Alternative Solar Customers Left Without Support as Firm Exits Market

Alternative Solar has officially shuttered its operations, leaving customers stranded with unfinished installations and ongoing loan payments. With a devastating 1.42 rating from 65 reviews and 61 one-star ratings on SolarReviews.com, the company’s collapse is unfortunately part of a much larger industry trend. Industry analysts report that over 100 solar companies either filed bankruptcy or ceased operations in 2024.

What happens if your solar company goes out of business? 

This question is becoming increasingly relevant as we witness the solar industry’s volatility across the country. 

Prevost Law Firm solar lawsuit clients report loans in the tens of thousands of dollars for systems that were never completed or failed to function. 

In this article, we’ll examine the Alternative Solar shutdown, explore the financial and legal implications for affected customers, and provide practical guidance for homeowners facing similar situations. 

Alternative Solar Leaves Customers Without Support

The solar industry upheaval claimed another victim when Alternative Solar filed for Chapter 7 bankruptcy in January 2023, leaving a trail of frustrated customers and unresolved installations across multiple states.

Alternative Solar’s closure represents just one case in the broader pattern of solar company failures in recent years. This trend has severely disrupted the residential solar market, creating uncertainty for homeowners who invested significant sums in renewable energy. Unlike some companies that attempted reorganization, Alternative Solar’s abrupt exit left customers with no path forward for system completion or service. 

Other well-known solar installers, such as Titan Solar Power and Erus Energy, have also faced financial distress or closures, highlighting a broader industry pattern.

Customers left with unfinished systems

The impact on customers has been devastating. Many homeowners report paying tens of thousands of dollars for solar systems that either never functioned properly or remain incomplete. 

These incomplete installations have created additional problems beyond the financial burden. Several customers report roof damage and leaking following installations. Meanwhile, others have functional but unusable systems that fail during power outages: “When the power goes out, I’m in the dark like everyone else,” explained one frustrated homeowner.

No official communication from the company

Despite numerous attempts to reach Alternative Solar representatives, customers consistently report receiving no response to calls or emails. This communication void has left homeowners in limbo regarding system repairs, warranty status, and resolution options. 

Customers Report Financial and Legal Fallout

For homeowners left in Alternative Solar’s wake, the financial ramifications extend far beyond merely having non-functional equipment on their roofs.

The harsh reality for many customers involves making substantial monthly payments for solar systems that generate no electricity. Homeowners report facing increased loan payments, some rising hundreds of dollars or more per month, for systems providing minimal or no energy savings. 

Moreover, many customers discovered they had been misled about tax credit eligibility, leaving them unable to make lump sum payments required to prevent loan payment increases. 

Additionally, many clients cite home improvement or repairs as their primary concern. 

What Happens If Your Solar Company Goes Out of Business?

When solar installers collapse, understanding the bankruptcy type is essential for determining next steps.

Understanding the difference between Chapter 7 and Chapter 11

Chapter 7 bankruptcy typically means immediate liquidation—the company stops operating and sells its assets. In this scenario, warranties are usually voided as they’re considered “unsecured liabilities” under bankruptcy law. Conversely, Chapter 11 involves reorganization, allowing the business to continue operating while restructuring debts. For instance, when SunPower filed for Chapter 11 in 2024, the company continued functioning throughout the process.

Breach of Warranty: What It Means for Homeowners

When your solar installer goes out of business, one of the first questions to ask is whether your warranties are still valid. Sometimes, equipment warranties remain in place even if the installer has disappeared. To find out, contact your panel and inverter manufacturers directly. Keep in mind that manufacturer warranties usually cover equipment defects; not labor costs for removal, shipping, or reinstallation.

If you discover that your warranty is no longer being honored, the situation changes. A warranty that isn’t provided as promised can be considered a breach of contract. That breach opens the door for legal action, including claims under the FTC Holder Rule.

Using the Holder Rule to Hold Lenders Accountable

The Federal Trade Commission’s Holder Rule (16 C.F.R. Part 433) allows consumers to assert against their lender many of the same claims and defenses they could bring against the seller. This means if your installer disappears or fails to deliver as promised, you may still have legal options to challenge your loan obligations.

