California Solar Exit, a solar contract cancellation consultancy, reported a notable increase in cancellation inquiries 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. At the time of filing, Freedom Forever held about 6.1% of the national residential solar market, the second-largest share behind Sunrun, according to research firm Wood Mackenzie. The bankruptcy left an estimated 190,000 installed systems nationwide and many 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, following similar filings by SunPower, Sunnova, Titan Solar Power, and ADT Solar. Industry researchers attribute the wave to rising interest rates, the wind-down of the federal residential solar tax credit under the Inflation Reduction Act, and California's transition to Net Energy Metering (NEM 3.0), which cut solar export credits and slowed 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."
California Solar Exit advises homeowners on 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 remain valid. However, workmanship and service warranties from the installer may be delayed or discharged in bankruptcy, and loan or lease payments generally continue. "Your panels are still up there generating power, and your loan servicer still expects a payment, but the company that sold you the system may not exist anymore," Merritt said. "Homeowners in that position deserve to understand their solar cancellation and dispute options."
California Solar Exit consults remotely with 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. The company offers a no-obligation assessment of contracts, loan or lease documents, and sales materials, followed by evaluation of cancellation or dispute options. Homeowners affected by the Freedom Forever bankruptcy can request a free contract review at californiasolarexit.com or by calling (213) 579-5156.
