Your Solar Installer Went Bankrupt - What Happens to Your Warranty?

Your Solar Installer Went Bankrupt - What Happens to Your Warranty?

If your solar installer went bankrupt, you're not alone. With 100+ solar companies failing in 2024-2025, thousands of Texas homeowners face the same question: Is my warranty still valid?

Understanding the Two Types of Solar Warranties

1. Equipment Warranties (Usually Still Valid ✓)

These warranties come directly from equipment manufacturers and are typically honored regardless of installer status:

Solar Panel Warranties

• Product Warranty: 10-25 years covering defects
• Performance Warranty: 25-30 years guaranteeing minimum power output
• Coverage: Panel replacement if defective or underperforming
• Manufacturer Contact: Reach out directly with serial numbers

Major brands and their warranties:

• LG Solar: 25-year product + 25-year performance
• Panasonic: 25-year product + 25-year performance
• Q.CELLS: 25-year product + 25-year performance
• Canadian Solar: 25-year product + 30-year performance
• REC: 25-year product + 25-year performance

Inverter Warranties

• String Inverters: 10-12 years (extendable to 20-25 years)
• Microinverters (Enphase): 25 years
• Power Optimizers (SolarEdge): 25 years

Battery Storage Warranties

• Tesla Powerwall: 10 years
• Enphase IQ Battery: 10 years
• Generac PWRcell: 10 years

2. Workmanship Warranties (Usually Worthless After Bankruptcy ✗)

These warranties cover installation quality and are provided by the installer, not the manufacturer:

• Coverage: Roof penetrations, wiring, mounting, system design, labor
• Typical Term: 5-10 years (sometimes 25 years for premium installers)
• What's Covered: Leaks, electrical issues, mounting problems, improper installation
• Problem: Only valid if the installer is still in business

Immediate Steps to Take When Your Installer Goes Bankrupt

Step 1: Document Everything

• Take photos and videos of your entire solar system
• Locate and photograph all equipment serial numbers
• Gather all contracts, invoices, and warranty documents
• Save all email correspondence with the installer
• Document the current system performance

Step 2: Contact Equipment Manufacturers

Reach out to manufacturers directly to register your warranties:

Common Manufacturer Contact Methods:

• LG Solar: lg-solar.com/us/support
• Enphase (microinverters): enphase.com/support
• SolarEdge (inverters): solaredge.com/us/support
• Tesla (Powerwall): tesla.com/support/energy

Step 3: Check for Third-Party Warranty Insurance

Some installers purchase third-party workmanship warranty insurance that survives bankruptcy:

• GoodLeap Insurance: Some loans include workmanship warranty insurance
• Sunnova Protection Plan: Additional coverage (check if still honored post-bankruptcy)
• Solar Insure: Third-party workmanship warranty provider

Check your contract for mentions of "third-party warranty insurance" or "insured workmanship warranty."

Step 4: File Homeowner's Insurance Claim

Depending on your policy, you may be able to file a claim for:

• Roof damage from improper installation
• Leaks caused by solar installation
• Electrical damage
• Contractor non-performance (some policies)

Note: Don't expect full recovery, but it's worth attempting.

Step 5: File a Claim in Bankruptcy Court

If you're owed money or services:

1. Monitor bankruptcy notices: You should receive notification by mail
2. File a proof of claim: Typically 60-90 day deadline
3. Provide documentation: Contract, invoices, proof of payment
4. Attend creditor meetings: If required

Reality check: Unsecured creditors (homeowners) typically recover 0-10% of what they're owed, if anything.

