Introduction
The U.S. solar market has seen a run of bankruptcies, closures, lender failures, and residential-solar exits. They are not equivalent. A Chapter 7 liquidation, a Chapter 11 sale, and a quiet corporate exit leave homeowners and creditors in very different positions.
This article gives a date-stamped list of notable companies, separates verified court filings from reported closures, and explains what each category can mean for homeowners, creditors, lenders, and restructuring professionals. It is not a complete census of every U.S. solar insolvency.
Key Takeaways
- Chapter 7, Chapter 11, closures, exits, lender failures, and manufacturer distress are separate events.
- An installer's bankruptcy does not automatically end a loan, lease, PPA, warranty, or lien.
- Verify every entry against court dockets, SEC filings, and claims-agent sites.
- Rates, financing, policy, and customer-acquisition costs all fed the failures.
Full List of Bankrupt, Closed, and Exited Solar Companies
Methodology. Entries are U.S. companies with a verified bankruptcy filing, a publicly documented exit from solar, or a material role in solar financing or equipment. Each carries one label: verified bankruptcy, reported closure, residential-solar exit, lender or financing company, or equipment manufacturer/solar-adjacent company. Status reflects the latest dated event in the cited record.
Verified Bankruptcies: Installers and Lease/PPA Providers
| Company and role | Filing; court and case | Status and successor/servicer |
|---|---|---|
| SunPower Corporation (residential/commercial) | Chapter 11, Aug. 5, 2024; D. Del., 24-11649 | Wind-down plan confirmed Oct. 18, 2024; assets sold in several transactions. HA Sunstrong Capital and GF Sunstrong Capital bought certain assets, but are not universal successors. A June 2026 ruling dismissed a customer lease dispute for lack of jurisdiction without deciding transfer validity. |
| Sunnova Energy International (lease/PPA/loan provider) | Chapter 11, June 8, 2025; S.D. Tex., 25-90160 | Court-supervised sale. SunStrong Management services most in-service customer systems. |
| Lumio Holdings (installer) | Chapter 11, Sept. 3, 2024; D. Del., 24-11916 | Plan effective Feb. 18, 2025. Liquidating debtors/trust; VRS Restructuring Services is trustee. |
| PM&M Electric d/b/a Titan Solar Power (installer) | Chapter 7, June 20, 2024; D. Ariz., 2:24-bk-04978 | Trustee administration. No successor identified. |
| Sunworks, Solcius, and affiliates (installers) | Chapter 7, Feb. 5, 2024; D. Del., 24-10215 through 24-10218 | Operations ceased. No successor established in the cited records. |
| PosiGen PBC (residential solar/efficiency) | Chapter 11, Nov. 24, 2025; S.D. Tex., 25-90787 | Liquidation plan effective Feb. 26, 2026. Active systems are split among Omnidian, SunStrong, and GoodLeap, depending on the cohort. |
| Freedom Forever (residential installer) | Chapter 11, Apr. 15, 2026; D. Del., 26-10522 | Converted to Chapter 7 effective Aug. 7, 2026; Alfred T. Giuliano is trustee. No successor stated. |
| Red Rose d/b/a Petersen-Dean (roofing/solar) | Chapter 11, June 11, 2020; D. Nev., 20-12814 | Converted to Chapter 7 on Sept. 5, 2023. |
| Power Home Solar d/b/a Pink Energy | Chapter 7, Oct. 7, 2022; W.D.N.C., 22-50228 | Liquidation. State attorney general allegations about sales practices are not bankruptcy findings. |
Notes on outcomes:
- Reorganized or sold assets: SunPower and Sunnova sold assets through court-supervised processes.
- Liquidated: Lumio (liquidating trust), PosiGen (liquidation plan), and the Chapter 7 cases of Titan, Sunworks/Solcius, Petersen-Dean, and Pink Energy.
- Converted: Freedom Forever and Petersen-Dean moved from Chapter 11 to Chapter 7.
Sunworks and Solcius filed under Chapter 7, but SolarPower World reported that EnergyAid acquired their assets and will maintain existing systems. Confirm that arrangement against the docket.
