Solar Inverter Died and the Installer Is Gone: Who Pays Now?

I'm paying almost $60,000 over 25 years for something that don't work.

Liz Childs, Candler, N.C., to WLOS News 13, after her installer went bankrupt

Short answer: If you own the system, through cash or a loan, the replacement is usually your cost, but the inverter manufacturer's warranty often still covers the hardware even after the installer closes. Labor is the gap. If you lease or have a PPA, the company that owns the system is generally responsible for keeping it running. In every case the loan or lease payment keeps coming due, so start the warranty claim and notify the lender in writing right away.

The inverter turns the panels' direct current into power your house can use. When it fails, production drops to zero or close to it, and you are back to paying your full utility bill on top of the solar payment. Inverters are also the part most likely to fail. A 2020 National Renewable Energy Laboratory survey, reported by pv magazine, found that about 43% of maintenance calls on PV systems were caused by inverter malfunctions.

That is a predictable problem on a 25-year loan. It turns into a crisis when the company that sold and installed the system no longer exists.

Liz Childs of Candler, North Carolina, quoted at the top of this page, lived the worst version. She spoke to WLOS News 13 in October 2022. Utility data showed her 14-panel system had generated zero kilowatt-hours in recent months. Her installer, Pink Energy, blamed product failures by its equipment supplier, Generac, and then shut down and filed for bankruptcy. Generac said its SnapRS rapid-shutdown devices could have problems when installation guidelines weren't followed. That left a homeowner with a dead system, a loan, an installer in bankruptcy, and a manufacturer pointing at the installation.

Her case was not a fluke of one company. A San Antonio Express-News analysis of complaints to the Texas attorney general, quoted by El Khoury Law, found that in more than half of the cases examined, homeowners were paying on systems that were unfinished, faulty, or never worked. This guide walks through who is responsible, how to file the claim without the installer, and when a failure points to something more than bad luck. It is informational, not legal advice.

Key Takeaways

• Your payment does not stop because the system did. Loans and leases are separate obligations from the equipment's performance, unless your contract says otherwise.
• Manufacturer warranties usually survive the installer. They are tied to the equipment serial number, not the company that installed it.
• Labor is usually not covered. Hardware warranties often exclude the cost of removing the old unit and installing the new one.
• Leases and PPAs put repair duty on the owner. Check your contract for maintenance obligations and production guarantees.
• Early failure plus a sales promise can be a claim. A system that failed within its first few years, or was sold as "covered for 25 years," deserves a closer look.

Why Inverters Fail Before the Loan Ends

Most residential solar loans run 20 to 25 years. Many string inverters are not expected to last that long, and the gap is rarely explained at the kitchen table. A Bern University of Applied Sciences study of 1,280 PV systems, also covered in the pv magazine report, found that half the systems showed their first yield-relevant inverter errors by year 15. Inverters mounted outdoors without protection reached the same survival rate as indoor units roughly twice as fast.

Microinverters, mounted under each panel, often carry longer hardware warranties than central string inverters. They fail one at a time, so a single failure may only shave a little off production, but replacing one still means a technician on your roof.

The version you hear on the street, often in posts attributed to former solar salespeople, goes like this: a 25-year loan, an inverter that dies around year ten, an installer that is long gone, and a homeowner paying for a repair that was never in the savings math. We can't verify who wrote those posts, but the research above backs the core of it. Inverters are the most common failure point, and many fail well before a 25-year loan ends. If your proposal showed "25 years of savings" with no line for inverter replacement, see how to verify solar savings and payback promises.

Who Pays: Loan, Lease, or PPA

If your lease or PPA provider went bankrupt, your contract may now be serviced by a different company. That has happened to thousands of SunPower, Sunnova, and other customers. Read solar company bankruptcy: lease and PPA options and, for former SunPower customers, the SunStrong service guide.

The Three Warranties You Need to Separate

1. Manufacturer product warranty. Covers the inverter hardware itself. Terms vary widely by brand, model, country, and activation date. Enphase lists a 25-year limited warranty on many U.S. microinverters; SolarEdge has listed a 12-year standard warranty on its residential string inverters. Neither typically pays for the labor to swap the unit. Check the warranty document for your exact model and serial number.
2. Installer workmanship warranty. Covers defects in how the system was installed and often labor for warranty repairs. It was a promise from the installer, so when the installer is gone, this warranty usually goes with it, unless it was backed by insurance or a third party.
3. Third-party or extended warranty. Some installers bought backed warranties, and some lenders or successor companies offer service plans. Look through your closing packet for a separate warranty certificate. See third-party warranty options for orphaned systems.

For more on how these overlap, read the solar warranty guide. If a claim was refused, see solar panel warranty denied.

How to File the Claim Without Your Installer

1. Confirm it is the inverter. Look at the inverter's status light or screen, check the monitoring app for error codes, and note whether production is zero or just low. Take photos and screenshots with dates.
2. Get the serial number and model. It is on a label on the inverter (or on each microinverter, often visible in the monitoring app). Your installation paperwork or permit set may also list it.
3. Contact the manufacturer directly. Explain that the original installer is out of business. Manufacturers generally require a qualified installer to diagnose and swap the unit, but many will process the warranty claim, ship the replacement, and point you toward a certified installer in your area.
4. Get a written labor quote. Ask for diagnosis, removal, installation, and recommissioning as separate line items. Compare at least two. The solar repair cost guide explains what a reasonable quote includes.
5. Check homeowner's insurance. If the failure followed a lightning strike, power surge, storm, or fire, your policy may cover it. See solar panels, roof damage, and insurance claims.
6. Keep the old unit until the claim closes. Manufacturers sometimes require a return.

