Projects financed with Mosaic could see significant delays, said residential solar marketplace operator EnergySage.
Major U.S. residential solar loan provider Mosaic issued a statement to its installer partners of operational delays amid market turbulence for the residential solar industry.
The loan provider said there will be delays in all milestone processing for its loan products. It is also pausing countersignature and welcome calls.
The company initiated the pause due to “capital markets uncertainty resulting from the 25D and 48E guidance.”
The “Big, Beautiful Bill,” approved by the House of Representatives and set for vote by the Senate, cuts the 25D residential solar tax credit for any projects not put in service by the end of 2025, and cuts the 48E tax credit for projects not in service by 2028. The base tax credits cover 30% of installed system costs.
Residential solar marketplace operator EnergySage, which broke the news, said the delayed funds from Mosaic will cause significant issues for Mosaic’s installer partners.
“The timing of these payments is crucial for maintaining operations,” said Emily Walker, director of content and insights, EnergySage.
Installers often cover equipment costs and other expenses upfront but must wait weeks or months for the utility to permit activation of the solar array to receive their payment from the financing company. Delays can lead to immediate cash flow crises for installers, potentially leading to pauses in operations.
“This creates a cascading effect for homeowners who have signed contracts for solar installations, as M1 funds may be tied up in stalled projects,” said Walker.
If such a halt to operations occurs, homeowners in various stages of the solar buying process, from initial quotes to signed contracts, may need to restart the financing process with new loan terms or different lenders, said EnergySage.
Residential solar declined 31% in 2024 amid persistently high interest rates and declining support from state policy, according to Wood Mackenzie. Now, 2025 is shaping up to be a potentially worse year for the industry, with federal tax credit support potentially being repealed several years ahead of schedule.
The market has already witnessed the bankruptcy of major national installer SunPower and significant turmoil for Sunnova Energy, which may soon be facing bankruptcy.
EnergySage said residential solar loans declined in market share in 2024, representing 43% of contracts, the lowest since 2017. This led to a more fragmented market, with major lenders experiencing market declines while smaller players like credit unions gained a growing market share.
The decline in residential solar markets has led to an increased market share for residential solar leases and power purchase agreements, referred to as third-party owned (TPO) projects.
“Lenders are navigating the slowdown differently, focusing more on home improvement offerings, launching their own TPO product, or re-thinking traditional loans to better compete with TPO,” said Wood Mackenzie analyst Zoë Gaston.
pv magazine USA reached out to Mosaic for a statement on the announcement and will update this article if a response is issued.
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