What Happens If My Solar Company Goes Out of Business?
The unfortunate reality is that businesses, even successful ones, can sometimes fail. This is especially true in a rapidly evolving industry like solar energy. If your solar company goes bankrupt, it naturally raises concerns about the future of your system and your investment. Let's explore the potential scenarios and what you can do to protect yourself.
Will My Solar Panels Stop Working?
No, your solar panels themselves are unlikely to stop working simply because the company that installed them went bankrupt. The panels are physical assets, and their functionality is independent of the installer's financial status. However, the potential problems lie in the services surrounding the system.
What Happens to My Warranty?
This is a crucial question. Most solar panel systems come with warranties covering manufacturing defects and performance. These warranties are typically provided by the panel manufacturer, not the installer. Therefore, your warranty should remain valid even if the installer goes bankrupt. However, you'll need to contact the manufacturer directly to file any claims. It's essential to keep all your paperwork, including warranty documents, in a safe place.
Who Handles Repairs and Maintenance?
This is where things get more complicated. If your installer goes bankrupt, you'll need to find a new company to handle any necessary repairs or maintenance. This could mean additional costs and potential delays. Before choosing a new provider, it's wise to thoroughly research their reputation and ensure they're qualified to work on your specific system.
What About My Monitoring System?
Many solar systems come with monitoring systems that track energy production and identify potential problems. If your installer provided this system and the company goes under, access to the monitoring platform might be lost. Again, you'll need to investigate alternatives and potentially switch to another monitoring service.
What About My Financing Agreement?
If you financed your solar system, the implications of your installer's bankruptcy depend on the specifics of your loan agreement. You should contact your lender immediately to understand how the bankruptcy affects your payments and the ownership of your system. In some cases, the lender might take over the system or require you to make alternative arrangements.
What About My Permitting and Inspections?
The permits and inspections associated with your solar system should be handled by local authorities, independent of your installer. These records should remain unaffected by the bankruptcy. However, it's always advisable to confirm the status of your permits with your local authorities.
How Can I Protect Myself?
- Thorough Due Diligence: Before signing any contracts, carefully vet your solar company. Check online reviews, look for certifications (like NABCEP), and inquire about their financial stability.
- Secure Your Warranties: Make sure you receive copies of all warranties and store them safely. Understand the warranty terms and conditions.
- Understand Your Financing Agreement: Carefully read the loan agreement and understand all the terms, especially concerning default and ownership transfer.
- Consider Purchasing a Service Agreement: A service agreement with a reputable company can provide peace of mind by guaranteeing routine maintenance and quick repair services.
The bankruptcy of your solar installer is undoubtedly unsettling. However, by understanding the potential implications and taking proactive steps, you can minimize the disruption and protect your investment in clean energy. Remember to keep all your paperwork, communicate with the relevant parties (manufacturers, lenders, and local authorities), and seek professional advice when necessary.
