Mosaic, a leading US home solar lender underwriting over $15 billion in energy loans, filed for Chapter 11 bankruptcy on Monday. The company, founded in 2010, helped more than 500,000 homeowners install rooftop solar, battery storage, and energy efficiency upgrades.
Mosaic’s collapse reflects growing pressures on solar finance. The company faced rising interest rates, uncertainty over federal tax credits under Sections 25D and 48E, and tighter capital markets. Despite securing $45 million in debtor-in-possession financing—including $15 million in new capital—to keep operating and complete ongoing projects, Mosaic could not avoid bankruptcy.
Court documents reveal Mosaic plans to maintain payroll, vendor contracts, and finish installations currently in progress.
This filing adds to recent turmoil in residential solar finance. Sunnova, another major rooftop solar provider, also filed for Chapter 11 this week. Sunnova reported assets and liabilities between $10 billion and $50 billion and has laid off 55% of its workforce, about 718 employees.
Both Mosaic and Sunnova blame falling demand, rising borrowing costs, reduced subsidies in critical states like California, and uncertain policies threatening solar tax credits.
Industry experts warn these bankruptcies could slow rooftop solar installations in 2025. Residential solar capacity additions already dropped 13% year-on-year in the first quarter, totaling 1.1 GWdc.
While some solar projects using alternative financing models like power-purchase agreements may continue, the crisis threatens overall growth momentum in the residential solar market.
For the broader energy sector, the situation is concerning. Solar demand closely depends on stable financing and clear regulations. As Congress debates extending key tax credits, solar installers and lenders remain vulnerable. The coming weeks will be crucial in deciding whether the US residential solar market can sustain its growth or face a financial setback.
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