US-based residential solar financing platform Solar Mosaic has filed for Chapter 11 bankruptcy protection in the Southern District of Texas, citing macroeconomic challenges and regulatory uncertainty.
The fintech company said rising interest rates and potential threats to residential solar tax credits have restricted the flow of capital. Proposed legislative changes to the Inflation Reduction Act (IRA) under the One, Big, Beautiful Bill threaten to put an immediate end to residential Investment Tax Credit (ITC) under 25D, which could effectively ‘shut down’ the country’s residential solar industry from January 1, 2026 (see US House Passes Bill Threatening Clean Energy Incentives).
In this environment, the company said it is forced to seek court-supervised financial restructuring, after its efforts to strategically and operationally reorganize the business to meet liquidity needs did not yield results.
Its existing lenders, including Forbright Bank, which is the administrative agent on behalf of lenders, are supporting the company’s restructuring and recapitalization process. Additionally, Mosaic is also conducting a marketing process for its platform and other assets.
“Today’s announcement marks a significant step for Mosaic to address our financial position amid the macroeconomic challenges facing the residential solar industry as well as the recent legislation passed by the House that rolls back residential solar tax credits,” said Patrick Moore, Mosaic Chief Executive Officer.
Solar Mosaic is another name in a growing list of solar companies impacted by high interest rates and uncertainty in the residential solar segment. The Solar Energy Industries Association (SEIA) believes that repealing the Section 25D credits will leave households with no accessible path to lower their costs with solar (see SEIA: 300 Solar & Storage Factories At Risk With US Legislation).
Recently, residential solar company Sunnova filed for Chapter 11 protection, following the cancellation of its $2.92 billion federal loan guarantee, timing delays of ITC sales and fewer installed systems. It announced a 55% cut in workforce recently (see North America Solar PV News Snippets: Pine Gate To Source 586 MW Waaree PV Modules & More).
The Republican-controlled Senate is now set to take a vote on the One, Big, Beautiful Bill by July 4, 2025 after it cleared the House.
