What Happens to Your Solar Loan If the Solar Company Goes Bankrupt?

Do you still owe your solar loan if the solar company is bankrupt?

In most cases you do. When a solar company goes bankrupt, the loan either stays with a separate lender that isn’t in bankruptcy (when the installer filed) or becomes an asset of the lender’s estate that keeps being serviced or gets sold (when the lender filed). The bankruptcy can change who collects your payment, whether anyone honors the installer’s warranty, and which claims you can still bring.

Mosaic’s court-filed notice told its borrowers the filing “DOES NOT RELIEVE YOU OF YOUR OBLIGATION TO CONTINUE TO MAKE TIMELY PAYMENTS.” This page covers bankruptcy cases with a court record; if your installer simply vanished, read what happens to your loan when the installer disappears.

Who filed: the installer, the lender, or the leasing company?

Each kind of filing affects your contract differently, and your installer, lender, servicer and warranty provider may be four different companies.

Who filed	What happens to your contract	Who you pay	Cases on the record
The installer	The loan stays with a lender that isn’t in bankruptcy; the installer’s promises become claims against an estate that may have little to pay them.	Your lender	Titan Solar Power, Lumio, Freedom Forever
The lender	The loan is estate property; it keeps being serviced, or the loan or its servicing moves to another company.	The court-approved servicer	Mosaic, Sunlight Financial
The leasing or PPA company	Contracts usually sit with separate financing entities; the case moves servicing or ownership to a buyer.	The new servicer	Sunnova, SunPower, PosiGen

The automatic stay is the freeze that starts when a company files: under 11 U.S.C. 362 it stops lawsuits and “any act to collect, assess, or recover a claim against the debtor.” It protects the company that filed and doesn’t pause what you owe anyone else.

Why does your loan survive the lender’s bankruptcy?

A lender’s estate takes in “all legal or equitable interests of the debtor in property” (11 U.S.C. 541), and the loan you owe is one of them, so the estate keeps collecting on it or sells it.

Mosaic Sustainable Finance Corporation and four affiliates filed Chapter 11 in the Southern District of Texas (No. 25-90156) on June 6, 2025. The plan took effect September 22, 2025, and the same day Solar Servicing LLC, a wholly owned subsidiary of Forbright Bank, took over Mosaic’s loan servicing; Forbright said “borrowers’ payment terms and schedules remain unchanged.” The plan describes many Mosaic loans as funded by or sold to “Financing Partners” and securitization vehicles, so the owner of your loan may not be the company that bills you.

Sunlight Financial arranges loans that others make; its site says certain Sunlight loans are made “through Cross River Bank.” It emerged from a prepackaged Chapter 11 (D. Del. No. 23-11794) in December 2023 with new owners, including Cross River Bank. Your lender is the one named in your loan agreement.

What happens to a solar lease or PPA in bankruptcy?

Section 365 of the Bankruptcy Code governs ongoing contracts. If the bankrupt company still holds your lease or PPA, its trustee “may assume or reject” it with court approval, and may assign an assumed contract to a buyer that can show it will perform. A rejection counts as a breach (365(g)), which gives you a claim in the case.

In SunPower’s case most contracts weren’t in the bankrupt company’s hands: its first-day declaration says it sold “such leases and loans and the underlying solar projects” to non-debtor affiliates, most of them owned by a joint venture called SunStrong Capital Holdings. A court-approved sale of SunPower’s interest in that venture left those leases and PPAs with the buyers, which do business as SunStrong Management. Sunnova’s servicing moved to SunStrong after the July 2025 sale of substantially all of its assets.

In June 2026 the Delaware bankruptcy court dismissed an Arizona homeowner’s motion arguing her SunPower lease had been rejected under the plan, for lack of subject-matter jurisdiction, and decided nothing about the lease. If anyone says a bankruptcy cancelled your contract, ask for the court order.

Who services your solar contract now?

The court and claims-agent case sites below are free and post customer notices.

