What Solar Mosaic’s Bankruptcy Means for Homeowners

Hello, my name is Neal Prevost, and I’m the owner of the Prevost Law Firm. If you financed your solar panels through Solar Mosaic, you’ve likely heard about their bankruptcy and wondered how it affects your case and your timelines.

We’ve been getting many questions from both current and future clients, so let me explain what this means for you.

This article focuses specifically on what Prevost Law Firm is doing to protect homeowners’ interests during the bankruptcy process. For a broader overview and the latest developments, visit our Solar Mosaic bankruptcy update.

What Happens in a Bankruptcy

When a company files for bankruptcy, an automatic stay generally pauses most lawsuits and collection actions against the company. Exceptions apply, and a court can allow a particular action to proceed while the bankruptcy case is ongoing.

But here’s the important part: we are not just waiting until the bankruptcy ends.

What Does Mosaic’s Bankruptcy Mean for Your Home?

If you financed your solar panels through Mosaic, the bankruptcy may leave you with questions that go beyond the bankruptcy case itself. What happens to your solar panels? What if you need service or repairs? What happens if you want to sell or refinance your home?

What Happens to Your Solar Panels?

Mosaic’s bankruptcy does not mean that the solar panels on your home simply go away or that your loan is automatically canceled. Your solar system, financing agreement, and any issues involving the company that sold or installed the system are separate pieces of the situation.

What If Your Solar System Needs Repairs or Warranty Work?

If your installer is no longer operating, is not responding, or you are having problems getting warranty work completed, Mosaic’s bankruptcy may add another layer of complexity. Keep copies of your solar contract, financing agreement, warranties, communications, photographs, and records of any problems with the system.

Read more about solar panel warranties here.

What If You Want to Sell or Refinance Your Home?

An outstanding solar loan can create additional considerations when selling or refinancing a home. The options available to you may depend on your financing agreement, the status of the loan, and your individual circumstances.

If you are planning to sell or refinance and have an unresolved dispute involving your Mosaic-financed solar system, consider reviewing your documents and understanding your options before moving forward.

What About a UCC Filing on Your Solar Panels?

Some solar financing agreements involve a UCC-1 filing connected to the solar equipment. While this is not the same as a traditional lien on your entire home, it can become important if you plan to sell or refinance your property.

If you financed your system through Mosaic and aren’t sure whether a UCC filing exists, you can learn how to check for a UCC lien on your home and what to do if you find one.

What Prevost Law Firm Is Watching in the Mosaic Bankruptcy

At Prevost Law Firm, we represent homeowners with disputes involving Mosaic-financed solar systems. Our team reviews both sides of the transaction. That includes what the installer promised or delivered, and what the financing documents require. That distinction matters when a homeowner has a system that needs repairs, an unresolved claim against the installer, or a loan that may complicate a home sale.

Mosaic’s Chapter 11 case adds a separate question. How will homeowners’ claims and defenses be treated in the bankruptcy? We are participating in that process on behalf of our clients while evaluating their individual solar disputes. The documents and facts differ from one homeowner to another, so we cannot promise a particular outcome. We can explain how the bankruptcy may affect a client’s existing claim and what steps may be available as the case develops.

How We’re Protecting Consumers

We’ve hired one of the largest law firms in the world, Reed Smith, to represent the interests of our clients inside the bankruptcy itself. This is at our expense, not yours.

• We’ve already filed a motion that was granted by the court.
• 22 state attorneys general joined us, helping secure a provision in the bankruptcy order confirming that Mosaic cannot eliminate the Holder Rule.

The Holder Rule can preserve certain claims and defenses against the holder of a covered financing agreement based on the solar seller’s conduct. Whether it applies to your loan, and what relief may be available, depends on your agreement and the facts of your case.

Should Mosaic Homeowners File Their Own Bankruptcy Claim?

Some homeowners ask whether they should file their own proof of claim in the bankruptcy. While you can do that, it’s an administrative step only. Filing a claim alone does not give you access to any settlement or plan negotiations we are working on.

Our approach is different:

• We are actively working to negotiate recovery within the bankruptcy plan itself, not just wait until the case is over.
• We are working to pursue potential recovery for the clients we represent through the bankruptcy process.
• There is no additional cost to be part of our group—we do not charge anything extra for the bankruptcy work.
  

Why This Matters

Reed Smith is working with our firm to represent our clients’ interests in the bankruptcy. We are participating in that process so homeowners’ concerns are heard as the case moves forward.

Final Thoughts

If you financed your solar panels through Mosaic, you are not without options. If you hire our firm, our team and Reed Smith can evaluate how the bankruptcy affects your claim and pursue available options on your behalf. Any recovery will depend on the bankruptcy proceedings and your circumstances.

We look forward to continuing to serve you and protect your interests through this process.