Posigen, a residential solar and energy efficiency installer headquartered in New Oreleans, Louisiana, has filed for Chapter 11 bankruptcy.
In August, Posigen announced it will cease “most of its operations” through the United States.
PosiGen will now operate as a “debtor in possession,” meaning it will continue to manage its business operations under the oversight of the U.S. Bankruptcy Court for the Southern District of Texas. The company stated its primary objective is to use the court process to buy time to stabilize its finances, complete existing solar installation projects that can generate revenue, and work toward a viable restructuring plan.
The solar installation business serves customers in Massachusetts, Connecticut, Rhode Island, New Jersey, Pennsylvania, Louisiana, and Mississippi. It also offers battery energy storage installation and energy efficiency services. It places a focus on low- to moderate-income customers.
Posigen, a Certified B Corporation, employed about 500 people nationwide, with about 100 in Louisiana, as of June 2025. The company provided solar to 40,000 residential customers in 15 states. The company was a Brookfield Asset Management portfolio company.
The installer said it grew its operations rapidly, which later led to a liquidity strain. Amid market slowdown, it was forced to use its working capital to advance contracted solar projects to completion, which pressured liquidity. The company then made a missed interest payment on its credit facility in favor of preserving capital to pay its channel partners and pay operating expenses. Its lender then exercised its rights to freeze cash and issue a notice of default on Posigen’s credit facility. This caused a sudden and unexpected interruption in the company’s business operations, said a termination letter issued in August.
PosiGen said it filed for Chapter 11 to prevent its primary lender, Brookfield Asset Management, from unilaterally seizing most customer solar assets and forcing a potentially chaotic liquidation.
Residential market decline
Residential solar in the United States is experiencing a broad market decline. Faced by macroeconomic challenges and shifting sands of state and federal policies, an industry once defined by double-digit growth in installations is experiencing falling demand.
Residential solar installations declined 31% in 2024. Over the last year, industry titans like SunPower, Sunnova, and Mosaic Solar have filed for bankruptcy.
Looking ahead the residential solar industry will need to find new ways to lower costs to thrive in a harsher regulatory environment.
One pathway is pursuing lower soft costs, or costs not tied to hardware. The Solar Energy Industries Association (SEIA) said over 65% of the cost to install residential solar is related to soft costs like paying sales teams, securing permits, grid connection costs, and more.
The United States may find a path forward by pursuing market conditions like Australia, where over 40% of homes in some regions have rooftop solar. Soft costs are far lower in the nation, and average residential solar installation cost was $0.89 per W, more than $2.00 per W cheaper than both Canada and the United States.
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