What Happens to Your Solar Contract When the Company Goes Bankrupt?

## Solar Company Bankruptcy: What It Means for You The solar industry has seen a wave of bankruptcies in recent years. Sunnova, SunPower, Pink Energy, Mosaic Solar — major players have all filed for Chapter 11 or Chapter 7 protection. If your solar company goes bankrupt, here is exactly what happens. ## Chapter 11 vs Chapter 7: The Key Difference **Chapter 11 (Reorganization):** The company continues operating while restructuring its debts. Your contract may be sold to another company, assumed by the bankruptcy estate, or rejected. This is what Sunnova and SunPower filed. **Chapter 7 (Liquidation):** The company shuts down completely. Assets are sold to pay creditors. Your warranty is almost certainly void. This is what Pink Energy did. ## What Happens to Your Warranty This is the most common concern — and the news is often bad. When a solar company goes bankrupt: - **Manufacturer warranties** on the panels themselves usually survive (panels are made by third parties like LG, Panasonic, or REC). - **Workmanship warranties** from the installer are typically voided — no one is left to honor them. - **Performance guarantees** are almost always gone. ## What Happens to Your Lease or PPA If you have a lease, the bankruptcy trustee will either sell your contract to another company or reject it. If sold, you'll be notified of the new servicer. If rejected, you may be able to walk away — consult an attorney immediately. ## What Happens to Your Loan If you financed through the bankrupt company's lending arm (like Mosaic Solar), your loan obligation typically survives bankruptcy. The loan gets sold to another servicer. You still owe the money. ## What Happened With Sunnova, SunPower, and Pink Energy - **Sunnova (2025):** Filed Chapter 11. Contracts being sold to new servicers. Monitoring systems went offline for many customers. - **SunPower (2024):** Filed Chapter 11. Dealer network shut down. Warranty claims in limbo. - **Pink Energy (2022):** Filed Chapter 7. Customers left with broken systems and no recourse. ## What To Do If Your Solar Company Goes Bankrupt 1. Document everything — all contracts, warranties, correspondence. 2. Contact the bankruptcy trustee to understand the status of your contract. 3. File a proof of claim if you have unresolved warranty or performance issues. 4. Consult a consumer attorney — many work on contingency for solar cases. [Get help at BreakYourSolarContract.com](https://breakyoursolarcontract.com) if your solar company has gone bankrupt.