Be careful who you let on the roof. Unsolicited callers who say they "service your area's systems," or offer free inspections after an installer closes, are a known pattern. Read the unsolicited solar service call scam before you agree to a visit, and check out any successor company that asks for a "reactivation fee" (successor company reactivation fees).

Tell the Lender, in Writing

Even if you plan to keep paying, send the lender a short letter or portal message: the date the system stopped working, the cause if known, that the installer is out of business, and what you are doing about it. This does three things. It creates a record. It may trigger the lender's own processes for orphaned systems, since some lenders have arranged service programs after installer bankruptcies. And it preserves your position if this turns into a dispute.

If the seller arranged your loan, the FTC Holder Rule generally lets you raise claims you had against the seller against the lender holding the loan, up to the amount you have paid. That can matter when the installer is bankrupt and the lender is the only solvent party left. Read installer bankruptcy and lender liability.

When an Inverter Failure Becomes a Legal Claim

A ten-year-old inverter that dies is usually a maintenance cost, not a scam. These facts change the picture:

• Early failure. The inverter failed within the installer's workmanship warranty period, and the installer refused or disappeared.
• Equipment substitution. The installed inverter is a cheaper model than the one in the contract or proposal. See the solar company installed different equipment.
• "Everything is covered for 25 years." A salesperson told you the whole system was warrantied for the loan term, but the documents show otherwise.
• The system never worked properly. Repeated inverter faults from the start can point to a design or installation defect, such as undersized wiring or a mismatched inverter.
• Bad installation. An inverter mounted in direct sun or exposed to water against the manufacturer's instructions may have voided the warranty or shortened its life.
• Unfinished commissioning. The system was never fully commissioned or never received permission to operate. See installer bankrupt before PTO.

If any of these apply, collect the contract, proposal, equipment spec sheets, monitoring history, and every message with the installer before you contact the lender or a regulator. The installer ghosted action plan and the solar scam evidence checklist cover the evidence steps.

Sources

Reviewed October 10, 2026.

• pv magazine, November 2022 Weekend read: Elusive longevity, reporting the 2020 NREL maintenance survey and the Bern University inverter study.
• FTC Holder in Due Course Rule.
• U.S. Department of Energy Homeowner's guide to going solar.
• Enphase Labor Protection Program, showing that labor coverage is a separate product from the hardware warranty.
• CFPB, August 2024 Issue Spotlight: Solar Financing.
• WLOS News 13, October 2022 Families sink thousands of dollars into solar panels they say don't work.
• San Antonio Express-News complaint analysis, as quoted by El Khoury Law.

FAQ

Do I still have to pay my solar loan if the inverter is broken?

Generally yes. A solar loan is a separate obligation from the system's performance. Keep paying while you pursue the warranty and any dispute, unless qualified advice tells you otherwise. Notify the lender in writing so there is a record that the system is down.

Is my inverter warranty still valid if the installer went out of business?

Usually yes. The manufacturer's product warranty is tied to the equipment, not the installer. Contact the manufacturer with the serial number. The installer's own workmanship warranty, however, generally ends with the company unless it was backed by a third party.

Who replaces the inverter on a leased solar system?

In most leases, the leasing company owns and maintains the system, so the inverter is its responsibility. Check the maintenance and production guarantee sections of your lease. If the original company went bankrupt, find out who services your contract now and send the request in writing.

How long should a solar inverter last?

It depends on the type and how it was installed. Many central string inverters need replacing before a 25-year loan ends, while microinverters often carry longer warranties. A large study found half of systems had their first yield-relevant inverter errors by year 15, sooner for units exposed to the weather.

Does homeowner's insurance cover a failed solar inverter?

Usually not for normal wear. It may cover a failure caused by a covered event such as lightning, a power surge, fire, or a storm. Check your policy and ask your insurer before you pay for a replacement.

Can the lender help if my installer is gone?

Sometimes. Some lenders have arranged service options for customers of bankrupt installers, and if the seller arranged your loan, the FTC Holder Rule may let you raise claims against the lender. Send a written notice describing the failure and ask what options the lender offers.

Should I hire the company that called offering to fix my system?

Be careful. After installer bankruptcies, unsolicited callers often target orphaned customers. Verify the company's license, check reviews, confirm they are certified by your inverter manufacturer, and never pay an upfront "reactivation" fee without checking it out.

When does an inverter failure mean I was misled?

When it connects to something you were told or sold: an early failure the installer refused to fix, a cheaper inverter than the contract listed, a promise that everything was covered for 25 years, or a system that never worked properly. A single failure after many years is usually ordinary maintenance.

System Down and Nobody to Call?

If your inverter failed, your installer is gone, and you are paying both the loan and the full utility bill, use the free eligibility review to describe your system and financing. Have your contract, loan documents, and monitoring history ready.