Solar Company Bankruptcies 2026: Full List of Closures & Failures

More than 100 U.S. solar companies have filed for bankruptcy or shut down since 2023, including major national installers Sunnova, SunPower, and Freedom Forever. The wave continued into 2026, driven by high interest rates, the loss of federal tax credits, and collapsing financing partners.

Why So Many Solar Companies Are Failing in 2026

Residential solar depends on cheap financing more than it depends on sunshine. When borrowing costs rise, the entire business model strains. Industry researcher Wood Mackenzie reported that U.S. residential solar installation volume fell 31% in 2024, the first such decline in seven years, and dropped again in 2025.

The pressure has not eased. Analysts now project roughly a 20% contraction in residential installation volume for 2026, on top of the losses already absorbed. Several forces are compounding at once:

• Higher interest rates made solar loans, leases, and PPAs less attractive to homeowners and more expensive for companies to fund.
• The expiration of the 25D federal tax credit at the end of 2025 removed the 30% credit that had driven a large share of consumer demand.
• California’s NEM 3.0 policy sharply reduced the financial payback of rooftop solar in the industry’s largest state, contributing to an estimated 80% drop in rooftop installation volume there and more than 17,000 industry layoffs statewide, according to the California Solar & Storage Association.
• Financing partner collapses, particularly Solar Mosaic’s 2025 bankruptcy, cut off lending relationships that installers depended on to close sales.
• Aggressive sales practices at some companies triggered state investigations and eroded consumer trust industry-wide.

Full List of Major Solar Company Bankruptcies and Closures

Below is a summary of the largest and most consequential filings affecting homeowners nationally.

This is a summary of the largest cases; dozens of smaller regional installers, including ADT Solar, Vision Solar, Infinity Energy, and Solcius, have also ceased operations or filed for bankruptcy protection since 2023.

Freedom Forever: The Biggest 2026 Collapse

Freedom Forever’s April 2026 filing is the most significant solar bankruptcy of the year so far. Founded in California in 2011, the company grew into the second-largest residential solar installer in the country, controlling roughly 6.1% of national market share by 2025, according to Wood Mackenzie, behind only Sunrun’s 12.7%.

The company filed Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware, reporting between $500 million and $1 billion in liabilities against $100 million to $500 million in assets, as detailed in pv magazine’s coverage of the filing. Its largest unsecured creditor, financing partner Mosaic, was owed more than $110 million.

The collapse followed a familiar pattern seen across the industry:

1. A key financing partner (Mosaic) filed its own bankruptcy in 2025, cutting off a critical funding source.
2. The company laid off about 20% of its workforce and exited more than 10 state markets in early 2026.
3. Roughly 1,600 employees were furloughed the same morning the filing was announced, with paychecks delayed indefinitely.
4. The Texas Attorney General had separately named Freedom Forever in an April 2026 investigation into deceptive sales practices across the solar industry.

Chapter 11 is a reorganization, not an automatic shutdown. Freedom Forever’s roughly 190,000 installed systems continue producing electricity, but workmanship and service warranties issued directly by the company are now at risk of being delayed or discharged through the bankruptcy process. 

Homeowners can track the case, filed under case number 26-10522, through the court’s public docket.

What Happens to Homeowners When a Solar Company Goes Bankrupt

A bankruptcy filing rarely means your panels stop working overnight, but it does create real risk for specific parts of your agreement.

• Equipment warranties from manufacturers like Enphase, Tesla, Q CELLS, and SolarEdge typically remain valid, since they are issued separately from the installer.
• Workmanship and roof-penetration warranties issued directly by the bankrupt installer are frequently delayed, reduced, or discharged entirely.
• Loan and lease obligations usually continue even if the original company disappears, since loans are often sold or serviced by a different entity, as seen when SunStrong Management took over servicing for many former Sunnova customers.
• Monitoring and service requests often slow dramatically or stop, leaving homeowners to find local, independent contractors for repairs.
• UCC-1 liens tied to solar loans can complicate refinancing or selling a home, regardless of whether the original installer is still in business.

