Texas Solar Company Out of Business? What to Do (2026)

The short answer

If the company that sold or installed your solar closes, the system keeps working, your loan or lease payments keep coming due, and the panel and inverter makers' warranties still apply. What you usually lose is the installer's own workmanship warranty and a phone number to call.

Texas added a safety net in 2026: registered solar sellers must name a responsible party to honor their warranties if they stop operating, and the state licensing agency, TDLR, will give you that contact on request. Texas lien law also lets you hold back money so the company's unpaid suppliers don't end up billing you. Both work best if you know about them before you sign.

Texas's backstop: the responsible party

16 Texas Administrative Code 71.50(f)

Before it stops operating in Texas, a solar retailer must name a record keeper to hold its records and a responsible party "to honor any ongoing warranty or other obligations of the solar retailer under the original contract," and give TDLR their contact information. TDLR "will upon request furnish a member of the public" with it.

Records are kept for years. Retailers must keep your signed disclosure form, contract and installation documents for the contract and warranty term plus five more years (71.50(d)). The record keeper holds them after a shutdown.
It's named up front. TDLR asks retailers to designate the record keeper and responsible party when they apply for registration. As of October 8, 2026, TDLR's public files listed 65 registered solar retailers.
Who it doesn't cover. The rules apply to registered retailers and contracts signed on or after September 1, 2025. Licensed electrical contractors selling their own installations don't have to register, so they may not have named anyone.
It's not a fund. The rule names a person or company to honor obligations; it doesn't set aside money. TDLR noted the rule applies whenever a retailer stops operating in Texas, not only in bankruptcy.

Our guide to checking a Texas solar company shows how to look up a registration.

What to do this week

Keep paying your loan or lease. The payments are owed to the finance company, and missing them hurts your credit even though the installer is gone.
Gather your papers. The contract, TDLR's consumer disclosure statement, warranty documents, your interconnection agreement and the utility's permission-to-operate notice, plus emails and your monitoring app login.
Find out what happened. The Texas Comptroller's free Franchise Tax Account Status search shows a company's status, and bankruptcy filings are federal court records on PACER. A company that went quiet may not have filed anything.
Ask TDLR for the responsible party. If the company was a registered retailer, TDLR can give you the record keeper and responsible party it named.
Check that the system is running. Compare this month's production and bill with last year's. The panels, your utility connection and your plan's buyback don't depend on the installer.
Open every letter about money owed for the job. A supplier's notice of an unpaid claim starts a clock on your end; see the lien section below.

A kitchen table with an open accordion folder of household paperwork, a stack of stapled papers, reading glasses and a mug of coffee, soft morning light from a window with a Texas backyard outside

Your loan or lease

A solar loan is a debt to the lender and a lease is a contract with the company that owns the panels. Neither ends because the installer closed. If your leasing company itself goes under, keep paying under your contract and change where you pay only when you get written notice of who now holds it.

Look for this notice in your loan papers

"ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED ... RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER."

The Federal Trade Commission's Holder Rule requires that notice in consumer credit contracts a seller takes, and in loans from a lender the seller referred you to or works with. When it's there, the claims you had against the solar company, like work never finished, can be raised against the lender too, up to what you've paid on the loan. A loan you found yourself, such as a home equity loan, usually won't have it.

Which warranties survive

Warranty	Who gives it	If the installer closes
Panels and inverter	The manufacturer	Still applies. Claims go to the manufacturer.
Workmanship and installation damage	The installer	Lost, unless a responsible party or another company takes it over.
Production guarantee	Whichever company signed it	Depends on that company; your contract names it.

Austin Energy's guide describes the split: "Installer warranty covers workmanship and installation damage" and "Manufacturer warranty covers equipment defects." Texas law requires sellers to list all applicable warranties in writing.

The U.S. Department of Energy's advice for a home whose installer is gone: find out who made the panels and inverters, and contact the manufacturer about warranty coverage and maintenance. The make and model are on the equipment labels, your contract and your permit records.

Liens and the 10% rule

If the company didn't pay its electricians or the supplier that sold it your panels, Texas law lets them claim a lien on your home, even though you paid the company. The Property Code's lien chapter also gives you ways to stop that.

Month 1Work or materials providedThe supplier or worker isn't paid by the company.

By the 15th, month 3Notice to youA residential claimant must send you notice of the unpaid claim by the 15th day of the second month after the month of the work.

On noticeYou may withholdYou can hold back that amount from what you still owe the company.

By the 15th, month 4Lien affidavitThe claimant must file with the county clerk by the 15th day of the third month after the month of the work.

Property Code sections 53.056, 53.081 and 53.052(c), for residential projects. Months count from the month the labor or materials were provided.

Hold back 10%. During the work and for 30 days after it's finished, the law expects you to keep 10% of the contract price (section 53.101). An owner who doesn't can face liens up to that amount.
Ask for a bills-paid affidavit. Before you make a payment, you can require a sworn statement that the company has paid its subcontractors and suppliers, or a list of who is still owed (53.085).
Your homestead has extra protection. A lien on a homestead needs a written contract signed before the work, by both spouses if you're married, and filed with the county clerk (53.254). A supplier's notice must also carry a set warning to be valid.
Get the subcontractor list. On a residential job, the contractor must give you a list of subcontractors and suppliers before work starts, unless you sign a waiver (53.256).

