The UK’s solar industry is shining brighter than ever. Homeowners nationwide are racing to install panels - motivated by soaring energy bills, generous government incentives, and the collective drive toward net zero.
But behind the boom lies a growing problem.
Dozens of solar companies - from once-familiar names like Eco Energy Solutions to Solar Plants UK - have suddenly gone under, leaving customers stranded with voided warranties, unfinished installs, and no aftercare.
So why are so many solar firms going bust in what should be a golden age for renewables?
In this guide, we’ll unpack the real reasons behind the collapse, the impact it has on homeowners, and how you can safeguard your investment by choosing a trusted, long-term provider like Heatable.
Buckle up - because understanding the chaos is the first step to avoiding it.
☀️ The Solar Surge: A Market on Overdrive
Between 2022 and 2025, the UK’s solar market went into overdrive.
According to the Microgeneration Certification Scheme (MCS), solar panel installations jumped by more than 40% year on year in some regions, with home battery systems following close behind.
The reason? A perfect storm of incentives and urgency. Energy bills have skyrocketed, with Ofgem’s 2025 price cap hitting £1,717 a year for a typical household.
At the same time, government initiatives like the Smart Export Guarantee (SEG) and Boiler Upgrade Scheme have made the switch to solar even more appealing - rewarding homeowners for exporting excess energy and supporting green upgrades through grants.
Add in the UK’s legally binding net-zero target for 2050, and it’s no surprise that solar has become the go-to upgrade for thousands of households.
But rapid growth has its downsides. The solar gold rush has drawn in a wave of new entrants - from well-meaning startups to opportunistic “cowboy” installers.
Many lack the experience, supply-chain stability, or financial foundations needed to survive in a fast-moving, capital-intensive industry.
The result? A trail of bankruptcies, abandoned installs, and frustrated homeowners left wondering what went wrong.
Let’s break down the biggest reasons so many solar companies are crashing and burning - and what that means for you as a customer….
🎥 Watch our Youtube video explaining the solar industries history of bankruptcies:
Top 6 Reasons Solar Companies Go Bust
Here’s a detailed look at why solar firms are failing, with insights to help you spot the red flags…
[1] Cash-Flow Crunch: Over-Promising, Under-Delivering
One of the biggest reasons solar firms fail comes down to simple economics - cash flow.
In an effort to outbid the competition, many companies advertise too-good-to-be-true prices just to win business.
It might look great on paper, but once installation, labour, equipment, and overheads are factored in, margins vanish.
Take a typical example: a company quotes £5,000 for a system that actually costs £4,800 to install.
That leaves just £200 to cover admin, aftercare, or warranty support - a ticking time bomb when any delay, faulty part, or supplier hiccup could wipe out profits entirely.
When cash dries up, these firms struggle to pay suppliers or staff, leading to a rapid downward spiral. And for smaller players without access to credit or diversified income streams, one bad month can be all it takes to shut the doors for good.
The lesson? If a quote looks suspiciously cheap, it’s often a sign of a company cutting corners - or skating on dangerously thin ice.
[2] Supply Chain Volatility: A Global Rollercoaster
The solar industry depends on a vast and fragile global supply chain - spanning panels, inverters, batteries, and countless smaller components. When that chain wobbles, so does everyone in it.
Prices for key materials can swing overnight due to raw material shortages, geopolitical tensions, or global shipping bottlenecks.
During the 2022–2023 chip shortage, for example, inverter prices spiked by as much as 20%, eating into already thin margins for installers that hadn’t secured fixed-price supplier contracts.
For smaller firms, these shocks can be fatal. With little purchasing power or cash reserves, they’re often forced to delay projects, hike prices mid-installation, or absorb losses they can’t afford.
Even larger companies can stumble if they assume supply stability and fail to build contingency plans.
The takeaway? In a market this volatile, only businesses with strong supplier relationships and disciplined cost control can weather the storm.
Explore a Solar Case Study: Check out an insightful Q&A session featured in one of our detailed case studies on domestic solar panels. Hear directly from a Heatable customer in the UK and gain valuable perspectives on their experience here.
The image above shows a 23-panel solar installation, carried out by the MCS-certified solar team at Heatable, featuring the REA Fusion2 solar panels.
[3] Lack of Technical Expertise: Shoddy Work, Big Costs
Installing solar panels isn’t just about fixing panels to a roof - it’s a technical, highly regulated process that demands electrical know-how, structural awareness, and compliance with strict UK standards.
But as the market boomed, many new players rushed in without the skilled engineers or proper training to back up their promises. The result? Poorly installed systems that leak, underperform, or even fail altogether.
A single botched install can turn into a financial nightmare. Think roof damage costing thousands to fix, or panels producing far less energy than expected - leading to refunds, warranty claims, and reputational damage. Each issue chips away at profits until the business can no longer stay afloat.
Companies without rigorous training, quality control, and aftercare systems simply can’t sustain the costs of their own mistakes - and that’s why so many disappear as quickly as they arrive.
