Solar lending company declares bankruptcy following attacks on solar incentives: 'Caused some uncertainty and volatility'

The uncertainty around the solar tax credit is causing waves in the solar power industry, as one of the largest solar financing companies just filed for bankruptcy.

According to EnergySage, an expert in the solar power industry, Mosaic filed for Chapter 11 on June 6. 

What's happening?

"The political uncertainty surrounding the fate of solar tax credits has put significant pressure on the industry, squeezing companies already contending with high interest rates and unfavorable policy changes," EnergySage said.

In May, the House of Representatives passed a bill that would end the solar tax credit at the end of the year. It was initially supposed to end at the end of 2035. The bill is now with the Senate, which plans to vote on the bill by the August recess.

Mosaic is optimistic that it will pull through, as it will continue to operate without disruptions. Since 2010, the financing company has helped over 360,000 households obtain solar power. 

Why is solar power important?

While there is uncertainty about the solar tax credit, there is no uncertainty around the savings that families get when they install solar panels. They can save up to $1,500 a year on energy bills.

Solar power is also better for the environment. It doesn't use dirty energy to power your home, so no polluting gases are released that warm the planet. That also means better air quality in neighborhoods.

With EnergySage's free marketplace, it's easy to invest in solar power. You can search and compare quotes for an installer in your area just like you would flight deals. EnergySage can even help you save up to $10,000 in incentives for panels and installation.

Additionally, EnergySage offers a helpful tool that displays the average cost of solar installation in each state, along with the available incentives.

According to Solar Builder, those incentives are as high as 30%, but it's unclear if they will remain in place next year. It will all depend on whether the government votes to eliminate the tax credits. 

What's the biggest obstacle stopping your organization from using solar panels? They're too expensive 💰 Don't know where to start 🤷 They're an eyesore 🙈 We already use solar panels 😎 Click your choice to see results and speak your mind.

What's being done about the future of solar power?

Sungage Financial CEO Mike Gilroy expects short-term disruption if the government votes to eliminate the tax credit. "The current legislation has caused some uncertainty and volatility in the market," he said.

However, he's optimistic about the future.

He told EnergySage: "We expect rising utility rates, increased demand for electricity, the need for energy resilience in extreme weather events, a desire for control over energy costs, and support of clean energy will continue driving solar growth over time."

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.