In 2024, New Englanders watched as many reputable solar companies closed down shop. Solar companies you may have heard of or received mailers from. Rumors of fly-by-night solar companies invading your town are circulating.

You look at your partner and ask, “Isn’t that the company offering free solar panels for the first year?”

Solar panels are a long-term commitment for homeowners. They require maintenance throughout their lifetime, and the last thing you want is to be left SOL when your solar company goes out of business. 

You start asking yourself: Why do these stories come out every year? Why are they going out of business? Are they really that bad? Is it a scam from the very beginning? It happens far too often that you’d think enough people would have caught on by now.

That’s the thing–homeowners should have caught on by now! 

Solar panels are truly a wonderful investment for your home when you’re fighting the rising costs of utility bills. It also serves a dual purpose for environmentally conscientious people. It’s easy to see why solar companies closing left and right is extremely frustrating for homeowners.

It’s also frustrating for me to watch as someone who pours his heart and soul into every project. I presume it to be a civic duty to inform my neighbors, community, and homeowners alike about fly-by-night companies. 

I’ll show you what to look out for. Point you in the right direction if it happens to you. And if it does, I’ll show you how you can protect yourself. 🙂

What Are Fly-By-Night Solar Companies?

Think of bats flying back to their cave in Transylvania.

They’ve just seduced a princess, bitten her neck, and are now flying by night to escape undetected. Fly-by-night solar companies do the same thing. 

But instead of a bite out of your neck, it’s a bite out of your wallet. And in today’s economy, I honestly don’t know which is worse.

These companies are dishonest from the get-go and shouldn’t be touched with a 10-foot pole. However, some of these companies are becoming better at disguising their true intentions. As long as someone bites, they will keep casting a line.

Here are a few things that may seem obvious, but I highly recommend having in the front of your mind when looking into making this investment:

• Their prices are nowhere near as high as any other company in the area

• Their advertisement has a lot to do with signing up for a payment plan and little to do with the benefits of the solar panels themselves

• They are misinformed on standard solar installation regulations, practices, and/or permits

• Look at their customer reviews. How many complaints? How many of those are about being hard to reach after the installation?

• They don’t have a direct phone number or email address on their website

• And of course, if their promise is too good to be true…it probably is

When you begin your solar energy journey, you should be excited. It should be about celebrating saving money and saving the planet. I have no doubts that you’re making a smart decision when you invest in solar energy.

It’s essential to be informed when making a decision that affects you in the long run. So, let’s find out what is happening to these companies and why they keep closing their doors.

Reasons Why Solar Companies Go Out Of Business

Before you think every solar company closing its doors is a fly-by-night solar company, I must remind you that it’s not always the case.

Like any other company, they are just as vulnerable to underperforming employees, low profit margins, or just can’t stand out in a highly competitive market. 

However, there are things that you don’t have to forgive.

First on that list is poor customer service. There’s no excuse for that. Solar panels are built to last and provide energy for 25 years. This isn’t a signed contract and handshake done-deal type of thing. 

You and other homeowners are expecting to have a relationship with your solar company for–I don’t know, I’m guessing–around 20 years. When solar companies fail to understand the value of that relationship, they start losing customers and eventually the whole business.

The second way to go out of business is selling and installing low-quality equipment. Which we both know is a polite way of saying cheap. Cheap costs less, so they can sell it to you for less. 

Installing cheap equipment isn’t just a problem for you, it’s a problem for them because that causes constant repairs. And if that company signed you up for a warranty, they are eating those costs until they finally learn the lesson the hard way: cheap isn’t always best.

Lastly, poor customer service is likely to lead to lawsuits. I’ve seen lawsuits against solar companies result from aggressive sales tactics, false cost savings, and defective or improperly installed solar panels.

I hope you’re reading this before you’re in too deep with one of these kinds of companies. But if it is too late, don’t worry. I’m here to help.

What Do You Do If Your Solar Company Goes Out of Business?

Find out if your account has been transferred to another company

The best-case scenario is that a larger solar company bought out yours and now owns your account. When solar companies begin to go under, they will sell off their assets to minimize the damage. 

This new solar company has a vested interest in its assets (you) and will want to keep up with maintenance, especially if they want to collect on any incentives that the previous company no longer has rights to.

Call the equipment manufacturer

When it comes down to the overall performance of your solar panels, call the company that manufactured your solar panels. 

Manufacturers generally have a standard warranty for defective equipment and will be of assistance. They might even recommend you give me a call. 😉

Call your financing company

This will only apply if you leased your solar panels. This might be the only time when cash isn’t king. 

Your loan company wants to collect on its payments, and since that loan company is familiar with the solar industry, they might be just as helpful as the equipment manufacturer.

How You Can Protect Yourself From Fly-By-Night Solar Companies

I hope I’ve helped you start to decompress a little bit. I know I threw a lot of scary stuff at you in the beginning (bats in the night), and you may have felt like a sitting duck. 

But you’re starting to see that you can avoid these fly-by-night solar companies. 

You can sniff out the scams. You can make a smart investment with the right solar company and start saving the planet and money!

When you’re choosing your solar company, here are my best recommendations:

Customer reviews

Check out each solar company’s website–or Google–and check their reviews. There should be some reviews with fewer than 5 stars because, again, if it’s too good to be true, it probably is. Find the company that resonates most with you.

Longetivity 

A huge red flag for fly-by-night solar companies is the relatively short amount of time they have been open. 

Ask your solar company about the history of their company, what their mission statement is, and how long they’ve been in business. 

5-10 years is a good sign as it shows happy customers remaining happy over several years.

Choose a vertically-integrated company

A lot of solar companies operate with only a sales team. Those are the companies that send the young guys out to knock on your door and bug you until you sign up for an estimate. 

The #1 goal for those companies is to get a signature, collect a commission, and fly by night right out of Dodge.

A vertically-integrated company is going to have an office with a sales team, an installation crew, and customer support. 

When you’re talking with one of these reps, ask them about their office. Do they have a showroom? Are you going to get a real person on the phone? If your company has all or most of those, you’re heading in the right direction.

Invest in O&M polices

Operation & Management (O&M) polices from a trusted party offer a safety net if you want to be extra careful.

These policies provide coverage for maintaining the health and durability of your solar panels, including regular solar panel cleaning and any potential troubleshooting. 

They stay in place regardless of what happens to your solar company. For all those DIYers who want to get their hands dirty, here are some eco-friendly maintenance tips for your solar panels.

Start Saving Your Money and the Planet

Solar energy is the way to a sustainable future for ourselves, our planet, and the ones who come after us. 

It’s a long-term investment and it won’t make you rich overnight. But that utility bill will be nearly zero sooner than you think. Adios to “delivery charges”.

I encourage you to join the solar energy community and look out for my newsletter to learn all about the amazing benefits of solar energy 😀