If your installer has closed and left you without support, our guide on what to do if a solar company goes out of business walks through how to protect your warranty and loan position.

How to Protect Yourself If Your Solar Company Is at Risk

1. Download your paperwork now. Save your contract, warranty documents, and system design files before a portal goes offline.
2. Register your equipment directly with manufacturers. This keeps your equipment warranty active regardless of what happens to the installer.
3. Export your monitoring data and login credentials. Some monitoring platforms lose support entirely after a shutdown.
4. Confirm who services your loan or lease. Financing is often transferred to a new servicer, and payments still come due even if the original brand disappears.
5. Watch for signs of financial distress, including mass layoffs, exiting state markets, or delayed service calls, which frequently precede a formal filing.

If you’re dealing with a company that has gone quiet on service requests, our guide on common solar cancellation scams covers red flags that overlap with pre-bankruptcy warning signs.

Financing Collapse Is a Bigger Story Than Any One Company

Several of the largest 2026 failures share a root cause: the finance companies behind residential solar are just as fragile as the installers themselves, as Latitude Media’s reporting on Freedom Forever’s collapse lays out in detail. 

Solar Mosaic’s bankruptcy removed a lending lifeline for Freedom Forever and other installers, showing how deeply interconnected the industry’s dealer, lender, and installer relationships are.

Homeowners who financed a system through a loan should understand how the Truth in Lending Act applies to solar loans, since required disclosures don’t disappear just because the original lender or installer does.

Similarly, homeowners with a lease or PPA who are unsure how their exit options change after a bankruptcy should review the difference between a solar lease and a solar loan, since each financing type carries different risk if the servicing company changes hands.

Regulatory and Legal Fallout

Bankruptcies are not the only pressure facing the industry. In April 2026, Texas Attorney General Ken Paxton launched a fraud initiative targeting several major solar companies, including Freedom Forever and Sunrun, citing more than 100 formal consumer complaints. Investigators are examining alleged misrepresentations about energy bill savings, system performance, and contract terms.

The Texas action followed similar scrutiny in other states, including a multi-state effort by attorneys general urging solar lenders to pause loan payments for customers of the collapsed Pink Energy. 

Homeowners who believe they were misled about savings, tax credit eligibility, or system performance may still have options through their state attorney general’s consumer protection office, even after the original seller has closed.

If your contract was signed under pressure or with promises that didn’t hold up, it’s worth reviewing your rights to cancel a solar contract, since misrepresentation can open paths beyond the standard cancellation window.

Frequently Asked Questions

How many solar companies have gone bankrupt?

Roughly 100 U.S. solar companies have filed for bankruptcy or shut down since 2023, according to industry trackers, with several of the largest failures occurring in 2024 through 2026.

Is my solar warranty still valid if my installer went bankrupt?

Equipment warranties from manufacturers typically remain valid. Workmanship and installation warranties issued directly by the bankrupt company are often delayed or discharged.

Do I still have to pay my solar loan if the company goes bankrupt?

Yes, in almost all cases. Loans are typically sold or transferred to a new servicer, and payment obligations continue regardless of the original company’s status.

What is the difference between Chapter 11 and a company shutting down completely?

Chapter 11 is a court-supervised reorganization that allows a company to keep operating while restructuring debt. Several solar Chapter 11 cases, including Sunnova and SunPower, have ended in asset sales or full liquidation.

Which solar company bankruptcy affected the most homeowners?

Sunnova’s 2025 bankruptcy affected over 500,000 customers, while Freedom Forever’s 2026 filing affected roughly 190,000 installed systems, making them two of the largest cases to date.

This article is for informational purposes only and does not constitute legal advice. For guidance specific to your contract or financial situation, consult a licensed attorney or financial professional.