As solar power enters its next growth phase, it’s important to consider the challenges faced by early adopters of this technology.
Many homeowners who invested in solar power are now encountering issues, often with inverters, and require Operation and Maintenance (O&M) support. When a solar company goes out of business, this negatively impacts not just the homeowners, but the reputation of the solar industry overall.
What exactly happens to your system when your solar company goes out of business or files for bankruptcy? This scenario leads to frustration for numerous homeowners when they reach out to their original installers for service only to discover the company is no longer operational.
If you find yourself in this situation, continue reading
If solar system installation is incomplete or awaiting permits, please refer to our dedicated article on securing Permission to Operate (PTO) for your system.
Table of Contents
My solar company went out of business, now what?
Despite record growth for the solar industry, since 2020, an onslaught of solar installation companies have gone under or have been acquired, some without warranties being honored.
This has left too many residential solar panel owners frustrated, coming out of pocket on solar repairs, too many unanswered questions, and some wanting to give up on their panels altogether.
Billy Ludt of Solar Power World featured this problem in an article, “Without a lifetime of maintenance support, residential solar systems can be orphaned.”
The mounting problem of owning an abandoned solar system is becoming too familiar. Not having the best solar panel warranty can create unnecessary anxiety, leaving most people worried about their provider going out of business.
“Whenever a solar customer has no one to call for support, it damages the industry’s reputation and diminishes trust levels. As painful as it sounds, you can’t blame someone in this position for wanting to replace or remove their solar panels in the hopes that the same scenario will not be repeated,” said Dean Chiaravallotti, CROS at Solar Insure.
The harsh reality is that solar companies go out of business for various reasons:
- Poor customer service
- Low-quality equipment
- False advertising and violating consumer laws
- Inexperienced companies entering the solar industry
Unfortunately, there are many reasons why solar companies fail, file bankruptcy, dissolve, or get acquired by another company. Nonetheless, when we invest in one of the industry’s best solar panel systems, the protection of our investment should be just as strong. Sadly, this hasn’t been the case.
A list of Solar Companies That Have Gone out of Business in 2023
The fully updated and complete list can be found here.
- 3D Solar
- AAA Certified Solar
- Accept Solar
- ACE Solar Systems
- Arizona Solar Concepts
- ASA – American Solar Advantage
- Code Green Solar
- EcoMark Solar
- EcoMark Solar
- Enver Solar
- Envirosolar
- Erus Energy
- Solar Spectrum
- Solar Spectrum
- SolarDot
- Solarworks
- Solular, LLC
- Sunpro Solar
- Suns Up Solar
- United Solar Inc.
- Utah Solar Group
- Verisolar
- Voltage Solar Power
- Zenernet
SolarDetect+ by Solar Insure: A Silver Lining Program for Abandoned and Unsupported Solar Systems
Solar Insure’s new SolarDetect+ Program brings back the support residential solar owners lack. Backed by long-term protection, the new warranty helps reestablish confidence for those abandoned in the solar ownership process.
Equipment issues over the life of panels
New solar innovations, like battery storage options, are taking off, and many are considering solar upgrades at this time. But as with any highly complicated update to our property, it’s essential to be aware of the quality and backing of the equipment we install, as many standard parts could fail after their 10-year warranty.
PV system components can fail over time. Inverters are especially susceptible as they start to fail and require replacement. For example, if the company that installed your home’s solar panels went out of business, you might lack the confidence to make new solar upgrades. Some other common solar panel issues can also happen during their lifetime, for example:
- Electrical issues
- Micro-cracks
- Hot spots
- PID effect (Potential Induced Degradation)
- Soiling
- Snail trails
A report by Sandia National Laboratories highlighted some of the most prominent PV system component failures. The following graph shows the most common failure occurrences across panel portfolios from various manufacturers.
O&M companies can only do so much
When a warranty does not cover you, O&M companies sometimes won’t repair your panels as they can become too costly. Most often, O&M teams will only replace solar panels. As one of the most complicated home projects you can take on, getting the details on coverage right is imperative. That way, you’re not stuck with a massive bill because your O&M costs now fall on you.
We need protection from the mechanical and electrical failures that can occur on our solar systems, especially when we pass the manufacturer’s warranty time limit. Going beyond, we also need to ensure complete coverage without paying out of pocket for parts and labor.
Getting the right warranty matters; there’s still time
The best warranty to have in place is an insurance-backed warranty. Protection over inverters, solar panels, and labor are essential.
The new SolarDetect program from Solar Insure allows abandoned systems to leverage these benefits and get maintenance back on track.
Every array owner wants fully operating panels that are monitored and maintained. It gives genuine peace of mind knowing there’s someone there to support you when anything needs repair on panels, inverters, and labor needs.
Solar Insure’s monitoring system brings logic to the process by arming your O&M team with insight into any occurring issues before they grow into performance issues. The O&M crew will perform preventative maintenance to keep systems running correctly for their lifespan. This is the very reason Solar Insure has critical requirements for offering warranties that serve solar customers:
- Warranty protection to solar array owners of selected brands – see the Solar Insure approved vendor list here.
