The company has around 7,500 domestic and less than 500 business customers who will be protected under the regulator’s safety net.
Ofgem will now choose a new supplier to take on all of Solarplicity’s customers, who will be contacted shortly after being appointed.
Customers will continue to receive energy as usual and have been advised not to switch to another supplier until a new one has been chosen and to take a meter reading ready for when the new supplier contacts them.
This will ensure the process of transferring customers to the new energy company and paying back any outstanding credit balances is as smooth as possible.
Last month, around 44,000 of Solarplicity’s retail customers were bought by challenger energy supplier TOTO Energy – Ofgem’s process will only apply to those customers who remained with the former supplier.
Philippa Pickford, Ofgem’s Director for Future Retail Markets said: “Solarplicity customers do not need to worry as under our safety net, we’ll make sure your energy supplies are secure and domestic customers’ credit balances are protected.
“We will update you when we have chosen a new supplier, who will then get in touch about your new tariff.”
The news follows Big Six supplier SSE being chosen to take on the customers of Cardiff Energy Supply, which went bust last week.
The two suppliers join a long list of small providers that have gone bust over the last year.
Tougher tests for new energy suppliers entering the market came into effect last month.