Solar Companies Are Going Bankrupt

The solar industry, particularly the residential sector in the U.S., has seen a notable increase in bankruptcies and closures recently, especially throughout 2024 and continuing into 2025. While the overall U.S. solar market is still expanding, several factors are contributing to this instability for some companies. Furthermore, anticipated changes in U.S. energy policy are likely to result in continued distress in the solar energy space in other renewable energy segments going into 2025 and beyond.

When solar companies go out of business, homeowners can face a covey of issues. Lost access to system monitoring, difficulty obtaining replacement parts, costly repairs without warranty coverage and uncertainty regarding ongoing service and maintenance. We often get calls from people whose solar company has filed for bankruptcy protection. Many times Law Offices of John T. Orcutt and end up discussing potential bankruptcy protection options of those whose solar companies have also filed for bankruptcy relief.   

 Recent Bankruptcies & Failures

• Sunnova filed for Chapter 11 in early June 2025 (assets/liabilities estimated at $10–50 billion). 
• Mosaic, a financing company behind over $15 billion in loans for residential solar & storage, filed for Chapter 11 in June 2025, citing high rates and policy uncertainty
• SunPower filed for Chapter 11 amid falling demand, liquidity issues, and a strategic asset sale; it later rebranded under new ownership and posted a profitable quarter in early 2025.
• Sunworks (installer) and Titan Solar Power filed bankruptcies (Sunworks under Chapter 7; Titan shortly after ceasing operations).

Despite the bankruptcies, the solar industry is still expected to grow in the long term due to increasing electricity tariffs, environmental consciousness, and ongoing technological advancements. However, the current environment indicates a period of consolidation and adjustment, particularly for the residential sector. Investors and homeowners are advised to carefully evaluate the financial stability and track record of solar companies before committing.