Published August 20, 2025 · Updated September 3, 2026 · 9 min read
The short answer
An installer's closure does not by itself decide a manufacturer warranty, loan, lease, or PPA. Check each contract with the manufacturer or finance provider. Installer workmanship and unfinished-work obligations are usually the most exposed, so preserve every project record and get case-specific guidance.
By Vinnie Curcie, Founder & CEO
If a solar company goes out of business, do I still have to pay?
Do not assume an installer bankruptcy or closure ends a solar loan, lease, or PPA. Those are separate contracts, and an unfinished system or missing Permission to Operate does not by itself establish that payment obligations ended. Review the agreement and notices, preserve payment records, and contact the finance provider or qualified counsel before changing payment. Our financing overview explains how the structures differ; the table lists what to verify rather than promising a universal outcome.
| Item | If your installer closes | What to do |
|---|---|---|
| Solar loan | May continue under the note and the current servicer's instructions | Review the agreement and statements; contact the lender or qualified counsel before changing payment |
| Lease or PPA | May continue or be serviced or transferred under the contract | Review notices and payment instructions; keep every payment record |
| Panel warranty (REC, Q CELLS, etc.) | May remain available under the manufacturer's product terms | Check registration, transfer rules, records, exclusions, and the claim process |
| Enphase microinverter or Tesla Powerwall warranty | May remain available under the specific manufacturer's terms | Ask the manufacturer to confirm coverage and an eligible service path |
| Installer workmanship warranty | At risk or potentially treated as a claim against the closed company or estate | Review case notices and ask qualified counsel or the case administrator about claim options |
| Monitoring account | Availability depends on who hosts the account and who controls system access | Save the login, serial numbers, and account-ownership records |
| CSLB contractor license bond | $25,000 total for all claims during the bond period; eligibility and deadlines apply | Use the CSLB record to identify the surety and ask about the claim process |
| Permits and utility interconnection | Records remain with the local jurisdiction and utility, but project status must be verified | Request the permit, inspection, correction, interconnection, and PTO records |
Contract and warranty outcomes vary. Review the controlling agreement and current notices with the finance provider, manufacturer, case administrator, or qualified counsel. CSLB says the contractor license bond is $25,000 total for all claims during the bond period, not per job, and deadlines and eligibility rules apply.
What may remain available—and what to verify
Panel, inverter, and battery warranties are generally issued by the manufacturer rather than the installer, so an installer's closure does not automatically cancel them. A particular claim can still depend on product terms, registration, transfer rules, installation records, and the type of failure. Loans, leases, and PPAs are separate contracts; confirm payment and servicing instructions directly with the finance provider or qualified counsel rather than assuming the bankruptcy changes them.
What's actually at risk
The vulnerable piece is the installer's own workmanship warranty (how it was installed, roof penetrations, service visits). If that company is gone, that coverage can go with it. That's why the single most important trust question in 2026 isn't price — it's 'will this company still be here?'
If you're already in this situation — a system on your roof and an installer that no longer answers the phone — you have practical options today. We've laid out the step-by-step playbook on our page for homeowners whose solar company went out of business, and our solar repair service diagnoses and services systems regardless of who originally installed them.
What to do when your solar company goes out of business: a 6-step checklist
- Review your loan, lease, or PPA and contact the finance provider or qualified counsel before changing any payment.
- Save your contract, warranty documents, permit and inspection records, interconnection or Permission-to-Operate records, equipment serial numbers, and monitoring login.
- Review the installer on the CSLB license lookup for current license and bond information. License status alone does not decide an individual project or contract.
- Contact the equipment manufacturers to confirm registration, transfer rules, records needed, exclusions, and the claim process for each product.
- If work was defective or unfinished, ask CSLB, the listed surety, the case administrator, or qualified counsel which complaint, bond, or bankruptcy-claim paths may apply and what deadlines control.
- Arrange an independent licensed assessment before a repair or unfinished-project problem gets worse. OC Solar can review most major equipment, monitoring, and project records and tell you which service or completion path is supportable.
Freedom Forever's case converted to Chapter 7 — what its California customers should do now
Freedom Forever filed for Chapter 11 on April 15, 2026. The U.S. Bankruptcy Court for the District of Delaware homepage now says case 26-10522 converted from Chapter 11 to Chapter 7. Chapter 7 is a liquidation process, but the conversion alone does not establish the status of every customer contract or project. If Freedom Forever installed your system, secure your paperwork, verify your own project and financing status, and line up independent help for repairs or unfinished work. Three steps, in order:
Step 1 — confirm instructions and pull your records together. Do not change loan, lease, or PPA payments based only on the installer's bankruptcy. Contact the finance provider or qualified counsel for case-specific direction. While you still have access, save copies of your contract, warranty documents, permit, inspection and interconnection paperwork, and monitoring login.
