PosiGen says changing federal policies and reduced solar incentives weakened financing and stalled capital access for the company
It also admits that its complex financing structure made it vulnerable to market and policy volatility
After its subsidiary exhausted a $600 million credit line and missed a payment, Brookfield’s loan acceleration triggered cross-defaults, raising liquidity concerns
Solar PV installer for the US residential solar industry, PosiGen, along with its subsidiaries, has filed for bankruptcy protection under Chapter 11 in the US Bankruptcy Court for the Southern District of Texas.
PosiGen’s documents filed with the Court, as available on the Bondoro website, show that the company blames the larger market conditions to the downturn in the market caused by changes in the federal government policy, and its ‘own mistakes’ for the challenges it has been facing. Bondoro provides case summaries for all Chapter 11 filings.
PosiGen says its financing structure was complex and vulnerable to market pressures. Since it relied on incentives from federal, state, and local governments, policy changes under the current administration, reduced solar incentives, altered tax credits, and high tariffs on imported solar materials stalled financing markets and cut off access to new capital.
It did see a chance to grow as other players exited the residential solar market with the ‘deprioritized subsidization’ of the solar industry, and entered into new installation contracts and channel partner agreements. However, its non-debtor subsidiary, PosiGen Backleverage, LLC, had used up all of its committed financing under its $600 million first-lien credit facility by the end of July 2025.
With no additional funding available, it defaulted on a payment, while its main lender, Brookfield, opted for acceleration of a revolving credit facility, which led to cross-defaults.
“The company ran out of money following Brookfield’s acceleration and was unable to secure additional financing,” explains PosiGen on the circumstances that it says led it to eventually file for Chapter 11 protection.
The US residential solar market has been under heavy economic and policy pressure, leading to bankruptcies of major companies, such as Solar Mosaic, SunPower, and Sunnova in recent times. Recently, even large-scale solar and storage projects developer Pine Gate Renewables opted for the Chapter 11 route, citing policy and capital market environments (see Pine Gate Renewables Files For Chapter 11 Bankruptcy Protection).
