Solar Installer Bankruptcies: Failed Companies & What to Do
Comprehensive tracker of every major solar installer bankruptcy in 2024-2026. Learn what happens to your loan, warranty, and legal claims when your solar company goes under.
Solar Installer Bankruptcies 2026: Complete List of Failed Companies
Solar installer bankruptcies in 2024–2026 have orphaned over 1.3 million homeowners' warranties and left an estimated $35 billion in disputed loans outstanding — but the FTC Holder Rule provides a critical legal lifeline: homeowners can assert claims for misrepresentation, defective installation, and lost warranty value directly against the lender that funded the loan, even when the installer is liquidated and no longer exists as a legal entity.
The residential solar industry has experienced an unprecedented wave of bankruptcies since 2024. For homeowners stuck with loans on non-operational or underperforming systems, this raises a critical question: what happens to your claims when the installer goes under?
This page tracks every major solar installer bankruptcy and provides the legal framework for what you can still do — even when the installer is insolvent.
Disclaimer: This article is informational, not legal advice. Consult a qualified attorney for your specific situation.
How Big Is the Solar Bankruptcy Wave?
| Metric | 2024 | 2025 | 2026 (to date) |
|---|---|---|---|
| Major Ch.7/Ch.11 filings | 4 | 2 | 1 |
| Affected customers | ~200,000+ | ~100,000+ | ~50,000+ |
| Estimated loan exposure | $8B+ | $4B+ | $2B+ |
Which Solar Installers Have Gone Bankrupt?
Freedom Forever — Chapter 11, April 2026
- Status: Filed Chapter 11 bankruptcy in Delaware, April 2026
- Affected customers: Estimated 150,000+ homeowners nationwide
- Key issues: Texas AG civil investigative demand, CSLB probation, dealer-fee financing model
- Lender exposure: GoodLeap, Dividend Finance, Mosaic, Sunlight Financial
- What to do: Read our full Freedom Forever investigation
Sunnova — Chapter 11, June 2025
- Status: Filed Chapter 11, continuing operations under restructuring
- Affected customers: 400,000+ across leases, PPAs, and loans
- Key issues: Stock delisted, debt load, customer service degradation
- What to do: Read our full Sunnova investigation
SunPower — Chapter 11, August 2024
- Status: Filed Chapter 11, assets sold to Complete Solaria
- Affected customers: 500,000+ lease/PPA customers, warranty holders
- Key issues: Warranty obligations transferred, lease portfolio acquired by SunStrong
- What to do: Read our full SunPower investigation
Titan Solar Power — Chapter 7, June 2024
- Status: Chapter 7 liquidation (no reorganization, company dissolved)
- Affected customers: Estimated 100,000+ installations
- Key issues: No entity to pursue for warranty claims; lender liability theories critical
- What to do: Read our full Titan Solar investigation
Lumio — Chapter 11, September 2024
- Status: Filed Chapter 11 in Delaware
- Affected customers: 50,000+ installations across multiple states
- Key issues: Dealer-network model, pyramid-scheme recruitment allegations
- What to do: Read our full Lumio investigation
ADT Solar — Wound Down, January 2024
- Status: Ceased operations, not a formal bankruptcy but effectively defunct
- Affected customers: 100,000+ installations nationwide
- Key issues: Warranty orphaned, service discontinued
- What to do: Read our full ADT Solar investigation
Pink Energy — Chapter 7, October 2022
- Status: Liquidated; multi-state AG investigations followed
- Affected customers: Estimated 30,000+ installations
- Key issues: Defective Generac equipment, lender claims against GoodLeap/Dividend
- What to do: Read our full Pink Energy investigation
The Critical Legal Principle: Lender Liability Survives Bankruptcy
Many homeowners assume that when an installer files bankruptcy, their case is dead. This is wrong. Here's why:
The FTC Holder Rule (16 CFR § 433)
If your solar loan includes the required FTC Holder Rule notice (and most do), you can assert against the lender any claim or defense you could assert against the installer. This means:
- The lender steps into the installer's shoes
- You can raise misrepresentation, defective installation, and non-performance against the lender
- The lender is typically solvent even when the installer is bankrupt
- You can recover up to the amount you've paid under the contract
The Financing Agreement Controls
In almost all cases, the solar installation contract and the financing agreement are separate documents. The financing agreement determines:
- Whether disputes go to arbitration or court
- Which arbitration forum (JAMS, AAA) applies
- Whether the lender or you pays arbitration fees
- What state's law governs
Key insight: Even if the installer is in Chapter 7 liquidation, the lender who funded your loan remains a viable defendant.
What to Gather Before Contacting an Attorney
- Your financing agreement (the loan or PPA document — this is the most important document)
- Your installation contract with the installer
- Any change orders or addendums
- Monthly statements from the lender
- Screenshots of the installer's website or promises made
- Production data from your monitoring system (if available)
- Any bankruptcy notices you received from the installer
FAQ
If my installer went bankrupt, can I stop paying my solar loan?
No. The loan is with the lender (GoodLeap, Dividend, Mosaic, etc.), not the installer. Stopping payments will damage your credit. Instead, assert your legal claims against the lender through the FTC Holder Rule or state UDAP laws. Learn more about the Holder Rule here.
Will the bankruptcy court pay me anything?
In Chapter 7 (Titan, Pink Energy), secured creditors get paid first, and unsecured consumer claims typically receive little or nothing. Your strongest path is against the lender, not the bankruptcy estate. In Chapter 11 (Freedom Forever, Sunnova, SunPower), the company continues operating and may honor some warranties, but lender claims remain the stronger route.
What if my warranty is now worthless?
This is one of the strongest claims under the FTC Holder Rule. If the installer promised a 25-year warranty and can no longer honor it, you can assert the value of that lost warranty against the lender. Document the warranty terms and get repair quotes from third-party solar companies.
Which lenders are most exposed to bankrupt installers?
GoodLeap, Dividend Finance, Mosaic, Sunlight Financial, Service Finance Company, and Cross River Bank all funded loans through major now-bankrupt installers. Each has different arbitration clauses and claim procedures.