Solar installer SunPower recently filed for bankruptcy on Aug. 5, joining a growing list of solar companies facing financial challenges due to rising costs, increased competition, and changing state regulations. According to research from solar warranty provider Solar Insure, 75% of solar companies in California are currently experiencing financial difficulties. This can have significant implications for consumers who have solar panels installed by these companies.
If your solar provider goes bankrupt, it is important to understand how it may impact you. Here are some key things to consider:
1. Will the company continue to operate?
– If the solar company files for Chapter 7 bankruptcy, it means they intend to cease operations and sell off their assets. This could mean you may not be able to contact anyone at the company for repairs or warranty work. On the other hand, if they file for Chapter 11 bankruptcy, they may continue operating while trying to restructure their business.
2. Will my solar panels (and battery) still work?
– Your solar panels should still generate energy even if the installer goes out of business. The key is to ensure you have a plan in place for repairs and maintenance if a new company does not take over the warranty contract.
3. Can I still monitor my system’s production?
– Some solar equipment comes with monitoring capabilities that allow you to track your system’s performance. If the monitoring software was provided by the installer, you may need to explore alternatives if the company goes bankrupt.
4. Can I still get a repair through my manufacturer warranty?
– In most cases, you should still be able to access manufacturer warranties for your solar panels, even if the installer goes bankrupt. It is essential to understand the terms of your warranties and reach out to the manufacturer if you encounter issues.
Overall, it is crucial for consumers to stay informed about their rights and options in the event of a solar provider’s bankruptcy. Pay attention to any notifications you receive and seek assistance from legal professionals if needed to protect your investment in solar energy. If your bankrupt solar installer is acquired by another company, there is a possibility that the new owner may honor the existing warranties, although this is not always guaranteed, according to Hayes.
In the event that a new company does not acquire your solar provider or refuses to honor your current warranty, it may be advisable to seek the services of a different solar company for maintenance and support, Nichols suggests.
While most companies may not replace the workmanship warranty, some solar service providers can assist with various issues such as troubleshooting, equipment repairs, and even panel reinstallation for roof replacements, albeit for a fee, Nichols adds.
To find a new servicer for your solar system, Nichols recommends searching for certified installers for your equipment’s brand or looking online for companies offering solar system maintenance services.
Your new servicer may also be able to monitor your system and troubleshoot issues remotely, providing a seamless transition for ongoing maintenance and support.
As for workmanship warranties, they typically cover the installation of solar panels, related equipment, and any design-related issues. If the solar provider sells the warranty contract to another company, the terms and conditions of the contract usually remain the same, ensuring that the new company will likely honor the warranty, Hayes explains.
While buyers who do not wish to acquire existing contracts and warranties must notify affected customers of contract cancellations, it is essential to contact your solar company for repairs covered under the warranty until you are informed of any changes in ownership. Keep thorough records and follow up diligently for a response to avoid any lapses in service, Hayes advises.
If the solar company fails to respond or provide the necessary service, customers may have a claim in the bankruptcy proceedings, according to Hayes.
In the case of financing solar panels through a bankrupt company, making loan payments is crucial to avoid negative consequences on credit scores and potential fees. If you financed through an external bank, your loan should remain unaffected, but those who financed through the solar company should receive information regarding the new loan servicer and verify that the loan terms will remain unchanged.
If the original solar company had the authority to modify loan terms, such as interest rates, the new lender may also have the same rights to make changes, Hayes warns.
By taking proactive steps to address warranty concerns and loan payments, solar system owners can navigate the transition smoothly and ensure continued support for their renewable energy investment. original sentence: The cat jumped onto the table and knocked over the vase.
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