INDUSTRY TRACKER
The residential solar industry is experiencing an unprecedented wave of bankruptcies and closures. Here's every major solar company that has reportedly filed for bankruptcy or gone out of business — and what it means for homeowners.
Updated March 28, 2026 · Not legal advice · Our methodology
The solar industry is in the midst of a major consolidation. Rising interest rates, policy changes, and market overcapacity have reportedly driven dozens of solar companies into bankruptcy or out of business since 2024. This page tracks every notable case, the current status of each, and what affected homeowners should know.
In This Guide
The years 2024 through 2026 will likely be remembered as a period of reckoning for the residential solar industry. After a boom period fueled by the Inflation Reduction Act, low interest rates, and strong consumer demand in 2021-2022, the market conditions shifted dramatically. According to industry reports:
The result has been a wave of bankruptcies, closures, and consolidations that has left hundreds of thousands of homeowners — by some estimates — dealing with defunct solar companies, orphaned systems, and uncertain warranties.
Important: This list is based on publicly available information including court filings, news reports, and industry databases. The status of each company may have changed since our last update. Verify current information through official channels before taking action. This is not legal advice.
The following are the most significant solar company bankruptcies and closures based on the number of homeowners reportedly affected and the scale of operations. We've included the key details for each based on available public information.
| Company | Type | Reported Date | Status |
|---|---|---|---|
| SunPower | Chapter 11 | August 2024 | Asset sales, contracts transferred |
| Sunnova | Chapter 11 | June 2025 | Reportedly restructuring |
| Pink Energy (Power Home Solar) | Ceased operations / FTC action | Late 2022 | Legal proceedings ongoing |
| Titan Solar Power | Ceased operations | 2024 | Reportedly closed |
| Momentum Solar | Financial difficulties | 2024-2025 | Reportedly reduced operations |
| Freedom Forever | Financial difficulties | 2024-2025 | Reportedly restructuring |
| Maxeon Solar Technologies | Financial restructuring | 2024-2025 | Reportedly restructuring |
Once one of the most recognized names in residential solar, SunPower reportedly filed for Chapter 11 bankruptcy protection in August 2024. The company had been experiencing financial difficulties since early 2024, including accounting issues and declining installations. According to reports, SunPower's assets have been sold to various buyers, and customer contracts have been transferred to successor servicers.
Homeowner impact: Warranties may be impaired. Contracts reportedly transferred. Equipment manufacturer warranties (from Maxeon, Enphase, etc.) typically remain separate.
Full SunPower bankruptcy guide for homeowners →
Sunnova Energy International, one of the largest residential solar lease and PPA providers, reportedly filed for Chapter 11 bankruptcy protection in June 2025. The Houston-based company had been servicing hundreds of thousands of residential solar systems. According to reports, the filing came after mounting debt obligations and declining market conditions.
Homeowner impact: Contracts generally remain in effect during Chapter 11 proceedings. Service quality may decline. Contracts may be transferred to new owners.
Full Sunnova bankruptcy guide for homeowners →
Pink Energy, formerly operating as Power Home Solar, reportedly shut down in late 2022 amid an FTC lawsuit alleging deceptive sales practices and lawsuits from multiple state attorneys general. While technically predating the 2024-2026 wave, Pink Energy's collapse was an early warning sign of industry-wide problems.
Homeowner impact: Company non-operational. Warranties unenforceable. Legal proceedings may result in consumer redress. Equipment manufacturer warranties may still apply.
Full Pink Energy bankruptcy guide for homeowners →
Is your solar company on this list? Get a free preliminary contract review to understand your options and next steps.
Titan Solar Power, which was one of the fastest-growing residential solar installers in the U.S., reportedly ceased operations in 2024. Based in Arizona, the company had expanded rapidly across multiple states before reportedly encountering financial difficulties.
Homeowner impact: Service and warranty obligations reportedly unfulfilled. Homeowners should contact equipment manufacturers directly for warranty support and hire local installers for service needs.
Momentum Solar, a New Jersey-based residential solar installer, reportedly experienced significant financial difficulties in 2024-2025. According to reports, the company reduced operations and faced customer complaints about unfulfilled installations and service obligations.
Homeowner impact: Service availability reportedly reduced. Pending installations may have been delayed or cancelled. Contact the company directly for the most current status of your account.
Beyond the major names, numerous smaller and regional solar companies have reportedly closed or filed for bankruptcy during this period. Based on our research, the following companies have also reportedly experienced significant financial distress:
The bankruptcy wave hasn't been limited to national companies. Dozens of regional and local solar installers have reportedly closed across the country. While we can't track every closure, the pattern has been consistent across all major solar markets.
