What’s Behind Solar Company Bankruptcies and Closures?
- Team GreenLancer
- 6 days ago
- 8 min read
The solar industry has seen explosive growth over the past decade as more homeowners and businesses invest in clean energy. But despite the rising demand, solar company bankruptcies and solar closures have accelerated across the U.S., raising a serious question: Why are so many solar companies going out of business in a booming renewable energy market?
Multiple economic and operational challenges are driving this trend. High interest rates have made solar loans less attractive, while labor shortages and ongoing supply chain disruptions have delayed installations and driven up costs. Even formerly well-established names like Solcius, Pink Energy, Vision Solar, and Sungevity have joined the growing list of solar company bankruptcies and closures, leaving behind thousands of orphaned systems and frustrated customers.
In this article, we examine why solar companies are going out of business, how it’s impacting consumers, and what reliable service providers can do to fill the gap.
As more homeowners are left with unsupported systems due to solar company bankruptcies or a solar manufacturer going out of business, there’s a rising need for expert repair and maintenance support. GreenLancer offers solar maintenance services nationwide, helping restore system performance and protect solar investments. Our qualified network of solar technicians diagnoses issues quickly and performs repairs with the technical expertise today's systems require.
Need help with a system from a solar company out of business? Call GreenLancer at (866) 436-1440 or complete the form below to get started.
The Surge in Solar Company Bankruptcies & Closures
The solar industry has expanded rapidly, with millions of residential and commercial systems installed across the U.S. in the past two decades. Yet alongside this growth, there's been a sharp rise in solar company bankruptcies and solar closures, affecting both solar installers and manufacturers.
Dozens of companies have shut down or filed for bankruptcy, leaving customers in limbo and with incomplete solar installations. Well-known names like Pink Energy, Solcius, Sungevity, Vision Solar, and others are now part of the growing list of solar companies going out of business. These closures often leave behind incomplete installations, invalid warranties, and unanswered support calls.
“Some orphaned solar systems have not received permission to operate (PTO) and haven’t been commissioned due to solar company closures,” explains Patrick McCabe, co-founder and president of GreenLancer. “This leaves homeowners in a difficult position, making loan payments on solar systems that provide no energy bill savings.”
When a solar company goes out of business, it can be more than a financial disruption—it creates serious service gaps. Homeowners may lose access to system monitoring, struggle to get Permission to Operate (PTO), or face issues with equipment that can’t be repaired or replaced easily. And if a solar manufacturer goes out of business, finding compatible replacement parts or honoring product warranties becomes even more difficult.
Why are Solar Companies Going Out of Business?
Despite steady growth in clean energy adoption, a wave of solar companies bankruptcies and solar closures is sweeping across the U.S. These shutdowns are being fueled by a combination of market pressure, policy shifts, financing challenges, and workforce shortages—all creating significant headwinds for installers and manufacturers alike.
High Interest Rates for Solar Loans
Rising interest rates are making solar financing less accessible, directly impacting customer demand. In 2023 and 2024, as loan rates spiked across the board, homeowners faced higher monthly payments for financed systems, slowing down new installations and hurting revenue for solar installers.
According to EnergySage’s 2023 Solar Marketplace Intel Report, the average monthly loan payment for solar increased by 13% year-over-year. For many solar companies, reduced sales volume amid rising overhead costs has contributed to a sharp uptick in solar companies going out of business.
Market Competition Challenges
According to SEIA’s U.S. Solar Market Insight Report, residential solar installations declined from 2022 to 2023—the first year-over-year drop in the sector in nearly a decade. This slowdown has impacted cash flow and sales pipelines for many contractors, accelerating the number of solar companies going out of business as demand cools and operating costs rise.
The industry has grown crowded. Thousands of local and regional installers are competing on price, and many lack unique offerings or sustainable business models. This has pushed some firms to take on unprofitable projects just to stay in the game—leading to operational strain and, eventually, bankruptcy.
Pink Energy shut down operations in 2022 after hundreds of complaints over system failures and unmet energy savings. These cases illustrate how both new and legacy firms are vulnerable to solar company bankruptcies in today’s environment.
Solar Labor Shortages
The U.S. solar industry faces a growing shortage of skilled labor. The National Renewable Energy Laboratory (NREL) reports that labor constraints have slowed project timelines and increased soft costs, which can make or break profit margins for small to mid-sized installers.
Delays in hiring, training, and retaining licensed electricians and NABCEP-certified professionals have directly contributed to solar companies going out of business. In a tight labor market, companies that can’t scale their operations efficiently risk falling behind or closing their doors entirely.
Shifting Policies and Solar Incentives
Regulatory changes—especially reductions in net metering—have disrupted solar companies’ revenue models. In California, the transition from NEM 2.0 to NEM 3.0 slashed export compensation rates for excess solar energy by up to 75%. As a result, demand in the state’s largest residential solar market fell dramatically.
Companies like Infinite Energy were heavily impacted by this policy shift, leading to service interruptions and project cancellations. According to Canary Media, California rooftop solar installations dropped by more than 80% following the rollout of NEM 3.0—an enormous blow to many local contractors who have since filed for bankruptcy or ceased operations.
Supply Chain Issues & Tariffs
From the COVID-19 pandemic to ongoing trade tensions, supply chain disruptions have inflated equipment costs and delayed delivery timelines. Tariffs on imported panels from countries like China, Malaysia, and Vietnam have raised prices across the board. According to the Solar Energy Industries Association (SEIA), procurement challenges remain one of the top issues for developers and installers.
These disruptions hit both installers and manufacturers. For example, SunPower has been vocal about the financial strain caused by panel import delays and tariffs. When a solar manufacturer goes out of business or can’t deliver products, installers may be forced to re-engineer systems or pause projects—both of which increase costs and erode margins.