Company	Court, case, chapter	Status	Who handles your account	Case site	General claims deadline
Sunnova (leases, PPAs, loans)	S.D. Tex. 25-90160, Ch. 11	Confirmation order signed November 10 and entered November 12, 2025; plan effective November 14, 2025	SunStrong Management for most in-service systems; unfinished installs: GoodLeap, [email protected]	restructuring.ra.kroll.com/Sunnova	August 6, 2025 (passed)
SunPower (installer, lessor)	D. Del. 24-11649, Ch. 11	Plan effective November 14, 2024	Leases and PPAs: SunStrong Management; loans: your lender	dm.epiq11.com/case/sunpower	October 18, 2024 (passed)
Mosaic (lender)	S.D. Tex. 25-90156, Ch. 11	Plan effective September 22, 2025	Solar Servicing LLC	cases.ra.kroll.com/mosaic	October 16, 2025 (passed)
Sunlight Financial (arranger)	D. Del. 23-11794, Ch. 11	Emerged December 2023	Your lender or its servicer, named on your statement	Case website run by Omni Agent Solutions: omniagentsolutions.com/sunlight	None found for consumers
Titan Solar Power (Arizona installer)	D. Ariz., lead 2:24-bk-04978, Ch. 7	Open; no successor	Your lender; trustees run the cases	azb.uscourts.gov	March 11, 2025 (passed)
Lumio (installer)	D. Del. 24-11916, Ch. 11	Liquidating plan effective February 18, 2025	Your lender; buyer Zeo Energy took on only listed installs worked on from the filing date onward	cases.stretto.com/lumio	December 7, 2024 (passed)
Freedom Forever (installer)	D. Del. 26-10522, Ch. 11 filed April 15, 2026, converted to Ch. 7 August 7, 2026	Chapter 7 trustee	Your lender; financing partners may finish open installs	restructuring.ra.kroll.com/FreedomForever	October 16, 2026 (passed)
PosiGen (lessor)	S.D. Tex. 25-90787, Ch. 11	Liquidating plan effective February 26, 2026	Active systems: Omnidian or SunStrong; work in process: GoodLeap	cases.ra.kroll.com/PosiGen	February 17, 2026 (passed)

Pink Energy (W.D.N.C. 22-50228, Chapter 7), Vision Solar (D.N.J. 23-21939, Chapter 7) and Climax Solar (W.D. Mich. 24-01123, now Chapter 7) are installer cases too; your loan agreement names the lender that holds your debt. The company now using the SunPower name says it took no interest in leases, PPAs or systems installed before September 30, 2024, and tells loan customers to “contact your lender.”

Mosaic borrowers kept their Truth in Lending and Holder Rule claims

Mosaic’s plan put borrower claims in their own class, “Consumer Credit Transaction Claims,” covering claims tied to credit subject to the Truth in Lending Act or to a consumer credit contract under the FTC Holder Rule, whose notice caps recovery at the amounts the borrower paid. The confirmation order says those claims “against Solar Mosaic LLC, the Financing Partners (solely in their capacity as a Financing Partners), and the ABS Vehicles are preserved,” and that nothing in it discharges them against Solar Mosaic LLC. Holders may pursue Solar Mosaic LLC under its consumer liability insurance, and borrowers whose loans Solar Mosaic LLC still holds may seek cancellation of the loan in those actions.

Michigan’s attorney general named Solar Mosaic LLC, through its plan administrator, in a July 2026 suit over Climax Solar sales; those are allegations, and motions to dismiss are pending.

Proofs of claim and bar dates

A proof of claim is, in the Arizona bankruptcy court’s words, “a written statement and verifying documentation filed by a creditor that describes the reason the debtor owes the creditor money.” A bar date is the last day the court sets for filing one. A proof of claim asks the bankrupt company’s estate to pay you; it doesn’t reduce what you owe your lender.

