The last decade has witnessed a significant increase in the development and implementation of green power by U.S. businesses and households. At the same time, between 2022 and 2025, a wave of bankruptcies and solar companies going out of business occurred in the United States.
The solar industry was heavily affected by a range of factors, like higher interest rates, legislative shifts, competition, and financing issues. Some companies were unable to cope with the new challenges and had to make the difficult decision to shut down their business. Consequently, the potential new clients became more cautious when deciding to go solar and tried to understand which solar panel companies to avoid. In this article, you will learn about the main reasons for business change, what current challenges are, and what we can expect from the industry in the future.
The recent wave of solar company bankruptcies and business closures in the U.S. solar industry is not a result of a single event or factor. It is a complex mix of financial, regulatory, operational, and reputational challenges. Let’s have a closer look at the main reasons.
Residential solar energy is heavily dependent on consumer financing, including loans, power purchase agreements (PPAs), and leases. When interest rates rose rapidly between 2022 and 2024, the cost of borrowing for both consumers and corporations rose dramatically. As a result:
Homeowners who were considering going solar always relied on local and federal incentives when calculating their savings and making a final decision. However, in states like California, Florida, and North Carolina, critical legislative changes, most notably California’s Net Energy Metering (NEM) 3.0, have significantly reduced the value of solar exports.
Source: Grist
Some solar installers, such as Titan Solar Power, expanded very quickly by leveraging dealer networks that helped them generate leads and close transactions. This growth led to overselling and misrepresentation, as commission-driven sales staff made exaggerated claims.
At some point, the U.S. solar market became overloaded with solar businesses. Hundreds of regional and national installers had to compete for the new customers using every method possible. This has forced installers to:
It’s a notable fact that the Inflation Reduction Act (IRA) extended the federal solar tax credit (ITC) until 2032; however, there have been delays in funding or misunderstandings over who is eligible, especially for newer community solar or battery projects. Additionally:
Several high-profile collapses were caused by fraud or mismanagement, which automatically added them to a list of solar panel companies to avoid among solar users.
California was the most affected state by the number of solar company bankruptcies and business closures in recent years. This fact can be easily explained by the way the industry developed there, as well as the extreme policy changes that occurred.
| Solar under NEM 2.0 | Solar under NEM 3.0 | |
| Monthly energy bill (previously $250) | $18 | $96 |
| Payback period | 4.6 years | 6.5 years |
| Lifetime savings | $116,680 | $73,620 |
Arizona, Florida, Texas, New Mexico, Nevada, Massachusetts, and others – multiple closures tied to local incentive cutbacks or deceptive sales.
The list of solar companies that went out of business in the 2020s is rather big, but let’s have a look at some cases of the big companies’ closure.
Source: Bloomberg
Complete Solar bought SunPower’s Blue Raven Solar, New Homes, Non-Installing Dealer, and brand and trademarks. Complete Solar was renamed to SunPower to support former SunPower clients.
EnergyAid, a solar service provider, has acquired Titan Solar Power’s intellectual property. Now, EnergyAid will continue to support Titan Solar Power’s previous clients.
Other big companies that were closed during 2022-2024 due to various reasons, including misleading sales and policy shifts:
Summary of Key Failures
| Company | Year | Location | Reason(s) |
| Sunnova Energy | 2025 | TX | Policy & rate changes, massive debt |
| SunPower | 2024 | CA | Incentive loss, accounting issues, and competition |
| Titan Solar | 2024 | AZ | Dealer model failures, lawsuits |
| Sunworks | 2024 | Multi-state | Market decline, macro stress |
| Pink Energy | 2023 | Multi-state | Misleading practices, lawsuits |
| ADT Solar | 2023 | Multi-state | Financial mismanagement |
| DC Solar | 2018 | CA | Ponzi scheme |
The unexpected wave of solar company bankruptcies and closures in the 2020s highlights the importance of a strong financial and regulatory framework to support the growth of the clean energy industry.
It identified the major gaps and planned a large amount of work for installers, governments, and users. It should work as a cooperative effort among all parties, with governments and installers working together to create a healthy business environment where users can choose the best option for them rather than identifying solar panel companies to avoid.
Several elements must be considered to establish a balanced and mutually beneficial collaboration for all parties concerned. Green energy is critical to our planet’s future; however, there are countless opportunities for improvement and effective planning at this time.