ADT Solar Review: The Truth About Their Exit and Why Their Return May Not Last

ADT Solar officially closed its doors as of March 2024, leaving thousands of customers wondering what happens next. 

Although lenders have since pressured ADT back into limited solar operations, Prevost Law Firm remains dubious about how long this return will last.

After entering the solar industry in 2021 with an $825 million acquisition of SunPro Solar, the company’s sudden exit has created significant uncertainty in the market. Now, customers who invested in ADT’s solar systems are scrambling to figure out what this means for their panels.

What happened to ADT Solar, and is ADT Solar still in business? 

Unfortunately, the company announced it was completely shutting down its solar division, despite previously offering comprehensive 25-year warranties on labor, equipment, and power production. This closure comes at a time when the solar industry has been experiencing record-breaking residential installations and adoption rates. However, ADT stated they will honor warranties, with a representative stating: “ADT stands behind the products we sell and our work”.

In this review, we’ll explore the truth behind ADT Solar’s exit, examine customer experiences, and provide practical guidance for anyone affected by this closure. Whether you’re concerned about warranties, ongoing support, or potential legal options, we’ve gathered the essential information you need to protect your investment.

What Happened to ADT Solar and Why It Matters

The rise and fall of ADT Solar represents one of the most significant corporate shifts in the residential solar market. Understanding what happened gives insight into broader industry challenges that continue to affect solar customers nationwide.

Timeline of ADT Solar’s Entry and Exit

ADT first entered the solar industry in November 2021 by acquiring Sunpro Solar for $160 million in cash plus approximately 77.8 million shares of ADT common stock, implying a total enterprise value of around $825 million. Following the acquisition, Sunpro was rebranded as “ADT Solar” and operated as a wholly owned subsidiary.

The company’s solar journey was short-lived. By November 2023, ADT announced a major restructuring, closing 22 of its 38 branches and focusing only on the 16 locations that generated approximately 70% of its sales volume. Ultimately, on January 24, 2024, ADT officially announced it would exit the residential solar business completely.

Despite this announcement, financial stakeholders have since forced ADT Solar to re-enter the market in order to protect outstanding loan portfolios. 

This re-entry, however, does not erase the risks customers face if ADT decides to step away again.

Reasons Behind the ADT Solar Shutdown

Financial difficulties drove ADT’s decision to abandon the solar market. During the first nine months of 2023, while ADT’s core security business performed well, the solar segment generated an adjusted EBITDA loss of $89 million. This significant loss resulted from a combination of operational challenges and broader economic headwinds affecting the entire solar industry.

In Q3 2023, ADT’s solar division brought in just $58 million in revenue, a 68% decline from Q3 2022. Jim DeVries, ADT’s CEO, affirmed that “the decision to exit solar operations was made after careful deliberation, and we expect this strategic action to drive substantial operational and financial benefits to ADT.”

Impact on the Solar Industry

ADT Solar’s exit is part of a concerning trend in the residential solar market. The U.S. solar industry has seen over 100 companies filing for bankruptcy or ceasing operations in the past two years. Additionally, the California Solar & Storage Association reported that California alone lost 17,000 solar jobs in 2023.

This industry-wide turbulence stems from multiple factors, including rising interest rates, changing regulatory policies, and intense market competition. For consumers, these closures often mean voided warranties, non-functional systems, and ongoing loan payments for equipment that no longer receives support.

Consequently, the solar industry faces not only financial challenges but also a growing crisis of consumer confidence that threatens the broader clean energy transition.

Warranty, Lease, and Loan: What Still Applies in 2025

For customers with ADT Solar systems, understanding what remains protected in 2025 is crucial for safeguarding your investment. Fortunately, even after ADT’s exit from the solar market, several protections may still apply to your system.

Manufacturer vs Installer Warranties

Solar systems typically come with two distinct warranty types. Manufacturer warranties cover the actual equipment (panels, inverters) and are provided directly by the companies that made these components. These warranties remain valid even when your installer goes out of business. Most solar panels carry 20-25 year manufacturer warranties, while inverter coverage typically ranges from 5-15 years.

Installation or workmanship warranties, which cover the quality of installation itself, generally become void when an installer exits the market. Yet, in a notable exception, ADT has officially committed to honoring its 25-year limited workmanship warranty and power production guarantee. An ADT representative confirmed: “Regardless of ADT’s change in strategic direction, our commitment and follow through on the 25-year limited Workmanship Warranty and 25-year Power Production Guarantee we have provided in our contracts will remain in place”.

Yet according to Prevost Law Firm, customers should remain cautious. The company’s renewed commitment may be more about appeasing lenders than long-term consumer protection.

