A recent report from Data Register has highlighted the troubling trend of bankruptcies in the solar industry in the United States. Since 2022, many companies involved in home solar sales, financing, servicing, or supplying have faced financial failure. This summary outlines the key findings of the report, including statistics and implications for consumers.
• Bankruptcies Overview: More than 90 solar companies have declared bankruptcy or ceased operations since 2022. The breakdown includes 29 bankruptcies in 2022, 29 in 2024, 24 in 2025, and 11 in 2026 (to date).
• Types of Companies Affected: The majority of failures (79 companies) were installers, followed by various manufacturers and lenders.
• Geographic Spread: Forty states reported at least one failed solar company, with the highest numbers in Texas (19), California (18), and Florida (13).
• Consumer Impact: Customers of failed solar companies may still be responsible for loans, as these typically survive the company's bankruptcy. Contracts like leases and Power Purchase Agreements (PPAs) are transferred to new servicers.
• Key Recommendations: Homeowners should continue to pay their solar loans, find information on servicers, and maintain all documentation related to their solar contracts.
Additional Information
Appendix A details long-term contract transfers from bankrupt companies, informing consumers about who currently manages their contracts. Appendix B provides links to previous articles discussing the collapse of major solar players, particularly Sunnova.
The report serves as a cautionary tale for consumers, emphasizing the need for careful consideration of financial health before entering contracts with solar companies. Homeowners are urged to stay informed and proactive in managing their solar agreements amidst this challenging landscape.
https://www.masterresource.org/solar-bankruptcies/rooftop-solar-bust-115/
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