The Truth About Mosaic Solar Energy: Warning Signs and Impact

By Pioneer Legal Consulting LLC • Published: August 15, 2025 • Updated: November 18, 2025

At a glance

• Mosaic filed Chapter 11 on June 6, 2025 (S.D. Texas). In September, the court approved a plan that recapitalized its servicing platform under Solar Servicing LLC (Forbright Bank) so borrowers could keep making payments. (Kroll Cases)
• Scale before the filing: $13B+ in loans and ~360,000 households (some trade coverage now cites $15B / 500,000+). (EnergySage)
• Residential solar contracted 31% in 2024—the first annual decline since 2017—setting the stage for lender stress. (SEIA)
• Warning signs included low customer ratings (2.1/5, ~291 reviews on EnergySage), hundreds of BBB complaints, and delayed installer milestone payments (M1–M3) just before the filing. (EnergySage)
• Policy headwinds: the One Big Beautiful Bill Act (H.R. 1), signed July 4, 2025, ends the 30% residential credit (25D) after Dec. 31, 2025 and imposes tighter windows for business credits (48E/45Y).

Table of contents

1. What happened to Mosaic—fast facts
2. How Mosaic’s business model amplified risk
3. Red flags you could see coming
4. What Mosaic’s collapse means for homeowners & the market
5. Policy shifts you should plan around
6. What to do if you have a Mosaic‑financed system
7. FAQs
8. How Pioneer can help

1) What happened to Mosaic—fast facts

• Filing: Mosaic and affiliates filed Chapter 11 on June 6, 2025 in the Southern District of Texas. (Kroll Cases)
• Where it landed: On Sept. 5, 2025, the court approved a plan under which Solar Servicing LLC (Forbright Bank) took over Mosaic’s loan‑servicing platform, keeping payment processing intact. (financialcontent.com)
• Scale, pre‑petition: Public sources place Mosaic’s footprint at $13B+ in originations serving ~360k households, with later coverage citing $15B / 500k+. (EnergySage)

2) How Mosaic’s business model amplified risk

Mosaic funded consumer solar/home‑energy loans and periodically sold them to investors through asset‑backed securities (ABS). When interest rates rose and investor appetite thinned, holding loans longer on warehouse lines increased exposure to market windows. By 2024–2025, rating and trade coverage flagged pressure on solar‑loan ABS as prepayments slowed and excess spread tightened—signs that the take‑out market was getting tougher. (Wood Mackenzie)

Why competitors fared differently:

• Sunrun leaned on third‑party ownership (TPO)—leases/PPAs—which can be relatively less sensitive to retail loan rates. (Industry reports also show TPO strengthening in non‑residential markets.) (Wood Mackenzie)
• Sungage and other finance providers broadened into storage/roofing/home‑energy upgrades to diversify demand beyond straight solar loans. (Wood Mackenzie)

3) Red flags you could see coming

• Customer sentiment deteriorated. Mosaic’s EnergySage profile shows an average rating of 2.1/5 from ~291 reviews—with recurring themes around service and contract‑transfer confusion. (EnergySage)
• Complaints piled up. The BBB page reflects 600+ complaints (3‑yr) and ~175 (12‑mo) as of Fall 2025—consistent with sustained customer‑service/billing friction. (Counts fluctuate over time.) (BBB)
• Installers flagged cash‑flow pain. In late May 2025 Mosaic told partners it would delay M1–M3 milestone payments for CHOICE and PLUS loans and paused operations—often a precursor to liquidity stress. (EnergySage)

4) What Mosaic’s collapse means for homeowners & the market

• A market already in retreat. Residential solar fell 31% in 2024—the first annual contraction since 2017—due to high rates and policy changes (e.g., California). That weakness magnified lender stress and project delays. (SEIA)
• Financing fragmentation. With a major loan originator down, credit unions, community banks, and smaller financiers have filled gaps—adding variety but also inconsistent timelines and standards. (Trade and market commentary throughout 2024–2025 note the shift of share away from loans toward leases/PPAs.) (Wood Mackenzie)

5) Policy shifts you should plan around

• 25D (residential 30% credit) ends after Dec. 31, 2025. Under the One Big Beautiful Bill Act (H.R. 1), homeowner‑owned systems must be installed by year‑end 2025 to claim the credit.
• Business credits (48E/45Y) remain but with tighter clocks. To qualify, projects generally must commence construction by July 4, 2026 or be placed in service by Dec. 31, 2027—with additional restrictions on supply‑chain sourcing. This environment favors experienced TPO developers who can move quickly.

