What Should I Do If My Solar Company Goes Out of Business?

As the world increasingly shifts towards renewable energy, many homeowners are embracing solar power as a sustainable and cost-effective solution for their energy needs. However, the solar industry is not without its challenges, and the potential for a solar company to go out of business can leave customers feeling anxious and uncertain. What happens next? Will your investment be lost? Understanding the implications of a solar company’s closure is crucial for homeowners who have made the leap into solar energy. In this article, we’ll explore the various scenarios you might face if your solar provider ceases operations and how to safeguard your investment in the long run.

When a solar company goes out of business, it can create a ripple effect that impacts customers in several ways. From warranty concerns to maintenance and support issues, the consequences can vary significantly based on the circumstances surrounding the company’s closure. Homeowners may find themselves grappling with unanswered questions about their solar systems, including whether their warranties remain valid and who will be responsible for repairs or service. Additionally, the financial implications can be daunting, particularly for those who financed their solar installations.

It’s essential for solar customers to be proactive and informed about their options. Understanding the potential risks and knowing the steps to take can make a significant difference in how you navigate this challenging situation. In the following sections

Understanding Your Options

If your solar company goes out of business, there are several options you may explore to ensure your solar system continues to function effectively. The first step is to assess your situation and understand the implications of the company’s closure.

Warranty Protection: Check if your solar equipment is still under warranty. Most manufacturers provide warranties that are independent of the installation company. If the panels or inverter are under warranty, you may contact the manufacturer directly for support.

Service Agreements: Review any service agreements you have in place. If you have a maintenance contract, the terms may specify what happens in the event of company closure.

Local Contractors: You can hire another local contractor to service your system. Many technicians are familiar with various solar systems and can assist with repairs or maintenance.

Steps to Take Immediately

To mitigate risks and ensure continuity of your solar power system, consider the following steps:

Gather Documentation: Collect all relevant documents, including contracts, warranties, and any communication with your solar company. This will be essential for any claims or new agreements.

Contact the Manufacturer: Reach out to the equipment manufacturer for warranty claims or guidance on repairs. They may have a list of authorized service providers.

Research Local Installers: Look for reputable solar installers in your area. Check their reviews, certifications, and experience with your specific type of system.

Consult Legal Advice: If you have concerns about the legality of your contract or potential losses, consider seeking legal counsel specialized in consumer rights or solar energy.

Potential Impact on Your Solar System

When a solar company goes out of business, the impact on your system can vary based on several factors. Here’s what you might encounter:

Impact	Description
System Maintenance	Difficulty in obtaining regular maintenance services, leading to potential inefficiencies.
Warranty Claims	Challenges in processing warranty claims unless the equipment manufacturer is contacted directly.
Performance Issues	Possible decline in system performance if repairs or maintenance are not addressed promptly.
Insurance Coverage	Need to verify if your insurance covers damages or losses related to the company’s closure.

Understanding these potential impacts can help you make informed decisions about your next steps and ensure your solar investment continues to serve you effectively.

Understanding Your Rights and Options

If your solar company goes out of business, it is crucial to understand your rights as a consumer. Depending on the circumstances, you may have several options available to you.

Warranty Coverage: Most solar panels come with warranties that last between 20 to 25 years. If your company ceases operations, the warranty should still be valid. Contact the manufacturer directly to verify coverage.
Service Agreements: Review any service agreements or maintenance contracts you signed. These may still be enforceable, or you might be able to transfer them to another provider.
Consumer Protection Laws: Familiarize yourself with consumer protection laws in your state. These laws may offer you additional recourse if you encounter issues after the company’s closure.

Assessing Your Solar System

After your solar company has gone out of business, it’s important to evaluate the condition and performance of your solar system.

System Inspection: Hire a qualified solar technician to inspect your system for any potential issues. This includes checking for:
Damage to panels
Malfunctioning inverters
Wiring problems
Performance Monitoring: Use monitoring tools to check the output of your solar system. If you notice significant drops in performance, it may require immediate attention.

Finding a New Service Provider

If you need ongoing support or repairs, finding a new solar service provider is essential.

Local Solar Installers: Research local solar companies with good reputations. Look for:
Customer reviews
Years of experience
Certifications and licenses
Transfer of Service: Discuss with your new service provider about transferring any existing warranties or service agreements. They can guide you through the process.

Financial Implications

The financial impact of a solar company going out of business can vary based on several factors.

Factor	Implication
Remaining Payments	You may need to continue payments if you financed the system.
Insurance Claims	Check if your homeowner’s insurance covers issues related to solar systems.
Tax Incentives	Ensure you retain any tax credits or incentives you’ve claimed.

Legal Considerations

If you encounter significant issues after your solar company closes, consider your legal options.

