Solar Panel Bankruptcies Leave Frustrated Homeowners in Limbo

Retiree Frank Deni wanted to cut expenses at his California home in 2023 by installing solar panels. He chose SunPower Corp., one of the largest US solar companies, which offered a 25-year “complete confidence” warranty.

He paid $36,470. Six months after installation and inspections were completed, SunPower filed for Chapter 11 bankruptcy.

Deni, 76, contacted SunPower, the judge overseeing its bankruptcy, consumer protection agencies, and panel manufacturer Waaree for answers. Enphase Energy, Inc., the maker of microinverters used with the panels, said it will honor its warranty, but there’s no information about Waaree or SunPower’s SunVault battery.

“People are trying to help the environment and reduce energy costs, but once the deal is done, you’re forgotten,” Deni said. “If tomorrow the equipment doesn’t work, I don’t even know who to call.”

Thousands of homeowners are left without repair services or support for systems installed by solar companies that later went bankrupt. California alone has over 820,000 abandoned installations, according to Solar Insure data.

Many are stuck with leases for incomplete installations or systems that don’t function, according to interviews, letters to bankruptcy courts, and complaints filed with the Better Business Bureau.

Solar installers, heavily reliant on government subsidies and financing agreements, have struggled to stay afloat. In the past two years, rising interest rates, warranty obligations, and increased scrutiny have led to at least 10 solar bankruptcies.

The industry may also face increasing costs due to President Donald Trump’s tariffs on steel and aluminum, and uncertainty over the continuation of credits for renewable projects.

Many solar firms buy panels and sell them to individuals who finance their purchases through loans, which are bundled and sold to joint ventures backed by investors. The funds are then circled back to the solar company, allowing them to perpetuate the cycle. If financing falters, the cycle is disrupted.

Meanwhile, customers of companies such as Vision Solar LLC and Titan Solar Power Inc., which liquidated under Chapter 7, have lost the warranty. Customers could file claims for compensation, but as unsecured creditors, they typically receive nothing.

SunPower clients are finding themselves in limbo as Complete Solaria Inc.—which purchased SunPower assets—works through the transition. Neither company responded to questions.

SunStrong Management, which also acquired assets, has around 100,000 leases. CEO Brendon Merkley said he “expects lease payments to continue,” although the company is “willing to provide deferrals and extensions.” He said they are working to provide repairs but recognized a “backlog.”

The company will manage SunPower’s monitoring system for all customers for a fee.

Waaree told Bloomberg Law it would honor the photovoltaic panel warranty and help customers with repairs or replacements.

Homeowners Hit

Clients say companies often either ignore their inquiries or advise continuing payments. Agencies say they can’t intervene due to the bankruptcies.

Jack Bell, 26, a military officer based in California, said he’s been paying unexpected electrical bills in addition to the $189 monthly lease since his SunPower panels stopped working properly in June 2024.

“I’ve just been stuck in this loop of nobody being able to help me,” Bell said.

Isabella Van Winkle, 63, said SunPower locked her husband’s account after he died. Although she sent a death certificate and a document indicating she owned the property, the company sought documentation showing she was “authorized over the account.”

Since Van Winkle, also from California, no longer receives statements on her 20-year lease, she photocopied her last statement 12 times and sends a $195 monthly check to a PO Box for SunPower Financial. She receives no receipts, but she sees that the checks are cashed.

“I have to pay and be quiet,” Van Winkle said.

A month after the bankruptcy filing, a customer representative told Van Winkle that SunPower was seeking a servicer to complete a “performance guarantee report,” address “production shortfalls,” and offer repairs, according to an email viewed by Bloomberg Law. She still hasn’t received a resolution.

Bryant Dunivan Jr. at the Consumer Protection Attorney said consumers should contact the lender.

One of the lenders, Dividend Finance, said in a statement that when an installer ceases operations, it defers payments for completed installations and, “where feasible,” helps find replacement installers. Dividend has financially supported “thousands of customers,” it said.

Aggressive Growth

Vision Solar, in a push for growth, pressured consumers into loans they couldn’t afford, Connecticut Attorney General William Tong said last year. Sometimes, they employed misleading sales tactics and promised tax rebates without verifying the customer’s eligibility for such incentives.

“I think solar is one of the most unregulated industries we’ve seen,” Dunivan said.

Sales representatives may make verbal promises of low prices, but their contracts often say those are mere estimates, he said.

Paul Krolikowski, 66, a Vision Solar customer, said the company initially mentioned a $7,000 solar tax rebate but later required him to give it to the business.

He didn’t give it to them, causing the monthly price that would’ve been $77 to jump to $111. He’s now concerned about his warranty.

“At the end of the line, you just feel screwed,” Krolikowski said.

Vision Solar clients made up 65% of the number of creditors in its bankruptcy, according to a Bloomberg Law analysis of the creditors register, with claims totaling around $10.4 million.

Bankrupt solar companies often face claims from government entities.

In Vision Solar’s case, the attorneys general of Arizona, Florida, and Connecticut accused Vision Solar of misrepresentations, delays, and unpermitted work.

“Sales were important because as soon as Vision Solar signed up a customer, it sold that contract to a financing entity and received cash,” said Jeffrey Kurtzman, an attorney at Kurtzman Steady LLC, who represented the Chapter 7 trustee. However, “sales activity wasn’t matched by its ability to execute.”

Vision Solar didn’t respond to questions.

Meanwhile, Deni has continued his quest for assurance that SunPower and suppliers would honor their warranties.

Most customers, he wrote in a January letter to the bankruptcy court, are in “no-man’s land.”