It’s clearly a question many people are asking and this blog likes to answer often-asked questions.
Here is what Google’s AI overview advised:
“If your solar company goes bankrupt, your system will likely continue to work, but you must act to secure warranties and maintenance. Contact equipment manufacturers directly (panels, inverters, batteries) to confirm warranty coverage. If you have a lease/PPA, the contract usually transfers to a new owner.
Steps to Take Immediately:
- Locate Documentation: Gather contracts, warranties, and system monitoring login credentials.
- Identify the Manufacturer: Find the manufacturer’s contact information for panels and inverters; they will honor product warranties even if the installer is gone.
- Contact Your Lender/Leasing Company: If you financed the system, the financing company may have a list of new service providers.
- Find a New Local Installer: Hire a certified local installer to take over maintenance and performance issues.
- Check for Acquisition: Often, a larger company will purchase the bankrupt company’s assets and take over your warranty.
If the System is Not Finished:
If installation is incomplete, you may need to file a “Proof of Claim” in the bankruptcy case, though reimbursement is not guaranteed. Contact a local solar contractor to finish the work safely and ensure it passes inspection.”
All that is good advice.
Here’s the thing, solar companies are not done going out of business. The market has not fully corrected. In your search for a new solar contractor, be selective.
If you have been following along with our blog, and of course you have, then you know we have been warning about this market correction for years. We have shouted from the rooftops that many of these solar contractors, marketing firms, sales organizations, and lending institutions were overcharging, undercharging, lying, and/or otherwise doing their customers dirty. Don’t let your guard down, there are still some solar adjacent companies out there doing dirt.
So, we hope many of you heeded our previous warnings and are not in a bad spot with solar today. For those of you who are, we are here to help. Let’s take a look at each suggestion by AI above and go into some further detail.
Locate Documentation.
Do this first and start a folder. The next solar contractor is going to want to know as much information as possible on what they are walking in to.
What you want to secure here are three things. Make, model, and capacity of all the components. Labor warranty documentation. Manufacturer warranty documentation.
Your new contractor will need to know the make and model of your solar panels, the inverter(s), optimizers, transfer switches, and batteries. If they need to source parts and materials they will want to know what kind for what components. They will also need to know the wattage on the panels and the capabilities of the other equipment. Some systems were not sized properly from the beginning and that conversation is different than just a broken system conversation.
If your original solar contractor is out of business, or in the process of going out of business (Bankruptcy, lawsuits, etc.) then the labor warranty is probably null and void. Keep the documentation handy in case you want to join a class action, start your own lawsuit, or, and this is the best case scenario, your contractor is bought out by a bigger firm that takes on their obligations.
Your manufacturer warranties are usually still pretty solid. As long as your panels and equipment are from one of the many reputable manufacturers out there, the components of your solar should be covered. Have any documents ready in case your original contractor did not register them.
Identify the Manufacturer.
We get calls from manufacturers to finish or repair installs done by defunct solar contractors. If you know the manufacturer, reach out to them and see who they recommend in your area. They will choose wisely because they know they’re on the hook for their equipment and will only want the most competent techs taking over.
What not to do. If you don’t find the answers on your documentation, do not get on your roof and try to lift panels looking for stickers with the names of the manufacturer and model numbers. Heights and electricity can both be deadly. Also, mistakes can be made that further damage your system and/or void warranties. If you need help identifying your components, call a competent licensed solar contractor to do that for you.
Contact your Lender/Leasing Company.
Yes. Do this. You know what else you might consider doing? Having a lawyer review your documentation. Some of these lenders played pretty fast and loose with paying out contractors before jobs were completed properly.
If you did not get the value for the money you borrowed and your lender paid that money out anyway, they may have some culpability to answer for. We have heard of loans being wiped, contracts being altered, and leases being converted.
Entire law firms are shifting their focus to going after some of these lenders. (Be selective here too.)
BTW, if anyone reading this is considering a solar PPA or lease, just don’t. Give us a call and give us a chance to talk you out of it. We can’t make them make sense over buying.
Find a New Local Installer.
Here’s where we brag on ourselves. We know it’s tacky and hate to do it, but we sincerely believe we are the best choice in Central Florida for solar contracting.
Since 1999 we have been servicing solar customers in Central Florida. By Central Florida we mean a big rectangle. At the top left corner of this rectangle is the Crystal River/Homosassa area in Citrus County. From there, draw a line going roughly northeast to Palm Coast in Flagler. Now, go south along the East Coast of Florida down to around the southernest (We know that’s not a word!) part of Brevard. From there, draw another line back west to around Bradenton in Manatee County, then back up the state to Crystal River. If you live inside that rectangle, we can help.
The majority of that twenty-seven years we have primarily earned our income by fixing existing thermal and electric solar for residential customers, but also roofing contractors, property management companies, municipalities, hospitals, and even a couple power companies. We welcome new install opportunities, but the focus of our business is service. This has given us a pretty solid background for unravelling knots created by other contractors, which makes us a particularly good choice for anyone trying to Find a New Local Installer. (Just sayin’)
Check for Acquisition.
I kind of covered this part above as the best case scenario for an orphaned solar customer as long as the new owner of your defunct solar contractor’s company is taking on all obligations, honoring labor warranties, and they are a competent contractor themselves. These are not guaranteed, so be warry.
In summary, if you are an orphaned solar customer … it sucks. You have your own busy life, and you don’t want to have to deal with the hassle of starting a folder, knowing all the component’s manufacturer and models, arguing with lenders and lease holders, and all the other added inconveniences in addition to not having a resource if your solar has a hiccup.
What you could do is this, call us first. We already have established relationships with most of the solar, inverter, and battery manufacturers. We know how to get monitoring on your system. We can quickly determine what you have and how it is performing. Ultimately, if you go ahead and contact us, you can delegate as much of the hassle as possible to us and go back to your life. (We even know a law firm, if you need one.)
