California Solar Exit, a solar contract cancellation consultancy, has reported a significant rise in solar cancellation requests following the Chapter 11 bankruptcy filing of Freedom Forever, one of the largest residential solar installers in the U.S. The California-founded company filed for reorganization in the U.S. Bankruptcy Court for the District of Delaware in April 2026, controlling roughly 6.1% of the national residential solar market at the time, according to Wood Mackenzie. The filing has left an estimated 190,000 installed systems nationwide, creating uncertainty for homeowners regarding their contracts, warranties, and financing obligations.
"When a company the size of Freedom Forever goes into Chapter 11, the phone starts ringing," said Daniel Merritt, Senior Case Analyst at California Solar Exit. "Homeowners are calling us with panels on the roof that were never activated, service requests that go nowhere, and a loan payment that's still due every month regardless of whether the company answers the phone. That combination is exactly what drives someone to look into solar cancellation as an option."
Freedom Forever's bankruptcy is the latest in a series of installer failures that have reshaped California's residential solar market, following similar filings by SunPower, Sunnova, Titan Solar Power, and ADT Solar. Industry researchers attribute the wave to rising interest rates, the phase-down of the federal solar tax credit under the Inflation Reduction Act, and California's transition to Net Energy Metering (NEM 3.0), which reduced solar export credits and slowed new installation demand.
"We've watched this pattern repeat itself with several major installers now," Merritt said. "A company overextends during the boom years, financing partners pull back, and the homeowners who signed 20- or 25-year contracts are the ones left managing the fallout. Most of them had no way to see it coming when they signed."
California Solar Exit is helping homeowners understand which parts of their agreements are at risk. Equipment warranties from manufacturers like Enphase, Tesla, Q CELLS, and SolarEdge are typically separate from the installer and generally remain valid. However, workmanship and service warranties issued by the installer are often delayed or discharged in bankruptcy, while loan or lease payments continue regardless. "That's the part that catches people off guard," Merritt said. "Your panels are still up there generating power, and your loan servicer still expects a payment, but the company that sold you the system and made all the promises about service and support may not exist anymore. Homeowners in that position deserve to understand their solar cancellation and dispute options before they assume there's nothing they can do."
California Solar Exit advises homeowners not to stop making loan or lease payments without consulting a qualified attorney and encourages gathering original contracts, financing documents, and correspondence with the company before beginning a case review. The consultancy serves homeowners statewide, with active cases in Los Angeles County, Orange County, San Diego County, the Inland Empire, the Bay Area, and the Sacramento and Central Valley regions. Affected homeowners can request a free contract review at californiasolarexit.com.
