US residential solar financing has taken a sharp dive, with Mosaic, a top lender underwriting over $15?billion in home energy loans, filing for Chapter 11 bankruptcy on Monday.

Founded in 2010, Mosaic enabled rooftop solar, battery storage, and efficiency upgrades for over 500,000 homeowners, but was struck hard by rising interest rates, uncertainties around federal Sections 25D and 48E tax credits, and tighter capital conditions.

The company secured $45?million in debtor-in-possession financing, including $15?million in fresh capital, enabling Mosaic to continue operations and fulfill ongoing loan and construction commitments. Court filings also show motions to maintain payroll, vendor contracts, and complete installations caught mid-project, according to PV magazine.

Mosaic’s filing extends a troubling trend in solar finance. This week Sunnova, another major rooftop provider, also filed for Chapter 11, listing assets and liabilities between $10?billion and $50?billion, and laying off 55% of its workforce (~718 employees).

Both firms cited weakened demand, rising rates, rollback of subsidies in key markets like California, and policy uncertainty—including threats to solar tax credits.

Industry analysts warn that Mosaic’s collapse may slow new rooftop solar installations in 2025, undermining the 1.1?GWdc of residential PV added in Q1, already down 13% year-on-year.

Projects funded through other third-party models, like power-purchase agreements, may outlast bank-loan structures, but the disruption jeopardizes momentum for residential solar growth.

For energy markets, the broader takeaway is not optimistic because it is impossible to decouple solar demand from financing and regulation. As Washington debates tax-credit extensions, installers and financiers are vulnerable. The coming weeks are pivotal, with Congress potentially taking a firm stance on whether the residential solar boom remains intact or buckles under financial strain.

By Charles Kennedy for Oilprice.com

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