The solar energy industry has recently faced significant upheaval, with two major companies—Sunnova Energy International and Solar Mosaic—filing for Chapter 11 bankruptcy protection. These developments have left many consumers, especially in South Carolina, grappling with incomplete installations, rising costs, and concerns about the future of their solar energy systems. If you are among those affected, it’s crucial to understand your legal rights and explore potential avenues for recourse.(wsj.com)
The Rise and Fall of Sunnova Energy
Sunnova Energy International, once a leading residential solar provider, filed for Chapter 11 bankruptcy in June 2025. The company listed assets and liabilities ranging from $10 billion to $50 billion and reported over $8 million in debt with only $13 million in available cash. Prior to the filing, Sunnova’s stock value had dropped by 36.4%, and the company announced plans to reduce its workforce by 55%, or about 718 employees, after a 15% staff cut earlier in February. The financial strain was exacerbated by the cancellation of a nearly $3 billion partial loan guarantee by the Trump administration, leading to CEO William Berger’s resignation amid the financial instability. (wsj.com, chron.com)
Despite the bankruptcy, Sunnova has stated its intention to continue operating and servicing existing solar and battery storage systems. However, many consumers are left questioning the reliability and future of their solar investments.(houstonchronicle.com)
Solar Mosaic’s Financial Troubles
Solar Mosaic, a prominent solar finance platform, also filed for Chapter 11 bankruptcy protection in June 2025. The company faced significant losses due to macroeconomic conflicts and rising interest rates. In addition to financial challenges, Solar Mosaic has been the target of claims alleging the use of its financial structure to scam homeowners with fraudulent loans, leading to lawsuits demanding over $3 million from consumers in California alone, with other lawsuits coming from consumers and State Attorney Generals in nearly 30 states. The Minnesota Attorney General filed suit against Mosaic and three other lending companies, accusing them of charging Minnesotans $35 million in hidden fees on nearly 5,000 loans to finance sales of residential solar panels. The lawsuit alleges the lenders violated state laws against deceptive trade practices and illegally high rates of interest. (barrons.com, en.wikipedia.org)
Impact on South Carolina Consumers
South Carolina has been a growing market for residential solar energy, with many homeowners investing in solar systems through companies like Sunnova and financing options provided by platforms like Solar Mosaic. The recent bankruptcies have left numerous consumers in a precarious position, facing issues such as:
- Incomplete Installations: Homeowners whose systems were only partially installed may find themselves without functional solar energy solutions.
- Increased Costs: Despite the incomplete or non-functional systems, consumers may still be obligated to continue payments on loans or leases.
- Lack of Support: With the companies facing financial difficulties, customer service and support may be limited or non-existent.
- Legal and Contractual Complexities: Consumers may encounter challenges related to contract terms, warranties, and legal obligations, especially if the companies are no longer operational.
Legal Rights and Potential Claims
As a consumer in South Carolina affected by these developments, you have several potential avenues for recourse:
1. Breach of Contract
If the company failed to fulfill its contractual obligations, such as completing the installation or providing promised services, you may have grounds for a breach of contract claim.
2. Deceptive Trade Practices
Allegations of deceptive sales tactics, false advertising, or misrepresentation of services can form the basis of a claim under South Carolina’s Unfair Trade Practices Act.
3. Consumer Protection Laws
South Carolina’s consumer protection laws are designed to safeguard consumers against fraudulent and unfair business practices. If you believe you have been a victim of such practices, you may have the right to seek damages.
4. Bankruptcy Claims
In the event of a company’s bankruptcy, you may be considered a creditor and have the right to file a claim in the bankruptcy proceedings to recover owed amounts.
Steps to Take
If you are a South Carolina resident affected by the bankruptcies of Sunnova or Solar Mosaic, consider the following steps:
- Document Everything: Keep detailed records of all communications, contracts, payments, and any issues encountered with the solar system.
- Consult with an Attorney: Seek legal advice to understand your rights and options. An attorney experienced in consumer law can provide guidance tailored to your situation.
- Contact the South Carolina Department of Consumer Affairs: File a complaint and seek assistance in resolving the issue.
- Monitor Bankruptcy Proceedings: Stay informed about the bankruptcy proceedings of the companies involved, as they may impact your ability to recover damages.
How Our Law Firm Can Help
At Connor Law, PC, we focus on consumer protection and have extensive experience handling cases involving defective products, deceptive business practices, and financial disputes. If you are a South Carolina resident affected by the bankruptcies of Sunnova or Solar Mosaic, we are here to help you navigate the complexities of your situation and pursue the best strategy to protect your legal rights.
Our services include:
- Free Initial Consultations: We offer free consultations to assess your case and determine the best course of action.
- Comprehensive Case Evaluation: Our team will thoroughly review your documentation and circumstances to build a strong case.
- Representation in Legal Proceedings: We will represent your interests in negotiations, lawsuits, or bankruptcy claims.
- Advocacy for Consumer Rights: We are committed to advocating for the rights of consumers and holding companies accountable for their actions.
Conclusion
The recent bankruptcies of Sunnova and Solar Mosaic have created significant challenges for many consumers in South Carolina. However, you do not have to face these challenges alone. Understanding your legal rights and seeking professional assistance can help you navigate this difficult situation and work towards a resolution.
If you have been affected by these developments, contact Connor Law, PC, today to schedule a free consultation. Let us help you protect your rights and pursue the justice you deserve.
