Freedom Forever Bankruptcy Is Now Chapter 7: What California Solar Homeowners Should Do

Freedom Forever Bankruptcy Is Now Chapter 7: What California Solar Homeowners Should Do

Originally published June 8, 2026. Updated October 19, 2026.



Freedom Forever, the Temecula-based installer that was once the second-largest residential solar company in the country, is no longer trying to reorganize. When we first published this article in June, the company was in Chapter 11. Its bankruptcy case has since been converted to a Chapter 7 liquidation, which means the company is being wound down, not restructured. If you have a Freedom Forever system, that changes what you can expect, what's gone, and what's still yours.

It also reflects a pattern California Solar Exit has seen with SunPower, Sunnova, Titan Solar Power, and other major installers: when a solar company fails, the homeowner absorbs the blow first.

What happened since April

• April 15, 2026: Freedom Forever LLC filed for Chapter 11 in the U.S. Bankruptcy Court for the District of Delaware.
• July 31, 2026: After a proposed sale to a group led by its own chief executive failed to win the support of the unsecured creditors' committee, the company told the court it would seek conversion to Chapter 7 and let most of its remaining staff go.
• August 7, 2026: The case was converted to a Chapter 7 liquidation, and the U.S. Trustee appointed Alfred T. Giuliano as trustee, according to pv magazine USA.
• September 22, 2026: The Chapter 7 meeting of creditors was set for this date.
• October 16, 2026: The deadline for creditors, former employees, and customers with unfulfilled deposits or warranty claims to file a proof of claim. That deadline has now passed.

Bankruptcy cases are public record. You can look up the Delaware case through the federal courts' PACER system.

Chapter 7 versus Chapter 11, in plain English

In Chapter 11, a company keeps operating while it tries to reorganize, and it can come out the other side still honoring its obligations. In Chapter 7, the business stops. A trustee takes control, sells what's left, and distributes the money to creditors in a set order. There's no operating Freedom Forever left to service your system, answer your calls, or honor a promise.

That's the same outcome we described for Titan Solar Power, which also liquidated with no successor.

What still works in your favor

• Your panels keep running. An installer's bankruptcy doesn't shut a system off, and ownership of the equipment doesn't change.
• Equipment warranties remain. Panel, inverter, and battery warranties belong to the manufacturers, not Freedom Forever. They typically require a licensed contractor to diagnose and file a claim.
• Some stranded installs may get finished. The bankruptcy court granted Freedom Forever's former financing partners relief from the automatic stay so they could resume and complete unfinished installations. If your system was never finished, contact the company that financed it and ask what it plans to do.
• Your loan is a separate contract. If you financed, your agreement is with your lender, who is a different company from the installer.

What's gone

• The workmanship warranty. It was a promise from Freedom Forever, and a company in liquidation can't honor it, except as an unsecured claim.
• Roof penetration coverage. Leaks around mounting points are the most likely problem years from now, and the installer was the one standing behind them.
• Any production guarantee or service plan issued by Freedom Forever itself.
• A phone number that gets answered.

The claims deadline just passed

The October 16 deadline applied to unsecured claims in the Chapter 7 case, including customers with unpaid deposits or warranty claims. If you didn't file, you can ask a bankruptcy attorney whether a late claim is still possible. Recoveries for unsecured creditors in a liquidation are often small, so a claim in this case usually isn't where your leverage lies. For most homeowners, the more useful routes run through the lender and the sale itself.

Installed but never turned on? Check the tax credit now

The 30% federal credit for homeowner-owned systems ended for expenditures after December 31, 2025. If your system was installed but never activated, and the bankruptcy stalled your final inspection or utility approval, ask a tax professional right away whether you can still claim it. The answer can depend on when your installation was completed. Our Permission to Operate guide explains what the utility sign-off involves.

California homeowners face a compounding problem

For California homeowners, the Freedom Forever situation doesn't occur in a vacuum. Under NEM 3.0, the net metering policy for new California solar customers since April 2023, export rates dropped by roughly 75% compared to NEM 2.0. A system sold with savings projections built on the older billing model can badly underperform against what the homeowner was promised. If you were sold a Freedom Forever system using outdated projections, you may have grounds for a misrepresentation claim that exists independent of the bankruptcy. Our guide to proving a production shortfall shows how to measure the gap.

Many solar financing agreements also record a UCC-1 lien against your home's title. If that lien is tied to a failed installer, resolving it before you sell or refinance gets more complicated. See what your solar contract actually placed on your property title and our solar lien guide.

