California Solar Exit, a solar contract cancellation consultancy based in Los Angeles, has reported a notable increase in cancellation inquiries following the Chapter 11 bankruptcy filing of Freedom Forever, one of the nation's largest residential solar installers. The California-founded company filed for reorganization in the U.S. Bankruptcy Court for the District of Delaware in April 2026. At the time of filing, Freedom Forever controlled roughly 6.1% of the national residential solar market, the second-largest share behind Sunrun, according to research firm Wood Mackenzie. The filing left an estimated 190,000 installed systems nationwide and a wave of homeowners uncertain about 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 filing is the latest in a string of installer bankruptcies and closures that have reshaped California's residential solar market over the past several years, following similar filings and shutdowns involving SunPower, Sunnova, Titan Solar Power, and ADT Solar. Industry researchers have pointed to a combination of factors behind the wave, including rising interest rates, the wind-down of the federal residential solar tax credit under the Inflation Reduction Act, and California's own transition to Net Energy Metering (NEM 3.0), approved by the California Public Utilities Commission in 2022, which cut the value of solar export credits and slowed new installation demand across the state.
"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 working to help affected homeowners understand which parts of their agreement are actually at risk. Equipment warranties issued by manufacturers such as Enphase, Tesla, Q CELLS, and SolarEdge are typically separate from the installer and generally remain valid regardless of the installer's bankruptcy status. Workmanship and service warranties issued directly by the installer, however, are frequently delayed, reduced, or discharged entirely as part of the bankruptcy process—and loan or lease payment obligations do not simply disappear because the installer has stopped answering calls.
"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 first consulting a qualified attorney, and encourages anyone affected by an installer bankruptcy to gather their original contract, financing documents, and any correspondence with the company before beginning a case review. The company consults remotely with homeowners statewide, with active cases concentrated in Los Angeles County, Orange County, San Diego County, the Inland Empire, the Bay Area, and the Sacramento and Central Valley regions. Its review process begins with a no-obligation assessment of the homeowner's contract, loan or lease documents, and any sales materials provided at signing, followed by an evaluation of available solar cancellation or dispute options.
California homeowners affected by the Freedom Forever bankruptcy, or by any solar company closure, can request a free contract review at californiasolarexit.com or by calling (213) 579-5156.