According to industry data, the states most affected by solar company closures include:
If your solar company has closed: Even if your specific company isn't listed here, the same general guidance applies. Gather your documentation, contact equipment manufacturers for warranty support, and consult a qualified attorney if needed. Complete guide: What happens when your solar company goes out of business →
The solar industry crisis has also affected companies in the broader solar ecosystem:
Several solar financing companies have also reportedly experienced financial stress, which can affect homeowners' loan servicing and refinancing options. The interconnected nature of the solar financing ecosystem means that problems at one company can cascade to affect customers of other companies.
Understanding the root causes helps homeowners assess the stability of their own solar company and the broader industry trajectory. Based on our research and analysis of industry reports, the primary factors include:
The Federal Reserve's interest rate increases from 2022 through 2024 reportedly had a dramatic impact on the solar industry. Higher rates made solar financing more expensive for consumers (reducing demand) and increased the cost of capital for companies that relied heavily on debt financing (squeezing margins).
California's transition to Net Billing (NEM 3.0) in April 2023 reportedly reduced the financial value of rooftop solar by 75% or more for new installations. Since California represented roughly 25-30% of the national residential solar market, this had an outsized impact on companies with significant California exposure.
Many companies expanded aggressively during 2021-2022, adding employees, offices, and dealer networks. When demand slowed, these companies found themselves with fixed costs they couldn't sustain.
The cost of acquiring new solar customers has reportedly risen dramatically, with some companies spending $5,000 or more per customer in sales and marketing. As the easy-to-convert customers were exhausted, acquiring new customers became increasingly expensive.
Beyond California, other states have been adjusting their net metering and solar incentive policies, creating uncertainty that reportedly chilled demand and complicated business planning for solar companies.
Whether your company has already closed or you're worried it might, get a free contract review to understand your position.
If your solar company has filed for bankruptcy or gone out of business, here are the steps we recommend based on our research:
Ownership Disclosure: SolarPanelExit.com and TRU Solar Cancellation share common ownership. TRU Solar Cancellation offers a Solar Exit Document Package for a one-time $450 fee. TRU is not a law firm and does not provide legal advice. See our full ownership disclosure for details.
Whether your solar company is currently stable or showing signs of distress, here's how to protect yourself:
If you notice any of these warning signs, take proactive steps to protect yourself: gather your documentation, verify your equipment warranties with manufacturers, and consider consulting an attorney about your options.
Based on our research, at least a dozen notable solar companies have reportedly filed for bankruptcy or ceased operations between 2024 and 2026, including major names like SunPower and Sunnova. Dozens of smaller regional installers have also reportedly closed. The consolidation is ongoing, and additional companies may face difficulties in the coming months.
First, gather all documentation including your contract, warranty papers, and payment records. Continue making payments (we do not advise homeowners to stop making payments or breach contractual obligations). Contact equipment manufacturers for warranty support. Check for UCC liens on your property. Monitor bankruptcy proceedings for updates. If needed, consult a qualified attorney. Full guide →
Generally, yes. We do not advise homeowners to stop making payments or breach contractual obligations. Your payment obligation typically continues even after the solar company files for bankruptcy. The obligation may be owed to a third-party financing company or may transfer to a successor entity. Consult a qualified attorney for guidance specific to your situation.
Equipment manufacturer warranties (from panel makers, inverter manufacturers, etc.) are typically separate from the installer's obligations and should remain valid. The installer's own workmanship and service warranties may be impaired or unenforceable after a bankruptcy. Contact your equipment manufacturers directly to confirm warranty coverage. Results vary by individual situation.
Bankruptcy may create opportunities to exit your contract, particularly if the company or its successor fails to meet contractual obligations like maintenance and warranty service. However, bankruptcy alone doesn't automatically give you the right to cancel. Document any service failures and consult a qualified attorney to evaluate your specific options. Contract exit guide →
According to industry analysts, several factors have converged: rising interest rates increased the cost of capital, California's NEM 3.0 reduced solar economics in the largest market, demand slowed after the 2021-2022 boom, companies were overleveraged from aggressive expansion, and competition compressed margins. This combination proved unsustainable for many companies that relied on continued growth.
Get a free contract review to understand your rights and options, regardless of which company installed your system.
Disclaimer: This article is for informational purposes only and is not legal advice. Company status information is based on publicly available reports and filings and may not reflect the most current situation. Inclusion on this list does not constitute a legal determination about any company's financial status. Results vary by individual situation. We do not advise homeowners to stop making payments or breach contractual obligations. SolarPanelExit.com and TRU Solar Cancellation share common ownership. Consult a qualified attorney before taking action. See our Ownership Disclosure, Advertiser Disclosure, and Methodology.