If a lender pays the company directly, holding back 10% is harder. Ask how the final payment is released before you sign, and get the bills-paid affidavit before it is. Lien disputes can get technical; a real estate attorney can tell you whether a claim is valid.

Getting a deposit back

Paid by credit card

Federal law lets you raise the dispute with your card issuer if you first tried to settle it with the company, the charge was over $50 and the sale was in your state or within 100 miles of your address (15 U.S.C. 1666i). Card issuers also have billing-error time limits, so act fast.

The company filed bankruptcy

File a proof of claim (Official Form B 410) in the case. A deposit for household goods or services never delivered is paid ahead of general unsecured creditors, up to $3,800 per person in cases filed since April 1, 2025 (11 U.S.C. 507(a)(7)). Anything above that waits in line with other creditors.

It broke Texas's solar law

File a complaint with TDLR. After notice and a hearing, TDLR can cancel a solar contract and order a refund up to the amount you paid (Occupations Code 1806.207). That only helps if there's still a company to order.

Installed but not turned on

A system can't legally run until your utility approves it. For a half-finished job, find out how far it got: whether a permit was pulled and passed inspection, and whether an interconnection application was filed. Your city or county building department can tell you about the permit, and your utility about any application on your account.

Anyone you pay to finish electrical work needs a TDLR electrical license (Occupations Code 1305.151). Our utility guides walk through each utility's approval steps: Oncor, CenterPoint, AEP Texas, TNMP, Austin Energy, CPS Energy, PEC, CoServ, Entergy Texas and El Paso Electric.

Before you sign: lower the risk

Check the registration. Look up the seller and salesperson in TDLR's files; a registered retailer has named a responsible party.
Don't pay in full up front. TDLR's consumer brochure says to pay only for fully completed work, including all required local inspections.
Put the deposit on a credit card. It keeps federal dispute rights open if the work never happens.
Plan to hold back 10% until 30 days after the work is finished, and get a bills-paid affidavit before the final payment.
Ask for the subcontractor and supplier list before work starts, and don't sign a waiver of it.
Read the loan for the Holder notice. If a lender the seller arranged left it out, ask why before you sign.
Keep every warranty document, with the make and model of the panels, inverters and any battery.

If you've already signed, Texas gives you five business days to cancel; our cancellation guide counts them for you.

How it works

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Common questions

What happens to my solar panels if the company goes out of business?

They keep working. Your utility connection and your electricity plan's buyback don't depend on the installer, and the panel and inverter makers' warranties still apply. You usually lose the installer's workmanship warranty, unless a responsible party or another company takes it over.

Do I still have to pay my solar loan if the installer went bankrupt?

Yes. The loan is owed to the lender, not the installer. If the loan contract has the Federal Trade Commission's Holder notice, claims you had against the solar company can be raised against the lender, up to the amount you've paid on the loan.

Who honors my warranty if a Texas solar company closes?

Texas rules require a registered solar retailer to name a responsible party to honor its ongoing warranty and other contract obligations before it stops operating in Texas, and TDLR will give you that contact on request. Equipment warranties come from the manufacturers.

Can a supplier put a lien on my house if the solar company didn't pay them?

Yes, if they follow Texas Property Code chapter 53, including notice to you by the 15th day of the second month after the month they provided labor or materials. Once notified, you may withhold that amount from what you still owe the company. A lien on a homestead also needs a written contract signed before the work and filed with the county clerk.

How do I get my solar deposit back?

If you paid by credit card, you may be able to dispute it with the card issuer. If the company filed bankruptcy, file a proof of claim; deposits for household goods or services never provided get priority up to $3,800 per person. If the company broke Texas's solar law, TDLR can order a refund after a hearing.

How can I protect myself before signing with a solar company in Texas?

Check the seller's TDLR registration, don't pay in full up front, put any deposit on a credit card, hold back 10% until 30 days after the work is finished, get a bills-paid affidavit before the final payment, and keep every warranty document.

This is general information about Texas and federal law, not legal advice. Lien and bankruptcy deadlines are strict; a Texas attorney can tell you how they apply to your case. Sources: Texas Register, June 26, 2026: adopted 16 TAC chapter 71 · Texas Register, March 13, 2026: rule 71.50 text · TDLR: apply for a solar retailer registration · TDLR consumer brochure (PDF) · TDLR complaints · Texas Occupations Code chapter 1806 · Texas Occupations Code chapter 1305 · Texas Property Code chapter 53 · Texas Business and Commerce Code chapter 115 · 16 CFR 433.2 (FTC Holder Rule) · 15 U.S.C. 1666i · 11 U.S.C. 507 and its 2025 dollar adjustment · U.S. Courts: Proof of Claim (Form B 410) · Texas Comptroller: Franchise Tax Account Status search · Austin Energy: solar for your home · U.S. DOE: consumer guide to buying a house with solar panels. Reviewed October 2026.

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