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

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


With the growing popularity of solar energy systems, many homeowners have turned to solar installers to make the switch to renewable energy. However, recent years have seen an unfortunate trend of solar companies going out of business. Many large companies have gone under recently, leaving a large customer base without service and labor warranties. This can be concerning for homeowners who have invested in solar energy systems.

However, don’t panic as there are several steps you can take if your solar installer goes out of business. By being proactive and informed, you can protect your investment and continue to enjoy the benefits of solar energy for years to come. Our team at SolarME has put together this helpful guide!

Why Do Solar Companies Go Out of Business?

Let’s start with the basics. Solar companies may face closure due to familiar business challenges, not unlike those encountered by other industries. Factors such as inadequate cash flow, financial mismanagement, or venturing into highly competitive markets without a distinctive edge can spell trouble for their survival.

Recognizable indicators of a company's precarious position include subpar customer service, reliance on inferior equipment, and entanglement in persistent legal disputes. These signs often signal potential instability and suggest caution to stakeholders and customers alike regarding the long-term prospects of such companies.

Poor Customer Service in the Solar Industry

Poor Customer Service in the Solar Industry

Unfortunately, poor customer service is a critical issue within the residential solar industry, where long-term support is essential due to the extended lifespan of solar panels. Companies that neglect customer care often find themselves on shaky ground in the solar market. Instead of prioritizing ongoing support for existing customers, some companies focus solely on acquiring new clients, leaving current customers feeling neglected.

This neglect can manifest in various forms, from ignoring maintenance requests to providing inadequate solutions for equipment issues. These practices not only damage the company's reputation but also hinder its ability to secure new business. It’s not surprising that dissatisfied customers share their negative experiences with others.

Ultimately, a lack of attention to customer service can lead to the downfall of a solar company, as word spreads about its inability to meet customer needs, resulting in a decline in referrals and a loss of trust within the industry.

Low-Quality Solar Equipment

Opting for low-quality equipment may initially seem like a cost-effective choice for customers, as it typically comes with a lower price tag. However, the allure of affordability can quickly fade as the drawbacks of subpar equipment become apparent. Companies that prioritize low-cost solutions often find themselves grappling with a multitude of issues down the line. Frequent repairs and replacements due to equipment malfunctions can drain financial resources and cause a strain on operational efficiency.

Moreover, the constant demand for servicing substandard products can overwhelm a company's capacity to meet customer needs effectively. While cheap solar equipment may offer short-term savings, its propensity for developing problems over time can ultimately prove detrimental to both customers and installers alike. The cycle of recurrent repairs and replacements not only undermines the company's reputation but also jeopardizes its long-term viability in the competitive solar market.

Legal Action Against a Solar Company

Legal Action Against a Solar Company

Lawsuits pose a significant threat to solar companies, often stemming from allegations of misconduct or breach of consumer rights. In cases of deceptive practices, such as signing customers up for unauthorized loans or installing malfunctioning equipment, can trigger legal action from disgruntled clients. These lawsuits can escalate further if companies engage in false advertising or violate consumer protection laws, leading to substantial fines and settlements.

For example, cases of misleading consumers about product specifications or inflating the projected savings of solar installations have resulted in severe repercussions, including forced closures and hefty penalties imposed by regulatory bodies like the Federal Trade Commission. The fallout from litigation not only tarnishes the company's reputation but also undermines its financial stability. This can potentially lead to its downfall in the competitive solar market.

How to Protect Yourself from Your Solar Company Going Out of Business

Nobody wants to find themselves without a reliable solar company to rely on throughout the lifespan of their solar panels. Despite the typically minimal failure rate of solar panels, unexpected circumstances can come up. Therefore, before making a decision on a solar company, there are various measures you can take to safeguard yourself and make sure you select the best option.

Consumer Reviews of Solar Panels Companies

When considering a significant investment like solar energy, customer reviews and referrals are invaluable. Just as you might scrutinize reviews for a small purchase online, it's essential to research the experiences of others when selecting a solar company. Platforms like SolarReviews offer insights from real customers, helping you gauge satisfaction levels and potential issues.

However, it's crucial to delve beyond star ratings, reading reviews thoroughly to understand both positive and negative experiences. Additionally, requesting referrals directly from the company can provide firsthand accounts of their service quality. If a company hesitates to provide referrals, it warrants careful consideration.

Years in Business Operation

Years in Business Operation

When considering solar installers, the duration of a company's operation speaks volumes about its reliability and stability. Opting for a company with a track record of five or more years typically indicates established credibility and endurance in a competitive market. However, it's essential to balance experience with opportunity, as newer companies may offer innovative solutions or competitive pricing.

