It’s a homeowner’s worst nightmare. You invest thousands of dollars in a solar panel system, and a few years—or even months—later, you discover the company that installed it has vanished. Their phone number is disconnected, their website is gone, and a quick search reveals the worst: they have gone bankrupt. Your first thought is likely one of panic: What about my warranty? Who do I call if something breaks? And am I still responsible for paying off this massive loan?
This is a distressingly common scenario in the volatile solar industry. The good news is that you are not out of options. Understanding what happens when your solar company goes bankrupt is the first step to protecting your investment. This guide will clarify your rights and responsibilities regarding your loan, your warranties, and your path forward.
First, Understand Your Contract: Who Do You Actually Owe?
The most critical first step is to look at your paperwork and identify who your contract is truly with. In most cases, the installer was just one piece of a three-party puzzle.
- Scenario A: You Have a Solar Loan. This is the most common situation. Your installer sold you the system, but the financing was provided by a separate, third-party lender (popular ones include GoodLeap, Mosaic, or Sunlight Financial). In this case, your financial obligation is to the lender, not the installer. Even though the installer is bankrupt, your loan agreement remains active and legally binding. You must continue to make your loan payments as scheduled. The good news is that if there were deceptive practices involved in the financing itself, your dispute may be with the lender, who is still very much in business.
- Scenario B: You Have a Lease or Power Purchase Agreement (PPA). In this model, you don’t own the system. A large third-party solar company (like Sunrun or Sunnova) owns the equipment on your roof, and you pay them a monthly fee to use the power it generates. The company that went bankrupt was likely just a certified local installer subcontracted to do the physical work. Your contract is with the large parent company, and your obligations and their service responsibilities remain completely unchanged.
The Warranty Problem: The Good News and The Bad News
This is the biggest source of confusion. It’s crucial to understand that there are two different warranties for your system.
- The Installer’s Workmanship Warranty (The Bad News): This warranty covers issues related to the installation itself—leaks in your roof from poorly sealed mounts, faulty wiring, or improperly secured racking. Unfortunately, since the installation company is bankrupt, this warranty is likely void and unenforceable.
- The Manufacturer’s Equipment Warranty (The Good News): This is the key. The warranties on your physical hardware—the solar panels and the inverters—are provided by the manufacturers of those components (e.g., Enphase, SolarEdge, Qcells, Canadian Solar). These global companies are still very much in business, and your equipment warranty remains fully valid. If an inverter dies or a panel fails, you can still file a claim. You will simply need to find a different, certified local installer to perform the warranty service work, which is often paid for by the manufacturer.
What If You Were Already in a Dispute?
If you were already in the process of suing the solar company before they filed for bankruptcy, the situation becomes more complex. A bankruptcy filing typically triggers an “automatic stay,” which legally pauses all lawsuits against the company. However, this does not mean your options are gone. An experienced attorney will often pivot the strategy to focus on claims against other responsible parties, such as the finance company for TILA violations or the equipment manufacturer for warranty breaches.
Your Next Step: A Professional Assessment
Navigating a solar dispute after the installer has disappeared is complex. You need an expert to analyze your contracts, identify the remaining responsible parties, and document your case. This is precisely our role. We specialize in untangling these exact situations. We determine if your primary path forward is through a warranty claim with the manufacturer or a financing dispute with your lender. We then compile a comprehensive evidence file before connecting you with a specialized attorney who can take on the appropriate, still-solvent company.