California Solar Exit, a solar contract cancellation consultancy, reported a significant increase in inquiries after Freedom Forever, one of the largest residential solar installers in the U.S., filed for Chapter 11 bankruptcy in April 2026. The company, which controlled about 6.1% of the national market according to Wood Mackenzie, left an estimated 190,000 installed systems and many homeowners uncertain about their contracts, warranties, and financing obligations.
Daniel Merritt, Senior Case Analyst at California Solar Exit, noted that homeowners are contacting the firm with panels that were never activated, unresponsive service requests, and loan payments that continue regardless of the company's status. This combination, he said, drives homeowners to explore solar cancellation as an option.
Freedom Forever's filing is part of a broader trend affecting California's residential solar market, following bankruptcies and closures of SunPower, Sunnova, Titan Solar Power, and ADT Solar. Industry researchers attribute the wave 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.
Merritt explained that homeowners who signed 20- or 25-year contracts are often left managing the fallout when companies overextend during boom years and financing partners pull back. California Solar Exit helps affected homeowners understand which parts of their agreements are at risk. Equipment warranties from manufacturers like Enphase, Tesla, Q CELLS, and SolarEdge are typically separate and remain valid, but workmanship and service warranties from the installer may be discharged in bankruptcy. Loan or lease payment obligations do not disappear.
"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 and made all the promises about service and support may not exist anymore."
The company advises homeowners not to stop making payments without consulting a qualified attorney and to gather original contracts, financing documents, and correspondence before starting a case review. California Solar Exit offers no-obligation assessments and consults remotely with homeowners across the state, with active cases in Los Angeles County, Orange County, San Diego County, the Inland Empire, the Bay Area, and the Sacramento and Central Valley regions.
Homeowners affected by the Freedom Forever bankruptcy or other solar company closures can request a free contract review at californiasolarexit.com or by calling (213) 579-5156.