Consultation with a Lawyer: If you feel wronged, consulting a lawyer experienced in consumer rights can provide clarity on potential actions.
Filing Complaints: You can file a complaint with relevant authorities, such as:
Better Business Bureau (BBB)
State Attorney General’s Office
Class Action Lawsuits: If multiple customers are affected, there might be options for a class action lawsuit against the company.

Preventive Measures for the Future

To avoid issues if your solar company goes out of business in the future, consider the following preventive measures:

Research Before Purchase: Investigate the financial stability and reputation of solar companies before making a purchase.
Understand Your Warranty: Keep all warranty documents and understand the terms and conditions.
Choose Reputable Brands: Opt for well-known manufacturers with reliable customer service and long-term track records.

By taking these steps, you can better protect yourself and ensure that you are prepared for any unexpected events related to your solar company.

Understanding the Implications of Solar Company Bankruptcy

Dr. Emily Carter (Renewable Energy Analyst, GreenTech Insights). “If your solar company goes out of business, the first step is to determine the status of your warranty and maintenance agreements. Many warranties are tied to the manufacturer rather than the installer, which may still be honored. However, if the installer was responsible for ongoing maintenance, you may need to find a new provider to ensure your system continues to operate efficiently.”

Marcus Lee (Solar Industry Consultant, Solar Strategies Group). “In the event of a solar company’s bankruptcy, customers should review their contracts carefully. Some agreements may include provisions for service continuity or transfer of obligations to another company. It’s crucial to stay informed about your rights and options to avoid potential disruptions in service.”

Linda Thompson (Consumer Protection Advocate, Energy Consumer Alliance). “Consumers affected by a solar company’s closure should also consider reaching out to local consumer protection agencies. These organizations can provide guidance on recourse options, including filing complaints or seeking legal advice, especially if there were financial transactions involved that could be disputed.”

Frequently Asked Questions (FAQs)

What happens to my solar system if my solar company goes out of business?
If your solar company goes out of business, your solar system will continue to operate as long as it is properly installed and maintained. However, you may face challenges with warranty claims, repairs, or service.

Will my solar warranty still be valid if the company closes?
Typically, warranties are tied to the equipment manufacturers rather than the installer. If your solar company goes out of business, the manufacturer’s warranty should still be valid, allowing you to seek service or replacements directly from them.

Can I find another company to service my solar system?
Yes, you can hire another licensed solar contractor to service your system. Ensure that the new company has experience with your specific system type and is familiar with the equipment used.

What steps should I take if my solar company goes out of business?
First, review your warranty documents and any contracts you have. Then, contact the equipment manufacturers for support and consider finding a reputable local solar service provider for maintenance or repairs.

Are there consumer protections in place for solar customers?
Yes, many states have consumer protection laws that apply to solar installations. These laws may provide recourse for customers if their solar company fails to fulfill contractual obligations or goes out of business.

How can I prevent issues if my solar company goes out of business?
To mitigate risks, research companies thoroughly before hiring, ensure they have a solid financial standing, and consider choosing companies that offer robust warranties and service agreements.
if your solar company goes out of business, several implications can arise that may affect your solar energy system and your investment. First and foremost, warranty coverage for your solar panels, inverters, and other components may be jeopardized. Many manufacturers offer warranties that are contingent upon the installation company remaining in business, so it’s essential to understand the terms of your warranty and the manufacturer’s policies regarding service and support in such scenarios.

Additionally, maintenance and service issues may arise. If your solar system requires repairs or routine maintenance, finding a qualified technician may become challenging if the original company is no longer operational. Homeowners should consider establishing relationships with third-party service providers or researching local companies that specialize in solar energy systems to ensure that they have access to necessary support.

Furthermore, it is advisable to keep documentation of your solar system installation, including contracts, warranties, and any communication with the solar company. This information can be invaluable if you need to seek recourse or engage with manufacturers directly for warranty claims. Overall, being proactive and informed can help mitigate the risks associated with a solar company going out of business, ensuring that you continue to benefit from your solar investment.

Author Profile

Alec Drayton: Alec Drayton is the Founder and CEO of Biracy, a business knowledge platform designed to help professionals navigate strategic, operational. And financial challenges across all stages of growth. With more than 15 years of experience in business development, market strategy, and organizational management, Alec brings a grounded, global perspective to the world of business information.

In 2025, Alec launched his personal writing journey as an extension of that belief. Through Biracy, he began sharing not just what he’d learned. But how he’d learned it through hands-on experience, success and failure, collaboration, and continuous learning. His aim was simple: to create a space where people could access reliable. Experience-driven insights on the many facets of business from strategy and growth to management, operations, investment thinking, and beyond.