Over the last ten years, solar power has grown rapidly because costs went down and helpful policies made it easier to adopt. However, 2023 has been a tough year for the solar industry. High interest rates, harder-to-get financing, and new policies in some states have caused over 100 solar companies to go bankrupt. This is the most we've seen in almost 20 years in the business.
California has been hit the hardest. New rules called NEM 3.0 have made solar power less profitable there. Because of these rules and harder financing, demand for rooftop solar has dropped by 80%. Strong companies are hanging on, but many homeowners and solar workers are facing a lot of uncertainty. The collapse of these companies shows how changes in incentives can have big, unintended effects.
Why Solar Companies Go Out of Business
Several factors have led to solar company closures:
- Higher Interest Rates: The Federal Reserve raised interest rates to control inflation. This made borrowing more expensive for everyone, including solar companies and their customers. Higher borrowing costs discouraged people from investing in solar systems despite the long lasting benefits.
- Higher Working Capital Costs: Solar companies often borrow money to finance their projects. Higher interest rates increased these costs, causing financial stress, especially for smaller companies.
- Changes in Solar Lending Practices: Solar lenders changed their payment structures, delaying full payments to contractors until later stages of the project. This caused cash flow problems for many solar companies.
Steps to Take If Your Solar Installer Goes Out of Business
If your solar company has gone out of business, here are some steps to take:
- Check Your Contract: Review your contract for warranty details and any clauses about service disruptions.
- Contact the Manufacturer: Reach out to the manufacturer of your solar system for support and to ensure that they will still honor your warranties and provide assistance.
- Find Local Contractors: Look for a trusted local contractor with the service capacity needed to take over your service agreements and complete your project if it is unfinished.
The Solar Cowboy’s Power Protection Plan
The Solar Cowboys offers an extended service plan that can help with monitoring and service if your original installer is no longer around. This agreement can be a safety net, providing peace of mind and ensuring system upkeep.
How We Can Help
Here at The Solar Cowboys, we understand how worrying it can be if your solar installer goes out of business. We are here to help you:
- Project Completion: If your project was left incomplete, we can step in and finish the job for you.
- Service and Maintenance: We offer service and maintenance for systems installed by companies that are no longer in business.
- Warranty Support: We can help you navigate warranty claims and find solutions to keep your solar system running smoothly.
Looking Forward
Despite these challenges, the solar industry remains strong and has a bright future:
- Technological Advancements: Solar technology keeps getting better and more affordable.
- Environmental Awareness and Government Support: More people care about the environment, and government incentives continue to support solar growth.
- Adaptability: The industry is finding new ways to adapt and grow.
While the closure of many solar companies in 2023 is challenging, the solar industry remains strong and promising. Homeowners affected by these closures have options for support, and the future of solar energy looks bright. The Solar Cowboys are here to support you through these tough times and ensure your solar power needs are met.
Major Solar Companies That Went Out of Business in 2023 & 2024
Here are some of the major solar companies that have gone out of business:
- Pink Energy – Multiple States
- MC Solar – Modern Concepts – Florida
- Harness Power – California
- NM Solar Group – New Mexico
- ASA – American Solar Advantage – California
- Kuubix Energy – California
- Erus Energy – Arizona
- Infinity Energy – California
- Suntuity Renewables – Per Sunova – NJ, CA , TX
- ADT Solar – Multiple States
- Vision Solar – Multiple States
- Solcius – CA, NM, AZ, NV
- Sunworks, Inc. – CA
- Kayo Energy – AZ, CA, TX, FL
- iSun – CT
- Titan Solar Power – Multiple States
Texas Company Closures:
- American Sun
- Daybreak Solar Power
- Cosmo Solaris – DBA WNK Associates , Under Investigation
- Envirosolar
- Hitech Solar
- Integrity Solar
- Next Energy
- Speir Innovations
- TES Home Solar
- Texas Solar Broker LLC
- Verisolar
- Vulcan Solar
- Wells solar
California Company Closures:
- ASA – American Solar Advantage
- Canapoy Energy – CA
- Charged Up Energy – CA
- Enver Solar – CA
- Harness Power – CA
- GCI Solar – CA
- Green Nrg – CA
- Kuubix Energy – CA
- Peak Power USA – CA
- Penguin Home- CA
- Polar Solar – CA
- Professional Roofing and Solar – CA
- Sigora Home Solar – CA
- Solsun USA – CA
- Solar Advantage – CA
- Sullivan Solar Power – CA
- Sungrade Solar – CA
- Sunstor Solar – CA
- RGS Energy – CA
- Solar Spectrum – CA
- Sunworks, Inc. – CA
- United Solar Inc. – CA
Other States:
- 3D Solar – Florida
- AAA Certified Solar – Nevada
- Accept Solar – MA
- ACE Solar Systems – AZ
- Arizona Solar Concepts – AZ
- Code Green Solar – NJ
- EcoMark Solar – CO
- Encor Solar – UT
- Gulf South Solar – LA
- Moxie Solar – IA
- Refresh Energy Group – CO
- Saveco Solar – UT
- Solar Is Freedom – OH
- SolarDot – FL
- Solarworks – AZ
- Solular, LLC – NJ
- Utah Solar Group – UT
- Voltage Solar Power – FL
- Zenernet – AZ