Another giant solar company has crashed and burned. Freedom Forever, reportedly the second-largest residential solar installer in the U.S. as of 2025, filed Chapter 11 bankruptcy in Delaware this week. They owe between $500 million and $1 billion to creditors while holding assets worth only $100 million to $500 million.
Freedom not so forever, I guess.
I am not surprised. These massive multistate solar companies have no business operating in the solar industry.
Solar is a trade. You don’t see giant multistate HVAC contractors hopping from state to state chasing easy money in the most lucrative markets. The same should be true for solar, but venture capital and easy money created a feeding frenzy that attracted all the wrong players.
Freedom Forever’s Spectacular Collapse
According to the bankruptcy filing, Freedom Forever owes $114 million to solar finance company Mosaic Funding alone, plus tens of millions more to manufacturers like PT. IDN Solar Tech, JA Solar, Trina Solar, Silfab Solar, and Unirac. That’s a lot of unpaid bills.
Side note: Watch Mosaic go under next. Could it happen? It would not be the first time. Sunlight Financial filed for bankruptcy after Pink Energy failed while owing them a bunch of money.
Back to Freedom Forever. The company claimed a workforce of over 3,000 employees just last August when they made the Inc. 5000 list of fastest-growing companies. Six months later, they had abandoned 10 state markets and laid off 20% of their workers. Permit data from Shovels.ai shows major decreases in new permits across all their remaining markets, especially in large states like Arizona, California, Colorado, and Texas.
On April 3rd, Texas Attorney General Ken Paxton named Freedom Forever in a major initiative to combat “fraudulent and deceptive practices” by solar companies. That’s never a good sign when you’re trying to stay in business.
While Chapter 11 is technically a “reorganization” bankruptcy, recent history tells us what really happens. Look at SunPower, Sunnova, and Lumio. They all filed Chapter 11 and ended up in liquidation anyway. Freedom Forever is likely headed for the same fate.
The Multistate Solar Scam
Freedom Forever’s collapse fits a predictable pattern. These companies scale up rapidly by raising massive amounts of capital, hiring aggressive sales teams, and flooding markets with flashy marketing campaigns. They promise low prices and quick installations while cutting every possible corner on quality, service, and business fundamentals.
The business model is fundamentally flawed. Solar installation is a local trade that requires deep knowledge of local codes, utilities, permitting processes, weather patterns, and electrical infrastructure. You cannot successfully manage solar installations from a corporate headquarters thousands of miles away.
When Dominick and I started FSDG in 2015, we made a conscious decision to stay local and serve only Southwest Florida. We understand FPL’s and LCEC’s interconnection requirements. We know local permitting inside and out. We can drive to any job site in our territory within an hour (absent crazy traffic). When something goes wrong, we’re here to fix it.
These national players treat solar as a commodity product that can be sold and installed anywhere, using the same cookie-cutter approach. The Florida solar energy market has become a wasteland of failed solar contractors, leaving countless customers with incomplete or non-functional solar installations.
Solar Is MEP, Not Some New Industry
Solar belongs in the mechanical, electrical, and plumbing (MEP) category. Maybe we need to start calling it MEPS. Solar electric systems are electrical installations that require the same level of local expertise as any other electrical work on your home.
You wouldn’t hire an HVAC contractor from California to install your air conditioning system in Fort Myers. You wouldn’t call a plumbing company in Arizona to fix your water heater in Naples. So why would you trust a solar company based in Utah or Nevada to design and install a complex electrical system on your roof?
Energy storage is pushing solar even further into specialized territory. Modern battery backup systems integrate with your home’s electrical panel, communicate with smart devices, and must comply with complex safety codes. This is advanced electrical work that requires local expertise and ongoing service capability.
The best HVAC contractors in Southwest Florida are local companies that have been serving their communities for decades. They understand our climate, our building practices, and our customer needs. The same principle applies to solar.
Orphaned Systems Everywhere
Freedom Forever’s bankruptcy will create thousands of orphaned solar systems across the country. Customers who paid for installations that were never completed. Systems that need warranty service from a company that no longer exists. Monitoring platforms that will go dark when the company stops paying its bills.
We see this constantly in Southwest Florida. Just last week, I had to tell a customer that SunPower is bankrupt and there is nothing to connect his monitoring system to. He needs to upgrade to Enphase monitoring through the manufacturer directly because his original installer can’t help him anymore. That is a high, unexpected cost. Fortunately, the parts warranty is intact in that case, and the system will be serviceable.
