Mosaic, one of the largest residential solar financing providers in the U.S., announced a pause on new loan activity and milestone payments beginning May 27, 2025.
The move comes amid high interest rates, a volatile investor environment, and the looming threat of the solar tax credit’s repeal.
About Mosaic
Mosaic began in 2010 as a pioneer in clean-energy lending and has since evolved into one of the largest fintech platforms dedicated to sustainable home improvements. Headquartered in Oakland, California, the company finances rooftop-solar systems, battery storage, heat pumps, and other efficiency upgrades, touting a vision of “100 percent clean energy for all.” To date it has originated more than $13 billion in loans for over 360,000 U.S. households, channeling billions of dollars of capital each year into high-quality ESG assets across all 50 states.
Yet Mosaic’s consumer experience is decidedly mixed. On EnergySage it carries a 2.2-star average from nearly 300 reviews, with many homeowners reporting frustrations around loan transfers, project-completion milestones, and customer-service responsiveness.
Complaints range from difficulty canceling contracts to challenges refinancing or selling homes encumbered by Mosaic-backed solar loans.
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These ratings underscore a broader tension in residential solar finance: while fintech lenders like Mosaic can unlock large pools of capital for clean-energy adoption, execution missteps or opaque terms can leave customers feeling trapped in costly, long-term obligations.
Why Pause Solar Loans?
Founded in 2010, Mosaic has funded over $13 billion in solar loans and enabled more than 360,000 households to go solar. However, recent challenges have forced the company to halt approvals, welcome calls, and milestone payments (M1–M3) for its CHOICE and PLUS loan products.
These payment stages are vital to solar installers’ cash flow, covering contract signing, installation, and permission-to-operate phases.
What this means:
- Installers are at risk of cash flow shortfalls, potentially delaying projects already in progress, or causing the company to go out of business.
- Homeowners may have to start the financing process over with another lender if their loan was in progress with Mosaic.
- Competing lenders like Sunlight Financial and Sungage Financial are stepping up, emphasizing their stability and ongoing loan support.
Mosaic’s struggles are emblematic of broader instability in solar financing. A 31% decline in residential solar installations in 2024, compounded by rate volatility and decreased investor appetite, has rocked the industry.
The company’s funding model, holding loans for large sales events, left it particularly exposed in this uncertain climate.
Prevost Law Firm’s Stance
Mosaic’s bankruptcy filing triggers an automatic pause on legal action in many of our clients’ cases, and no legal action can be taken until the court appoints a trustee and provides further direction.
While this delay may feel frustrating, we believe it may ultimately strengthen our clients’ position.
As Neal Prevost explains:
“No one wants a delay, but this may actually work in your favor. Bankruptcy puts everything on the table, and while it slows things down, it may create new legal options we can pursue on your behalf.”
Our team is closely monitoring the case and preparing for every possible scenario. We remain committed to protecting our clients’ interests and will provide updates as new information becomes available.
Conclusion
Mosaic’s pause on solar loan operations highlights a critical inflection point for the residential solar industry. As financing hurdles mount and federal incentives face rollback, both homeowners and installers are navigating increasing uncertainty.
While Mosaic’s long-term vision of sustainable home energy remains admirable, its recent slowdown reflects the fragility of even well-established players in a rapidly shifting market. For consumers considering solar, the message is clear: timing matters more than ever.
And for the industry at large, Mosaic’s challenges serve as a reminder that access to capital must be matched by transparency, agility, and trust, especially when clean energy adoption is on the line.
