More than 100 solar companies filed for bankruptcy in 2024. FTC complaints against solar companies surged from 630 in 2018 to over 5,300 by 2023. One-star reviews for residential solar companies rose more than 1,000% over the same period. The Connecticut Attorney General filed a lawsuit against Sunrun in 2024 for forged signatures and non-permitted work. Vision Solar was hit with a $5 million judgment in Connecticut for predatory sales practices. New York regulators revoked the licenses of Attyx and SUNco in 2025 for deceptive marketing claims.
Solar is a 25-year commitment. The company you choose matters enormously — not just for installation quality, but for what happens to your warranty, your system monitoring, and your recourse if something goes wrong. This guide explains the real risks and what you can do about them.
The Scale of the Problem
The solar industry's rapid growth in the 2020s attracted a wave of companies funded by easy capital and driven by aggressive sales targets. Many weren't built for the long term. When interest rates rose, loan origination volumes fell, and capital dried up, dozens of solar companies collapsed — some of them large, nationally recognized names.
The systemic cause: high-pressure door-to-door sales, misleading claims about incentives and savings, substandard installation quality, and companies prioritizing contract volume over project execution. The homeowner was often the last to know something had gone wrong.
High-Profile Cases in CT and NY
Connecticut: AG Sues Sunrun (2024)
In 2024, the Connecticut Attorney General filed a lawsuit against Sunrun — one of the largest solar companies in the United States — alleging that Sunrun representatives forged customer signatures on solar agreements and performed installations without required permits. The suit alleged that homeowners were enrolled in solar contracts without proper consent and that work proceeded without the permits legally required in Connecticut.
This case matters not because a small company behaved badly, but because Sunrun is a publicly traded company with billions in revenue. Size and name recognition are not reliable proxies for ethical conduct or quality of installation.
Vision Solar: $5 Million CT Judgment
Vision Solar was a New Jersey-based solar company that engaged in predatory sales practices across multiple states. In Connecticut, the company collected payments from hundreds of homeowners for systems that were never properly installed or were installed with serious defects. Multiple legal actions resulted in a $5 million judgment in Connecticut. Vision Solar subsequently filed for bankruptcy. For the homeowners who paid deposits or full system costs, recovery through the legal process was limited.
New York: Attyx and SUNco Licenses Revoked (2025)
In 2025, New York State regulators revoked the licenses of Attyx and its associated entity SUNco following investigations into deceptive marketing claims, misrepresentations about government programs, and failures to complete contracted installations. Homeowners who had signed contracts were left in limbo — deposits paid, systems not delivered, and no clear path to recourse against an entity whose license had been revoked.
The consistent pattern:
In nearly every case — Sunrun, Vision Solar, Attyx, and dozens of smaller operators — the warning signs were the same: high-pressure door-to-door sales, misrepresented incentives, verbal promises not in the contract, and urgency to sign before the "deal expires." Homeowners who slowed down to review contracts and verify claims were far less likely to be victimized.
What Happens When a Solar Company Goes Bankrupt
If You Own the System Outright
The panels themselves will continue to work — solar panels are passive devices that generate electricity without any ongoing connection to the company that installed them. However:
- Workmanship warranty: Likely unenforceable. If the installer is insolvent, no one is left to honor a claim for a roof leak, a wiring defect, or improperly mounted equipment.
- Monitoring service: Many companies provide proprietary monitoring portals that go dark when the company closes. You can often switch to third-party monitoring, but the transition isn't seamless.
- Equipment manufacturer warranties: Remain valid as long as the manufacturer is solvent. This is exactly why tier-one manufacturers with 25-year track records matter — they'll still be around to honor claims in 2040.
- In-progress systems: Homeowners who paid deposits for systems not yet installed may have limited recourse through bankruptcy proceedings.
If You Have a Leased System
Leased systems are more complicated. The lease becomes part of the bankruptcy estate and may be assigned to a successor company or liquidated. Homeowners with active leases under a bankrupt company often face months of uncertainty — who is responsible for maintenance? Who do you call if there's a problem? What happens to the lease terms?
In most cases, leases do eventually transfer to a successor servicer, but the transition period can be disruptive and stressful. Knowing the financial health of your leasing company's parent entity before signing a lease agreement is worthwhile due diligence.
Red Flags to Watch For
⚠ Door-to-door cold sales with urgency to sign today
The single biggest predictor of problem solar experiences. Legitimate solar companies generate business through referrals, advertising, and inbound inquiries. Any salesperson creating artificial urgency — "this deal expires tonight," "the incentives are almost gone" — is not operating in your interest. Real incentives run on legislative schedules, not salesperson deadlines.
⚠ Verbal promises not reflected in the written contract
If a salesperson makes claims about savings, production, payback periods, or specific incentive amounts that don't appear in the written contract, those claims are effectively worthless. The contract is the only document that matters. If it's not in writing, assume it won't happen.
⚠ Incentive misrepresentation
Common tactics include claiming credits that have expired (the federal 25D credit ended December 31, 2025 for cash purchases), overstating rebate amounts, or fabricating incentive programs. Always verify any specific incentive claim with the relevant state or city agency before relying on it.
