What’s Behind Solar Company Bankruptcies and Closures?
- Sarah Lozanova
- Jul 17
- 9 min read
The U.S. solar industry continues to grow, but a wave of solar bankruptcies is casting a shadow over that progress. In 2025, solar companies are going out of business at an alarming rate, even as demand for clean energy increases. Homeowners are increasingly left with unsupported systems, unmet warranties, and limited service options.
So, why are solar companies going bankrupt in a booming market? Several factors are colliding: high interest rates, tighter margins, supply chain delays, and labor shortages are making it harder for companies to stay afloat. Even major brands like Solcius, Pink Energy, Vision Solar, and Sungevity have filed for bankruptcy. The expiration of the 30% residential solar tax credit after December 31, 2025—and the commercial tax credit soon after—could push more companies into financial distress, accelerating the trend of solar company bankruptcies in 2025.
If you have a system installed by a solar company out of business, GreenLancer can help. With over 10 years of industry experience, we offer nationwide solar repair and maintenance services to get systems back online. Our team quickly diagnoses issues and performs professional repairs using current technology and permitting expertise.
Need help with an unsupported system? Call GreenLancer at (888) 777-8150 or complete the form below to get started.
Table of Contents
The Surge in Solar Company Bankruptcies & Closures
The U.S. solar market has expanded dramatically, with millions of residential and commercial installations across the country. Yet recent years have also seen a wave of solar bankruptcies and solar company closures that threaten this growth. Major companies, including Pink Energy, Solcius, Sungevity, Vision Solar, and more recently Sunnova and SunPower, have collapsed, sparking a critical question: why are so many solar companies going out of business in what should be a booming renewable market?
Industry experts point to several converging factors behind the spike in solar company bankruptcies in 2025. High interest rates are dampening solar loan demand while supply chain disruptions and labor shortages are inflating costs. In Sunnova’s case, a recent Chapter 11 filing cited nearly $9 billion in debt, reduced consumer demand, and fading government incentives, including the looming end of the federal residential solar tax credit, as key causes. Similar economic pressures hit other firms like SunPower and Solar Mosaic.
Such closures leave homeowners in precarious situations. Many affected systems lack Permission to Operate (PTO), invalidating warranties and leaving no support line.
“Some orphaned solar systems have not received permission to operate (PTO) and haven’t been commissioned due to solar company closures,” explains Patrick McCabe, co-founder and president of GreenLancer. “This leaves homeowners in a difficult position, making loan payments on solar systems that provide no energy bill savings.”
When a solar company goes out of business, the ripple effects include lost access to system monitoring, difficulty obtaining replacement parts from defunct manufacturers, and costly repairs without warranty coverage. With waves of recent failures, from Titan Solar Power to Vision Solar, many homeowners are suddenly owning “roof ornaments” instead of money-saving energy systems.
Why are Solar Companies Going Out of Business in 2025?
Even with rising clean energy adoption, a growing number of solar company bankruptcies and closures are disrupting the U.S. market.
High Interest Rates & Solar Bankruptcies
One of the biggest reasons solar companies are going bankrupt is rising interest rates. As financing becomes more expensive, homeowners face larger monthly payments, which reduces the appeal of solar loans.
According to EnergySage’s 2023 Solar Marketplace Intel Report, average monthly payments increased by 13% year over year. With sales declining and overhead rising, many companies have been forced to shut down.
Market Competition Driving Solar Company Bankruptcies
The residential solar sector is also becoming more competitive—and more volatile. SEIA reports a year-over-year drop in residential solar installations for the first time in nearly a decade. With so many installers competing for fewer leads, margins have tightened. Companies without a strong differentiation or diversified business model are being squeezed out of the market, leading to more solar company bankruptcies.
High-profile closures like Pink Energy illustrate how bad installations, customer complaints, and poor system performance can quickly snowball into financial failure. In today's climate, even well-funded firms are vulnerable.
Solar Labor Shortages
The solar workforce is another major challenge. A shortage of NABCEP-certified professionals and licensed electricians is delaying projects and raising soft costs. According to NREL, these labor constraints are now a major barrier to scaling up solar deployments. For smaller contractors, the inability to meet project timelines or hire skilled labor has led directly to solar companies going out of business.