Reported Closures and Unconfirmed Cases
Solgen Power LLC (Purelight Power name) is the main entry here. An Inforuptcy index reports a Chapter 7 filing dated Dec. 30, 2025 (E.D. Wash., 2:25-bk-02272). An official petition matching that report is not readily available on the public docket, so treat the filing and any successor as not independently confirmed.
Regional and smaller installers that disappear without a docket belong in the same bucket. Describe them as "reported closure" until a court record exists. Online closure claims alone are not evidence of a bankruptcy.
Residential-Solar Exits
- ADT Solar: No bankruptcy filing identified. ADT approved a solar exit on Jan. 19, 2024, and reported operations substantially ceased by June 30, 2024.
- Vivint Solar: Acquired by Sunrun on Oct. 8, 2020. That was an acquisition, not a bankruptcy.
Solar Financing Companies and Lenders
- Solar Mosaic / Mosaic Sustainable Finance: Chapter 11, June 6, 2025, S.D. Tex., lead case 25-90156. Plan confirmed Sept. 5, 2025, effective Sept. 22. Loan servicing moved to Solar Servicing LLC, a Forbright Bank subsidiary.
- Sunlight Financial Holdings: Chapter 11, D. Del., 23-11794. Confirmation order Dec. 5, 2023; reorganization effective Dec. 6. The SEC filing does not identify a customer-loan servicer.
A lender bankruptcy usually changes who services the loan, not whether the borrower owes it. Keep paying as the contract and official notices direct, and get legal advice before stopping payments.
Equipment Manufacturers and Solar-Adjacent Companies
Meyer Burger (Holding) Corp. and U.S. affiliates filed Chapter 11 on June 25, 2025 (D. Del., 25-11217). The court approved a combined plan on Apr. 21, 2026. Three affiliate cases closed June 29, 2026, while the holding company's case stayed open pending a final decree.
Manufacturer distress is separate from installer failure. Panel, inverter, and battery warranties, parts, and support may follow a different path from the installer's workmanship promises.
SunStrong Management acts as a servicer in the Sunnova and PosiGen matters. Public filings in those cases do not list SunStrong itself as a debtor.
Why Solar Companies Are Going Bankrupt or Closing
Interest Rates and Demand
Higher rates hurt both sides. Homeowners face costlier loans, while installers and lenders pay more for capital and working capital. The Federal Reserve's H.15 release listed the bank prime rate at 7.00% for Oct. 12 to 16, 2026. That is a benchmark, not a solar-loan APR.
SEIA and Wood Mackenzie reported 7.8 GWdc of U.S. installs in Q1 2026, down 27% year over year. Residential rose 6% year over year, partly from overflow after the 2025 Section 25D deadline, so it is not clean demand growth.
Financing Dependence
Residential solar runs on dealer networks, loans, leases, PPAs, warehouse funding, and milestone payments. When a funding partner falters, installers feel it fast. The CFPB found that some lender fees and markups can raise loan principal 30% or more above the cash price.
Policy Changes
- California's Net Billing Tariff (CPUC Decision 22-12-056) applies to interconnection applications from Apr. 15, 2023.
- The IRS says the Section 25D credit is unavailable for expenditures after Dec. 31, 2025.
- Section 48E treatment is project-specific. Notice 2025-42 sets different conditions for facilities beginning construction after July 4, 2026.
These facts show timing, not the size of any company's loss.
Operational Weaknesses
Documented stress includes liquidity and debt-service risk (Sunnova's SEC filing) and consumer allegations over performance and savings claims (Tennessee's 2022 Pink Energy announcement). Allegations are not adjudicated findings.
Other common weak points include:
- Rapid expansion
- High customer-acquisition costs
- Installation backlogs
- Warranty obligations
- Thin cash reserves
No single cause explains every failure. Solar technology has not disappeared. Expect consolidation, asset sales, fewer installers, revised financing models, and closer scrutiny of business quality.
