The Rise and Fall of National Solar Companies

Source: SEIA Market Insight

With 87% of Americans supporting federal clean energy incentives, and domestic solar module manufacturing quadrupling since 2022, the solar industry is thriving—accounting for 67% of new electricity-generating capacity in the U.S. in the first half of 2024. The future looks especially sunny once you factor in the reduction of solar PV prices by 43% over the past ten years and that the 30% Federal Solar Tax Credit is back in play for the next ten.

Over the past couple of years, local installers such as Western Solar and many of our peers across Washington State have joyfully marked our 20-year anniversaries. Yet, in 2024 alone, several national solar companies have gone bankrupt, leaving frustrated customers in their wake. How is it possible for businesses in a thriving solar market to fail so dramatically?

While higher interest rates and new net metering policies in solar-heavy states like California certainly play a role—none of us operate in a vacuum—this pattern is rooted in something much more basic: many of these national companies have fallen victim to their own business practices. Or, for the word nerds among us: hoisted with their own petard.

When you look beyond the headlines, most of these companies have several things in common.

• • National solar installation companies typically rely on contracted dealer networks to push rapid sales without consideration for customers’ needs. Teams of self-styled “solar bros” canvas neighborhoods, going door-to-door in a bid to schedule as many appointments as possible.
  • These teams consist of appointment setters and “closers,” but not system designers, as that role is outsourced. As a result, they often lack the technical knowledge to accurately convey the benefits and intricacies of solar PV systems. This gap leads to frequent misrepresentation of solar benefits and incentives, resulting in overpromising and under delivering.
  • Installation is often subcontracted, resulting in poor quality control, incomplete work, and a rise in customer complaints. This mix of aggressive sales tactics and disjointed operations frequently leads to financial and legal difficulties.
  • Customers are heavily influenced toward purchasing solar via a loan through the company, utilizing non-bank solar lenders who often increase the loan cost by 30% or more using hidden “dealer fees” which aren’t reflected in the stated APR.
  • Many of these companies focus on short-term profits over sustainable growth and long-term customer support, quickly accumulating lawsuits and warranty claims before shutting down and leaving customers stranded.

While the solar industry has experienced remarkable growth fueled by strong public support and government incentives, the repeated collapse of far-reaching national solar companies reveals the dangers of aggressive, short-sighted business practices. Relying on commission-driven sales teams and outsourced installations, these companies prioritize profits over quality, leaving customers with poor experiences, unfinished projects, and even—in a growing number of cases—unauthorized loans for systems that don’t exist.

As the industry continues to expand, the need for responsible, customer-focused business models becomes even more critical. Homeowners seeking to invest in solar energy would do well to choose reliable, local installers who emphasize long-term support and sustainable growth over rapid expansion.