National or Multi-state Solar Company Bankruptcies or Closures (2023 to 2025)
Over the past several years, multiple solar companies have either legally filed for bankruptcy or shut down operations entirely. These cases underscore the challenges facing the solar industry—from policy changes to margin pressure and operational missteps. While not all closures involve formal bankruptcies, they reflect the growing number of solar companies going out of business in a highly competitive and evolving market.
ADT Solar Closure - 2023
ADT Solar, which became a division of ADT Inc. after acquiring Sunpro Solar in 2021, began scaling back its residential solar operations in 2023. While ADT Inc. did not declare bankruptcy, it announced it was exiting the residential solar business entirely due to poor financial performance. The company reported ongoing losses in the solar segment and cited macroeconomic pressures and softening demand.
In its Q2 2023 earnings call, ADT confirmed it would wind down solar operations and discontinue new installations. Existing customers were left seeking support from third-party service providers.
Infinity Energy Solar Closure - 2020
Infinity Energy, a California-based solar installer, faced mounting challenges after early signals of regulatory changes tied to California’s Net Energy Metering (NEM) revisions. While NEM 3.0 did not officially go into effect until 2023, earlier policy discussions and local utility rate structure changes created uncertainty and disrupted business models for smaller companies.
Infinity Energy ceased operations in late 2020, though the company did not publicly announce a bankruptcy filing. Publicly available information indicates that internal financial pressures and market uncertainty contributed to the shutdown. As of 2024, the company no longer appears active, and customers have turned to third-party O&M providers for service support.
Pink Energy Closure - 2022
Pink Energy, formerly known as Power Home Solar, abruptly ceased operations in September 2022 after months of complaints and regulatory scrutiny. The company did not formally file for bankruptcy but closed its doors across several states, leaving thousands of customers with unfinished or malfunctioning solar installations.
In October 2022, the Ohio Attorney General filed a formal consumer protection complaint against Pink Energy, citing aggressive and deceptive sales tactics, performance issues, and poor customer service. Several other state attorneys general launched investigations into the company’s practices.
SunPower Restructuring - 2024
SunPower Corporation filed for Chapter 11 bankruptcy protection on August 5, 2024, as part of a strategic restructuring. The filing was triggered by mounting financial losses, declining gross margins, and increased competition from lower-cost international solar panel manufacturers. The company also faced scrutiny from the U.S. Securities and Exchange Commission (SEC) related to its financial reporting practices.
As part of its restructuring, SunPower announced the sale of key assets—including its New Homes business and Blue Raven Solar subsidiary—to Complete Solaria for $45 million. The company stated it intends to liquidate most of its operations.
Titan Solar Power Closure - 2024
Titan Solar Power, once one of the largest residential solar installers in the U.S., ceased operations in June 2024 and filed for Chapter 7 bankruptcy shortly after. The Arizona-based company had grown rapidly through a nationwide dealer network but faced increasing customer complaints, legal scrutiny, and failed acquisition talks.
Bankruptcy filings indicated up to 10,000 creditors and financial liabilities ranging from $1 million to $10 million. With no formal buyer secured, Titan shut down abruptly, leaving many customers with unfinished installations and no service support.
Impact of Solar Company Bankruptcies on Homeowners
The rise in solar companies bankruptcies and solar closures is creating real challenges for homeowners—especially those left with unsupported or malfunctioning systems. When a solar company goes out of business, customers often face unexpected costs, failed warranties, and reduced trust in the solar industry as a whole.
Loss of Warranties and Service After Solar Closures
One of the most immediate impacts of a solar company out of business is the loss of warranty protection and access to service. Homeowners who installed systems through companies like Pink Energy or ADT Solar often found themselves stuck with non-functioning systems, with no way to request repairs or file warranty claims.
These unsupported systems can lead to thousands of dollars in out-of-pocket costs for diagnostics, inverter replacements, or solar panel repairs—costs that would typically be covered by a workmanship or performance warranty had the company remained in operation.
Solar Company Closures Damage Industry Trust
Widespread media coverage and legal disputes linked to solar companies going out of business—such as Infinite Energy and Pink Energy—have fueled skepticism among homeowners. Consumers left with uncommissioned or underperforming systems often turn to lawsuits or state attorneys general for resolution. This negative attention contributes to the public perception that solar investments carry a high risk, slowing future adoption.
Long-Term Threat to Renewable Energy Adoption
The continued wave of solar company bankruptcies threatens the momentum of the clean energy transition. When companies like SunPower and ADT Solar scale back or shut down, it shakes public confidence. Potential customers may delay or cancel their solar projects, concerned about future service disruptions or being left with an unsupported system.
That’s where GreenLancer steps in—providing nationwide solar support services for homeowners impacted by these solar closures. Our network helps keep existing systems online, safe, and productive—no matter who installed them.
Need help with a system from a solar company out of business? Call GreenLancer at (866) 436-1440 or fill out the form below to get started.
Advice for Homeowners: Protect Yourself From Solar Company Bankruptcies
With the rise in solar company bankruptcies and an increasing number of solar companies going out of business, it’s more important than ever for homeowners to choose reliable, long-term partners for their solar investment. Selecting a provider with a strong track record, certified installers, and clearly defined warranties can help protect you from the risks of solar closures and service disruptions.
Finding a reliable new service provider, like GreenLancer, can provide the necessary support for maintenance and repairs. Regular maintenance, solar system monitoring, and understanding financial and legal options will help you manage your solar investment effectively. By staying informed and proactive, you can continue to enjoy the benefits of solar energy with confidence and peace of mind, even if your solar company closes down.
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