The rise of renewable energy in the UK, especially solar power, has been remarkable. For homeowners and businesses, installing solar panels has become a popular way to save on energy bills, contribute to sustainability, and sometimes even generate income. However, a growing concern among solar customers is: what happens if the solar company that sold or maintains your system goes out of business? This article delves into the implications, rights, and actions you should consider if your solar provider becomes insolvent in the UK.
Understanding the UK Solar Industry Landscape
Before exploring what happens when a solar company goes out of business, it’s important to understand the structure of the UK solar market. Over the past decade, solar power has gained momentum thanks to falling technology costs, government incentives like the Feed-in Tariff (FiT), and rising environmental consciousness. Today, thousands of solar installers and providers operate across the country, ranging from national firms to local businesses.
While many of these companies are stable and reputable, like any sector, the solar industry in the UK has faced both ups and downs. Economic pressures, fluctuating government policies, and supply chain issues have impacted smaller installers, leading to concerns among customers about continuity of service and product warranties.
Why Solar Companies Go Out of Business
Solar companies may cease operations for various reasons:
- Changes in government incentives: The end of the FiT scheme in 2019 significantly reduced the financial return for many residential solar customers, which in turn affected installers’ revenues.
- Market saturation and competition: The surge in solar adoption attracted many new entrants, some of whom may not survive in the long run due to thin profit margins.
- Supply chain disruptions: Global events, like the pandemic or geopolitical tensions, have caused delays and increased material costs for solar components.
- Poor financial management: As with any business, poor planning and unsustainable growth strategies can lead to insolvency.
Understanding the potential causes of a company’s collapse helps solar owners anticipate risks and plan for contingencies.
What Happens to Your Solar Panels If the Company Closes?
A common misconception is that if your solar company shuts down, your solar system becomes unusable or your warranties become void. This is not necessarily true. Here’s what typically happens in such a scenario:
Ownership and Responsibility Transfer
When a solar company folds, the assets and liabilities may be taken over by another business through acquisition or administration. In many cases, another solar provider might buy the customer contracts or maintenance portfolios. You might receive a notification that a new company will now handle your account or system.
If no buyer is available, the company may enter liquidation, which means winding up operations and selling off company assets to repay creditors. In this case, your contract with the company ends, but your ownership of the solar hardware is unaffected. The panels remain yours, and you are responsible for their continued maintenance.
Equipment Warranties and Guarantees
One major concern after a company goes out of business relates to warranties—especially workmanship warranties and performance guarantees.
- Panel Warranties: Most solar panels come with a manufacturer’s warranty, typically 10–25 years, depending on the brand. This warranty is provided by the panel manufacturer, not the installer, so it remains valid even if your solar company goes out of business.
- Inverter Warranties: Inverters (which convert DC electricity into AC for home use) usually have warranties of 5–10 years. Many brands, like SolarEdge or Enphase, provide direct warranties that customers can claim directly from, regardless of the installer’s status.
- Workmanship Warranties: These are specific to the installer and cover the quality of the installation. If your installer closes down and there’s no transfer of this warranty, you lose this coverage.
In such cases, you may need to seek third-party maintenance or upgrade services from a different firm.
Monitoring and Customer Service
Some solar businesses offer customer portals, remote monitoring systems, or smartphone apps to track performance. If the company shuts down and no buyer steps in, you might lose access to these services. Your data might also be deleted unless you export it beforehand.
It’s advisable to keep your own records, including invoices, permits, MCS certificates (Microgeneration Certification Scheme), and any system configuration details. These documents will be invaluable if you need to transfer service or sell your property with panels.
Leased or Rented Solar Systems
In some cases, UK consumers have entered into solar panel lease agreements or rent-to-buy schemes. These are more sensitive to the company’s survival, as the panels don’t belong to you. If that provider closes, you must act swiftly:
- Determine the legal status of the lease – in some cases, lease contracts may be taken over by creditors or new owners.
- Review the termination clauses – some contracts allow for transfer of ownership under specific conditions, such as the company’s insolvency.
- Consult legal advice if necessary, particularly to avoid losing energy independence or incurring legal costs due to a premature lease end.
How to Protect Yourself if Your Solar Company Closes
Being informed about your rights and knowing how to react can protect your investment. Here are proactive steps you should consider:
Contact a Replacement Installer or Service Provider
The UK has a competitive solar installation market with many experienced firms that can offer maintenance, servicing, and warranties. Use tools like the MCS website or the Energy Saving Trust to find a new, certified installer.
