The solar industry is becoming more competitive. An ever-growing number of companies are trying to compete with each other, but many have failed and gone out of business because they couldn't keep up in this fierce market environment. 

What happens when your solar company goes under? This guide covers some common causes for why a company would file bankruptcy as well as what you should do if your solar installer does go under.

There are many reasons why, including poor customer service, low-quality equipment, legal action, and fly-by-night solar companies.  Let’s take a closer look.

Customer Service is crucial to any business

Some solar companies are more interested in installing equipment in new customers’ homes than caring for the upkeep of existing systems. These businesses neglect to offer quality support that may be needed from time to time, such as tutorials, or even help with troubleshooting when issues arise with your system after the installation has been completed.

A business without a solid customer service program won’t last long.  It’s important to be able to help your customers when problems arise.

False claims made to customers

Consumers have taken legal action against solar companies for false advertising and violating consumer laws. Consumers feel misled when unqualified employees offer specifications on products or services that fail. Some lawsuits also offer bait and switch sales tactics, accusing companies that their installation costs are much higher than what was originally advertised. 

The Federal Trade Commission levies hefty fines, which can sometimes force solar companies out of business if they don't quickly make changes within the company structure.

'Fly-by-Night' Solar Companies

The government incentives for solar power have led to strong demand in recent years. As such, businesses with minimal solar experience pop up with the intent of making a quick profit, with little care for the quality or honesty of the work they offer. 

Roofing contractors and electricians, who are often recruited to help run solar companies, quickly find that the learning curve is quite steep. Some inexperienced companies have had challenges installing and maintaining their systems, while others have offered warranties they couldn't honor.

A competitive business

Solar is a crowded and competitive business, especially in the residential arena.  During a downturn in the market, many solar companies fail and go out of business.  For example, in 2000 about 8,700 unique companies installed at least one system for residential use; by the end of 2016, there were only 2,900 active installers left.  This means two-thirds have faced bankruptcy or simply disappeared due to lack of demand from customers.

Why do you need solar panel maintenance?

Customers should regularly maintain their solar panels.  Dust and debris can accumulate on the surface of the modules, which can compromise the whole system's performance. Additionally, water seepage and extreme weather like hail storms and the excessive heat can cause system damage or product degradation.

It’s important to check panels for corrosion and deterioration.  Regular service and maintenance are essential to keeping your solar energy system operating correctly, safely, and efficiently.

Problems can arise with the wiring and switches.  Guyou is available for maintenance and upkeep for solar panels installed by other companies.  Guyou also offers upkeep and monitoring of your current system.

Steps to take if your solar company goes out of business

 If you purchased solar through a large company, another clean energy space will usually come in and acquire the remaining assets.  Unfortunately, smaller solar installation companies may not leave you with many options beyond the manufacturer's warranties on the equipment installed.

If you do have a warranty that covers potential issues with your equipment beyond the manufacturer's warranty, your new provider may cover it. Historically, if your system was installed by a mom-and-pop solar company that went out of business, there were not many options on places to turn to, but we at Guyou Construction are here to help!

Contact Guyou today

If your solar power system isn’t working and your solar company goes out of business, it’s best to contact a solar service professional for any repairs. 

Contact Guyou today, if you need assistance with your solar panels.  Even if your original solar company has gone out of business, you can save on any solar operations, service, support, and maintenance needs with Guyou.  Call 866-GO-GUYOU today!