What Solar Company Bankruptcy Means for Homeowners, Creditors, and the Industry
Installer vs. Financing-Company Bankruptcy
Ownership drives the answer:
- Cash purchase: You own the system. The installer's failure mainly affects workmanship service and unfinished work.
- Loan: You own the system and owe the lender. Lenders commonly file UCC liens on panels.
- Lease or PPA: You do not own the system, per the FTC. The lessor or owner handles service and removal at lease end.
Review your own contract and get qualified legal or financial advice before stopping payments, disputing a debt, or canceling an agreement.
Chapter 11 vs. Chapter 7
In Chapter 11, the debtor generally stays in control while seeking a confirmed plan. Asset sales and successor servicers can preserve customer relationships, but workmanship warranties or unfinished installations may stay unresolved. SunPower's plan rejected executory contracts it did not assume.
In Chapter 7, a trustee liquidates nonexempt assets and the company generally stops operating. Unfinished projects, service requests, deposits, and installer warranties are at risk, and a successor may not exist.
Warranties Are Not One Promise
DOE describes component warranties typically around 25 years and workmanship warranties up to 10 years. Different entities may hold equipment, workmanship, roof-penetration, production, monitoring, and maintenance promises. Verify each separately.
Action Checklist
- Save contracts, invoices, warranty certificates, permits, system designs, monitoring credentials, payment records, and correspondence before portals disappear.
- Identify the panel, inverter, battery, and monitoring manufacturers and ask about authorized service providers.
- Confirm the current loan, lease, or PPA servicer, and watch official notices for claim deadlines and payment changes.
- For lenders and advisors: map exposure by counterparty, capital structure, docket, secured creditor, successor entity, and pending litigation.
Bar dates are case-specific. Under Bankruptcy Rule 3003, a creditor whose claim is unscheduled or listed as disputed generally must file to participate in Chapter 11.
How to Read and Verify This Solar Bankruptcy List
Why a "Last Verified" Date Matters
Status shifts through asset sales, conversions, dismissals, plan confirmations, liquidating trusts, and new servicing arrangements. Lumio's June 2026 notice of satisfaction of certain claims, for example, does not mean every estate matter has ended.
Check, in this order:
- PACER and the filing court's docket
- Claims-agent sites such as Kroll, Stretto, and Epiq
- SEC EDGAR filings (not a substitute for the docket)
- Company announcements, attorney general releases, and regulator records
For any filing date, case number, chapter, asset sale, successor, or deadline, cite a source.
Terms That Get Confused
- Bankruptcy filing: A court proceeding begun by petition.
- Insolvency: Under 11 U.S.C. Section 101, a balance-sheet test of debts versus property. It is not the same as filing.
- Shutdown: Operations stop, with or without a filing.
- Residential-solar exit: A company leaves the segment, like ADT.
- Restructured and operating: A company emerges under a plan and continues.
For Professional Readers
BankruptcyData supports monitoring of distress signals, bankruptcy filings, court developments, stakeholders, advisors, and restructuring outcomes across the U.S. market. Its platform holds 600k+ records spanning 45+ years, with alerts, docket monitoring, and historical benchmarking.
It serves law firms, distressed investors, turnaround advisors, credit teams, and data users. It is a research and monitoring resource and does not independently verify every entry in this article.
Frequently Asked Questions
What happens if your solar company files for bankruptcy?
Service, warranties, financing, and ownership may sit with different parties. Preserve your documents, confirm the current servicer, contact equipment manufacturers, and review official case notices.
Why are so many solar companies going bankrupt?
Higher interest rates, financing dependence, policy changes, softer demand, operating costs, and aggressive expansion all play a part. Causes differ by company.
Why are people getting rid of their solar panels?
A company closure does not mean homeowners are removing working panels. Removal can stem from lease endings, reroofing, home sales, or financing disputes. NREL's 2026 study offers no national removal rate.
What are the top solar companies in the USA?
"Top" can mean market share, financial stability, install volume, service, or equipment quality. Wood Mackenzie's 2022 data had Sunrun at 12.5%, but that is not a current ranking. Check current company and financial filings.