You should request a full inspection of your system to assess its current condition and identify any performance or safety issues, especially if your previous provider stopped offering regular maintenance.
Verify Manufacturer Warranties
Identify the brands of your panels and inverters, and contact their UK distributors or websites to verify ongoing warranty coverage. Many manufacturers have online portals to register products or file claims for defects or underperformance.
Register Your Systems and Documentation
If you were receiving FiT or SEG (Smart Export Guarantee) payments, your system must be MCS-certified. Keep a copy of your MCS certificate to ensure continued payment eligibility, even during provider changes.
Consider Extending Coverage
If you’ve lost workmanship coverage, you can seek third-party insurance or maintenance packages from alternative companies. These typically cost between £50–£200 per year, depending on system size and included services.
Keep a Record of All Communications
Maintain emails, letters, and records of all interactions with insolvency practitioners, creditors, and replacement providers. These may be needed for legal or financial purposes later.
Consumer Protection and Regulatory Bodies in the UK
Several regulatory and consumer rights organizations provide guidance if your solar company shuts down:
Which? Trusted Traders or the Renewable Energy Consumer Code (RECC)
If you used a company that was part of the RECC or Which? Trusted Traders, you might be able to make a claim or dispute if the closure process affected warranties or customer service obligations.
Ofgem and the Consumer Rights Act
Ofgem regulates energy supply and smart export tariffs. Although it does not directly handle collapsed solar companies, it can offer advice if your SEG payments are affected or if there’s confusion about your contract terms.
The Consumer Rights Act 2015 ensures that goods and services must meet quality standards. If a company’s closure affects the ongoing support promised in your contract, you may have grounds to seek a remedy.
Trading Standards
If the solar company provided false information or misrepresented warranties, Trading Standards may be able to investigate or offer consumer protection advice.
Redress Schemes
Some trade associations and certification schemes (like the MCS) have redress schemes that provide compensation for consumers affected by a member company’s insolvency. These are rare but increasingly being discussed in the post-FiT era.
Case Study: Lessons from Past Solar Company Failures
To understand recent trends, let’s look at the collapse of Solarplicity in 2022, a UK-based supplier offering battery systems and solar packages. Its insolvency left many customers unsure about installation completion or warranty fulfillment.
The outcome provided useful insights:
Lessons Learned
| Issue | Outcome | Lesson for Customers |
|---|---|---|
| Warranty transfer | In some cases, the manufacturer took over warranty coverage directly. | Knowing panel/inverter brands helped customers resolve issues faster. |
| Installation delays | Some projects remained incomplete pending asset purchase. | Working with local certified installers helped speed up completion. |
| Documentation | Customers without proper MCS certifications faced FiT re-registration hurdles. | Maintaining all legal and installation paperwork is essential. |
This example shows that while insolvency can cause disruption, customers with adequate documentation and market knowledge can navigate the situation more effectively.
Moving Forward: How to Future-Proof Solar Investments
Given the potential for future disruptions, here’s how consumers can protect themselves when adopting solar technology:
Choose Established or MCS-Certified Companies
Stick with solar installers who are certified under the Microgeneration Certification Scheme. These providers adhere to quality standards and often have more stable business models.
Ask About Warranties and Contracts
Always clarify whether warranties are manufacturer-backed or installer-backed. Installer workmanship warranties are riskier – if you care about them, factor that into your decision model.
Questions to Ask Before Installation
- “Is the warranty provided by the manufacturer or your company?”
- “What is the length and scope of the warranty?”
- “Can I transfer monitoring services to another company in the future?”
- “Do you offer extended service agreements through third-party providers?”
Maintain Independent Records and Systems Access
Always keep your installation certificates, invoices, system schematics, and panel/inverter brands and serial numbers. Additionally, if your system uses cloud monitoring, request offline logs so you can migrate them to new platforms if needed.
Consider System Upgrades
If you’re concerned about limited technical support after a provider shutdown, consider upgrading to modern systems with modular components and open compatibility, allowing flexibility in vendor support. For example, microinverters or software platforms open to third-party integrations can help maintain efficiency.
Final Thoughts
The UK solar market has evolved rapidly, providing homeowners with cleaner and more affordable energy solutions. However, as with any service-based industry, the risk of company insolvency remains.
If your solar company goes out of business, the impact on your system is often limited, especially if you own the panels outright. Manufacturer warranties, third-party maintenance options, and consumer protection laws can help cushion the blow.
By choosing trusted companies, understanding your contract, and keeping comprehensive documentation, you can future-proof your solar investment and continue enjoying the benefits of renewable energy—regardless of provider changes.
