What Happens If Your Solar Company Relocates, Merges Or Goes Out Of Business?

Today, solar continues to be a large part of the evolving energy industry as the transition to clean, affordable, renewable energy continues to provide prevalent opportunities for manufacturers, installers, utilities, and the public.

As the demand for solar continues to grow throughout public and private sectors, more opportunity is created to bring solar energy to growing markets, with work and growth predicted to continue for decades. Due to unprecedented growth and business opportunities throughout the industry, it is not uncommon for a solar energy company to startup overnight, relocate to a growing market, merge with a competitor or go out of business due to poor business practices.

As outlined later in this article, workmanship and manufacturer equipment warranties help to provide a level of protection to ensure the industry continues to support these energy investments.

So, what are solar owners supposed to do if their array needs service and support or an equipment warranty needs to be claimed and their solar company is no longer returning calls or serving that area? What happens to your down payment(s) if the array was never built prior to the company going out of business? Who is responsible for upholding the workmanship and equipment warranties?

The Growth of Solar Companies

The dramatic boom during the last decade in the solar industry is attributed to increased public awareness, improved technology, and stable financial incentives which have helped to spur the growth of solar and the companies that manufacture, design, engineer, and install solar energy systems.

For some companies, the learning curve for properly engineering and building these systems has remained quite steep. While these companies may employ experienced and knowledgeable roofers or electricians, they quickly fall behind in keeping up with the regulations, incentives, and technology advancements throughout the industry. Other companies felt the push to grow and rapidly expanded their staff, product offerings, and geographic coverage area eventually causing the company to be stretched too thin from multiple perspectives.

According to the National Renewable Energy Laboratory (NREL), “About 8,700 different companies installed at least one residential PV system from 2000 to 2016, with about 2,900 installers being active in 2016.” Not long after the industry saw dramatic increases in the number of installers, a substantial percentage soon stopped offering solar as one of their services, faced bankruptcy, or simply closed shop.

What Happens If Your Solar Company is No Longer Around?

For many solar owners, this hypothetical question is often more concerning than the actual real-world effects. For most solar owners, it simply means you transition by building a relationship with a new local installer who offers turnkey solar energy solutions and is certified and experienced to work on your specific brand of equipment. Think of it similar to switching your auto mechanic or heating and cooling company.

Pending your system was designed, engineered, and built correctly, your solar energy system should produce the expected results, problem-free for decades.

However, this is not always the case for some owners who may have purchased inferior systems which are not providing the expected results. The real concern is what do you do if your array needs on-site service following a natural disaster? Who will answer your technical support questions for a blinking inverter light? Will the promises, warranties, and guarantees of the defunct solar company provide you with any solace?

Unfortunately, regardless if you sealed your deal with a handshake or signed your solar contract in blood, your success rate for a resolution will be non-existent if the company is no longer around. The good news is, there are many qualified solar companies willing to help answer your questions and guide you toward a better outcome. Plus, you may not be stuck paying out-of-pocket for repair or replacement costs thanks to manufacturer warranties and insurance.

Solar Company Workmanship Warranties

The workmanship warranty is valid only with the contracted solar company and is not transferrable to other solar companies. The workmanship warranty is directly associated with the quality of the work performed by the personnel working for (or representing) the company you contracted with. The workmanship warranty is often valid for a determined amount of years such as 3, 5, or 10.

Typically, the workmanship warranty will cover hardware mounting and fastening, secure and operational electrical connections, proper operation of production monitoring, no roof damage or leaks, and ground-mounted posts remaining in their original position.

Exclusions to a workmanship warranty will often be site vegetation control, change of Internet providers, acts of God, array production, reassignment of monitoring permissions, and equipment covered by a manufacturer’s warranty.

Each solar company will vary with regard to the level of warranted work outlined in their workmanship warranty. If you find yourself needing work completed that would fall under a defunct solar company workmanship warranty, you will more than likely be paying out-of-pocket for these repairs by another company.

At Eagle Point Solar we do not see a lot of workmanship warranty claims. The vast majority of warranty claims are due to equipment malfunction and are covered with the manufacturer’s equipment warranty, which is often 10, 15, 20, or 25 years.

Solar Company Equipment Warranties

If your solar array equipment is still under warranty but the solar company that installed the array has relocated or is no longer in business, you can work with any installer in your area who is certified to work on your equipment to make a warranty claim and correct the problem.

It is recommended you first contact the manufacturer and work with them on determining a local, certified installer who can work on your system without voiding the manufacturer’s warranty. The last thing you want to have to happen is for the warranty to be voided by the manufacturer due to non-certified individuals working on the equipment.

Many problems can be easily diagnosed by a certified service and support team working remotely with the manufacturer. More complex diagnostics and repairs may require an on-site visit.

Should you feel your system is underperforming and/or in need of an inspection, Eagle Point Solar can help diagnose the array and provide an equipment warranty repair or provide you with a time and materials estimate for anything related to workmanship.

Solar Array Down Payments

Down payments are often required during the purchase of a solar array. Much like a general contractor for building a home, the purchase of a solar array will often go through several phases before permission to operate is granted from your local utility.

These project milestones, determined by your installer, will determine the payment schedule for your array. Should your solar company go out of business prior to your array being commissioned, you may have little or no recourse in obtaining a refund.

Depending on the situation and your method of payment, you may be able to dispute or recover funds from your down payment with your lender or credit card company. It is advised this should be one of the first phone calls you should make, especially if your array is associated with a loan.

Secondarily, it is recommended to contact your state attorney general. Should any legal filings be conducted against the defunct company, you may have a claim to any future settlements or funds gained through any court actions.

Lastly, connect with your state solar energy association. The association may be able to provide additional information or contacts for companies who can be of assistance in getting your solar array project completed.

How to Find A Certified Solar Installer

Contacting your state’s solar energy association is a great place to start. They can help you in finding a vetted, qualified solar energy company to assist you with your solar array.

Illinois: https://illinoissolar.org.
Iowa: https://www.iowaseta.org/
Wisconsin: https://www.renewwisconsin.org/

Conclusion

At Eagle Point Solar we strive to provide you with the educational resources and information you need to navigate the solar process. Please connect with us:

Online Chat: https://eaglepointsolar.com
Call: (563) 582.4044 or (877) 357.2555
Contact Form: https://eaglepointsolar.com/contact-us-form/
Service and Support Request: https://eaglepointsolar.com/service-support/