What Happens When Solar Companies Go Out of Business?

It’s the question nobody wants to ask but every solar customer should: what happens if your installer goes out of business?

At first, it sounds like one of those nightmare scenarios you’d rather not think about. But the reality is, it happens far more often than people realize. And with the 30% federal solar tax credit expiring soon, the industry is bracing for a major shake-up. Analysts predict that 40–60% of solar installers could close their doors within the next 12–18 months.

That’s a massive number. So if you’re a homeowner, you need to be asking:

• Who do I call if my installer shuts down?

• What happens to my warranty?

• How do I make sure my system keeps running?

Let’s break it down.

Why So Many Solar Companies Are at Risk

Not every installer is built to last.

The smallest companies—doing less than $5 million in annual sales—are the most vulnerable. They often operate on razor-thin cash flow, rely heavily on dealer-fee loans, and chase door-to-door sales. When financing dries up or sales slow, they don’t have the reserves to keep going. My modeling suggests 60–80% of these micro-installers could close in the next year.

The small to mid-sized players—roughly $5 to $50 million in sales—are in a better spot, but still exposed. Some will make it if they diversify or attach more battery sales, but many will struggle. I project 40–60% of smaller firms and 25–40% of mid-sized firms could fail in the next 18 months.

Regional outfits and national brands are more resilient. Companies doing $50–250 million annually often have stronger lender relationships, lower customer acquisition costs, and some recurring service revenue. For them, the closure risk is more like 10–25%. And for the nationwide players—the household names—it’s closer to 10–20%, and usually looks like restructuring or mergers, not outright collapse.

What Happens to Warranties If an Installer Closes?

Here’s the good news: your solar equipment isn’t tied to the life of your installer.

Panels, inverters, and batteries are made by global manufacturers like Enphase, SolarEdge, Tesla, Qcells, and Canadian Solar. These companies generate billions in annual revenue and aren’t going anywhere. Your warranties remain valid, even if your installer disappears.

The catch? Manufacturers typically cover the part, not the labor. That means you may still be on the hook for service costs. And since most solar installers prefer chasing new installs over doing service calls—especially for systems they didn’t install—it can leave homeowners stuck.

Why Service Is the Real Headache

Even if your warranties are intact, finding someone to actually fix your system is the real challenge. That’s why I’ve been building a network of electricians willing to step in when the original installer is gone.

Here’s how I help:

1. Site Visit – Gather system details and identify issues.

2. Warranty Claim – File and manage claims directly with the manufacturer.

3. Repair Coordination – Work with electricians to get your system repaired or recommissioned.

It’s not a perfect process, but it saves homeowners from being stuck in the middle.

How Homeowners Can Protect Themselves

If you’re shopping for solar—or already have a system—here are three steps that can save you headaches down the road:

1. Keep good records.Write down your model numbers, serial numbers, warranties, and monitoring logins. Don’t assume your installer will be around forever to track that for you.

2. Choose reputable brands.If a quote includes no-name panels or inverters, think twice. Lesser-known brands often mean lower margins for installers—and headaches for you if you need warranty service. Stick with names like Qcells, Enphase, SolarEdge, and Teslawhen possible.

3. Have a service plan.Get to know a local electrician who’s comfortable with solar, or work with a consultant like me who can step in if your installer closes shop. Even if you’re outside California, I can help track down reputable partners and guide the process.

Already Have an Orphaned System?

If your installer has already shut down—don’t panic. Your system is still yours, your warranties still exist, and you still have options.

Even if your monitoring app goes dark, your panels are likely still producing power. For added visibility, you can install a third-party monitor like the Sense Energy Monitor. It’s inexpensive, easy to install, and often provides better data than the installer’s app ever did. Check it out here.

The Bigger Picture

Here’s the bottom line: solar isn’t going anywhere.

Yes, the industry will see a thinning of the herd. The companies built on shaky financing or over-promising will vanish first. The ones with too much overhead and not enough sales will shrink. But the strong companies will remain, and the global manufacturers—the ones that really matter—will be here for decades.

Meanwhile, electricity costs from the grid continue to rise. That makes generating and storing your own clean energy more valuable than ever—even without the 30% tax credit.

Why I’m Here to Help

This is exactly why I started Renewable Innovations. I offer consultation services for homeowners and businesses who:

• Need help protecting their solar investment

• Have orphaned systems with no installer support

• Want to choose the right brands and partners before going solar

I also strategically partnered with Axia by Qcells, a division of the nation’s largest solar manufacturer, because I believe the strongest partner you can have is the one building high-quality equipment domestically.

So if you’re in California, Arizona, Texas, Florida, or Illinois, and you want help protecting your system—or getting started with solar the right way—book a consultation today.

Final Thought

The solar industry might be changing, but clean energy is here to stay. Don’t let a company closing its doors stop you from taking control of your energy future.