Policy Changes and the Risk of More Solar Bankruptcies in 2025 & Beyond
Changes to government solar incentives are also having a serious impact. California’s transition from NEM 2.0 to NEM 3.0 cut solar export compensation by as much as 75%, triggering an 80% drop in rooftop solar installations across the state in 2023, according to Canary Media.
Companies like Infinite Energy, which relied heavily on the California market, were forced to cancel projects and lay off staff. Other states considering similar policies could see the same wave of solar company bankruptcies if incentive structures are weakened.
Looking ahead, the elimination of the federal solar tax credit for homeowners after 2025 could further accelerate these closures nationwide. Without that 30% financial cushion, thousands of contractors and small solar businesses may struggle to compete, especially those already feeling the strain of reduced demand and rising costs.
Supply Chain Issues & Tariffs Are Fueling Solar Bankruptcies
Ongoing global supply chain issues and tariff policies are adding financial strain across the solar industry, contributing to a wave of solar company bankruptcies in 2025. From the pandemic to trade disputes, equipment delays, and price increases have disrupted project timelines and squeezed contractor margins. Tariffs on imported solar panels from countries like China, Malaysia, and Vietnam have further driven up hardware costs, putting additional pressure on smaller firms.
According to the Solar Energy Industries Association (SEIA), procurement delays remain a top concern for developers and installers alike. These obstacles have already pushed some solar companies out of business, especially those operating with thin margins. SunPower, for instance, has publicly cited supply delays and import tariffs as major operational hurdles.
When a manufacturer can’t deliver panels or unexpectedly shuts down, installers are often forced to rework designs or delay jobs—both scenarios that increase costs and threaten profitability. As these issues continue to compound, more solar bankruptcies may follow, especially if federal incentives are weakened in the coming months.
National or Multi-state Solar Company Bankruptcies or Closures (2020 to 2025)
Over the past several years, multiple solar companies have either legally filed for bankruptcy or shut down operations entirely. These cases underscore the challenges facing the solar industry—from policy changes to margin pressure and operational missteps. While not all closures involve formal bankruptcies, they reflect the growing number of solar companies going out of business in a highly competitive and evolving market.
ADT Solar Closure - 2023
ADT Solar, which became a division of ADT Inc. after acquiring Sunpro Solar in 2021, began scaling back its residential solar operations in 2023. While ADT Inc. did not declare bankruptcy, it announced it was exiting the residential solar business entirely due to poor financial performance. The company reported ongoing losses in the solar segment and cited macroeconomic pressures and softening demand.
In its Q2 2023 earnings call, ADT confirmed it would wind down solar operations and discontinue new installations. Existing customers were left seeking support from third-party service providers.
Infinity Energy Solar Closure - 2020
Infinity Energy, a California-based solar installer, faced mounting challenges after early signals of regulatory changes tied to California’s Net Energy Metering (NEM) revisions. While NEM 3.0 did not officially go into effect until 2023, earlier policy discussions and local utility rate structure changes created uncertainty and disrupted business models for smaller companies.
Infinity Energy ceased operations in late 2020, though the company did not publicly announce a bankruptcy filing. Publicly available information indicates that internal financial pressures and market uncertainty contributed to the shutdown. As of 2024, the company no longer appears active, and customers have turned to third-party O&M providers for service support.
Pink Energy Closure - 2022
Pink Energy, formerly known as Power Home Solar, abruptly ceased operations in September 2022 after months of complaints and regulatory scrutiny. The company did not formally file for bankruptcy but closed its doors across several states, leaving thousands of customers with unfinished or malfunctioning solar installations.
In October 2022, the Ohio Attorney General filed a formal consumer protection complaint against Pink Energy, citing aggressive and deceptive sales tactics, performance issues, and poor customer service. Several other state attorneys general launched investigations into the company’s practices.
Sunnova Energy International Restructuring - 2025
In June 2025, Sunnova Energy International, a major residential solar provider, initiated a broad business restructuring in response to mounting financial pressures. The company reported over $8.9 billion in liabilities and cited factors like rising interest rates, lower-than-expected customer demand, and policy uncertainty, including changes to the federal solar tax credit, as contributors to its financial challenges.
