Solar Servicing LLC has announced it will acquire Mosaic, a leading residential solar loan provider that announced Chapter 11 bankruptcy filing in June.
Founded in 2010, Mosaic funded over $15 billion in loans to date, supporting over 500,000 households financing solar, battery storage and other home energy products.
Solar Servicing LLC is a wholly owned subsidiary of Forbright Bank, the company said it will discontinue originating new loans but will provide support to existing loans.
“While there are no plans to originate new solar loans, for loans that were partially funded as of the bankruptcy filing, a dedicated pipeline team has been hired to support system installers and loan owners as they work towards a resolution,” said Mosaic in an email sent to its installer partners.
Under the terms of the transaction, borrowers’ payment terms and schedules remain unchanged and there are plans in place to avoid disruptions in service, said the company.
Solar Servicing LLC said Mosaic’s various payment methods remain active, and borrowers can continue to make payments as they have done prior to the announcement.
Paul Hastings LLP served as legal counsel, BRG served as chief restructuring officer, Jefferies served as the investment banker, and C Street Advisory Group served as strategic communications advisor to Mosaic. Blank Rome LLP served as legal counsel and Huron Consulting Group served as financial advisor to Forbright Bank.
Prior to filing bankruptcy, the Mosaic said it took actions to reorganize the business to meet cash 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.
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