What Happens If My Solar Company Goes Out of Business?
The thought of your solar company going bankrupt is understandably unsettling. It raises concerns about your system's warranty, maintenance, and even its continued operation. However, the impact varies significantly depending on several factors, including the type of financing used, the age of your system, and the specifics of your contracts. Let's explore the potential scenarios and how to mitigate the risks.
What are my warranties covered by if my solar company goes bankrupt?
Your solar panel system and its components usually come with manufacturer warranties, separate from any warranties offered by the installer. These manufacturer warranties are generally transferable and should remain valid even if the installer goes bankrupt. However, it's crucial to:
- Locate and thoroughly review all your warranty documents. Note the specific coverage, terms, and contact information for the manufacturers.
- Register your system with the manufacturers. This ensures they have your details on file and can efficiently process any warranty claims.
- Understand the difference between performance and product warranties. A performance warranty typically covers the system's energy output, while a product warranty covers defects in materials or workmanship.
If the installer's warranty covered aspects beyond the manufacturer's warranties (like labor for repairs or system monitoring), these are likely jeopardized in a bankruptcy. This highlights the importance of selecting a financially stable company with a proven track record.
Who handles repairs and maintenance if my solar company closes down?
If your solar installer goes out of business, finding someone to handle repairs and maintenance becomes essential. Several options exist:
- Contact the manufacturers directly. They may offer maintenance services or refer you to authorized service providers.
- Seek out local solar installers. Many companies offer repair and maintenance services for existing systems, regardless of the original installer. Obtaining multiple quotes is recommended.
- Check for independent solar technicians. Many qualified technicians operate independently and can provide services.
It's advisable to establish a relationship with a reliable service provider before needing urgent repairs to avoid stressful situations if your original installer closes.
What happens to my solar panel system's performance guarantees?
Performance guarantees, frequently provided by installers, might be affected by a company's bankruptcy. However, the manufacturer's performance warranties generally still stand. The key is having detailed records of your system's performance metrics. If the installer's bankruptcy involves litigation, this data might become crucial for proving a breach of contract or pursuing any applicable claims.
Will my net metering agreement be affected?
Your net metering agreement is typically between you and your utility company, not the installer. Therefore, the installer's closure shouldn't directly impact your net metering arrangement. However, if disputes arise regarding system performance or credits, the lack of an installer to act as an intermediary could complicate the process. Keeping meticulous records of your energy production and consumption will be extremely beneficial.
What if I financed my system?
If you financed your solar system, the impact of the installer's bankruptcy depends on the loan structure:
- Loans directly through the installer: This presents the most significant risk. You might need to work with the lender to explore options, potentially requiring you to refinance the loan with a new lender.
- Third-party financing: If the financing is through a separate company (like a bank or a solar financing firm), the installer's bankruptcy should have less direct impact on your loan, although delays in resolving disputes are possible.
It is always best practice to ensure you understand your financing terms fully before signing any agreement.
In summary, while the failure of a solar company is unfortunate, understanding your warranties, maintaining thorough records, and proactively seeking alternative service providers can help mitigate the potential disruption. Choosing a reputable, financially stable installer is the best preventative measure. Due diligence before investing in a solar system is paramount to ensuring long-term peace of mind.
