Solar installer went bankrupt. Do homeowners still have to pay the solar loan?

Yes — in almost every case you still owe the solar loan. The loan is a separate contract between you and a lender (a bank, credit union, or solar finance company like Mosaic, Sunlight, or GreenSky). The installer's bankruptcy does not cancel that debt. However, if the installer never completed the work, or if the system was never connected and producing, you may have grounds to dispute the loan through a chargeback or FTC claims process depending on the financing type.

Can I file a claim in the installer's bankruptcy to recover money?

Yes. When a company files for bankruptcy, creditors — including customers who are owed money or services — can file a proof of claim. The Bankruptcy Court's PACER system lists all filed cases. In a Chapter 11 case, general unsecured creditors (which most homeowners are) recover only pennies on the dollar if anything. Document your claim amount (undelivered services, outstanding warranty costs) and file before the claims deadline.

What happens to my production guarantee when the installer goes bankrupt?

Your production guarantee is almost certainly gone. It was a contractual obligation between you and the installer, not an insured product. When the installer ceases to exist, that obligation becomes an unsecured claim in bankruptcy proceedings — worth very little in practice. Going forward, independent monitoring is the only protection you have against silent underperformance.

Does homeowner's insurance cover solar damage when there's no installer to call?

It depends on your policy. Solar panels are typically covered as part of the dwelling under standard homeowner's insurance if they're permanently attached to the roof, but coverage varies significantly. Check your policy declarations page for 'solar panels' or 'photovoltaic systems.' Storm and hail damage is generally covered; equipment failure is not (that's a manufacturer warranty claim). Contact your insurer before something goes wrong to verify coverage.

Solar Installer Went Bankrupt — Do I Still Owe on

Q: What if my solar panels aren't working because the company went bankrupt?

Non-functioning panels do not automatically excuse you from loan payments, but they create grounds for a dispute. If the system was never properly commissioned (passed inspection and energized), document this in writing to the lender immediately. If the system was working and then failed due to workmanship issues that the bankrupt installer would have been responsible for, contact your equipment manufacturer (Enphase, SolarEdge, etc.) for a warranty claim on the hardware side, and consult a consumer protection attorney about remedies against the lender.

Why the Loan Doesn't Go Away

When you financed solar panels, you almost certainly signed two separate documents: a contract with the installer and a loan agreement with a lender. The lender — whether it's a bank, credit union, or a solar-specific finance company like Mosaic, Sunlight Financial, or GreenSky — is a completely separate company from the installer. They lent you money; the installer built your system.

The installer's bankruptcy is a problem between you and the installer. The lender's loan is a separate problem entirely. These are two different legal relationships, and one doesn't automatically affect the other.

This is not an oversight in how solar loans are structured. It is how consumer finance works. The lender didn't build your system and is not responsible for the installer's failure. From their legal perspective, they provided the capital, your system was installed, and you owe the agreed payments.

When You Might Have a Dispute Case

There are situations where the installer's failure does give you grounds to challenge the loan — but they are specific, not general:

The system was never completed or connected

If your panels were installed on the roof but never passed inspection, never got utility interconnection approval, and are not generating electricity — you may have a case that you never received what you paid for. This is the clearest dispute scenario. Document everything: no inspection certificate, no permission-to-operate letter from your utility, no production data showing the system ever worked. Send written notice to your lender immediately, before making another payment.

The system failed due to workmanship issues

If the system worked initially but failed due to installation defects — wiring faults, improperly mounted equipment, roof leaks at penetration points — and the bankrupt installer would have been responsible for fixing these under warranty, the situation is more complex. You'll need to document the failure and its cause independently (hire a licensed electrician to assess). Whether the lender shares liability depends on whether the financing was structured as a retail installment contract under the FTC Holder Rule, which can in some cases make the lender responsible for installer misconduct.

Credit card or FTC Holder Rule financing

If you paid for any portion of your solar system with a credit card, you may be able to dispute the charge as "goods or services not received" under your card's chargeback protections. This is most applicable when the system was never completed. If your financing was a retail installment sale (signed at the installer's location), the FTC Holder Rule may allow you to raise the installer's failures as a defense against the lender. These situations require individualized legal analysis.