- A plan that covers monitoring, parts, and labor.
- Protection from mechanical and electrical failure past the manufacturer’s warranty.
- Backed by an A.M. Best “A” rated company.
Solar Insure’s SolarDetect Program for residential solar homeowners
Solar Insure’s new SolarDetect+ Program brings back the support residential solar owners have been lacking. Backed by long-term protection, the new warranty helps reestablish confidence for those abandoned in the solar ownership process.
Clear and easy-to-understand warranty benefits that are reliable and provide long-term protection on your solar investment put your mind at ease. Solar Insure’s Warranty delivers a higher level of service, better pricing and higher savings – with no out-of-pocket costs when systems need repair.
As homeowners, we want to be proud of our solar panels and enjoy the economic returns and environmental benefits. After all, these are the reasons we purchased solar in the first place.
Solar Insure’s solution for legacy solar systems
Abandoned systems can be a headache for owners, but they no longer have to be. Gone are the days of dealing with the threat of a solar company shuttering and losing your warranty. Solar Insure is adopting these systems to bridge the gap for solar orphans who need repairs and support.
Did you know?
- 60% of homeowners are concerned with the long-term viability of solar products.
- 75% of homeowners say they are more likely to purchase solar when an extended warranty is provided.
- Buyers of warranty plans are happier with their purchases and more loyal to both the installer and manufacturer.
Stories from Solar Insure Customers
Many people whose solar companies have gone out of business but have a Solar Insure Monitoring and Warranty turn to Solar Insure and experience a whole different world of support from a caring team of experts. Here are some of their experiences, which you can also see as verified reviews on our Google Business Page.
“The company we originally bought the solar panels through went out of business. Suddenly, we were without support when one of the panels quit operating. Once we found out we had insurance, we contacted them. They were responsive to our needs, sent us a copy of our policy since we never received it from the original vendor, and put us in contact with a new solar panel company to repair our solar panels. Going forward, the new solar vendor will be the vendor to meet our support needs, working with Solar Insure for coverage. Solar Insure made an impossible situation not impossible at all!!!!” – Karen Branzel
“During November of 2021, I was informed that my installer had gone bankrupt without informing any of its clients. It was a difficult time with 13 out of 23 microinverters not working and my installer out of the picture. I decided to contact my sales representative, and he sent me the name and link to Solar Insure. I contacted customer service and Spoke with Ariel. She immediately asked for some data and was able to pull up my account and forward me the Product Registration form. I explained my situation with my installer and 13 microinverters not working. She immediately filed a claim and had it assigned to infinity solar. Before the end of December, my solar panel system was repaired and had been running beautifully. During the process, I received various calls following up on the status and the satisfaction of the work completed. I have dealt with many companies, but I’ve been super impressed by the service provided by Ariel and Solar Insure. I highly recommend this company to anyone.”
“We had our solar panels for 6 months with critical errors. MAJOR issues with the original installers!! They had very poor communication skills. It got to the point where they were ignoring my calls. I reached out to the company that was financing us to get them involved and they were experiencing the same issues.
Once Solar Insure got involved they immediately began sending me emails, text messages, and phone calls. Within a week they had someone out to repair the errors and get us started, FINALLY!! I was extremely happy with their service! Very friendly and professional. Straight to handling business!! Thank You Solar Insure Team!!!”
Resources
Mahmoud Dhimish, Violeta Holmes, Bruce Mehrdadi, Mark Dales. The impact of cracks on photovoltaic power performance. Journal of Science: Advanced Materials and Devices. Volume 2, Issue 2, 2017, Pages 199-209, ISSN 2468-2179,
Arani, M., Akhavanhejazi, Maryam. 2016/12/06. The Comprehensive Study of Electrical Faults in PV Arrays. 2016. Journal of Electrical and Computer Engineering. https://www.researchgate.net/publication/311477300_The_Comprehensive_Study_of_Electrical_Faults_in_PV_Arrays/citation/download
Shifeng Denga,b,*, Zhen Zhangb, Chenhui Jua, Jingbing Donga, Zhengyue Xiaa, Xinchun Yana, Tao Xua, Guoqiang Xinga. Research on hot spot risk for high-efficiency solar module (2017). SNEC 11th International Photovoltaic Power Generation Conference & Exhibition, SNEC 2017. Scientific Conference, 17-20 April 2017, Shanghai, China.
Hong Yang, Jipeng Chang, He Wang, Dengyuan Song. Power Degradation Caused by Snail Trails in Urban Photovoltaic Energy Systems. Energy Procedia, Volume 88, 2016. Pages 422-428. ISSN 1876-6102. https://www.sciencedirect.com/science/article/pii/S1876610216300820
https://www.eia.gov/todayinenergy/detail.php?id=50818
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