Tips if Your Solar Power Company Goes Out of Business

Companies going out of business is a sad reality, but what happens if you're a client of such a company and this impacts ongoing service agreements you had? This is a situation that sometimes arises in the world of solar power, and it's important for clients to know what to do if this happens to them.

At Intermountain Wind & Solar, we're proud to serve as one of the largest and most reputable solar power companies around, providing clients around SLC, Utah and Boise, Idaho (plus nearby areas) with all their commercial and residential solar panel installation and service needs. Our size and reputation around multiple states leaves our clients confident that we won't be going anywhere or disrupting their service, but sadly the same cannot always be said about all solar power companies. Here are some of the reasons why solar companies go out of business, how to avoid this risk as a solar client, and some of the basics on what to do if your prior solar power company has gone out of business or is about to do so.

Why Solar Companies Go Out of Business, And How to Avoid It

There are a few potential reasons why a solar power company might go under or have to cease operations:

• Overextending finances: One of the most common reasons for solar power company struggles is overextending their financial resources. Building and maintaining solar energy systems can be an expensive process, particularly for smaller companies that may not always have the same access to credit or loans as larger firms.
• Market shifts or government changes: There are also some cases where a solar power company goes out of business due to market shifts or changes in the political landscape. For instance, if policies shift suddenly and certain types of tax breaks, subsidies or other forms of support for solar energy companies go away, it could put smaller firms in a difficult spot.
• Poor management: Another potential factor is simply poor management or a lack of sustainable business practices. If a company isn't structured to handle long-term operations, it could lead to issues down the line.

To avoid these risks as a solar client, it's always important to do your research and choose a reputable and financially stable company from the start. This is where larger companies with established reputations like Intermountain Wind & Solar can be beneficial, as they have the resources and expertise to weather potential storms.

What happens if your solar company does shut down, however? Our next few sections will go over the nuances here.

Company Type

What happens next after your solar power company shuts down will often depend on the size of the company in question. If the entity was a large, national-scale company across several states, they will usually be acquired by another company in the industry. In these cases, any ongoing service agreements or maintenance contracts will usually be transferred to the new owner, so clients won't experience any disruption in their services.

On the other hand, if your solar power company was a smaller, local business that simply went out of business without being acquired by another firm, things can get more complicated. In certain cases, these situations will proceed identically to larger companies - the small company will be acquired by another, and service agreements will be transferred. In other cases, however, clients may have to find a new solar company to take over their system's maintenance and any ongoing services.

Realm of Solar O&M Plans

One area to consider here is the purchase of what's known as a Solar Operations and Maintenance plan, or O&M plan. These function almost as solar insurance, purchased from a third-party vendor, and can help cover any long-term maintenance or service costs if your solar company goes out of business. This can be a useful contingency plan for smaller companies or those who may have concerns about the reliability or financial stability of their chosen solar provider.

Solar Panel Leases

If you acquired your solar panel setup via a lease program, there will often be protections in place to safeguard you against your provider going out of business. Leases will usually have a production guarantee, which means that if the provider goes out of business, they are still responsible for ensuring you receive the guaranteed production levels. In many cases, this will involve a third-party company taking over any maintenance or service responsibilities.

When a solar leasing company shuts down, though, it's a near certainty that another solar company will acquire their lease assets and continue providing you with service. So while it may cause a bit of inconvenience, your solar panel system will still be functional and producing energy.

While the idea of your solar company going out of business is never fun to think about, there are plenty of steps you can take to mitigate any potential disruptions in services. Do your research up front and choose a reputable, established company that can provide you with peace of mind even in the face of potential financial challenges. And if your solar provider does go under, know that there are often contingency plans and backup options in place to ensure your system continues operating smoothly.

At Intermountain Wind & Solar, our size and long-term reputation in the solar industry make us an ideal choice for clients who value stability and reliability. Contact us today to learn more about our services and how we can help you with your solar panel installation and maintenance needs around places like SLC, Utah and Boise, Idaho.