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Solar energy may supply clean, sustainable electricity to your home for decades. You might be asking, “What happens if my solar provider goes out of business and I need service?” because solar equipment lasts so long. 

Many solar enterprises have declared bankruptcy or ceased operations due to fierce competition among an ever-growing number of installations. So, what happens if your solar firm goes out of business? This tutorial explains why solar companies fail and what to do if your solar firm goes out of business.

What causes solar companies to fail? 

Because the solar sector is expanding, you may be asking why a solar company fails. Poor customer service, low-quality equipment, legal action, and fly-by-night solar companies are all reasons why.

Customer Service Issues 

Many solar businesses are more interested in installing solar equipment on new customers’ homes than in providing assistance for existing customers’ solar equipment. Customer service is not a priority for these businesses. 

Companies can use low prices and ‘too good to be true’ offers to entice customers to buy cheap, subpar solar products. Installers may dismiss complaints from customers because they are unable to resolve the underlying issues or because they are inexperienced in solar service and hence fail to find a solution.

A company that cannot resolve customer complaints will not have a good reputation, and unhappy consumers will spread the word about their bad experiences, making it difficult for that company to gain new customers. Their notoriety eventually catches up with them, and the firm files solar bankruptcy.

Low-cost, low-quality equipment 

Although low-priced solar equipment may reduce the initial cost of adopting solar, it is more prone to develop difficulties over time. Customers may make frequent requests for servicing, repairs, and replacements as a result, putting a pressure on the company’s resources. If an installation is unable to service equipment that breaks down, they may be obliged to close their doors.

Taking Legal Action 

If someone takes legal action, false advertising and violations of consumer laws can put a company out of business. One cause for litigation against solar companies is that some companies deceive customers into buying items that do not satisfy their advertised specs. 

Consumers have also complained about companies misrepresenting the entire cost of solar power installation or overestimating their solar savings. The Federal Trade Commission slaps huge fines on dishonest enterprises, forcing them to close down in some cases.

Solar ‘Fly-by-Night’ Companies 

Government incentives such as the solar investment tax credit and ongoing price reductions in solar energy systems have resulted in high demand for solar energy. As a result, a slew of fly-by-night solar enterprises have sprung up to meet the demand. 

These enterprises had experience in other areas of the construction sector, such as roofing contractors, electricians, general contractors, and investment firms, but they lacked the knowledge required to run a solar company.

Because many people were unfamiliar with the solar industry, the learning curve was rather high. Some unskilled businesses struggled to install and maintain their systems, while others promised warranties that they couldn’t keep. 

These businesses either went out of business or moved on to the next ‘hot’ building industry, leaving consumers with little options for solar maintenance and assistance.