SunEdison Went Bankrupt: What It Means for Your Panel Warranty
If your solar equipment is linked to SunEdison, you may be concerned about whether your warranty still means anything. It is a fair worry, especially given how large and well known the company once was.
The most useful thing to understand up front is that the main issue here is warranty and service support, not necessarily whether your panels keep working. This article explains what happened to SunEdison and what it may mean for you.
What happened to SunEdison?
SunEdison was once one of the largest global renewable-energy developers and a solar manufacturer. According to reports, it filed for Chapter 11 bankruptcy in April 2016 in the Southern District of New York, with roughly $11.7 billion in debt, following an over-leveraged acquisition spree and a collapsed merger with Vivint Solar.
A reorganization plan was reportedly confirmed in 2017, and the company wound down, reportedly with nothing left for shareholders. In plain terms, the SunEdison that manufactured or developed your equipment is no longer operating in the way it once did.
What this means for your equipment warranty
SunEdison was primarily a manufacturer and developer rather than a local installer, so for most homeowners the central concern is panel or equipment warranty support. As a practical matter, warranty support from the defunct SunEdison is generally effectively unavailable. When a manufacturer winds down, there is often no functioning entity left to honor a long-term product warranty.
That does not necessarily mean your panels have stopped working. Solar hardware can continue producing power for years after the company behind it fails. The realistic problem is what happens if a panel underperforms or fails and you go looking for a warranty remedy. Our guide on what happens to your warranty when a solar company goes bankrupt explains this common situation in more detail.
A common point of confusion: TerraForm
Many homeowners confuse SunEdison with the TerraForm entities. It is worth being clear: TerraForm Power and TerraForm Global were separate companies from SunEdison, and they were later reportedly absorbed by Brookfield. You should not assume those entities are responsible for SunEdison equipment warranties. If you are trying to figure out who, if anyone, stands behind your specific equipment, that is a good question to bring to a professional.
Options and grounds for a review
Even where a manufacturer warranty is effectively unavailable, there may be other angles worth examining. These can include separate financing agreements, workmanship warranties from whoever installed your system, or a lien recorded against your property. If a UCC-1 or similar lien was filed, our overview of UCC-1 solar liens and home sales explains why it can matter, especially if you plan to sell. None of these guarantees a particular result, but they can be reasons to have a professional review your situation.
Should you stop making payments?
If your system is tied to a loan or lease, please do not stop making payments simply because SunEdison went bankrupt. Those obligations are generally owed to a separate finance company, and missing payments could lead to late fees, collection activity, and credit harm. If credit is a concern, see our article on whether canceling solar can hurt your credit.
Staying current while a professional reviews your options is usually the wiser approach.
What to do now
- Gather your equipment paperwork, warranty documents, and any financing or lease agreement.
- Confirm which company actually installed your system, since a workmanship warranty may be separate.
- Keep records of any panel underperformance or failures, with dates.
- Continue making any loan or lease payments on time.
- Get a professional review of your remaining warranty and contract options.
If you want help understanding what protection, if any, remains, we are glad to assist. Call (385) 490-8606 or request a free consultation — free, no obligation, Mon–Sat 8AM–7PM MT. You can also browse our list of solar companies that have gone out of business.
Utah Solar Exit connects homeowners with licensed professionals and is not a law firm; this article is general information, not legal advice about any specific company or contract.