Free & Educational
Solar Lien Redemption Value Estimator
Bankruptcy can let you pay the panels' real value instead of your full loan balance. Answer three quick questions to see roughly what that could mean for you.
Your Estimate
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This tool gives a rough, generalized educational estimate based on typical resale and liquidation values for used residential solar equipment — it is not an appraisal of your specific system and does not calculate an exact figure. It is not legal advice, does not create an attorney-client relationship, and does not guarantee any outcome. The amount a bankruptcy court would actually require is determined by admissible evidence (such as a professional appraisal) or a negotiated agreement with your lender, and can differ significantly from this estimate. Laws, procedures, and dollar figures referenced here may change after publication — do not assume the information above is current or factual. Contact a bankruptcy attorney to confirm how the law applies to your specific situation.
Frequently Asked Questions
What is §722 redemption?
Under 11 U.S.C. §722, a Chapter 7 debtor can keep certain secured property — including solar equipment financed as a loan — by paying the lender the property's current replacement value in a single lump sum, instead of the full remaining loan balance.
What's the difference between redemption and a Chapter 13 cramdown?
Redemption (§722) is a Chapter 7 tool that requires a lump-sum payment. A Chapter 13 "cramdown" under §506(a) achieves a similar economic result — reducing what you owe to the collateral's actual value — but spreads that reduced amount over your repayment plan instead of one payment.
What if I have a lease or PPA instead of a loan?
Leases and Power Purchase Agreements are executory contracts under 11 U.S.C. §365, not secured loans. They can't be redeemed or crammed down — in bankruptcy, you generally choose to either assume the contract (keep paying, keep the panels) or reject it (give up the panels).
How is the redemption value actually determined?
Through evidence presented to the court — typically a professional appraisal, expert testimony on comparable used-equipment values, or an agreement negotiated directly with the lender. There is no fixed public schedule; this tool's range is a general estimate, not a substitute for that process.
Does this apply if my solar company went out of business?
Often yes — the lien follows the loan or lease agreement, not the installer's continued existence. Even if the original installer is gone, whoever now holds the loan or lease (often a separate finance company) is typically who you'd address through redemption, cramdown, or the assume/reject process.