Warburg Pincus-Backed Solar Mosaic Plans Bankruptcy Filing

(Bloomberg) -- Solar Mosaic LLC, a provider of home solar loans that has private equity firm Warburg Pincus as a major backer, is planning to file for bankruptcy in the face of market uncertainty over federal support of clean energy, according to people familiar with the matter. 

The Oakland, California-based company recently stopped issuing loans after a new round of financing fell through due to the US House advancing President Donald Trump’s massive tax and spending bill, said the people, who asked not to be identified discussing a private matter. The tax bill would end generous tax incentives for residential solar systems and is now being debated in the Senate. 

Jared Kushner’s investment firm Affinity Partners is also among the company’s investors. 

A potential filing may come as soon as Friday, the people familiar said. 

A Warburg Pincus spokesperson declined to comment, while Solar Mosaic didn’t return a request for comment and Affinity Partners had no immediate comment. 

The end of federal subsidies for residential solar would devastate an industry that’s already been struggling with bankruptcies, sluggish sales and high borrowing rates, executives and analysts have said. Last year, residential solar installations dropped 31% from the year before, according to research firm Wood Mackenzie. SunPower Corp., a pioneer in solar, filed for bankruptcy last year and home solar financial provider Sunnova Energy International Inc. is teetering on the edge of insolvency. 

The company launched more than a decade ago as a crowdfunding initiative that allowed ordinary investors to put money toward financing rooftop solar systems. The company expanded to offer loans for energy-efficiency home improvements, battery storage and electric car charging. Mosaic raised more than $5 billion in capital in 2021 and 2022, according to the latest figures from BloombergNEF. 

(Updates with investor information in lede and third paragraph.)

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