When a solar or electrical company closes, the impact reaches far beyond the business owner. For Victorian families, workers and customers, it can mean lost jobs, unfinished installations and uncertainty about who will answer the phone when something goes wrong.
You’ve booked your solar installation, paid a deposit and started looking forward to smaller electricity bills. Then you hear the company has stopped trading.
Or perhaps you’re an electrician who has finished a job, paid for materials and covered your team’s wages—only to discover the builder you worked for cannot pay.
These situations are upsetting. Behind every closure are people who have invested their money, time and trust.
So, what is putting businesses under pressure, and what should homeowners and business owners across Melbourne and regional Victoria look out for?
How many companies are actually going under?
It can feel like there’s another closure announcement every week. However, claims that a particular number of Victorian solar and electrical companies close every day need reliable, industry-specific evidence.
ASIC reported that 14,153 companies across Australia entered external administration for the first time in 2025–26. That was around 4% fewer than the previous financial year, with construction accounting for 24.5% of appointments. These are national figures covering much more than solar and electrical work.
External administration also does not automatically mean a business has permanently closed; some businesses restructure or continue trading.
The pressure deserves attention, but broad construction statistics should not be presented as a daily count of Victorian solar companies shutting down.
A busy business can still run out of money
A full calendar does not necessarily mean a healthy bank account.
Imagine an electrical contractor working on a Melbourne building project. Materials have been purchased, wages are due on Thursday and the work is complete—but the customer’s payment has not arrived.
The contractor still needs to pay their own bills.
The Reserve Bank has identified cash flow challenges and thin operating margins among the pressures affecting small construction businesses.
A business can be working hard and still struggle to cover what it owes. If several payments are delayed, the gap can become difficult to manage.
There’s more behind a quote than panels and cable
When you compare installation prices, it’s easy to focus on the equipment.
But a properly priced job also needs to cover installation time, transport, insurance, administration, training, compliance and support after the work is finished.
For residential solar, that includes understanding the property and designing a suitable system. For commercial solar, access, scheduling and coordination with other trades can add further work.
If a business consistently underestimates those costs, taking on more installations can make its financial position worse.
The price needs to support the whole job, including what happens after installation day.
When the cheapest quote leaves little breathing room
Everyone wants a fair price, especially when household and business budgets are stretched.
A lower quote does not automatically mean poor workmanship. Equally, a higher quote does not guarantee quality or financial stability.
The useful question is: what does the price actually include?
Does it cover the proposed equipment, installation requirements, monitoring setup and clearly explained warranty support? What happens if the site needs additional work?
A quote that leaves important details unanswered can be difficult to compare—and may lead to surprises later.
The saddest part is the people affected
It would be unfair to assume every business closure comes from dishonesty or poor workmanship.
A capable tradesperson can still face payment problems, pricing mistakes or financial pressures they cannot recover from.
When a business closes, employees can lose their income, apprentices can lose a training opportunity and suppliers can be left unpaid. Customers may be left trying to work out whether their installation will be completed.
For local communities across Victoria, these are personal losses.
A healthier industry needs businesses that can pay their people, complete their work and provide ongoing support.
What happens to your solar warranty?
If your installer stops trading, do not assume every warranty disappears.
Solar Victoria explains that manufacturer warranty protections can remain available even when the retailer has gone out of business. However, recovering support for installation workmanship can be more difficult when the responsible business is no longer operating.
Keep your invoice, contract, equipment details, serial numbers and warranty documents together. Knowing who manufactured your panels, inverter or battery gives you a clearer starting point if you need assistance.
How Victorian customers can make a more informed choice
Before accepting a solar, battery or electrical quote:
- Check the business details: know the legal entity and ABN you are contracting with.
- Check electrical registration: use Energy Safe Victoria’s public registers to check the relevant contractor and worker details.
- Understand the scope: ask who will install the system and what is included.
- Ask about aftercare: find out who handles faults, monitoring questions and warranty enquiries.
- Keep written records: save the quote, payment receipts and handover documents.
Energy Safe Victoria provides public searches for registered electrical contractors, licensed electrical workers and Certificates of Electrical Safety.
Supporting a stronger Victorian industry
Seeing a local business close is sad. It affects livelihoods, customer confidence and the reputation of people who take pride in their work.
For customers, the best response is to ask clear questions and look beyond the headline price. For the industry, sustainable pricing, good communication and reliable workmanship all matter.
Planning solar or batteries in Melbourne?
If you’re exploring solar batteries or a new solar installation, contact RVB Energy. We’re happy to explain the options, discuss the scope and help you understand what to look for in a proposal.
