Residential Solar Loan Provider Mosaic Files for Chapter 11 Bankruptcy

Image: Mosaic

Residential solar loan provider Mosaic has announced it has filed for Chapter 11 bankruptcy protection as it begins a strategic restructuring and recapitalization process supported by its existing lenders, including Forbright Bank.

Founded in 2010, Mosaic has helped finance over $15 billion in loans, enabling more than 500,000 households to invest in solar panels, battery storage systems, and other home energy solutions.

In the lead-up to the bankruptcy filing, Mosaic took steps to reorganize its business in an attempt to address immediate liquidity challenges. However, macroeconomic pressures — including persistently high interest rates and recent legislative developments threatening federal tax incentives for residential solar — have disrupted capital flow throughout the industry. U.S. residential solar installations fell by 31% in 2024, and ongoing uncertainty surrounding the federal 48E and 25D solar tax credits continues to cloud industry prospects in 2025.

In May, Mosaic announced a pause in its operations and notified installer partners of significant delays in milestone payments. According to EnergySage, such delays can cause a “cascading effect,” leading to cash flow crises for residential solar installers.

EnergySage also reported that residential solar loans lost market share in 2024, representing just 43% of contracts — the lowest level since 2017. This has led to a more fragmented lending environment, with smaller financial institutions like credit unions gaining traction as major lenders saw declines.

As part of its Chapter 11 process, Mosaic has secured $45 million in debtor-in-possession financing from its existing lenders, including $15 million in new funding. Upon court approval, these funds are expected to support the company’s ongoing operations and cover administrative costs throughout the proceedings.

Mosaic has also filed motions with the court seeking approval to:

Continue paying employee wages and benefits
Compensate key vendors and suppliers for ongoing services
Complete partially finished solar installation projects

The company indicated it may pursue one or more asset sale transactions under Section 363 of the U.S. Bankruptcy Code.

Mosaic has retained Paul Hastings LLP as legal counsel, BRG as chief restructuring officer, Jefferies as investment banker, and C Street Advisory Group as strategic communications advisor. Forbright Bank is being represented by Blank Rome LLP as legal counsel and Huron Consulting Group as financial advisor.

“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, CEO of Mosaic. “Throughout this process, we remain focused on maintaining stability for our customers, business partners, and employees.”