Several Prominent Solar Companies File Bankruptcy in 2025

Some major players in the solar power industry (Sunnova, Mosaic, etc.) residential and finance sectors, have filed for Chapter 11 bankruptcy protection or announced major closures in 2025. The reason for these bankruptcies have to do with high interest rates, regulatory and policy shifts as well as over leveraged business models. These failures are generally attributed to a combination of widespread economic and policy-related factors impacting the solar industry making them extremely vulnerable to the rise in interest rates and market slowdowns.

One of the largest residential solar providers, Sunnova filed for Chapter 11 in June 2025, citing over $8.9 billion in debt, high interest rates, a squeeze from reduced government subsidies, and a canceled $3 billion federal loan agreement. Another leading solar lender, Mosaic filed for bankruptcy in June 2025 due to economic headwinds, high interest rates, and uncertainty related to residential solar tax credits. There have been additional company failures, including Pink Energy, MC Solar (Modern Concepts), Harness Power, NM Solar Group, ASA (American Solar Advantage), Kuubix Energy, Erus Energy, Suntuity Renewables, ADT Solar, Vision Solar, Solcius, Sunworks Inc., Titan Solar Power, Lumio Solar, Expert Solar, and Shine Solar, among others.

These bankruptcies are largely blamed on rising interest rates, shrinking demand, increased debt, the end or reduction of important federal and state incentives, and significant policy uncertainty under the current administration. High-profile cases such as Sunnova’s and Mosaic's have further spurred concern about ongoing instability in the U.S. residential solar sector. It's important to note that while these companies have filed for bankruptcy, the broader solar industry is still a growing sector, though it is experiencing significant consolidation and financial strain.

Here is a sample list of 2025 Bankruptcies:

Company Name State(s) Operated Notes
Sunnova National Chapter 11, June 2025
Solar Mosaic National Chapter 11, June 2025
Titan Solar Power Multi-state Filed earlier in 2025
Sunworks Inc. California Filed in 2025
Harness Power California Filed in 2025
Pink Energy Multi-state Filed in 2025