Every general deadline listed in the table has passed, most recently Freedom Forever’s on October 16, 2026. Titan’s court told customers that filing “is not a requirement,” and its case page says that in most of the Titan cases “it appears that there are no assets available to pay creditors.” Some cases set later deadlines for claims from a rejected contract, so ask the claims agent, the trustee or a bankruptcy attorney whether one applies to you.

Can the lender answer for the bankrupt installer’s failures?

Sometimes, through your loan contract. The FTC Holder Rule (16 CFR 433) requires a notice in seller-arranged consumer credit contracts saying any holder “IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER” and that “RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.” Look for it in bold capitals in your loan agreement. Treasury lists the rule among the laws that apply to residential solar; no agency has applied it to leases or PPAs.

In November 2022, after Pink Energy filed for Chapter 7, nine state attorneys general asked Dividend Solar Finance, GoodLeap, Cross River Bank, Sunlight Financial and Solar Mosaic to suspend payments and interest for Pink Energy customers without a working system. Announcing its 2026 suit, Michigan’s attorney general alleged that after Climax went bankrupt, some financing companies “closed consumer complaints” or kept treating the debts as collectible.

Warranties fare worst: Sunnova’s sale order says the buyer is not a successor “under any product warranty liability law or doctrine.” See our warranty guide.

What to do, in order

This follows the order in our guide to getting out of a solar contract.

1. Inside a cancellation window? If you signed recently, cancel in writing now, by the method your contract and the law require, and send a copy to the lender the same day. Windows vary by state and can run longer than three days; check the state table and the deadline tool.

2. Identify your contract and every company. Name your contract type (cash, loan, lease, PPA or PACE) and each company: installer, lender, servicer and warranty provider. The company that collects your payment is your current servicer. Keep every transfer letter.

3. Ask in writing, and complain for free. Write to the servicer and the lender, say exactly what you want, and get the answer in writing. The FTC says: “If you have a problem with a system you bought, try to resolve it with the company first.” If you’re not satisfied, it says to report it at ReportFraud.ftc.gov and to your state attorney general. The CFPB, which takes solar loan complaints, asks: “Have you tried reaching out to the company?” For leases and PPAs, Treasury, the CFPB and the FTC “encourage consumers that believe they have been a victim of unfair or deceptive practices to file a complaint with CFPB, FTC, or their relevant state consumer protection office.” Add your state contractor licensing board for installation problems.

Disclosure: Candid Yak works with Titan Advocacy Group, a solar consumer advocacy firm, and may be paid when readers hire it.

4. If they refuse, and your documents show a gap between what you were promised and what you signed, get a case review from an attorney-backed firm that offers a free case review. A firm worth hiring:

• reads your contract, loan papers and court notices before it quotes, and tells you if a free route is still open;
• names the attorney on your file, licensed in your state, whom you can look up with the state bar;
• puts its fee in writing, including what happens to it if the lender or servicer refuses;
• never tells you to stop paying your loan, lease or PPA;
• never promises a result and never claims a tie to your installer, lender, servicer or the court.

More in our guides to solar cancellation companies and hiring a solar attorney.

5. Other routes. Pay off or refinance the loan (payoff and refinance, consolidation loans), buy out a lease or PPA (lease buyout), or transfer a lease or PPA to the buyer when you sell.

Keep paying while you work through this. Missed payments can put the loan in default and on your credit report, and the CFPB notes that on a secured solar loan “the lender has the right to repossess the panels in cases of nonpayment.” Get professional advice first, and read what happens if you stop paying.

Disclosure: Candid Yak works with Titan Advocacy Group, a solar consumer advocacy firm, and may be paid when readers hire it. This page’s author, Kira Fairbank, is a manager at Vacation Ownership Consultants, a timeshare exit firm.

This is general information, not legal advice. What happened to your contract turns on the specific bankruptcy orders, your loan or lease terms and your state’s law, so put the court notices and your documents in front of an attorney licensed in your state before you send a notice, sign a release, or change any payment.