Sales-Only Companies That Subcontract the Install

The person at your kitchen table may work for a company that has never installed a solar panel. In residential solar, it’s common for a “dealer” or sales organization to sell the contract, a separate installer to do the work, and a third company to provide the loan or lease. That setup isn’t illegal, and some subcontracted installs are excellent. The problem is accountability: when a roof leaks or production comes up short, you need to know who is responsible.

Why it happens

Selling and installing are different businesses. Sales organizations, often door-to-door, earn commissions by signing contracts. Installers earn money by building systems. Lenders and lease companies earn money on the financing. Splitting these roles lets each one grow fast, but it also means the person making promises to you may have nothing to do with the people keeping them.

Our installer research shows how common this is among the largest companies:

• Sunnova owned or financed systems that independent dealers sold and installed. Complaints after its 2025 bankruptcy included dealers exiting and customers being bounced between the dealer and Sunnova on warranty claims.
• Freedom Forever sold through a large network of independent sales dealers, with installs by in-house crews and subcontractors. It went bankrupt in 2026.
• Titan Solar Power was an installer for many sales dealers. When it closed in 2024, customers still owed their loans with no installer support.
• Sunrun uses a mix of in-house crews and a large dealer network that sells and installs systems Sunrun owns.

How it shows up in your paperwork

• The seller named in the contract is different from the contractor listed on the permit.
• The contract says the seller “may engage subcontractors” or “licensed partners.”
• The warranty section names a different company than the one that pitched you.
• The loan agreement lists yet another company as the lender.

None of these alone is a dealbreaker. Together, with a rep who can’t explain who does what, they are a warning sign.

Why it matters for you

Promises don’t transfer. If a sales rep told you “your bill will be $10” or “we’ll fix any leak for 25 years,” the installer and lender may say they never made that promise. Only what’s written in the contract counts.

Bankruptcies hit harder. If the sales company or installer fails, a subcontracted system may have nobody who knows its design or holds its permits. See installer bankruptcy risk.

Quality control is looser. Subcontractors paid per job have an incentive to finish fast. Equipment can also change between sale and install (see equipment substitution).

A quick worked example

Suppose a sales company quotes you an 8 kW system for $30,000 through its lending partner. An independent local installer that sells directly quotes the same size at $24,000 cash, which is about $3.00/W and right at the 2025 national median for cash purchases reported by LBNL. The $6,000 gap can include a sales commission, a dealer fee on the loan, or both, on top of the subcontractor’s price. You can check a quote’s markup with our dealer fee calculator.

Questions to ask

• “What is the legal name and license number of the company that will physically install my system?”
• “Are the installers your employees or subcontractors?”
• “Who pulls the permit and whose name is on it?”
• “Who issues the workmanship warranty, and who do I call for service?”
• “If your company closes, who services my system?”

Where to check and report

Look up any contractor’s license on your state contractor licensing board’s website before you sign. Compare quotes side by side with our quote comparison tool, and read how to compare solar quotes. If a seller misrepresented who would do the work, report it to your state contractor board, your state attorney general, and the FTC at reportfraud.ftc.gov. For door-to-door pitches specifically, see our guide to door-to-door solar sales.