Central Florida homeowners who invested in solar panels to reduce their electricity bills are now facing an unexpected crisis. Over the past two years, a wave of major solar companies have filed for bankruptcy, leaving customers with unsupported systems and mounting frustrations.
Among the most recent casualties is Freedom Forever, which filed for bankruptcy in April of this year. The company’s collapse has left customers like Susan Bradley and Norman Beyer in a difficult situation. The couple, now in their 70s and 80s, find their solar panels more of a burden than a benefit.
Why are solar companies collapsing?
Industry experts attribute the collapse of these solar giants to a combination of high overhead costs and shifting market dynamics. Luke McCarr owner of Aspire Solar explains that larger companies often have higher overhead costs, making them vulnerable to market shifts. The reduction in government subsidies and tax credits has further exacerbated the problem. U.S. Congressman Darren Soto highlights the impact of the loss of a key federal incentive, which has left many companies in a tough spot.
The collapse of these companies has created a void in the market, leaving homeowners without the support they need to manage their solar panel systems. This has opened up opportunities for smaller, local companies to step in and assist these ‘orphan customers.’ McCarr has seen a surge in demand for his services and has introduced a dedicated service rate for these customers.
The challenges of managing unsupported solar systems
Homeowners with unsupported solar systems face a myriad of challenges. From inaccurate monitoring data to leaky roofs, the issues can be complex and costly. One homeowner in Pennsylvania, for instance, discovered a leak beneath their aging solar panels. Despite efforts from both the solar contractor and an independent roofing contractor, the leak persisted, leaving the homeowner at a loss for solutions.
Inaccurate monitoring data can also pose significant problems. One homeowner in Reddit’s r/enphase app forum reported issues with their Enphase solar panel system’s monitoring app. The system failed to show accurate energy consumption figures, making it difficult for the homeowner to understand how their system was performing. This highlights the importance of finding trusted local installers and ensuring that the system is functioning correctly after installation.
Steps to take if your solar company goes bankrupt
If your solar installer has gone under, industry experts advise against panicking. Here are some steps you can take to manage the situation:
First, contact the hardware manufacturer directly. The physical equipment on your roof, such as panels and inverters, is made by independent, third-party manufacturers that are still in business. Identify the brand names of your hardware and call the manufacturer’s support line directly. Major manufacturers maintain lists of certified local contractors in your area who can handle warranty claims and perform repairs.
Next, verify your permits and net-metering approval. A physical array on your roof doesn’t automatically mean your system is legally generating power or crediting your electric bill. Confirm with your local municipality that a building or electrical inspector officially passed and closed out your installation permit. Then contact your electric utility to verify that your Net-Metering Agreement or Permission to Operate (PTO) has been processed. Without that paperwork, excess energy your roof generates cannot be credited back to your monthly bill.
For homeowners still considering going solar, industry experts recommend a few key steps to prevent costly mistakes down the road. Watch out for lease traps, as they carry long-term financial commitments that can catch many homeowners off guard. Size your system by kilowatt consumption, not dollar averages, to avoid ending up with an underpowered installation.
