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Solar Mosaic Files for Chapter 11 Bankruptcy Amid Rising Interest Rates and Policy Uncertainty

U.S.-based residential solar fintech firm Solar Mosaic has filed for Chapter 11 bankruptcy protection in the Southern District of Texas, seeking to restructure and recapitalize its operations amidst a challenging macroeconomic landscape. The company, known for offering solar financing and home improvement loans, cited rising interest rates and legislative threats to residential solar tax credits as major factors contributing to its financial strain.

Despite efforts to address liquidity issues through operational restructuring, Mosaic concluded that a court-supervised process was the best path forward. The company aims to preserve its loan servicing platform, pursue a full sale of its assets, and maximize value for stakeholders.

Forbright Bank, an existing loan-servicing client, will act as the administrative agent for the company’s lenders and support Mosaic’s ongoing loan servicing operations. Mosaic has secured $45 million in debtor-in-possession financing, including $15 million in new funding post-court approval, to maintain operations and cover administrative expenses.

The company emphasized that it will remain fully operational throughout the process, continuing to serve installers, capital partners, and customers without disruption. Mosaic has also filed routine motions with the court to ensure wage payments, vendor compensation, and the completion of partially installed projects.

Solar Mosaic’s bankruptcy follows a string of collapses in the U.S. clean energy financing sector, including Powin and Sunnova, highlighting increasing pressure on solar finance firms as interest rate hikes, policy uncertainty, and reduced consumer demand take their toll. The company still hopes to emerge stronger through restructuring, while continuing to support the transition to cleaner, more energy-efficient homes.