How to Vet a Solar Installer in 2026: Licenses, Dealer Fees and Bankruptcy Risk

Choosing a solar installer is choosing a company you will depend on for 20 years or more: for the roof penetrations, the warranty, the monitoring and any repairs. Since 2024, several large residential solar companies have filed for bankruptcy, and federal regulators have documented how financing can hide costs. A careful check up front is the best protection.

Step 1: Confirm the license

Every state regulates who can install solar, usually through the contractor licensing board and electrical licensing rules. Look up the company on your state's licensing website and confirm:

• The license is active and in the company's exact name
• It covers the type of work being done, including electrical work
• There are no open disciplinary actions

In California, for example, you can search the Contractors State License Board by license number, business name or personnel.

Step 2: Look for NABCEP certification

The North American Board of Certified Energy Practitioners (NABCEP) is the leading certification body for solar professionals, accredited to the ISO/IEC 17024 standard since 2007. Its PV Installation Professional credential requires documented project experience in a decision-making role, OSHA 10 safety training and 58 hours of training, and must be renewed every three years.

NABCEP certifies individuals, not companies. Ask who from the installer holds a certification and whether that person will design or supervise your job.

Step 3: Get the cash price before any loan

The Consumer Financial Protection Bureau studied solar financing and found:

• Hidden dealer fees can increase the loan amount 30% or more above the cash price
• Advertised solar loan interest rates, often between 1% and 7%, frequently leave those fees out
• In 2023, 58% of residential solar customers used loans, 19% paid cash and 23% chose leases or power purchase agreements

The simple defense: ask for the cash price in writing, then compare it with the loan amount. The difference is the real cost of the "low rate."

Step 4: Check financial staying power

Several major residential solar companies have gone bankrupt in recent years. Sunnova filed for Chapter 11 in June 2025, and Solar Mosaic, a large solar lender that says it funded $15 billion in loans for over 500,000 households, also filed in 2025. Other installer bankruptcies have followed; statuses change quickly, so check current court records rather than relying on old lists.

What to ask:

• How long have you been in business under this name?
• Who services my system if you close?
• Is the workmanship warranty backed by a third party?
• Who holds my loan or lease? A loan is owed to the lender, not the installer, even if the installer closes.

Step 5: Read the contract clause by clause

Look for:

• Price per watt and total cash price
• Equipment brand and model for panels, inverters and any battery
• Production estimate and how it was calculated
• Workmanship warranty length and what it covers, especially roof leaks
• Payment schedule: in California, down payments are capped at $1,000 or 10% of the price, whichever is less, and progress payments cannot exceed the value of work completed, including for residential solar
• Lease or PPA escalators, the yearly increase in your payment
• What happens when you sell the house
• Any lien or UCC filing on your property

Step 6: Watch for red flags

• Offers of "free" solar or a "government program" with no cost
• Pressure to sign the same day
• A quote that subtracts the federal tax credit for a 2026 purchase; the residential credit ended after December 31, 2025
• No cash price, only a monthly payment
• Door-to-door sales with vague company details
• Reluctance to show a license or proof of insurance

The Federal Trade Commission warns that "free" solar offers are scams, and that impersonating government agencies or utilities is illegal.

Leases and power purchase agreements

With a lease or power purchase agreement, a company owns the system and you pay monthly or per kWh. After the residential credit ended, some installers promote these because the owner can still claim a federal business credit, which can lower the price you pay. Before signing, check:

• The escalator, the yearly increase in your payment
• Who is responsible for repairs, roof leaks and monitoring
• What happens when you sell the house, including whether the buyer must qualify to take over the contract
• Buyout options and end-of-term choices

How to compare three quotes

Line up each quote on the same points: system size in kilowatts, total cash price, price per watt, panel and inverter models, estimated annual production, workmanship warranty and financing terms. A quote that is much cheaper usually differs on equipment, production assumptions or warranty. A quote that is much more expensive should explain why.

Your right to cancel

Under the FTC Cooling-Off Rule, many sales made at your home of $25 or more can be canceled until midnight of the third business day after you sign, and the seller must refund payments within 10 business days. Some states add more protection. If you signed at your kitchen table and have second thoughts, act quickly and in writing.

Questions to ask every installer

1. What is your license number, and who on your team is NABCEP certified?
2. What is the total cash price and price per watt?
3. How did you estimate my production?
4. What does your workmanship warranty cover, and who backs it?
5. Who services the system if you go out of business?
6. Does this quote assume any tax credit?

Before signing, read is home solar worth it in 2026, solar battery storage and our general guide to questions to ask before hiring a contractor.