The SunPower Situation

SunPower (U.S. Bankruptcy Court D. Del., Case No. 24-11649) is the highest-profile recent example. Hundreds of thousands of homeowners woke up to find their installer in Chapter 11 proceedings. SunStrong Capital, which holds many SunPower leases and PPAs, continues operating as a separate entity. Customers with purchase loans through Mosaic, Sunlight, or other lenders continue owing those loans regardless of SunPower's status.

If your loan was through SunPower's own financing arm, the situation may be slightly different — contact a bankruptcy attorney or the California DFPI's solar complaint division. Most SunPower customers had third-party loans, which are unaffected by SunPower's bankruptcy directly.

What to Do Right Now

Verify your system is producing. Log into your Enphase Enlighten or SolarEdge account directly. If the system is producing at expected levels, your most urgent issue is the loss of warranty and service support — not the loan itself.
Document your system's status in writing. Email your lender with a factual description of what happened: the installer's name, the bankruptcy filing date (look it up on PACER at pacer.gov), and whether the system is operational. This creates a paper trail.
Contact your lender's hardship or dispute line. Many solar lenders have dedicated processes for installer bankruptcies. Ask specifically whether they have a relief program for affected customers. The answer varies by lender.
File a proof of claim in the bankruptcy. Even if recovery is uncertain, file before the deadline. The claims deadline is published in the bankruptcy court docket and may also be sent to you directly. Search for your installer's case on PACER.
Talk to a consumer protection attorney. If your system never worked, was never completed, or has documented workmanship defects, an attorney who handles solar or consumer finance disputes can assess your specific situation. Many offer free initial consultations.

What Happens to Your Equipment Without an Installer

Your panels, inverters, and racking are still your property (assuming you purchased, not leased). The manufacturer warranties on your equipment — Enphase's 25-year microinverter warranty, your panel manufacturer's product and production warranties — survive the installer's bankruptcy. These warranties run between you and the manufacturer.

The catch: manufacturers replace defective equipment, but they don't pay for labor. With the installer gone, any service work that requires someone on your roof or inside your electrical panel comes out of your pocket. This makes catching problems early — before they escalate — especially important.

Your Production Guarantee Is Gone

The production guarantee your installer promised you — "we guarantee your system will produce X kWh per year" — was a contractual commitment between you and the installer. When the installer ceases to exist, that commitment becomes an unsecured claim in bankruptcy proceedings. In practice, you will almost certainly not collect on it.

What this means going forward: there is no one watching your system's performance on your behalf. Every month your system quietly underperforms is money you'll never recover. This is why independent monitoring matters more than ever for homeowners whose installers have failed.

Common Questions

My solar panels aren't working because the company went bankrupt. Can I stop paying my loan?

Not automatically. Non-functioning panels are a legitimate dispute basis, but you need to document the situation and engage the lender formally rather than simply stopping payments. Missed payments damage your credit and can trigger collection regardless of your situation with the installer. Contact the lender in writing before stopping any payments.

Do electrical contractors provide production guarantees for installing solar?

Solar installers (which may be licensed electrical contractors) do sometimes offer production guarantees — but these are separate from their electrical license. A production guarantee is a contractual promise, not a regulatory requirement. An electrical contractor who installs solar is required by code to wire the system correctly; they are not legally required to guarantee annual production output unless they contractually agreed to it. If they did offer a guarantee in your contract and then went bankrupt, that guarantee is an unsecured claim in their bankruptcy, not an insurance-backed promise.

Who services my panels now that the installer is gone?

You need to find an independent solar service contractor. Search for "solar O&M" (operations and maintenance) contractors in your area, or contact your panel and inverter manufacturers — they sometimes have authorized service networks. Establishing this relationship before an emergency gives you better options and pricing.

Will my homeowner's insurance cover the cost of the installer's failure?

Your homeowner's insurance covers physical damage to your solar equipment from covered perils (storm, hail, fire). It does not cover economic losses from a failed production guarantee or the cost of fixing installation defects. Some homeowners carry a home warranty or service contract that may cover equipment failures — check your policy documents.

Your Installer Is Gone. Your Monitoring Doesn't Have to Be.

OwlWatt provides independent solar monitoring that works regardless of who installed your system. Know whether your system is producing, catch silent failures early, and build the documentation record you need — all without an active installer relationship.

Start monitoring for free · When your installer goes bankrupt: full guide

My Solar Installer Went Bankrupt — Do I Still Owe on My Loan?