California Solar Exit, a solar contract cancellation consultancy, reported a notable increase in cancellation inquiries after Freedom Forever, one of the nation's largest residential solar installers, filed for Chapter 11 bankruptcy in April 2026. The filing, in the U.S. Bankruptcy Court for the District of Delaware, left an estimated 190,000 installed systems nationwide and many homeowners uncertain about their contracts, warranties, and financing obligations.
Freedom Forever, which controlled roughly 6.1% of the national residential solar market—the second-largest share behind Sunrun—according to Wood Mackenzie, filed for reorganization amid a wave of installer bankruptcies reshaping California's solar market. Previous filings and shutdowns involved SunPower, Sunnova, Titan Solar Power, and ADT Solar. Industry researchers attribute the trend to rising interest rates, the phase-down of the federal solar tax credit under the Inflation Reduction Act, and California's transition to Net Energy Metering (NEM 3.0), which reduced solar export credits and slowed demand.
“When a company the size of Freedom Forever goes into Chapter 11, the phone starts ringing,” said Daniel Merritt, Senior Case Analyst at California Solar Exit. “Homeowners are calling us with panels on the roof that were never activated, service requests that go nowhere, and a loan payment that's still due every month regardless of whether the company answers the phone.”
Merritt noted that homeowners often misunderstand what a bankruptcy filing changes. Equipment warranties from manufacturers like Enphase, Tesla, Q CELLS, and SolarEdge are typically separate from the installer and remain valid. However, workmanship and service warranties issued by the installer may be delayed or discharged in bankruptcy, while loan or lease payments continue.
“That's the part that catches people off guard,” Merritt said. “Your panels are still up there generating power, and your loan servicer still expects a payment, but the company that sold you the system may not exist anymore.”
California Solar Exit advises homeowners not to stop payments without consulting an attorney and to gather their original contract, financing documents, and correspondence before seeking a case review. The company serves homeowners statewide, with active cases concentrated in Los Angeles County, Orange County, San Diego County, the Inland Empire, the Bay Area, and the Sacramento and Central Valley regions.
For affected homeowners, the bankruptcy filing underscores the risks of long-term contracts tied to installer solvency. As the pattern repeats, consumers are left to navigate the fallout of promises unkept.