To stabilize operations, Sunnova began selling off assets, including its new-home solar division to ATLAS and Lennar for $31 million, and secured interim financing to continue servicing existing systems. More than half of its workforce was impacted during the transition, as the company shifted focus to maintaining core operations while exploring future ownership and restructuring options.
SunPower Restructuring - 2024
SunPower Corporation filed for Chapter 11 bankruptcy protection on August 5, 2024, as part of a strategic restructuring. The filing was triggered by mounting financial losses, declining gross margins, and increased competition from lower-cost international solar panel manufacturers. The company also faced scrutiny from the U.S. Securities and Exchange Commission (SEC) related to its financial reporting practices.
As part of its restructuring, SunPower announced the sale of key assets, including its New Homes business and Blue Raven Solar subsidiary, to Complete Solaria for $45 million. The company stated it intends to liquidate most of its operations.
Titan Solar Power Closure - 2024
Titan Solar Power, once one of the largest residential solar installers in the U.S., ceased operations in June 2024 and filed for Chapter 7 bankruptcy shortly after. The Arizona-based company had grown rapidly through a nationwide dealer network but faced increasing customer complaints, legal scrutiny, and failed acquisition talks.
Bankruptcy filings indicated up to 10,000 creditors and financial liabilities ranging from $1 million to $10 million. With no formal buyer secured, Titan shut down abruptly, leaving many customers with unfinished installations and no service support.
Impact of Solar Company Bankruptcies on Homeowners
The rising number of solar bankruptcies and solar companies going out of business is leaving thousands of homeowners with unsupported or malfunctioning systems. These closures are not just disrupting individual households—they’re undermining trust in the broader clean energy transition.
Loss of Warranties and Service After Solar Closures
When a solar company goes out of business, one of the most immediate impacts is the loss of warranty coverage and service. Homeowners who went solar with now-closed companies like Pink Energy, ADT Solar, or Titan Solar Power often find themselves with offline systems and no one to call for support.
Workmanship and performance warranties vanish with the business, leaving customers on the hook for costly inverter replacements, system diagnostics, or solar panel repairs. Many face bills in the thousands to get their systems running again.
Solar Company Closures Damage Industry Trust
The surge in solar company bankruptcies, from Infinite Energy to Vision Solar, has triggered lawsuits, attorney general investigations, and widespread media coverage. Homeowners left with uncommissioned systems or disappointing performance often feel misled, and that sentiment spreads quickly through communities and online forums.
This growing distrust makes potential solar buyers more hesitant, further slowing residential solar adoption in markets where confidence is already shaken.
Long-Term Threat to Renewable Energy Adoption
The continued wave of solar bankruptcies is creating headwinds for the industry. When national brands like SunPower restructure or exit markets and regional installers shut down, it casts doubt on the reliability of solar as a long-term investment. Add the potential expiration of the Residential Clean Energy Credit, and the risks for both consumers and small contractors may intensify.
As these challenges mount, more homeowners may delay projects—or worse, be left with systems that no longer work and no one to fix them.
GreenLancer Offers Reliable Support for Orphaned Systems
That’s where GreenLancer steps in. We provide nationwide solar repair, upgrade, and maintenance services for homeowners impacted by solar company closures. Whether your system needs diagnostics, inverter repair, or a complete upgrade, our network of licensed technicians is ready to help, no matter who originally installed it.
Need help with a solar system from a company that went out of business? Call GreenLancer at (866) 436-1440 or fill out the form below to get started.
Advice for Homeowners: Protect Yourself From Solar Company Bankruptcies
With more solar companies going out of business and a sharp rise in solar company bankruptcies from 2023 to 2025, homeowners need to take extra precautions when investing in solar. Choosing a reputable installer with a proven track record, NABCEP-certified professionals, and long-term support services is essential for avoiding the fallout of solar company closures.
If your original installer is no longer in business, or you're worried they might not be around long-term, partnering with a dependable service provider like GreenLancer can help. Our solar repair team supports orphaned solar systems by offering diagnostics, inverter replacements, solar panel repairs, and upgrades. We also provide national access to solar monitoring, preventative maintenance, and post-installation services.
Taking steps now to protect your system ensures continued performance, warranty support when possible, and peace of mind, no matter what happens in the market.
Complete the form below to speak with a solar energy expert from GreenLancer.