Step 6: Find a Replacement Service Provider

You'll need a new installer to handle:

• System monitoring and maintenance
• Repairs not covered by equipment warranties
• System optimization
• Warranty claim facilitation with manufacturers

Find financially stable replacement installers →

Common Warranty Issues After Installer Bankruptcy

1. Roof Leaks

Coverage: Workmanship warranty (now worthless)

Cost to Fix: $1,000-$5,000

Solution: Hire roofing contractor + solar specialist; file homeowner's insurance claim

2. System Underperformance

Coverage: Could be equipment (covered) or installation quality (not covered)

Cost to Fix: $500-$3,000 for diagnosis and correction

Solution: Get independent assessment; if equipment defect, file manufacturer warranty claim

3. Inverter Failure

Coverage: Equipment warranty (usually covered)

Cost: $0 if under warranty; $2,000-$3,000+ if not

Solution: Contact inverter manufacturer directly

4. Electrical Issues

Coverage: Workmanship warranty (now worthless)

Cost to Fix: $500-$2,500

Solution: Hire licensed electrician familiar with solar

5. Monitoring System Failure

Coverage: Depends on monitoring provider

Cost: $0-$500

Solution: Contact monitoring provider (Enphase, SolarEdge, etc.) directly

How to Prevent This Situation in the Future

1. Choose Financially Stable Installers

Use our Safety Score System to verify:

• 5+ years in business
• Active insurance and bonding
• No recent bankruptcy filings
• Positive complaint resolution history

2. Prioritize NABCEP Certification

NABCEP-certified installers have 90% lower bankruptcy rates:

• NABCEP installers: <2% failure rate
• Non-certified: 18% failure rate

Find NABCEP certified (Gold Tier) installers →

3. Look for Third-Party Warranty Insurance

Ask potential installers:

• "Do you carry third-party workmanship warranty insurance?"
• "What happens to my warranty if your company goes out of business?"
• "Can you provide proof of warranty insurance coverage?"

4. Understand Your Warranties Before Signing

• Read warranty documents carefully
• Clarify equipment vs. workmanship coverage
• Verify warranty transferability
• Ask about warranty reserves or insurance

5. Register Equipment Warranties Independently

Don't rely on your installer to register equipment warranties. Do it yourself:

• Create accounts on manufacturer websites
• Register serial numbers
• Keep confirmation emails
• Update records if you sell your home

Legal Recourse Options

1. Surety Bond Claims

Some states require contractors to carry surety bonds. Check if your installer had one and file a claim.

2. Class-Action Lawsuits

If many homeowners are affected (Sunnova, Titan Solar, etc.), join class-action suits. Recovery is limited but possible.

3. State Contractor Board Complaints

File complaints with Texas Department of Licensing and Regulation (TDLR). Won't recover funds but may result in penalties.

4. Consumer Protection Complaints

File with Texas Attorney General's Consumer Protection Division. Helps build regulatory case but rarely results in individual recovery.

5. Small Claims Court

If you can locate business owners or LLC members, you may be able to sue personally. Consult an attorney.

Affected by Sunnova or Titan Solar?

We have dedicated resources for customers affected by these specific bankruptcies:

View Sunnova/Titan Solar Help Page →

The Bottom Line

When your solar installer goes bankrupt:

Find Stable, Protected Installers

Don't risk another bankruptcy. Use our Safety Score System to find financially stable installers with verified track records.

Browse Safety-Rated Installers →

Frequently Asked Questions

Can I still get my solar panels replaced if my installer went bankrupt?

Yes, if the panels are defective and still under the manufacturer's warranty. Contact the panel manufacturer directly with your serial numbers. The manufacturer warranty is independent of the installer.

Who do I call for repairs if my installer is out of business?

Find a local solar installer willing to service systems they didn't install. Expect to pay $100-$200 for a service call plus parts and labor. Browse replacement installers.

Can I sue the installer's owners personally?

Possibly, but it's difficult. If the business was an LLC or corporation, owners typically have liability protection. Consult an attorney if you believe fraud or negligence occurred.

Will my homeowner's insurance cover solar system issues?

It depends on your policy and the issue. Roof leaks from solar installation may be covered. Equipment failure or poor installation quality is usually not covered. File a claim and see.

Should I remove my solar system if the installer went bankrupt?

Usually no. If the system is working, keep using it. Equipment warranties are still valid. Only remove if causing serious problems (leaks, fire hazard) - get professional assessment first.