Step 2 — verify warranty terms and watch the case. Manufacturer warranties are separate from installer workmanship obligations, but a specific claim still depends on the product and warranty terms. Freedom Forever's workmanship and unfinished-service obligations may be claims against the bankruptcy estate. Official notices and claim deadlines are published by the court and Kroll; a consumer attorney can advise you about a significant unresolved claim or proof of claim.
Step 3 — line up independent service when work or production has stopped. Roof leaks, inverter faults, monitoring outages, inspection corrections, and missing interconnection approvals each require different evidence. OC Solar can assess the system or project records and tell you what repair or completion path is supportable.
How to choose a company that will last
Look for years in business (5+ is a common reliability heuristic), financial stability, a real local presence, and a verifiable license. OC Solar has been operating since 2016, kept growing through the 2024–2025 industry shakeout while many competitors closed, holds CSLB #1023627 and a BBB A+ rating, and is a Tesla Powerwall Premier Certified installer. Our protection is structured so most of your coverage doesn't depend on us — though we plan to be here for all of it.
The practical test is a verifiable track record and a service operation you can reach. OC Solar has operated since 2016, holds CSLB #1023627, and has installed 30+ megawatts across Southern California; current third-party ratings and review counts are published on our reviews page. Manufacturer warranty terms remain their own contracts. What a stable local installer adds is accountable workmanship and a nearby crew. See how long a solar system lasts, or choose repair or unfinished-project help if another company left a system or project behind.
FAQ
Do not assume the obligation ended. A loan, lease, or PPA is a separate contract, and installer closure or missing Permission to Operate does not by itself decide the payment outcome. Review the agreement and current notices, keep payment records, and contact the finance provider or qualified counsel before changing payment.
Verify four things separately: the project's permit and utility status, the financing or lease contract, each manufacturer's warranty terms, and the installer's workmanship or service obligation. Preserve every record, confirm payment instructions with the finance provider, confirm coverage with each manufacturer, and use a licensed local contractor to assess the installed system or unfinished work.
Preserve the contract, finance, warranty, permit, inspection, interconnection, equipment, and monitoring records. Contact the finance provider or qualified counsel before changing payment. Check the installer and bond information with CSLB, ask manufacturers to confirm product-specific coverage, and arrange an independent licensed assessment for repairs or unfinished work.
Manufacturer and installer warranties are different obligations. Manufacturer coverage may remain available, but it depends on the product terms, registration, transfer rules, records, exclusions, and claimed failure. Installer workmanship and service obligations may be disrupted or treated as claims. Verify each warranty rather than assuming it survived or disappeared.
Preserve the contract, finance, warranty, permit, inspection, interconnection, equipment, and monitoring records. Do not change loan, lease, or PPA payments based only on the bankruptcy; confirm instructions with the finance provider or qualified counsel. Verify manufacturer warranty terms directly, then arrange an independent licensed assessment for repairs, monitoring, or unfinished work.
Freedom Forever filed for Chapter 11 on April 15, 2026, and the U.S. Bankruptcy Court for the District of Delaware now says case 26-10522 converted to Chapter 7. Chapter 7 is a liquidation process, but the conversion alone does not establish the status of every customer contract or project. Gather your records, confirm your lender and permit status, and arrange independent service or a completion assessment if work has stopped.
Sources
- 1.Tesla — Powerwall Limited Warranty (USA) — Tesla · accessed 2026-07
- 2.Enphase — Enphase Energy System Warranties — Enphase · accessed 2026-07
- 3.REC Group — REC ProTrust Warranty — REC Group · accessed 2026-07
- 4.CPUC — California Solar Consumer Protection Guide — California Public Utilities Commission · accessed 2026-07
- 5.CSLB — Check a Contractor License — Contractors State License Board (California) · accessed 2026-07
- 6.CSLB — Filing a Construction Complaint — Contractors State License Board (California) · accessed 2026-07
- 7.CSLB — Bond Requirements ($25,000 contractor license bond) — Contractors State License Board (California) · accessed 2026-09-02
- 8.CSLB — Bond Basics (who may file a claim against a license bond) — Contractors State License Board (California) · accessed 2026-09-02
- 9.U.S. Bankruptcy Court, District of Delaware homepage notice — Freedom Forever case 26-10522 converted to Chapter 7 — U.S. Bankruptcy Court for the District of Delaware · accessed 2026-09-03
- 10.U.S. Department of Energy — Consumer's guide to buying a house with solar panels — U.S. Department of Energy · accessed 2026-09-03
- 11.Federal Trade Commission — Solar power for your home — Federal Trade Commission · accessed 2026-09-03
Tell us whether the system needs service or another installer left the project unfinished. The next page separates those paths before you submit anything.
Choose the right takeover path →