ORLANDO, Fla. \u2013 The dream of lower electric bills is turning into a rooftop nightmare for some homeowners across Central Florida. <\/p>\n
In just two years, a wave of major solar companies has filed for bankruptcy, the latest being Freedom Forever in April of this year, leaving customers confused, frustrated, and stuck with systems they don\u2019t know how to manage.<\/p>\n
Susan Bradley and Norman Beyer say the solar panels on their roof aren\u2019t a symbol of energy savings; they are a reminder of what the couple calls the biggest financial mistake of their lives.<\/p>\n
\u201cI\u2019m 74, he\u2019s 80. I have made a few blunders in life. I will say this is probably the biggest one,\u201d Bradley said.<\/p>\n
The couple had been considering going solar when a door-to-door salesperson came knocking. <\/p>\n
\u201cHe said, \u2018If you\u2019d like to talk to somebody and get some information,\u2019 and I said yes,\u201d Bradley recalled. \u201cShould\u2019ve said no, but I said yes.\u201d<\/p>\n
The pitch was straightforward: lower power bills and energy independence. The company, Freedom Forever, moved fast. Less than a week after signing the contract, crews were already on their roof.<\/p>\n
\u201cI do believe that was the reason they got them up there so fast because once they had them on the roof, we were in with them and there was no way out,\u201d Beyer said.<\/p>\n
Before they could even determine whether their panels were working, an email arrived from Freedom Forever, one of the largest residential solar installers in the country, announcing it was filing for bankruptcy.<\/p>\n
\u201cWe\u2019ve got this thing on our roof, and no idea what to do with it,\u201d Bradley said. \u201cWe never saw this coming.\u201d<\/p>\n
Freedom Forever is far from alone. Over the past two years, a wave of major residential solar companies has filed for Chapter 11 or Chapter 7 bankruptcy protection:<\/p>\n
Freedom Forever<\/p>\n
Sunnova Energy International<\/p>\n
Titan Solar Power<\/p>\n
SunPower<\/p>\n
Lumio Solar<\/p>\n
Vision Solar<\/p>\n
Sunworks Inc.<\/p>\n
iSun Inc.<\/p>\n
ADT Solar (shut down)<\/p>\n
Why are solar giants collapsing?<\/p>\n
Industry experts point to a combination of high overhead costs and a shifting market. \u201cThe problem is that these bigger companies tend to have much higher overhead costs. And then when the market shifts, they can go bankrupt pretty quick,\u201d said Luke McCarr, owner of Aspire Solar.<\/p>\n
Reduced government subsidies and tax credits compounded the problem. U.S. Congressman Darren Soto said the loss of a key federal incentive hit the industry hard.<\/p>\n
\u201cWe had a 40 percent solar tax credit until the big ugly law took it out last year. And so you have a lot of companies that were doing just fine, and then that incentive got taken away; they are in tough situations right now,\u201d Soto said.<\/p>\n
Local companies step in for \u2018Orphan Customers\u2019<\/p>\n
While industry giants struggle, smaller local companies are picking up the pieces. Luke McCarr, owner of Aspire Solar in Central Florida, says his phone has been ringing nonstop with calls from abandoned customers.<\/p>\n
\u201cThey\u2019re super upset. They\u2019re very frustrated. And I\u2019m the one who has to pick up the phone,\u201d McCarr said.<\/p>\n
The demand was so consistent that McCarr created a dedicated service rate specifically for what he calls \u201corphan customers\u201d- homeowners left behind when their solar installer went under.<\/p>\n
\u201cIt just kind of made sense: \u2018Okay, you need to be adopted, so we\u2019ll help,\u201d he said.<\/p>\n
\u201cOur regular service call is 300 bucks, but I noticed that these customers are really upset. So we slashed it. If your solar company went out of business, our first service call is now half price; it\u2019s 150 bucks. We can fix whatever problem within an hour,\u201d said McCarr.<\/p>\n
What to do if your solar company went bankrupt<\/p>\n
If your installer has gone under, industry experts say don\u2019t panic. Here are the steps to take:<\/p>\n
Contact the hardware manufacturer directly: When an installer files for bankruptcy, the physical equipment on your roof\u2014panels and inverters\u2014is made by independent, third-party manufacturers that are still in business. Start by identifying the brand names of your hardware. If you don\u2019t have paper contracts, you can retrieve your complete permit package as a matter of public record from your local city or county building department. Then call the manufacturer\u2019s support line directly. Major manufacturers maintain lists of certified local contractors in your area who can handle warranty claims and perform repairs.<\/p>\n
Verify your permits and net-metering approval: A physical array on your roof doesn\u2019t automatically mean your system is legally generating power or crediting your electric bill. Confirm with your local municipality that a building or electrical inspector officially passed and closed out your installation permit. Then contact your electric utility to verify that your Net-Metering Agreement or Permission to Operate (PTO) has been processed. Without that paperwork, excess energy your roof generates cannot be credited back to your monthly bill.<\/p>\n
What to Know Before You Sign a Solar Contract<\/p>\n
For homeowners still considering going solar, industry experts say a few key steps can prevent costly mistakes down the road:<\/p>\n
Watch out for lease traps: Leasing options have grown across the solar industry, but they carry long-term financial commitments that catch many homeowners off guard. Federal tax credit rules generally prohibit homeowners from buying out a lease within the first five years. If you try to sell your home during that window, the buyer must agree to assume your exact monthly payment structure and annual rate escalations, which frequently stalls real estate transactions. Buyout terms after five years are often tied to vague \u201cfair market value\u201d language rather than a fixed number, leaving consumers vulnerable to unexpectedly high costs.<\/p>\n
Size your system by kilowatt consumption, not dollar averages: The main reason homeowners end up paying double bills\u2014a solar loan payment on top of a high utility bill\u2014is an improperly sized system. Sales pitches often rely on rough monthly estimates like \u201cmy bill is usually $350,\u201d which leads to underpowered installations. Pull your utility statements for the last full year and calculate your total annual electricity usage in kilowatt-hours (kWh). Ask any contractor to design a system that meets that exact kWh figure rather than a general dollar estimate.<\/p>\n
Check your roof\u2019s lifespan first: High-end solar panels are built to last 25 to 30 years, but removing and reinstalling an array to replace an aging roof can cost thousands in uncovered labor fees. Make sure your roof has at least 10 to 15 years of remaining lifespan before mounting equipment on top of it. If your roof is already 12 to 14 years old, it may be smarter to replace or repair it before installing solar.<\/p>\n
Know what your hardware can and can\u2019t do: Not all solar components last the same amount of time. Traditional string inverters, the boxes typically mounted on the side of a house, usually need replacement after 12 to 15 years. Micro-inverters mounted behind individual panels often match the full 25-year lifespan of the panels themselves. Also, standard solar panels alone will not keep your lights on during a grid outage. Panels require a functioning grid connection to transfer power unless the system is paired with battery storage.<\/p>\n