The future of solar is bright in the UK. Don’t let the potential of business closures deter you, but be informed, proactive, and prepared.
What happens to my solar panels if my solar company goes out of business?
If the solar company that installed your solar panels goes out of business, the physical panels themselves remain your property and will continue to function as normal. However, you may lose access to maintenance services, warranties, or support that were provided by that company. It’s important to check whether any warranties or guarantees were assigned to the equipment or workmanship, and whether these are transferable to another provider or manufacturer.
In some cases, warranties are provided by the individual component manufacturers rather than the installation company. This means that even if your installer closes down, you may still be able to claim under the product or performance warranties offered by the solar panel or inverter manufacturers. Keeping all documentation from your original installation will help you navigate any future claims or service issues.
Can I still claim under the warranty if my installer goes bust?
Yes, you can still claim under your warranty in some circumstances if your solar company goes out of business. It depends on the type of warranty: if it’s a product warranty from the manufacturer, such as for solar panels or inverters, you may still be able to make a claim directly with the manufacturer. However, workmanship warranties, which are typically issued by the installing company, may not be enforceable if the company has gone into liquidation.
To proceed, you may need to contact the manufacturer directly and provide proof of purchase or installation documentation. In some instances, solar companies partner with warranty administrators or insurers who take over responsibility when the installer can no longer fulfill their obligations. Always keep copies of your contract, invoices, and warranty details for future reference.
Will my feed-in tariff payments be affected if my solar company closes down?
No, your feed-in tariff (FiT) payments will not be affected if your solar installation company goes out of business. Once you’ve been accepted into the FiT scheme and your installation is accredited under the Microgeneration Certification Scheme (MCS), your payments are handled by your chosen licensed electricity supplier, not the installer. The responsibility of making FiT payments lies with the supplier and is backed by Ofgem, the UK energy regulator.
However, it’s important to ensure that your MCS certification and all FiT-related paperwork remain accessible. If there are any issues with your payments, having all necessary documents will help you resolve the problem more quickly. You may also wish to keep your installation records and any system performance data handy for future reference.
What should I do if my solar company shuts down and I need repairs or maintenance?
If your solar company shuts down and you need maintenance or repairs, start by identifying the make and model of your solar panels and inverter. Reach out directly to their manufacturers, who may provide details of service centers or approved engineers who can carry out the necessary work. Alternatively, you can contact a local MCS-certified installer who can assess and maintain your system.
If you had a workmanship warranty, contact Companies House or consult a solicitor to find out whether any provision was made in the event of insolvency. You may also want to check with your home insurance provider to see if solar panel repairs are covered under your policy. Taking these steps ensures that you can continue to safely and efficiently operate your solar system despite the original installer no longer being available.
Is there any government support available if my solar company closes?
The UK government does not directly intervene in situations where a solar installation company goes out of business. However, the original MCS certification of your installation remains valid, and government-backed schemes such as the feed-in tariff continue unaffected. The Energy Saving Trust and Ofgem can offer guidance if you experience issues with your payments or require information about your accredited installation.
It’s also worth checking whether the installer offered any guarantees under the Consumer Code for Home Heating, which is enforced by the Trading Standards Institute. Companies registered under this code must ensure a process for dealing with customer complaints if they go out of business. While government support is limited, these safeguards can help protect your investment and ensure you can access necessary services.
How can I avoid problems if my solar company goes out of business?
To avoid problems if your solar company goes out of business, ensure you fully understand the terms of any warranties and keep comprehensive records of your installation, including contracts, MCS certificates, and product warranties. Choose installers certified by MCS and equipment from well-established, reputable brands that have long-term support networks in the UK.
It’s also wise to work with installers who have been in operation for several years and have clear financial stability. Some companies offer extended warranties through third parties or insurers, which may continue even if the installer doesn’t. Review these terms carefully, and consider setting a reminder for inverter replacements or expected system maintenance so you can act proactively if needed.
Are my solar panels still covered by insurance if the installer goes bust?
If your solar panels were installed with insurance-backed warranties or guarantees, they may still be covered even if the installer closes its doors. Some companies provide insurance policies that come into effect in the event of insolvency, allowing you to make claims for covered services or equipment replacement. Review your policy documents or contact the insurer directly to confirm your coverage and eligibility.
Additionally, you may be able to add your solar panels to your existing home buildings or contents insurance policy, though coverage varies between providers. It’s important to inform your insurer about the installation and obtain a clear understanding of what is and isn’t covered. In the event of damage or theft, this can ensure a smoother claims process regardless of your original installer’s status.