Solar Company Went Bankrupt? Here's What to Do Next

If your solar company went bankrupt, you still have legal options to protect your home and investment. Over 100 solar companies have filed for bankruptcy since 2023, leaving 820,000+ homeowners stranded. Here's exactly what you need to do.

Step 1: Determine the Type of Bankruptcy

The type of bankruptcy filing determines your options. Chapter 7 bankruptcy means the company is liquidating entirely - your warranty is likely worthless, but you may be able to file a claim with the bankruptcy court. Chapter 11 bankruptcy means the company is restructuring and may continue operating, potentially honoring some obligations.

Step 2: Check for Liens on Your Property

Many solar companies file UCC liens or solar panel liens on your property. If the company goes bankrupt, these liens may be sold to a third party. It's critical to check your property records immediately and take steps to remove any liens before they're transferred. A solar lawyer can file a lien release or challenge the validity of the lien.

Step 3: File a Proof of Claim

If you're owed money (such as a deposit for work not completed), you need to file a Proof of Claim with the bankruptcy court before the deadline. This puts you in line to receive a portion of any remaining assets. The deadline is typically 90 days after the bankruptcy filing.

Step 4: Explore Third-Party Claims

Even if the solar company is bankrupt, you may have claims against other parties: the financing company (for TILA violations or holder-in-due-course claims), the equipment manufacturer (for defective panels or inverters), or the sales organization (if a separate company from the installer).

Step 5: Contact a Solar Lawyer Immediately

Time is critical in bankruptcy cases. Deadlines for filing claims are strict, and liens can be transferred quickly. A solar lawyer can assess your situation, file necessary claims, remove liens, and identify all potential recovery options - often at no upfront cost to you.