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 immediately goes into effect. This is a federal law that temporarily stops creditors and lawsuits against the company. In a Chapter 11 case, that stay remains in place until the court confirms a reorganization plan and the case moves forward.

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.

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 is crucial. It gives you the right to sue the lender (the holder of your loan) for the misconduct of the solar company that sold and installed your system. In other words, your rights as a consumer are still protected.

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.
• If we succeed, only our clients will be included in any negotiated settlement.
• 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, working with our firm, is the only law firm representing individual consumers in this bankruptcy. This means we are uniquely positioned to fight for your rights and ensure you are not left behind in the process.

Final Thoughts

If you financed your solar panels through Mosaic, you are not without options. By joining with us, you gain the combined experience of our team and Reed Smith, and you’ll be included in any consumer settlement we’re able to secure during the bankruptcy.

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