What Happens to Your Solar Loan When Your Installer Goes Bankrupt?
Over 100 solar installation companies went bankrupt in 2024 alone. If your installer disappeared overnight, here is your exact playbook to protect your credit and dispute unfair solar debt.
1. Installer vs. Lender: Understanding the Difference
When a solar deal is signed, two distinct entities are involved:
1. The Solar Installer
Examples: Titan Solar, Pink Energy, Sunworks, Vision Solar. They climbed your roof, installed panels, and issued workmanship warranties. When they file Chapter 7, their business operations end.
2. The Solar Lender
Examples: GoodLeap, Solar Mosaic, Sunlight Financial, Dividend. They provided the financing note. Even if the installer dissolves, the lender continues billing you.
2. Why Your Lender Is Exposed Under 16 C.F.R. § 433
Lenders cannot hide behind the excuse of "we just provided the loan." Under the FTC Holder Rule, consumer credit contracts for solar systems contain a mandatory clause:
"Any holder of this consumer credit contract is subject to all claims and defenses which the debtor could assert against the seller of goods or services..."
If the installer failed to complete the system, misrepresented federal tax credits, forged signatures, or delivered defective equipment, you can legally assert those claims directly against the lender to cancel or restructure the loan.
3. The 4-Step Emergency Playbook for Homeowners
- 1Pull Every Original Document:Locate your original sales contract, financing agreement, TILA disclosure, PTO approval notice (if any), and all text/email communications with the sales rep.
- 2Identify Your Exact Lender:Check your bank statement or automatic monthly debits to confirm whether your loan is serviced by GoodLeap, Mosaic, Dividend, or Sunnova.
- 3Document Equipment Status:Take clear photos of your inverter screen, electrical panel, and solar monitoring app showing zero generation or error codes.
- 4Issue a Written Legal Dispute:Send a formal notice invoking 16 C.F.R. § 433 to your lender's compliance department rather than just withholding payments verbally.
Installer Bankrupt & Still Paying?
Elite Solar Recovery evaluates your solar contract and loan note to build a legal dispute under the FTC Holder Rule.
Sources & References
Every claim on this page is sourced from public records, court filings, regulatory announcements, or federal law. Review the primary sources below.
- 01FTC Holder Rule — 16 C.F.R. § 433 (Full Text)
The federal regulation requiring the preservation of consumer claims and defenses against loan holders.
- 02FTC Staff Issues Note on Holder Rule for Large Transactions (April 2021)
FTC guidance confirming the Holder Rule applies to solar and other large financed purchases.
- 03U.S. Courts — Bankruptcy Basics
Official overview of Chapter 7 and Chapter 11 bankruptcy and consumer contract implications.
Translate