What Happens to Solar Loans

For those with solar loans, your payment obligations continue regardless of the installer’s status. The loan agreement remains binding even if the installer disappears. 

Stopping payments can lead to collections, credit damage, and complications when selling your home since liens would need to be resolved.

ADT Solar Reviews and Customer Complaints

Customer experiences with ADT Solar reveal a complex picture of service quality throughout the company’s operational history. The Better Business Bureau (BBB) records show 948 total complaints filed against ADT Solar in the last three years.

Common ADT Solar Issues Reported by Customers

Most customer complaints center around installation problems, communication breakdowns, plus unfulfilled promises. Many homeowners report systems not delivering the advertised savings, with one customer paying $124 monthly for panels “that don’t work half the time” alongside a $175 electric bill. Moreover, numerous customers mention roof leaks caused by improper installation. Alarmingly, warranty service requests often went unanswered, with some customers waiting months for repairs.

ADT Solar Lawsuit and Legal Concerns

Legal troubles mounted alongside customer complaints. The Florida Attorney General took action against multiple solar companies for deceptive practices, including misleading consumers about installation processes and misrepresenting pricing and incentives. Furthermore, some customers have alleged more serious misconduct, including contract breaches and even signature forgery. These legal concerns highlight the importance of thorough contract reviews before signing with any solar provider.

What You Can Do Now if You’re an ADT Solar Customer

After ADT Solar’s closure, you have several options to protect your investment. Taking immediate action is essential to safeguard your rights as a solar customer.

Free No-Cost Case Review with Prevost Law Firm

If you’re experiencing issues with your ADT Solar system, Prevost Law Firm offers free case reviews for affected customers. Their attorneys specialize in consumer protection and can evaluate your contract to determine potential legal remedies.

Breach of Warranty and Holder Rule

The FTC’s Holder Rule protects consumers when companies fail to honor warranties. This federal protection means you might not be obligated to continue payments if your system isn’t functioning as promised. First, document all system issues thoroughly, including performance problems and correspondence with ADT.

How to Get Support for Your System

Contact the manufacturers of your panels and inverter directly, they typically honor component warranties regardless of installer status. Additionally, independent solar service companies can provide maintenance and repairs, albeit at an out-of-pocket cost.

Reporting Issues to Consumer Protection Agencies

File complaints with the Better Business Bureau, your state’s attorney general office, and the Federal Trade Commission. These reports create an official record of your situation, which is vital if legal action becomes necessary. Certainly, joining forces with other affected customers through social media groups can provide both support and collective leverage when seeking resolution.

ADT Warranty Support and Release Waivers

Recently, ADT has responded to consumer complaints and legal problems by offering clients trivial amounts of money in exchange for full release of any and all consumer claims. 

They are currently asserting that they once again intend to support clients’ workmanship warranties. If you have workmanship warranty claims against ADT Solar, contact them and request support. 

Prevost Law Firm has observed ADT attempting to resolve warranty complaints by offering small cash payments in exchange for sweeping legal releases. This tactic effectively strips customers of future claims, raising concerns about whether ADT’s promises of long-term warranty support can truly be relied upon.

If they cannot fulfill the workmanship warranty within 60 days, contact Prevost Law Firm. We will do a no-cost case review to see what your legal options are.

Conclusion

ADT Solar’s abrupt exit from the market certainly leaves thousands of customers wondering about their next steps. Though the company operated for barely three years after acquiring Sunpro Solar, its departure reflects broader challenges facing the residential solar industry. Nevertheless, ADT has pledged to honor its 25-year warranties, which provides some reassurance amid this uncertainty.

Still, given ADT’s rocky history and the fact that lenders, not customers, drove their return to the market, many consumer advocates—including Prevost Law Firm—question how durable these assurances will be.

For current ADT Solar customers, several options remain available. First and foremost, manufacturer warranties on equipment typically stay valid regardless of installer status. Additionally, independent service providers can maintain your system, albeit at extra cost. Legal remedies through consumer protection laws might also help if you’re experiencing significant issues with your installation.

The collapse of ADT Solar alongside over 100 other solar companies in recent years undeniably signals turbulence in the market. Still, this doesn’t mean solar energy itself lacks viability. Rather, it highlights the need for consumers to research thoroughly before choosing an installer and to understand completely what protections exist beyond the installing company.

We recommend ADT Solar customers document all system performance issues, contact manufacturers directly about equipment warranties, and consider reaching out to specialized law firms like Prevost for case reviews if needed. After all, your investment deserves protection even as the company that installed it closes its doors. The solar industry will likely continue experiencing growing pains, but customers armed with knowledge stand the best chance of weathering these changes successfully.