Solar installer bankruptcies void workmanship warranties, stranding 100,000+ homeowners with orphaned systems
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When solar installation companies go bankrupt, which dozens have since 2023 including major players like SunPower, Titan Solar Power, and ADT Solar, homeowners lose their workmanship warranties entirely. Equipment manufacturer warranties survive, but the warranty covering roof penetrations, wiring, and mounting is voided. So what? A homeowner with a roof leak caused by improper solar mounting must pay $3,000-$10,000 out of pocket for a new installer to diagnose and fix the issue, on top of roof damage repairs. So what? Many homeowners cannot find a new installer willing to service another company's system because the liability risk and diagnostic time make it unprofitable. So what? Unserviced systems degrade or fail silently, meaning homeowners continue paying loan installments on solar equipment that is underproducing or nonfunctional. So what? The homeowner is financially worse off than before going solar, paying both a solar loan and full utility bills. So what? This pattern creates a class of solar-hostile homeowners who actively discourage neighbors from adopting solar, poisoning the residential market. The problem persists because the solar industry has no mandatory warranty insurance requirement, installer margins are thin (driving consolidation and bankruptcy), and there is no industry-wide service transfer protocol when companies fail.
Evidence
Solar Insure maintains a running list of solar bankruptcies (https://www.solarinsure.com/the-complete-list-of-solar-bankruptcies-and-business-closures). EnergySage documents the warranty gap when installers close (https://www.energysage.com/solar/solar-company-warranty-bankruptcy/). NerdWallet details consumer options after solar company bankruptcy (https://www.nerdwallet.com/article/mortgages/homeownership/home-improvement/solar-company-bankruptcy).