Solar panels are an enduring investment that necessitate upkeep and support during their lifespan. If the solar power company responsible for installing the panels becomes bankrupt, you might find yourself in a difficult situation.
Depending on your circumstances, you can take certain measures to safeguard your access to solar energy and mitigate the impact of the company’s closure.
Let’s review the 5 things you should do if your solar power company goes bankrupt.
1) Contact local solar companies or electricians for assistance
Although contacting other solar power companies should always be your first step, you may encounter some disappointment.
Most solar companies prefer not to take on projects that were started by someone else. This is because repairing or servicing existing systems is not as profitable as working on new installations.
Additionally, working on a system that they did not originally install could potentially lead to warranty issues. The solar companies can also be blamed for poor work done by the original installer.
Nevertheless, there are instances where solar companies have assisted customers who were left with incomplete or partially paid installations when another company went out of business. AllSolar Energy did this in Florida.
In addition, some companies specialize in solar maintenance and repairs. If you’re fortunate enough to have maintenance and repair companies in your area, they may be your best option.
2) Determine whether the company has been acquired or if your account has been transferred
At times, a larger company may acquire another, and you might become eligible for their services. If you have a solar lease or power purchase agreement, it’s highly likely that your account will be transferred to a different company.
When solar companies go out of business, they often sell their leases as assets to other companies. The new company finds this acquisition appealing because they will own the solar system and the incentives that can be derived from it.
Additionally, many leases include production guarantees in your contract. This gives the new company an interest in rectifying any issues.
3) Reach out to the equipment manufacturer
If you come across any problems with your equipment, get in touch with the manufacturers. If you bought a warranty, the manufacturers might be able to assist you in finding certified installers within your vicinity.
However, you might run into some of the same difficulties mentioned previously. Many installers might be hesitant to accept projects that are not theirs, even if they’re familiar with the equipment.
Furthermore, this solution is only beneficial if the warranty covers the specific repair you require. For instance, if a squirrel has caused damage to the wiring underneath your solar panels, the manufacturer may not be able to provide much assistance.
4) Contact your financing provider (if applicable)
If you have obtained a solar loan to pay for your solar panels, you should reach out to your financing company. Just like when contacting the manufacturer, the financing company might be able to assist you in locating a local installer with whom they have a business relationship.
In the event that certain components of your solar system are malfunctioning and you’re unable to have them repaired or replaced, you may have the option to collaborate with your financing company to postpone payments. There might be a clause in your financing agreement that permits payment deferral (although this is far from guaranteed).
5) Seek out whether to take legal action
If your installer has gone out of business and you’re struggling to find assistance, taking legal action may be your most optimal choice.
Start by organizing any paperwork or communication you have with the installer, and then consult a legal professional to determine the next steps. Keep in mind that we can’t provide legal advice, so seek guidance from experts.
Another option is to reach out to Solar United Neighbors. Solar United Neighbors is a nonprofit organization that supports and advocates for solar owners throughout the United States. It can guide you based on your specific circumstances.
Additionally, consider leaving reviews on sites like SolarReviews. This can help protect other customers from facing similar challenges.