Your Solar Company Went Bankrupt and a Servicer Took Over — Is Your Warranty Still Valid?

A wave of residential solar bankruptcies has left hundreds of thousands of homeowners in an unsettling position: the company that sold and installed their system is gone, and a third-party "servicer" they've never heard of is now sending the bills. If you're wondering who you actually owe, whether your warranty still means anything, and whether you can get out, this guide is for you.

What Actually Happens When Your Solar Company Goes Bankrupt

When a solar installer or financier files for bankruptcy or shuts down, your contract doesn't vanish. It's an asset, and it gets sold or assigned to another company. Typically:

• Your lease, PPA, or loan survives. The payment obligation transfers to whoever buys the contract portfolio — often a specialized servicer. You still owe the payments.
• A servicer takes over billing and "support." These companies manage the accounts of multiple bankrupt installers. Homeowners increasingly report poor responsiveness, and some have even charged fees just to access production data from your own system.
• Service and warranty work frequently fall through the cracks. The servicer collects payments but may not perform repairs, honor production guarantees, or answer warranty claims the way the original installer was supposed to.

This gap — still paying, but no longer getting service — is exactly why so many homeowners in this situation start looking for an exit.

The Good News About Your Equipment Warranty

Here's a critical distinction most people don't know: your equipment warranties usually come from the manufacturers — not the installer. The panels, inverter, and battery each carry their own manufacturer warranty (often 10–25 years), and those typically remain valid even if the company that installed them is gone. You can usually have any licensed solar contractor diagnose and service the system and file manufacturer warranty claims.

What you lose when the installer disappears is usually the workmanship warranty (covering the quality of the installation itself) and any production guarantee the installer promised. Those died with the company — and that loss can be part of the grounds for challenging your contract.

Who Do You Pay Now?

You should receive notice when your contract is transferred, telling you who now services it and where to send payments. Be cautious here:

• Verify any "new servicer" notice independently before changing where you send money — bankruptcy transitions attract scams.
• For a loan, the lender (such as GoodLeap, Mosaic, Sunlight Financial, or Dividend) usually still holds the note even if the installer is gone. The loan didn't disappear with the installer.
• Keep paying under protest if you're disputing — stopping payments without a legal strategy can damage your credit and weaken your position.

Do You Have Grounds to Exit?

A bankrupt installer can actually strengthen your case for getting out, particularly when:

• Promised service or production guarantees can no longer be honored. If your contract included a performance guarantee and there's no one left to stand behind it, that may be a breach.
• The original sale involved misrepresentation. Misrepresentation claims generally survive bankruptcy and can often be asserted against the successor or, for loans, against the lender under the FTC Holder Rule.
• You're trying to sell your home and a defunct company makes it harder to clear the lease or UCC-1 lien.

Which Companies Does This Affect?

The list keeps growing. We've covered several of the largest collapses in detail:

• Sunnova bankruptcy — what Utah homeowners need to do
• SunPower bankruptcy — exiting your lease or loan
• Freedom Forever bankruptcy — homeowner options
• Titan Solar Power closure — what to do now

If your installer isn't on this list, the same principles apply. State attorneys general have begun investigating solar servicers over warranty and billing complaints — a sign that homeowners in this position have legitimate grievances and growing leverage.

What to Do Right Now

1. Confirm who holds your contract and where payments legitimately go.
2. Identify your equipment manufacturers and locate those warranty terms — they're likely still valid.
3. Document everything: the bankruptcy notice, unanswered service requests, and any production shortfalls.
4. Get your contract reviewed for exit grounds before assuming you're stuck paying a company that no longer serves you.

How We Help

Solar Exit Utah reviews your contract at no cost, determines whether the bankruptcy and any original misrepresentation give you grounds to exit, and connects you with independent legal professionals who can act. We're advocates, not a law firm. Our partners maintain a 98% success rate across thousands of solar contract exits. For the full range of options, see our complete Utah solar exit guide.

Next Steps

If your solar company is gone and a servicer is collecting payments without providing service, find out where you stand. Call (385) 490-8606 or submit your information online for a free, no-obligation review. Mon–Sat, 8AM–7PM MT.