The company joins a growing list of major U.S. residential solar players in financial distress or bankruptcy.
Residential solar loan provider Mosaic announced it has filed for Chapter 11 bankruptcy.
Founded in 2010, the company funded over $15 billion in loans to date, supporting over 500,000 households financing solar, battery storage and other home energy products.
The company will perform a restructuring and recapitalization supported by its existing lenders, including Forbright Bank.
Prior to filing bankruptcy, the company said it took actions to reorganize the business to meet its current liquidity needs. However, it said macroeconomic challenges facing the entire residential solar industry, including high interest rates and legislation that threatens to eliminate tax credits for residential solar, have impacted the flow of capital. Residential solar installations declined 31% in 2024 and ongoing uncertainty related to the 48E and 25D federal solar tax credits is casting clouds over the industry in 2025.
The company announced in May it would pause operations, warning its installer partners there would be significant delays in milestone payments. Missed milestone payments cause a “cascading effect” that can lead to cash flow crises for residential solar installers, said EnergySage.
EnergySage said residential solar loans declined in market share in 2024, representing 43% of contracts, the lowest since 2017. This led to a more fragmented market, with major lenders experiencing market declines while smaller players like credit unions gained a growing market share.
As part of its restructuring, Mosaic will receive $45 million in debtor-in-possession financing from its existing lenders, including $15 million in new money financing which, following court approval, is expected to fund ongoing operations and administrative expenses during the Chapter 11 proceedings.
The company filed motions with the court to seek authority to pay employee wages and benefits, compensate certain vendors and suppliers on a go-forward basis, and facilitate the completion of partially finished installation projects.
Mosaic said it will potentially consummate one or more asset sale transactions pursuant to Section 363 of the U.S. Bankruptcy Code.
Paul Hastings LLP is serving as legal counsel, BRG is serving as chief restructuring officer, Jefferies is serving as the investment banker and C Street Advisory Group is serving as strategic communications advisor to the Company. Blank Rome LLP is serving as legal counsel and Huron Consulting Group is serving as financial advisor to Forbright Bank.
“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. “Throughout this process, we remain focused on maintaining stability for our customers, business partners, and employees.”