What to do right now

1. Document everything. Pull your signed contract, the original sales presentation, any written savings projections, and every receipt. Photograph your system as it stands today, activated or not, and note the installation date and any inspection results. Save your monitoring login and production data. Our documentation checklist covers the rest.

2. Find out who holds your loan, and call them directly. If you financed, your lender may have changed hands since you signed, so use our lender and servicer lookup guide, including for Mosaic and Solar Servicing LLC. Explain the situation, document who you spoke to and when, and ask whether a hardship program is available. If your system was never finished, ask what the lender or its partners plan to do about it.

3. Contact the Contractors State License Board. If Freedom Forever's license is active, you may be able to file a complaint, and you can ask CSLB whether a claim against the contractor's license bond is available in your case. CSLB's restitution fund is closed to new claims, as we explain in what you can still do after an installer fails, and our complaint agencies guide covers the other routes.

4. Understand your loan rights. Claims you could raise against the seller can often be raised against the lender. See our FTC Holder Rule guide and our solar loan cancellation page.

5. Talk to a solar contract specialist. If your system was sold using inflated savings projections, NEM 2.0 assumptions on a post-NEM 3.0 system, or contract terms you weren't fully shown, you may have grounds for cancellation that exist separately from the bankruptcy.

The pattern behind the headlines

Freedom Forever isn't the first major installer to fail, and it won't be the last. The residential solar industry grew explosively on cheap money, aggressive door-to-door sales, and generous net metering. As interest rates rose and California restructured NEM, the economics cracked for companies and homeowners alike.

SunPower filed for Chapter 11 in 2024. Sunnova followed in 2025. Titan Solar Power liquidated in 2024. Now Freedom Forever is liquidating too. Each time, homeowners are left navigating a bankruptcy while their panels sit on the roof and their loan payments keep coming.

If you're in a solar contract with any company, the right move is to understand what you signed: the escalator clauses, the production guarantees or lack of them, and what your solar PPA's escalator clause will actually cost you over 25 years.

If you were sold a solar system in California and something went wrong

Whether your installer is in bankruptcy, your system isn't producing what you were promised, or you signed under pressure without understanding the contract, California homeowners have real legal leverage under state consumer protection law.

The California Consumer Legal Remedies Act, the Home Solicitation Sales Act, and FTC cooling-off rules all create pathways to challenge solar contracts that were deceptive, misrepresented, or improperly sold. California Solar Exit has helped more than 500 California homeowners pursue cancellations, refunds, and settlements against Sunrun, Tesla/SolarCity, Vivint, and GoodLeap.

If your system was installed but never activated, if your bill hasn't dropped the way you were told it would, or if you're now making payments on a warranty with no company behind it, let's review your contract. The consultation is free, and there's no obligation.

→ Get a free contract review — (213) 579-5156

Frequently asked questions

Will Freedom Forever come back and fix my system?

No. A Chapter 7 liquidation ends the business, and a trustee is selling off its assets. Plan around a licensed contractor you choose.

Can I still file a claim in the bankruptcy?

The deadline was October 16, 2026, and it has passed. A bankruptcy attorney can tell you whether a late claim is still possible in your situation.

My Freedom Forever panels are installed but not turned on. Can I still claim the tax credit?

It's uncertain, and it's time-sensitive. The 30% credit for homeowner-owned systems ended for expenditures after December 31, 2025. Talk to a tax professional right away about your installation date and whether the credit is still available.

Does the bankruptcy cancel my solar loan?

No. Your loan is with your lender (Mosaic, GreenSky, GoodLeap, or another), not Freedom Forever, and the two are separate contracts. The installer's bankruptcy doesn't cancel your financing agreement. Talk to us or an attorney before you change how you pay.

What happens to my warranty?

Panel, inverter, and battery warranties from the manufacturers generally remain valid, since the manufacturer issues them, not the installer. Freedom Forever's own workmanship and roof penetration warranty is a promise from a company in liquidation, so plan on it not being honored.

Can I get out of my solar contract if Freedom Forever can't fulfill it?

Possibly. If its inability to complete your installation or honor its terms is a material breach, or if the sale involved misrepresentation, you may have grounds that exist separately from the bankruptcy. A solar contract specialist can review your agreement.

I signed a contract in California before Freedom Forever failed. Do I have any rights?

Potentially significant ones. California's consumer protection framework is among the strongest in the country. Depending on how your contract was sold and what you were promised, you may have grounds for cancellation or damages that exist outside the bankruptcy.

California Solar Exit is a consumer advocacy firm helping California homeowners understand and challenge solar contracts. This article is for informational purposes only and does not constitute legal advice. For legal counsel specific to your situation, consult a licensed California attorney.