6) What to do if you have a Mosaic‑financed system

1. Verify who services your loan and update autopay. Mosaic’s servicing has been recapitalized under Solar Servicing LLC; confirm your payment instructions and keep all notices. (financialcontent.com)
2. Selling or refinancing? Start early. Ask for payoff/assumption requirements in writing, and coordinate with your title/escrow officer; loan‑transfer processing can take longer amid platform transitions. (BBB)
3. Stalled or under‑performing system? Document everything. Collect photos, interconnection/inspection records, and all installer/lender communications—this evidence is critical if you pursue relief. (pv magazine USA)
4. Tax‑credit timing. If you’re targeting 25D in 2025, ensure the system is fully installed by Dec. 31, 2025 and retain proof of in‑service. For leases/PPAs, make sure your provider can meet begin‑construction timelines under 48E.

Important: This article is general information, not legal advice. Outcomes depend on your contract and state law.

7) FAQs

Q1. Is Mosaic “out of business”?
No—Mosaic filed Chapter 11 and the court approved a plan that recapitalized its servicing operations under Solar Servicing LLC. That means loan servicing continues, but it does not erase contractual obligations by itself. (Kroll Cases)

Q2. Did Mosaic’s collapse cause the market downturn?
The downturn was already in motion: residential installations fell 31% in 2024; Mosaic’s distress added to installer cash‑flow pressure and borrower uncertainty in 2025. (SEIA)

Q3. What were the clearest warning signs?
A combination of poor customer ratings, rising complaint volumes, and delayed milestone payments to installers—a trio that often signals operational and liquidity strain. (EnergySage)

Q4. How has financing changed post‑Mosaic?
The loan market is more fragmented, with smaller lenders and credit unions stepping in while leases/PPAs gain share due to high consumer loan rates and tighter timelines. (Wood Mackenzie)

Q5. What policy changes directly affect homeowners?
The residential 30% credit (25D) ends after Dec. 31, 2025; business credits for third‑party ownership remain but on shorter timelines and stricter sourcing rules.

8) How Pioneer can help

Pioneer Legal Consulting LLC focuses on helping homeowners exit unfair solar contracts and pursue solar loan relief—with clear, practical guidance and documentation support from start to finish. Our services include:

• Solar Exit Consulting – contract review, remedies for non‑performance/misrepresentation, and structured paths out of burdensome deals. (Pioneer Legal Consulting)
• Solar Loan Relief – loan‑document analysis, consumer‑protection strategies, and negotiation support to restructure, settle, or cancel when appropriate. (Pioneer Legal Consulting)
• Avoiding Solar Scams & Solar Education – resources to spot red flags and protect your rights before you sign. (Pioneer Legal Consulting)

Free consultation: You can reach us at (313) 462‑7987 or through the Request a Consultation form on our site. We work with homeowners across major markets including Texas, Arizona, and California. (Pioneer Legal Consulting)

Editorial notes for your CMS

• Author/byline: Pioneer Legal Consulting LLC
• Meta title: The Truth About Mosaic Solar Energy: Warning Signs, Bankruptcy & What Homeowners Should Do
• Meta description (≤160 chars): Mosaic’s 2025 bankruptcy, the warning signs, market fallout, new tax‑credit deadlines—and how Pioneer Legal Consulting can help.
• Suggested internal links: Solar Exit • Solar Loan Relief • Avoiding Solar Scams • Solar Education (link to your service pages). (Pioneer Legal Consulting)

Sources & further reading

• Mosaic bankruptcy & servicing: Kroll case site; company/press coverage on plan approval and servicing recapitalization. (Kroll Cases)
• Mosaic scale prior to filing: EnergySage; pv magazine USA acquisition coverage. (EnergySage)
• Market data: SEIA/Wood Mackenzie 2024 Year‑in‑Review; pv magazine summary of −31% residential results. (SEIA)
• Customer sentiment & complaints: EnergySage rating page; BBB complaints log. (EnergySage)
• Installer milestone delays: EnergySage breaking news; pv magazine coverage. (EnergySage)
• Policy changes: SEIA fact sheet on the One Big Beautiful Bill Act (H.R. 1) (25D sunset; 48E/45Y timelines).