August 2024 | Leases serviced by SunStrong Management. Cash owners had to find independent servicers; workmanship warranties largely unrecoverable |
| Titan Solar Power | Closed June 2024, Chapter 7 | No successor servicer. Loan payments still owed to lenders |
| Sunnova | Chapter 11, June 2025 | Servicing sold to Solaris, run day to day by SunStrong. Lease and PPA contracts stay in force |
| Mosaic (lender) | Chapter 11, June 2025 | Loan terms unchanged; servicing moved to Solar Servicing LLC (Forbright Bank) |
| PosiGen | Chapter 11, November 2025, wind-down | Low-income lease customers with uncertain servicing |
| Freedom Forever | Chapter 11, April 2026, converted to Chapter 7 liquidation August 2026 | No buyer for contracts. Workmanship and roof warranties effectively lost; loans still owed |
The pattern is consistent. Manufacturer warranties on panels, inverters and batteries usually survive, because the manufacturer is a separate company. Workmanship and roof-penetration warranties usually do not, because the installer was the only company promising them. And financing always survives, because the loan or lease belongs to a lender or investor, not the installer.
How it shows up in a contract
Look for these phrases:
- “Installer warrants workmanship for 10 (or 25) years.” Ask: backed by what?
- “Warranty administered by [installer].” That means if the installer is gone, so is the administrator.
- An assignment clause letting your loan or lease be sold to another company. That’s normal, and it’s the reason your payments continue after a bankruptcy.
Watch out: A failed installer does not cancel your loan. Freedom Forever and Titan customers still owed lenders after the companies closed.
A worked example
Say you finance a $24,000 system and the installer goes under in year 4. In year 6 a roof penetration leaks. The workmanship warranty is gone, so you pay a roofer and a solar technician yourself. If the system must come off the roof for the repair, that’s a removal-and-reinstall job too. Meanwhile your loan payment continues every month. The panel manufacturer will still replace a defective panel, but often not the labor to swap it.
Questions to ask before you sign
- “If your company closes, who honors the workmanship and roof-leak warranty?”
- “Is your workmanship warranty backed by third-party insurance? What’s the insurer’s name?”
- “Do you install with your own crews, or a subcontractor?” (See sales-only subcontractors.)
- “Which manufacturer warranties apply, and do they cover labor if a certified installer is gone?”
- “Who owns my loan or lease, and who services it?”
How to lower your risk
- Favor installers with a long local track record and their own service crews.
- Compare at least three quotes using our quote comparison tool.
- Pay cash or use your own financing (a HELOC or credit union loan) so you aren’t tied to an installer’s lending partner.
- Keep serial numbers, permits and monitoring logins.
If your installer has already closed, read our guide on what to do when your solar company goes out of business. If a lender is demanding payment for a system that was never finished, file a complaint with the CFPB and your state attorney general. For warranty context, see solar panel lifespan and warranties.
Related red flags
"Everything Is Covered for 25 Years"
A solar system has several separate warranties: panel product, panel performance, inverter, and the installer's workmanship. They have different lengths, different backers, and often exclude labor or roof leaks. A warranty from an installer that goes out of business may be worth nothing.
Sales-Only Companies That Subcontract the Install
Many solar sales companies are dealers that sell the contract, then pass the installation to a separate company and the financing to a separate lender. When something goes wrong, each party can point at the others.
Loan Payments That Start Before the System Runs
Many solar loans start when the lender pays the installer, which can be at installation, long before the utility grants Permission to Operate. During that gap, you pay both the loan and your full utility bill.
"Tier 1 Panels" With No Model Numbers
The BloombergNEF Tier 1 list ranks manufacturers by bankability for large financed projects. It is not a quality, reliability or warranty rating, and nearly every mainstream panel brand is on it. Without model numbers, you can't compare quotes or check warranties.