Your Solar Company Went Bankrupt. Who Owns the Contract Now?

The company failed. Your payment did not.

You signed with one company. It made promises about savings, service and warranties. Then it filed for bankruptcy, and a company you never chose started drafting your bank account. That feels like it should end the deal. It does not, and the solar industry built these contracts so that it would not.

A signed 20 or 25 year payment stream is exactly the kind of asset a bankruptcy sale is designed to move. Somebody buys it, somebody services it, and your due date does not change. What does change, often quietly, is who answers the phone when the inverter dies, and whether anyone answers at all.

Treasury told solar shoppers to ask this question before signing, in both its lease and PPA guides: what happens to the system if the company goes out of business, or sells it to another company. A high-pressure pitch is not built to dwell on it. A lot of homeowners are now getting the answer the hard way.

The case study: Sunnova

Sunnova Energy International Inc. filed for Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas. Sunnova TEP Developer, LLC petitioned on June 1, 2025, and Sunnova Energy Corporation, Sunnova Energy International Inc. and Sunnova Intermediate Holdings, LLC each petitioned on June 8, 2025, jointly administered under Case No. 25-90160 before Judge Alfredo R. Perez.

On July 31, 2025, the court approved the sale of substantially all of Sunnova’s assets and business operations to an ad hoc group of the company’s debtor-in-possession lenders and entities controlled by GoodFinch Management, in exchange for a credit bid of the debtor-in-possession financing, $25 million in cash, and certain cure costs. The announcement said the sale was expected to secure long-term continuity for substantially all customers under new ownership, and that SunStrong Management, LLC would take over servicing of solar and storage systems.

In November 2025 the court confirmed the Chapter 11 plan. Core operations had transitioned to SunStrong under the ownership of Solaris Assets, LLC, a Creditor Trustee was appointed to distribute the sale proceeds to creditors, and the remaining Sunnova estate was left to an orderly wind down.

Read the structure and ignore the press release adjectives. The servicing platform and the generation and storage portfolio went to the buyers. The corporate entity that made you promises went into a wind down. Your payments followed the first. The promises stayed with the second.

One detail with real consequences for people mid-project: the same July announcement noted that ATLAS SP Partners continued to direct negotiations with certain dealers and installers who had worked with Sunnova, with the goal of completing certain in-process solar systems. If your panels were on the roof but never energized when Sunnova failed, that sentence is about you, and it is a reason to be in writing with whoever is now on your account.

Then Connecticut started asking questions

On March 17, 2026, Connecticut’s attorney general announced two things at once.

The first was a $100,000 settlement resolving an investigation into Spruce Power 3, LLC, a solar servicing company, over billing, customer service, warranty issues and other concerns that peaked between 2021 and 2023 after the company acquired solar contracts from NRG Energy. Look at the shape of that: a servicer bought a book of contracts, and the complaints followed the contracts to the new owner.

The second was a civil investigative demand sent to SunStrong on February 27, seeking comprehensive records on the transfer of systems from the bankrupt Sunnova and SunPower to SunStrong, terms and conditions, quality control monitoring and mechanisms, consumer complaints, and contracts. The trigger was volume: since SunStrong began managing contracts in 2024 and 2025, the attorney general’s office and the Department of Consumer Protection jointly received approximately 65 consumer complaints. The issues named include failure to uphold warranties, unresponsiveness to complaints, and a $10 monthly fee to receive data about the system’s own production.

A demand is not a finding. It is a regulator asking whether service survived the transfer, which is exactly the question homeowners in that position have been asking.

The lenders moved too

The financing companies had their own year. Mosaic Sustainable Finance Corporation and four affiliated debtors, including Solar Mosaic LLC, each filed voluntary Chapter 11 petitions in the Southern District of Texas on June 6, 2025, jointly administered under Case No. 25-90156. The court confirmed the plan on September 5, 2025, and the plan went effective on September 22, 2025.

Mosaic stopped originating new loans during the case and reorganized around the servicing business, which is the part that bills you. If your loan was a Mosaic loan, the paper did not evaporate. The company kept the piece of the business that collects from you.

What survives, and what might not

Survives: the contract, the payment obligation, the lender’s or lessor’s right to collect and to report your payment history, and any lien filed against the equipment.

May not survive in any practical sense: the workmanship warranty from an installer that no longer exists, a production guarantee whose administrator changed, the service response times you were promised, and the person who told you the numbers.

Everything that protects the company’s money made it through. The things that protected you are the ones at risk.

The CFPB flagged the underlying imbalance before any of these cases: some solar loan agreements state that the consumer’s financial obligation does not depend on the system’s performance, while performance depends on design, component quality, installation failures, weather, rate design and tree growth. A bankruptcy makes that gap wider, because the people responsible for performance may be gone while the obligation stays.

Find out who holds yours, in four steps

1. Follow the money. Look at your last bank draft or billing statement. The name collecting the payment is the current servicer, and it is often not the name on your contract.

2. Pull every transfer notice you have received. Servicing transfer letters arrive looking like junk mail. Find them, date them, and keep them together with the original contract.

3. Go to the case’s official claims agent site. Sunnova’s case information lives with Kroll, and Mosaic’s does too. These sites post the notices sent to borrowers, the case numbers, and a phone line. They are the primary record, and they are free to read.

4. Put your service problem in writing to the current servicer. Describe the failure, the dates, and what the contract promises. Keep the copy. If the response is silence, that silence becomes the exhibit in your complaint to your state attorney general, which is how Connecticut ended up with 65 of them. The new owner wanted your payment stream. Make it deal with the obligations that came attached.

What this does not change

A bankruptcy by itself does not get you out. It is not a cancellation, and no route on the main page opens up just because your counterparty changed names.

What it can strengthen is a different claim. If the system was never finished or never energized, that is non-performance, and it is a live argument no matter who holds the paper. If you financed, the loan is still ordinary consumer debt that can be refinanced on its own terms while the service fight goes on.

And if a company calls offering to void your contract because the original seller went bankrupt, hang up. The bankruptcy court already decided where those contracts went, and no fee you pay a third party changes that order.

This is general information, not legal advice. Bankruptcy sales, assumed contracts and warranty obligations turn on court orders and documents specific to your case, so take your contract and your transfer notices to an attorney licensed in your state before you act on any of it.