Avoiding bad deals
What happens if my solar company goes bankrupt?
Several brand-name solar installers have filed for bankruptcy in the last few years — SunPower (2024), Sunnova restructuring, Pink Energy, Vision Solar, Solcius. The fear is reasonable: solar is a 25-year decision, and not every installer is going to be around in year 25.
What actually happens to your system when an installer fails depends on which warranty was covering what. Manufacturer warranties stay valid because they're paid by the manufacturer (Mission Solar, Q CELLS, Tesla, Enphase, etc.) — not your installer. Workmanship warranties are tied to the installer and disappear with them. Service contracts disappear too.
What survives an installer bankruptcy
| Warranty / contract | Who pays | Survives bankruptcy? |
|---|---|---|
| Panel manufacturer warranty (25 yr) | Panel maker | Yes |
| Inverter manufacturer warranty | Inverter maker (Enphase, etc.) | Yes |
| Battery manufacturer warranty | Battery maker (Tesla, Enphase) | Yes |
| Workmanship warranty | Installer | No |
| Production guarantee | Installer | No |
| Service contract | Installer | No |
| Loan / PPA contract | Lender / lessor | Yes (transfers to assignee) |
What 'workmanship gone' actually means
If a roof leak develops in year 14 around a panel mount and the original installer is gone, the leak repair is your responsibility. The panels themselves are still under manufacturer warranty (you can call Q CELLS directly), but the labor to remove the panel, fix the leak, and reinstall is on you. Typical out-of-pocket: $500-$2,500 per leak.
This is why workmanship warranty length matters more than most homeowners realize. A 5-year workmanship warranty from a healthy installer is worse, in expected value, than a 25-year workmanship warranty from a conservative one.
Five questions to ask before you sign
- How long has the installer been operating? (Companies that survived the 2018-2019 SREC bust + the 2022-2024 leveraged-TPO collapse are more durable than companies that haven't been tested.)
- Are they vertically integrated (own crews) or do they subcontract installs to a partner network?
- How is the company funded? Equity, healthy cash flow, or leveraged debt?
- Is the workmanship warranty backed by a third-party insurance product?
- What does their public Texas Comptroller registration look like? (Active vs. franchise tax forfeited.)
How Kaizen handles this concern directly
Kaizen is American-owned, equity-financed (no leveraged TPO debt), and grows one state at a time. Direct install in Texas and Oregon; partner-network installation in 14 more states with Kaizen owning the warranty regardless. Our 25-year workmanship warranty matches the panel manufacturer warranty — one company answers the phone in year 25, not 15 different sub-installers.
We're not in the wave of leveraged-TPO solar that took down SunPower. That's by design.
Common questions
Frequently asked
- Is SunPower really bankrupt?
- Yes — SunPower Corporation filed for Chapter 11 bankruptcy in August 2024 and was acquired out of bankruptcy by Complete Solaria. Existing SunPower customers retain their manufacturer warranties (paid by the panel maker, which was a separate entity), but workmanship warranties are caught up in the restructuring.
- How can I protect myself when picking a solar installer?
- Ask the five questions above. Cross-check claims against the Texas Comptroller's public franchise tax records (free at comptroller.texas.gov). Pick installers with vertically-integrated crews over partner-network sales orgs.
- What if Kaizen specifically goes out of business?
- Manufacturer warranties (Mission Solar, Q CELLS, REC, LONGi, Silfab, Tesla, Enphase) are paid by those manufacturers and remain valid regardless of Kaizen's status. The workmanship + production + service contracts are tied to Kaizen — that's why we focus on disciplined, equity-financed growth instead of leveraged expansion.