The solar energy industry has grown very quickly over the last several years, but some installers couldn’t scale up the way they planned. Numerous solar energy installation companies have gone bankrupt or shut down their operations for various reasons. Some of these companies were quite large and operated in numerous states, like ADT Solar, SunPower, and Pink Energy.
Solar bankruptcies can leave homeowners with systems that aren’t connected properly, lack the necessary permits, or are simply not functioning as expected. This can be incredibly frustrating—especially if you’re still paying off a solar loan while your system isn’t reducing your electricity bills. Sadly, some of these orphaned systems aren’t generating any power at all, making it difficult to enjoy the benefits of going solar.
But while this situation is a big issue, it also opens up opportunities for reliable solar providers to step in. Some financiers are even required to ensure these systems are fixed and operational, leading to new partnerships to get these solar arrays back online. For homeowners dealing with these issues, connecting with a qualified solar provider like GreenLancer can be the best path forward to finally get the clean energy benefits they expected from their investment.
GreenLancer solar maintenance services are available in over 30 states and growing as the need arises – Our skilled network of solar installers can quickly pinpoint PV system issues and complete repairs. Contact GreenLancer to get started.
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How Solar Bankruptcies & Closures Cause Orphan Systems
When a solar company goes bankrupt, any solar systems they installed are solar orphans because there’s no longer an entity responsible for maintaining them. Generally, solar installers provide both equipment and labor warranties for the systems they install. Equipment warranties, issued by manufacturers, often remain valid despite the installer going out of business, covering issues like defective parts. However, labor warranties, which cover installation-related problems, usually disappear when a company goes under.
Orphaned systems can also face complications with incomplete or incorrect paperwork for permits and utility interconnection. Without the original installer, homeowners may struggle to address these issues or find another company willing to take on the responsibility. Often, these complexities mean that the system can't operate at full capacity—or, in some cases, can’t operate at all—until another provider steps in.
Issues From Solar Power Bankruptcies
When a solar installer goes out of business, you might have to deal with various issues—especially if you were counting on the installer for long-term support. Here are some of the most common problems and what you can do to resolve them.
Getting Solar Permits & Passing Inspection
Solar company bankruptcies can cause incomplete paperwork, permits, or inspections. This can be a big hassle because your local jurisdiction may require certain checks before your system is fully approved. Without the original installer to fix things or answer questions, you might have to hire a new solar company just to handle what was left behind. These new companies often charge extra, especially if they need to fix code violations, such as grounding or wiring issues.
Broken Solar Equipment
If your system stops working or a part breaks, you’d usually call the installer. But with no company to call due to solar bankruptcies, you’re left figuring out what’s wrong on your own. A big issue following a solar company bankruptcy is that your warranty might not cover repairs or replacements anymore. Without the original installer, labor warranties are often void, leaving you to cover the labor costs for solar system repairs.
You can turn to third-party solar service providers like GreenLancer, which specializes in helping homeowners with these orphaned systems. We can handle inverter repairs, solar panel issues, and even regular system checks.
Adding More Solar Panels or Batteries
It can be tricky to add battery storage or more solar PV panels. Many installers are reluctant to work on systems they didn’t install because it’s harder to troubleshoot someone else’s work. Those who do take on these projects often charge more for the added risk and effort.
Finding Help for Solar Orphans
If your solar installer has closed, it can feel overwhelming, but there are ways to move forward. Consider reaching out to a third-party maintenance provider who specializes in orphaned systems. The GreenLancer team can take over where your original installer left off, handling everything from fixing specific issues to routine system checkups. You might also want to contact your loan provider or equipment manufacturer to see if they have partnerships with service providers to help get your system back in shape.
Why Solar Companies Go Bankrupt
The rise in solar bankruptcies stems from several interconnected challenges, primarily related to scaling issues, financial strains, and market competition. While solar demand has surged, not all companies have the infrastructure or cash flow to expand sustainably. Some solar installers struggle to keep up with the rapid growth, leading to operational inefficiencies that ultimately impact their bottom line.
Also, the solar industry has become highly competitive. Some companies lowered prices or offered extended warranties to win more business, but these practices sometimes stretched their financial stability too thin. When financing or capital runs dry, they often can’t deliver on promised services, leaving customers with incomplete installations.
Recent solar bankruptcy examples, like Pink Energy, illustrate these issues. Once a significant player across multiple states, Pink Energy faced challenges managing its rapid expansion and went bankrupt, leaving homeowners with incomplete or unserviced systems. For homeowners, a solar bankruptcy means finding new service providers for maintenance, paying out-of-pocket for repairs, or dealing with underperforming systems—all of which can undermine their solar investment.
What to Do After a Solar Company Bankruptcy
If your solar company went bankrupt and you're wondering how to keep your solar system running, GreenLancer is here to support you. When a solar company shuts down, taking proactive steps can help protect your investment and ensure your system’s continued performance. Begin by checking your equipment and labor warranties, securing all essential documentation, and assessing your system's condition to identify any maintenance needs. If you have a solar loan, it's critical to speak with the financier.
Finding a trusted service provider like GreenLancer ensures you get the necessary maintenance, repairs, and monitoring to optimize your system’s efficiency. Additionally, understanding your financial and legal options helps you make the most of your solar investment, despite the challenges of a solar company closing.
Complete the form below to speak with a GreenLancer solar expert who can guide you through these next steps confidently.
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