Solar panels’ ever-growing popularity due to their long life and highly valuable benefit of providing a free energy resource to fulfill most of our energy needs, has made them a topic of major interest among people worldwide.
Since these panels have a very long life and don’t need much service. However, as more and more companies start to form and quit rapidly, a question arises: What happens if your solar company goes out of business?
This can be very troublesome for the users of such panels. In this guide we will discuss this issue and what to do if our solar company goes bankrupt or stops conducting business. Read the full guide for better guidance on this issue.
Why Do Solar Company Fails?
Due to the competitive nature of the solar business, a huge number of companies are emerging in the market. Some of these businesses offer a substandard quality of products and services. Thus, the business failure rate is high in this market. We will discuss the reasons why these companies fail in the discussion below.
Low Quality of Products
One of the reasons why these companies fail is that they tend to penetrate this competitive market by lowering their costs. But they lower their costs by reducing the quality of their products and services offered which is the wrong approach.
This leads to low-standard solar panels being installed and it leads to a huge number of customer complaints accumulating over tie. This also drains the company’s resources rapidly and can become a major hurdle in the growth of the company.
Low quality of material used can build up a lot of customer complaints which leads to dissatisfied customers and leads to loss of customer base. It can also use lots of company resources in repairs and warrant claims which can reduce company profits greatly in the long run.
Customer care
Customers of any company do not solely rely upon the products received. After-sales services and customer care are also a huge part of any business which can make or break any business. Especially, in the current competitive environment where every business is trying to build its customer base from the existing market share.
As this is such a competitive environment, one small mistake of a company can easily bounce off the customer to the closest competitor. Poor customer care services can be that factor. The customers need to be guided and served in case of any issue that they face after the installation of solar panels.
If a company is unable to provide proper customer support, it cannot have a good reputation in the eyes of customers or in the market in general. A lack of reputation will diminish the customer base over time and will make the company go out of business.
Lawsuits
With the growth of competition between solar installation companies, there has been a rise in the formation of many companies that sell residential solar panels based on false advertisements. They give false hope to customers leading to many dissatisfied clients.
Some of these customers may file a lawsuit against these companies for false advertisements like undervaluing the cost of installation, overstating the amount of saving achieved with the installation of these solar panels, etc.
These lawsuits can settle for huge sums of money, which can lead to already unstable and growing companies towards liquidation. These lawsuits may force FTA to prevent such companies from their operations.
What Happens When Solar Company Ceases Operations?
The reasons for the failure of many solar companies that start out with ambition but fail after some time are now discussed. Now the question arises, what happens if your solar company goes out of business?
Large Scale Companies
If a large solar company that has its operation on a national scale goes out of business, there is a high chance that this company is overtaken by another clean energy space. For example, in 2017 a solar company by the name of Sungevity went bankrupt. Its assets were acquired by another clean energy space called Sunrun. After the acquisition, Sunrun became the service provider for Sungevity customers and would deal with its warranty claims as they arise.
Small scale Companies
Small-scale companies are mostly local installers who provide solar panel installation on a local scale. Contrary to the case of large companies where these are likely to be overtaken by another company with a similar business plan. Smaller businesses find it difficult to find a buyer for their business.
Thus, the loss is born by not only the owners of the company but its customers as well due to the loss of repairs and maintenance, and warranty loss. This situation can be very troublesome for most customers as they don’t know how to tackle this situation.
One option for the customers is to make an investment in solar operations and maintenance programs offered by third-party service providers. These are private service providers that release you from the trouble of dealing with your solar installers. They can get you your repairs and maintenance even if the installer has gone out of business.
Conclusion
What Happens if Your Solar Company Goes Out of Business? Increased demand in the solar panel industry has attracted a large number of companies to enter the market. This also means that many of these are providing low-quality products and services and are likely to go out of business. The risk of loss of repairs and maintenance can be mitigated by using either third-party O&M programs or by using extended warranties.
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