When the Bankruptcy Hits: A Dealer's Playbook for Surviving a Solar Installer's Collapse

When Sunnova filed Chapter 11 in June 2025, it wasn't just an installer going down — it dragged hundreds of independent solar dealers into the mess with it. These are the small businesses that actually sell and install the systems, working under contract with the big installer. When the installer goes bankrupt, the dealer is often left holding unpaid invoices for completed work, with zero leverage in a bankruptcy court that has bigger fish — bondholders, secured lenders — ahead of them in line.

I worked directly with a solar dealer caught in exactly this position. At the time Sunnova filed, this dealer had over a dozen systems in progress representing nearly half a million dollars in contract value. That money was now tied up in one of the largest solar bankruptcies in U.S. history — a company with $10 billion to $50 billion in liabilities.

Most dealers in this spot do nothing. They file a claim, get told they're an unsecured creditor, and wait months (or years) to find out they'll recover pennies on the dollar — if anything.

We didn't wait. Instead of standing in line, we moved to secure the dealer's position directly:

• Filed mechanics liens on the properties where systems were installed but not yet paid for 
• Filed UCC financing statements to establish a secured interest in the receivables tied to those contracts
• Filed a formal proof of claim in the bankruptcy case backed by that secured position — rather than an unsecured one

The difference matters enormously in bankruptcy. Unsecured creditors get whatever's left after everyone else is paid — often nothing. Secured creditors, and dealers who've properly perfected liens on the underlying property, have a real claim that has to be dealt with before general unsecured debt gets a dime.

The result: the dealer recovered a negotiated settlement tied to the completed systems — money that likely would have been lost entirely in the general unsecured creditor pool.

The takeaway for anyone in this industry: if you're a dealer, contractor, or subcontractor working under a larger company, don't assume your invoice is safe just because the work is done and the contract is signed. When your customer's customer — the installer, the financier — goes bankrupt, your paperwork and your filing timeline become the entire ballgame. Liens and UCC filings aren't just legal formalities; they're the difference between getting paid and getting in line behind everyone else.

If you're in a trade where you extend credit or do work before getting paid — solar, electrical, construction — it's worth understanding this playbook before you need it, not after.

Been through something similar, or want to talk through your own exposure? Reach out — I'm happy to walk through what worked here.

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