[4] Short-Term Business Models: No Plan for Tomorrow
Some solar companies are built for speed, not sustainability. Their strategy revolves around quick sales and rapid expansion - not customer care or long-term stability.
In the rush to cash in on the solar boom, many firms neglect aftercare altogether: no maintenance packages, no follow-up checks, and no structured customer support. Once the initial sales wave slows, their revenue dries up.
Take a company that installs 100 systems in a year but offers no maintenance contracts - they miss out on reliable, recurring income. When new sales dip or negative reviews start circulating, there’s nothing to fall back on.
By contrast, successful solar providers think long-term. They focus on ongoing service, repeat business, and trusted relationships - not just today’s sale.
It’s an approach Heatable has built into its DNA, ensuring customers stay supported for years, not just during installation.
[5] Policy Whiplash: When Government Schemes Keep Changing
Government incentives have been both a blessing and a curse for the UK’s solar industry.
They’ve fuelled massive growth - but constant policy changes have also left many companies struggling to stay upright.
Take the Feed-in Tariff (FIT) scheme, which once paid homeowners generous rates for the solar energy they generated. When it ended abruptly in 2019, hundreds of installers were left scrambling.
Its successor, the Smart Export Guarantee (SEG), offers far lower rates - and because payments vary between energy suppliers, it’s added another layer of uncertainty for both consumers and businesses.
For companies built around subsidies or short-term incentives, these sudden shifts can be devastating.
A firm that priced installs based on FIT returns, for example, might have found its entire business model wiped out overnight.
Even well-intentioned policy changes can catch unprepared businesses off guard - proving that true stability comes from smart planning, not government dependency.
[6] Sales Gimmicks That Backfire
High-pressure sales tactics have plagued the solar industry for years - from cold calls promising “free solar panels” to so-called “limited-time discounts.”
These gimmicks might close a few quick deals, but they almost always backfire.
Homeowners who feel misled - by hidden costs, inflated savings claims, or confusing finance packages - are quick to share their experiences online. Negative reviews on platforms like Trustpilot can destroy a company’s reputation overnight.
In 2024, one UK solar firm faced a major backlash after advertising “zero-cost” installations that actually required hefty loans. The fallout was swift: complaints surged, trust vanished, and the company folded within months.
Firms that rely on gimmicks instead of transparency rarely last long. Building trust takes honesty, not hard selling.
“We built Heatable to be the opposite of those fly-by-night installers,” says Ben Price, Heatable Co-Founder. “Our automated quotes are clear, our installers are MCS-certified, and we’re obsessed with long-term customer satisfaction. That’s why we’re still here when others aren’t.”
💪 Why Heatable’s Model Is Built to Last
At Heatable, we’ve designed our solar business to avoid the pitfalls that have taken others down. Here’s how we’re different:
💬 Transparent Pricing
Our online quoting tool gives you instant, accurate prices - with no hidden markups or gimmicks.
We price fairly to ensure quality, sustainability, and long-term support.
🧰 Trusted National Installers
We partner exclusively with MCS-certified professionals across the UK, carefully vetted for skill and reliability.
Every system is installed to the highest standards, ensuring performance and peace of mind.
🔄 Long-Term Support
Solar isn’t a one-off project - it’s a partnership.
We offer ongoing service plans, a dedicated customer portal, and the ability to track and book maintenance online, keeping your system efficient for decades.
🚫 No Sales Gimmicks
No cold calls. No fake “limited-time offers.” Just clear communication, fair pricing, and honest service - that’s why our customers consistently rate us 5 stars.
☀️ Protecting Your Solar Investment
The UK solar market can be unpredictable - but your investment doesn’t have to be.
By understanding why companies fail - from cash-flow crunches to policy changes - you can make smarter, safer choices.
Choose transparency. Choose stability. Choose Heatable - a company built to stand the test of time.
Next Steps For Your Solar Journey:
When planning to install solar panels for your home, there are several important factors to consider. Make sure to refer to the following guides to help you make informed decisions:
To dive deeper into these topics, head over to our advice section, check out our YouTube channel for informative videos, or read a customer case study to see how others have benefited from their solar installation.
Get a Quote for Solar Today
Without boasting you should get your solar installed with us, here's why:
Thousands of Happy Customers: We boast an average score of 4.9 on Trustpilot, outperforming the market leader.
Which? Trusted Trader: Heatable is proudly recognised as a Which? Trusted Trader.
MCS Accredited: Our accreditation by the Microgeneration Certification Scheme (MCS) ensures high-quality standards.
Exclusive Panels: We offer REA Fusion solar panels, available only through Heatable.
Consumer Protection: As members of the HIES consumer code, we provide 2-year deposit protection.
Flexible Payment Options: Choose from multiple payment methods, including finance options.
Fixed Price Guarantee: Enjoy transparency with no hidden costs.
Save Your Quote: You can save your quote and decide later.
Bespoke Design Tool: Draw your own conclusion (literally) on whether solar is worth it for you, here.