If considering a newer company, ask about the owner's previous experience to gauge their expertise and commitment. This information can help assess the company's potential and suitability for your solar project and provide a more comprehensive perspective beyond years in operation.

Getting Quotes from Different Solar Installers

Getting multiple quotes for solar installation is crucial for making an informed decision. It provides insight into service offerings, pricing structures, and overall quality among different companies. Comparing quotes allows you to assess factors like cost-effectiveness, customer service, and professionalism so that you choose the right installer for your needs. It also empowers you to negotiate favorable terms and identify red flags or discrepancies across proposals.

Pay attention to the sales process and beware of significantly lower quotes, which may indicate compromises in quality. Requesting both cash and financed quotes gives you a comprehensive financial picture, including potential fees associated with solar loans. By thoroughly evaluating multiple quotes, you can make a confident decision that aligns with your budget and expectations for your solar project.

Investing in Solar O&M or Third-Party Warranty Packages

Investing in solar Operations and Maintenance (O&M) or third-party warranty packages can provide added security for your solar system investment. O&M policies offer coverage for maintaining the health and longevity of your panels, typically including routine maintenance tasks such as cleaning and inspections. These policies remain in effect even if the original solar company goes out of business to ensure ongoing protection for your system.

Additionally, third-party warranty packages like Solar Insure extend warranty protection beyond manufacturer guarantees, offering comprehensive coverage for potential issues or malfunctions. While these additional packages may be more expensive, they offer peace of mind and assurance for the long-term durability and performance of your solar system.

Hiring a Solar Company with Active Licenses and Insurance

Hiring a Solar Company with Active Licenses and Insurance

When hiring a solar company, it's key to verify that they hold active licenses and insurance. This ensures that the company has the needed qualifications and expertise to carry out the job safely and effectively. Look for companies with contractors certified by organizations like NABCEP (North American Board of Certified Energy Practitioners). NABCEP certification signifies that both the company and its employees have undergone rigorous education and testing, demonstrating their competence in solar energy systems.

By entrusting your project to a licensed and insured solar company with certified professionals, you can have confidence in the quality of workmanship and adherence to industry standards, providing peace of mind throughout the installation process.

Go with Your Gut

When it comes to selecting a solar company, always trust your intuition. If something feels off, whether it's a deal that seems too good to be true or a salesperson who comes across as overly pushy, listen to your instincts. Purchasing solar panels is a significant investment that will impact your home for years to come.

Take the time to thoroughly evaluate your options and don't feel rushed into making a decision. Your comfort and confidence in the company you choose are paramount, so go with your gut and choose a solar provider that aligns with your values and meets your needs. After all, you want to feel secure in your decision knowing that your home's energy needs are in capable hands.

What Steps Should You Take in Case Your Solar Installer Goes Out of Business?

What Steps Should You Take in Case Your Solar Installer Goes Out of Business?
  • First and foremost, it's important to document all the details of your solar installation. This includes the original contract or agreement, any warranties, and contact information for the company. It's also helpful to keep track of any maintenance or service that has been done on your system.
  • Next, reach out to the company and try to gather more information about their closure. If possible, ask for a written confirmation of their out-of-business status. This can be useful in case you need to file a claim with a warranty provider or legal action.
  • It's also important to reach out to your local government or state consumer protection agency if you believe the company has not fulfilled its obligations. They may be able to provide resources or assistance in resolving any issues.
  • Another option is to reach out to the original equipment manufacturer (OEM) for support. Most solar panel manufacturers offer some form of warranty on their products, so it's worth checking with them to see if they can cover any necessary repairs or maintenance.
  • You may also want to consider hiring a new solar installer to take over the maintenance and service of your system. It's important to do thorough research and find a reputable company with experience in both installing and maintaining solar energy systems.
  • In some cases, it may be possible to transfer your warranty to a new installer. This can vary depending on the terms of your warranty and the policies of the new installer, so make sure to carefully review any transfer agreements.
  • Finally, it's important to stay informed about changes in the solar energy industry and keep track of any updates or developments in regard to your system. This can help you proactively address any potential issues or concerns.


As the solar industry continues to grow, it's not uncommon for companies to come and go. This can be especially concerning for individuals who have invested in solar panels and systems, as they rely on their installer for maintenance and repairs. Fortunately, there are some steps that homeowners can take to protect themselves in case their solar installer closes its doors or to avoid encountering unscrupulous solar panel installers.

Conducting thorough research and choosing a reputable installer in the first place can help prevent these types of scenarios from occurring in the future. Consider the long-term reliability of solar installers: while opting for the cheapest quote may be tempting, investing in a reputable and established installer ensures warranty support and ongoing service to safeguard your investment. Take action now to safeguard your solar investment. Choose SolarMe as your trusted installer and schedule a free consultation today!

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