The threat of a solar panel manufacturer going bankrupt is a real possibility, but with just a bit of bankruptcy knowledge, it can be planned around. Nonetheless, we will briefly discuss what happens if the manufacturer goes under and how it affects homeowners.
Unfortunately, your panel warranty is likely to disappear if the manufacturer goes bankrupt. Solar manufacturer warranties are considered unsecured liabilities, which means it will no longer apply. Fortunately, a homeowner can avoid this situation.
Three options can protect the homeowner in this situation: buying an extended warranty, insuring your installation, or buying from a warranty-insuring manufacturer. A homeowner can purchase an extended warranty through the installation company, which enters them into a contractual agreement that makes the warranties legally valid in the event of manufacturer bankruptcy. An alternative would be to insure your installation. A handful of companies now offer insurance policies for solar and renewable energy installations. Although these policies can potentially be expensive, they cover the health and power output of your system, plus installation and operation damage to property. Finally, the best risk mitigation option is buying panels from a warranty-insuring manufacturer. This essentially means that the manufacturer has insured their warranty against bankruptcy. As a result, companies can commit to their warranties even if they go under since the liability is transferred to the insurer.
Manufacturer bankruptcy can be a real threat to a homeowner but can be avoided if planned for accordingly.
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