Do I Have to Keep Paying My Solar Loan If the Company Closed?

Yes. If your solar installer goes out of business, your loan, lease or PPA does not disappear. Solar Power World’s advice to Freedom Forever customers was direct: bankruptcy does not cancel your contractual payment obligations. Missing payments can damage your credit and, for some contracts, lead to collections or liens.

Why the debt survives

In most solar deals the installer and the money are separate. A loan usually comes from a lender or finance company; a lease or PPA is often owned by a financing company that hired the installer. When the installer closes, the contract still belongs to the lender or owner – or to whoever buys it in the bankruptcy. That is what happened when Mosaic, a large solar lender, went through Chapter 11 in 2025: loan servicing moved to Solar Servicing LLC, a subsidiary of Forbright Bank.

Who do I pay now?

1. Check your latest statement or autopay – it names the company collecting payments.
2. Read any letters or emails about a transfer of servicing. Servicers must tell you where to pay.
3. For closed companies, check our solar orphans guide, which lists the current servicer where one has been named – for example SunStrong Management for legacy SunPower leases and for Sunnova customers.
4. Be wary of anyone contacting you to “redirect” payments. Confirm using contact details from your contract or the servicer’s official website.

What if the system stopped working?

The answer depends on your contract:

• Loan (you own the system): the lender is not responsible for repairs. Use manufacturer warranties and a licensed local installer, and keep paying.
• Lease or PPA (the company owns the system): the owner is usually responsible for keeping it working. Look for a performance guarantee or uptime clause – it may entitle you to credits for lost production. See how to document an outage.

Can I cancel the contract?

Possibly, but it is rarely quick. Solar Power World notes that cancelling a contract after an installer bankruptcy generally needs legal advice and can take months. If you were misled when you signed, you can also report it to your state attorney general and the FTC.

Steps to take this week

• Keep paying on time and keep proof of every payment.
• Download your contract and documents from the installer portal while it still works.
• Write down your system’s production now, so you can show any later drop.
• Call the servicer and ask who handles repairs and warranty claims for your contract.

Loan, lease or PPA: what is different

	Loan	Lease	PPA
Who owns the panels	You	Lease company	PPA company
What you pay	Fixed loan payments	Fixed monthly payment	A price per kWh produced
Who fixes problems	You (with manufacturer warranties)	Usually the lease company	Usually the PPA company
If the system stops	Payments still due	Check the performance guarantee	You may pay less, because you pay for what it produces

Sample letter to your servicer

Subject: Account [number] – installer closed, please confirm servicer and repair contact
Hello, my solar system at [address] was installed by [installer], which has closed. Please confirm (1) that you service my [loan/lease/PPA], (2) where payments should be sent, and (3) who handles repairs and warranty claims for my system. My system [is working / stopped producing on date]. Thank you, [name, phone].

What if I can’t afford the payments?

Call the servicer before you miss a payment. Ask about hardship options such as temporary payment plans. Get any agreement in writing. Do not rely on promises from third parties who offer to “erase” solar debt for a fee – check them with your state attorney general first.

Watch for scams after a bankruptcy

Bankruptcies attract scammers. Be cautious with calls or texts asking you to pay a new account, “reactivate” your system, or buy a replacement contract. Look up the servicer’s phone number yourself from your contract, your most recent bill or the bankruptcy notice, and never give payment details to an unexpected caller. Report suspected scams to the FTC.