Even if your financing company wasn’t the one who installed your system, the Holder Rule can sometimes allow you to raise the same claims against them. However, the Rule does not guarantee debt elimination. It provides a legal pathway that depends on the facts of your case. This is especially important when your panels aren’t performing, warranties are void, or promised equipment like batteries or generators was never delivered.

What Happens With Lenders Like GoodLeap

Loan obligations typically continue, even if the solar system is incomplete or defective. Some homeowners have experienced serious financial consequences, including damage to credit score and more.

Lenders often insist on full repayment regardless of whether the system delivers the promised benefits. This leaves homeowners paying thousands of dollars for loans tied to equipment that may never function as intended.

What This Means for You

If your warranties are invalid and your installer is gone, you may be facing both a financial and legal mess. But you aren’t powerless:

• Check your manufacturer warranties. They may still cover the panels or inverters.
• Document the breach of contract. If promised warranties aren’t being honored, it strengthens your case.
• Consider legal options. Under the Holder Rule, you may be able to sue your financing company to reduce or eliminate your loan. 

Homeowners don’t have to accept being left with worthless warranties and ongoing loan payments. Legal remedies exist, and the Holder Rule is a powerful tool to fight back.

Steps to take: documentation, manufacturer contact, legal help

Immediately after learning your solar provider has closed:

• Gather all paperwork (contracts, warranties, permits)
• File complaints with consumer protection agencies
• Consider legal assistance with an experienced solar law firm like Prevost Law Firm if facing major financial impact

Go here to begin your no-cost case review to explore your legal options before it’s too late.

How Homeowners Can Protect Themselves Going Forward

With companies like Alternative Solar suddenly disappearing, protecting your solar investment requires careful provider selection and third-party safeguards.

Importance of third-party warranties and O&M services

Third-party warranty programs remain valid even after installer bankruptcy, offering continuous protection regardless of the original company’s status. These warranties are typically backed by major insurance carriers with A+ ratings. Operations and maintenance (O&M) services provide essential monitoring, infrastructure maintenance, and rapid response to potential issues, thereby preventing unexpected disruptions.

Why due diligence matters in solar investments

In today’s volatile market, thorough research protects against industry uncertainties. 

Reviewing warranty terms, understanding contract obligations, and investigating both manufacturer and installer reputations creates essential safeguards against becoming the next solar orphan left without support.

Conclusion

The solar industry’s volatility has left thousands of homeowners stranded, facing unfinished installations, voided warranties, and crushing loan payments. Alternative Solar’s abrupt exit is just one example of a larger pattern: families invest tens of thousands of dollars in renewable energy systems, only to be abandoned by their installer and left with mounting debt.

At Prevost Law Firm, we see cases like these every day. Homeowners come to us still making payments on five-figure loans, despite receiving none of the promised benefits. 

No energy savings, no working warranties, and in some cases, no functioning solar system at all.

When an installer disappears, most homeowners don’t realize they still have legal options. Even if manufacturer warranties remain intact, installation warranties often vanish overnight. That breach of contract can open the door to powerful claims, especially when paired with protections like the FTC Holder Rule, which may allow consumers to pursue claims directly against their financing company.

Prevost Law Firm has helped several homeowners leverage these legal avenues to help clients reduce or eliminate their solar debt. 

The collapse of companies like Alternative Solar underscores an urgent truth: homeowners cannot fight this battle alone. Filing complaints with consumer agencies may bring regulatory scrutiny, but it rarely delivers direct relief. What truly makes the difference is experienced legal representation. Someone who knows how to document fraud, prove breach of warranty, and hold lenders accountable.

For those still considering solar, Alternative Solar’s downfall is a warning sign to proceed with caution. But for the thousands already trapped in predatory contracts, it’s a call to action. You may have grounds to dispute continued loan payments.

A Firm Experienced with Solar Panel Lawsuits

Prevost Law Firm exists to fight for homeowners like you. With over 30 years of litigation experience and thousands of solar cases handled, we know how to navigate this broken industry and secure meaningful results. If you’ve been abandoned by your installer, your loan continues despite unfinished work, or your warranties have vanished, it’s time to explore your options.

The lesson isn’t to avoid solar altogether. It’s to protect yourself—and when protection fails, to fight back. That’s where we come in.

Contact Prevost Law Firm today for a free consultation and find out what remedies may be available in your case.