A few days ago, I learned that Urban Solar, another local company, went out of business. Even statewide and regional companies aren’t immune. Urban was a good company with good intentions, but bigger isn’t always better.
The pattern is always the same. Customers get sold on low prices and impressive sales presentations, then find themselves abandoned when something goes wrong. Battery backup sales are through the roof as people with orphaned solar panels want to add storage, and new clients see the value of working with a company that will still be here in five years.
How These Companies Swindle Customers
The multistate solar giants rely on high-pressure sales tactics and misleading promises. They quote unrealistically low prices to win contracts, then find ways to increase costs during installation or cut corners to maintain their margins.
They promise 25-year warranties they can’t honor. They claim local service capabilities they don’t actually have. They use subcontractors who may or may not be properly licensed, bonded, or insured in your state.
Most importantly, they disappear when you need them most. Solar systems require occasional maintenance and troubleshooting over their 25-year lifespan. When your system stops producing power or develops a fault, you need someone local who can diagnose the problem and fix it quickly. Even small things, like WiFi connectivity issues, can become big problems when your installer is hours or even time zones away.
Good luck getting service from a company in bankruptcy court. Good luck getting warranty coverage from a manufacturer when your installer of record no longer exists. Good luck getting anyone to take responsibility for system problems when the company that sold it to you has vanished.
Why Local Solar Contractors Survive
Local solar contractors survive because we have skin in the game. Our reputation depends on every installation. We can’t abandon a market when things get tough because we live here. Our children go to school here (well, not our kids because we don’t have any). We shop at the same grocery stores as our customers. We see you out at restaurants and say hello.
We understand that solar is a relationship business, not a transaction business. The sale is just the beginning of a 25-year partnership. We size systems correctly for your specific usage patterns and roof conditions. We pull proper permits and pass inspections the first time. We respond promptly when you have questions or concerns.
Most importantly, we’ll still be here when your system needs service. You won’t have to search for someone willing to work on an orphaned system because we installed it and we’ll maintain it.
Local contractors also understand the regulatory environment in their markets. We know which battery systems work well with FPL’s interconnection requirements. We understand flood elevation requirements in coastal areas. We know which local inspectors prefer certain installation methods or equipment configurations.
The Venture Capital Problem
The root cause of these failures is venture capital. Investors poured billions of dollars into solar companies with unrealistic growth expectations and impossible timelines. Companies that should have grown organically over decades were forced to scale up in months or years.
This created a race to the bottom on pricing and quality. Companies that wanted to provide good service and fair pricing couldn’t compete with venture-funded competitors willing to lose money on every installation to capture market share.
The plan was always to achieve dominance first and figure out profitability later. But solar doesn’t work that way. You can’t achieve economies of scale by doing bad work faster. You can’t reduce costs by cutting training, quality control, and customer service.
When the easy money dried up and interest rates increased, these companies couldn’t adapt. They had built business models that only worked with constant capital infusion and rapid growth. When growth stalled, the entire house of cards collapsed.
What Customers Should Look For
If you’re considering solar, focus on local companies with established track records in your specific market. Look for contractors who have been operating in your area for at least five years. Check their license status with your state regulatory board.
Ask about their service capabilities. Do they have local technicians, or do they subcontract everything? How do they handle warranty claims? What happens if they go out of business?
Be skeptical of prices that seem too good to be true. Quality solar installations require skilled labor, proper permitting, and code-compliant work. Companies that quote significantly below market rates are either losing money on every job or cutting corners somewhere.
Don’t be impressed by national marketing campaigns or claims about being the “fastest-growing” or “largest” company. The solar industry is littered with the corpses of companies that prioritized growth over sustainability.
The Bottom Line
Freedom Forever’s bankruptcy is a predictable outcome for a business model that never made sense. Solar is a local trade that requires local expertise, ongoing service capability, and long-term commitment to customers.
These multistate behemoths enter markets with deep pockets and aggressive marketing, but they can’t deliver on their promises when market conditions change. They leave behind thousands of customers with orphaned systems and broken promises.
If you want solar that actually works for the next 25 years, choose a local contractor with deep roots in your community. You’ll get better service, higher quality work, and the peace of mind that comes from working with someone who will still be here when you need them.
We’ve been cleaning up the mess left by failed solar companies since 2015, and unfortunately, we’ll probably be doing it for years to come. If you have an orphaned system that needs service or you’re ready to work with a solar contractor who plans to stay in business, contact us. We’re not going anywhere.