⚠ Unlicensed or unverified contractors
Ask specifically who will perform the electrical work on your installation. In both CT and NY, solar electrical work requires a licensed electrician. Ask for the license number and verify it directly with the state licensing database — not just by trusting the sales representative's assurance.
⚠ No physical office or local presence
Solar companies that operate exclusively by door-to-door sales with no verifiable local office or track record in your area present higher risk. You want a company that will still be in business to handle a warranty claim in 2031.
How to Protect Yourself
1. Verify Licenses Before Signing
In Connecticut, verify contractor registration with the CT Department of Consumer Protection. In New York, verify through the NY Department of Labor's license search. Ask for specific license numbers and verify them yourself — this takes five minutes and is worth doing.
2. Read the Full Contract
Your contract should specify: exact system size (kW and individual panel wattage), equipment make and model, estimated annual production in kWh, total cost and payment schedule, workmanship warranty terms and duration, and what happens if the company goes out of business. Missing or vague language in any of these areas is a warning sign.
3. Know Your Cancellation Rights
Connecticut and New York have home solicitation sale laws that give you the right to cancel certain contracts within 3 business days of signing when a salesperson came to your home. If you feel pressured, you have time — use it.
4. Ask About Equipment Manufacturers
Request the specific make and model of panels and inverters. Tier-one manufacturers with 25+ year operating histories and global service networks provide warranty backing that survives installer bankruptcy. Modern tier-one panels operate at 20–22% efficiency and carry 25-year performance warranties guaranteeing minimum output. These warranties mean something — but only if the manufacturer is still in business to honor them.
5. Remember That Homes with Solar Sell for More
A Zillow study found that solar homes sell for approximately 4% more than comparable non-solar homes. This is a real long-term asset — worth protecting with careful vendor selection and documented warranty terms from the beginning.
Why SolarPro Lab Is Different
SolarPro Lab was built to address exactly the problems described in this article. We're a solar company — not a lead generator, not a referral network — and we manage your project from the first conversation through the life of your system.
The consumer protection failures of the solar industry — and there have been many — represent exactly the problem SolarPro Lab was created to solve. A 25-year financial decision deserves a 25-year relationship with a company that has the expertise and the integrity to get it right from the start.
Frequently Asked Questions
What happens to my solar system if my solar company goes bankrupt?
If you own the system outright, the panels continue to generate electricity — they're passive devices that need no ongoing connection to the installing company. However, your workmanship warranty likely becomes unenforceable (no company to honor it), any monitoring portal provided by that company may go dark, and in-progress repairs may go uncompleted. Equipment manufacturer warranties (panels, inverters) remain valid as long as the manufacturer is solvent — another reason tier-one equipment matters. For leased systems, the lease transfers to the bankruptcy estate and may be assigned to a successor company, creating months of uncertainty.
How do I verify a solar company's license in CT or NY?
In Connecticut, solar contractors must be registered with the CT Department of Consumer Protection as home improvement contractors. Electrical work requires a licensed electrician. In New York, verify contractor licenses through the NY Department of Labor's license search. Ask for specific license numbers before signing any contract and verify them directly with the relevant state agency — not just by trusting the company's word.
What happened with the Sunrun lawsuit in Connecticut?
The Connecticut Attorney General filed a lawsuit against Sunrun in 2024 alleging forged customer signatures and non-permitted work. The suit alleged that customers were signed up for solar agreements without their actual consent and that installations were performed without required permits. Sunrun is one of the largest solar companies in the country — this case illustrates that company size is not a proxy for ethical conduct or installation quality.
What was Vision Solar and what happened?
Vision Solar was a New Jersey-based solar company that collected payments and deposits from hundreds of homeowners for systems that were never properly installed or were installed with serious defects. Multiple lawsuits resulted in a $5 million judgment in Connecticut for predatory sales practices. The company subsequently filed for bankruptcy. Most affected homeowners recovered little through the legal process.
What are the warning signs of a bad solar company?
Key warning signs: high-pressure door-to-door sales with urgency to sign today; verbal promises about savings, incentives, or payback that don't appear in the written contract; vague or unsigned contracts; inability or unwillingness to provide license numbers; claims about government programs or rebates that sound too good to be true; no physical office or verifiable local presence; salespeople who claim to represent a government program or utility. Any of these should give you pause.
What should I look for in a solar contract?
A sound solar contract should specify: exact system size in kW and DC wattage; equipment make and model numbers; estimated annual production in kWh; total system cost and payment schedule; workmanship warranty terms and duration; what happens if the company goes out of business; cancellation rights and timeline. If any of these are absent or vague, request them in writing before signing.
How does SolarPro Lab protect against these risks?
SolarPro Lab manages your solar project end-to-end as your solar company — not as a referral network or lead generator. We are selective about the installation partners we work with, use only licensed and insured providers with verifiable track records, use tier-one equipment with 25-year manufacturer warranties, and provide full project documentation in writing. We are your single point of contact before, during, and after installation.
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