Freedom Forever files for bankruptcy protection

July 2026 | DEALFRONT | BANKRUPTCY & CORPORATE RESTRUCTURING

Financier Worldwide Magazine

July 2026 Issue

Major US residential solar installer Freedom Forever has filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware.

According to court filings submitted on 15 April 2026, the company reported liabilities of between $500m and $1bn, with total assets estimated at between $100m and $500m.

Case documents indicate that Freedom Forever LLC has between 50,000 and 100,000 creditors. The company disclosed its 30 largest unsecured claims, none of which relate to insiders. Mosaic Funding is listed as the largest unsecured creditor, with claims exceeding $100m, significantly higher than earlier estimates. Other unsecured creditors include Home Depot USA Inc., U.S. Electrical Services Inc. and Gelco Fleet Trust.

The filing states that, while the company seeks to reorganise its finances, operations are expected to continue under court supervision. However, the documents also indicate that, after administrative expenses are met, unsecured creditors are unlikely to receive any distribution.

Freedom Forever was the second largest residential solar installer in the US in 2025, according to Wood Mackenzie, with a market share of 6.1 percent, behind only Sunrun. Founded in 2011, the company designed and installed customised rooftop solar systems and operated across dozens of states prior to its filing.

The business relied on a dealership model similar to other large residential solar providers. Under this structure, independent authorised dealers sold and installed systems, often using third party ownership arrangements such as leases or power purchase agreements. Following the expiration of the federal section 25D residential solar tax credit at the end of 2025, these models have become more prominent, as they can still access commercial tax incentives under section 48E.

In recent years, Freedom Forever attempted to expand in response to growing demand for solar energy. It also invested in workforce development, becoming the first residential solar company to receive certification from the US Department of Labor for its electrical apprenticeship programme.

However, the company showed signs of strain prior to its bankruptcy. Despite reporting a workforce of more than 3000 employees in August 2025, it later exited more than 10 state markets and reduced its workforce by around 20 percent. Permit data also indicated a sharp decline in new project applications across key markets, underlining weakening demand and operational challenges.

The company was also named in an April 2026 initiative led by Ken Paxton, Texas attorney general, investigating alleged fraudulent and deceptive practices in the residential solar sector. The probe followed more than 100 consumer complaints related to sales practices, system performance and contract transparency, signalling rising regulatory scrutiny.

In a statement included in court filings, Brett Bouchy, chief executive, attributed the bankruptcy to several factors, including legislative changes affecting solar financing, executive actions targeting renewable energy subsidies and payment delays from financing partners. These pressures, he said, disrupted dealer payments, reduced new project origination and weakened the company’s cash position.

Freedom Forever’s Chapter 11 filing reflects broader challenges facing the US residential solar industry. A number of companies have entered bankruptcy or insolvency proceedings in recent years, including SunPower in 2024 and Sunnova and Solar Mosaic in 2025.

Industry analysts point to rising interest rates, policy uncertainty and the withdrawal of key tax incentives as major factors contributing to financial stress across the sector. The US residential market is expected to contract in 2026 following these changes, with installation volumes forecast to decline significantly compared with 2025. Some analysts also expect further consolidation, as weaker installers exit the market and larger players seek to stabilise operations.

The bankruptcy highlights structural challenges, signalling continued consolidation, tighter financing conditions and prolonged uncertainty across the US residential solar sector.

Richard Summerfield