Are you staring at a set of solar panels that don't work, while a monthly bill from Mosaic or Solar Servicing LLC drains your bank account? You aren't alone. Thousands of homeowners are currently trapped in mosaic solar loan problems following the company's 2025 Chapter 11 bankruptcy filing. If you feel like you've been scammed by a solar installer and left holding the bag by a lender that doesn't care, there is a way out.

The Reality of Mosaic Solar Loan Problems in 2026

For years, Mosaic was a titan in the residential solar financing space, originating over $15 billion in loans for more than 360,000 homes. However, as interest rates rose and the residential solar market shrank by approximately 31% in 2024, the company's aggressive business model began to crumble. In June 2025, Solar Mosaic LLC filed for Chapter 11 bankruptcy protection in the Southern District of Texas. While the company has since transitioned its loan servicing to Solar Servicing LLC (backed by Forbright Bank), the fallout for homeowners has been catastrophic.

• →Unfinished Installations: Mosaic stopped making 'milestone payments' to installers in May 2025, leaving thousands of projects half-finished.
• →Zombie Loans: Homeowners are being forced to pay for solar systems that were never turned on or don't produce the promised energy.
• →Credit Damage: Solar Servicing LLC has been reported to aggressively report 'missed' payments to credit bureaus, even when the homeowner is disputing the loan due to fraud or breach of contract.
• →Installer Disappearance: Many of the companies Mosaic partnered with—including Pink Energy, Titan Solar, and Vision Solar—have also filed for bankruptcy, leaving homeowners with no one to honor warranties.

Can You Stop Paying Your Mosaic Loan?

One of the most frequent mosaic solar loan problems we hear about is the fear of stopping payments. While it is true that simply stopping payments can damage your credit score, you have legal rights that may allow you to cancel the loan entirely. Under the Federal Trade Commission’s 'Holder Rule,' you have the right to assert the same legal claims against your lender (Mosaic/Solar Servicing) that you have against your installer. If your installer lied to you, failed to finish the job, or committed fraud, you may not be legally obligated to pay the loan.

The Solar Servicing LLC Transition Mess

If your loan was recently moved from Mosaic to Solar Servicing LLC, you might be experiencing new headaches. Homeowners have reported double-billing, autopay failures, and a complete lack of customer service. This transition was part of Mosaic's bankruptcy exit strategy, but for many, it has only amplified their mosaic solar loan problems. Lenders like GoodLeap, Sunlight Financial, and Dividend Finance are also under scrutiny as more installers like SunPower, ADT Solar, and Lumio face financial distress. If your installer was Freedom Forever or another large firm that is now struggling, your Mosaic loan could become a 'zombie loan' overnight.

Why Mosaic Solar Loan Problems Are Different

Unlike a traditional mortgage or car loan, solar loans are often sold on the promise of 'offsetting' your electric bill. When the system fails to produce energy, the financial math that sold you on the deal collapses. Mosaic's bankruptcy has made it even harder for homeowners to get repairs or service, as the company no longer has the same relationships with installers. Many homeowners were told that their Mosaic loan was 'government-backed' or part of a 'special program.' These are often deceptive sales tactics used by installers like Vision Solar or Titan Solar to get people to sign 25-year contracts. If you were lied to during the sales process, those mosaic solar loan problems are actually legal grounds for a contract cancellation.

The Role of Installers in Your Mosaic Loan

It's important to understand that Mosaic didn't install your panels; they just provided the money. However, they are legally tied to the installer's performance. If your installer was Pink Energy (formerly Power Home Solar) and they went bankrupt, Mosaic still holds your loan. This creates a 'gap' where you have a loan but no service provider. We have seen cases where homeowners are paying $200 a month to Mosaic while also paying a $300 electric bill because their panels are dead. This is the definition of a predatory situation. Companies like Sunnova and SunPower have also faced similar issues, but Mosaic's specific bankruptcy filing in 2025 created a unique legal landscape that we are currently navigating for our clients.

How the Holder Rule Protects You

The FTC Holder Rule is your strongest weapon against mosaic solar loan problems. It essentially says that the lender 'steps into the shoes' of the seller. If the seller (the solar installer) committed fraud or breached the contract, the lender is also liable. During the Mosaic bankruptcy, the company tried to argue that this rule shouldn't apply to them anymore. Thankfully, 22 State Attorneys General stepped in to ensure that homeowners' rights were protected. This means that even if Mosaic is gone and Solar Servicing LLC is in charge, you can still fight the loan based on the installer's bad behavior.

Frequently Asked Questions

What happens to my Mosaic loan if the company is bankrupt?

Even though Mosaic filed for bankruptcy, your debt was likely sold or transferred to a new servicer like Solar Servicing LLC. You still technically owe the money, but the bankruptcy may have opened legal windows for us to challenge the validity of the contract, especially if your solar system is defective.

Can I sue Mosaic for a system that doesn't work?

Yes. Thanks to the intervention of 22 State Attorneys General during the bankruptcy proceedings, your 'Holder Rule' protections were preserved. This means you can hold the lender responsible for the failures of the installer (like Titan Solar or Pink Energy).

Will my credit be ruined if I dispute the loan?

Not necessarily. If we file a formal legal dispute, we can often prevent or reverse negative credit reporting while the case is pending. Our goal is to get the loan cancelled and your credit restored.

Why should I use an attorney instead of just calling Mosaic?

Mosaic and Solar Servicing LLC are billion-dollar entities. They have no incentive to let you out of a 25-year contract just because you're unhappy. A contingency-based attorney from Solar Freedom has the leverage to force them to the table and demand a resolution.

What if my installer is also bankrupt?

This is a very common scenario with companies like Pink Energy or Titan Solar. Even if the installer is gone, the 'Holder Rule' allows us to pursue the lender (Mosaic/Solar Servicing) for the full amount of the loan. You are not stuck just because the installer disappeared.

How long does it take to cancel a Mosaic loan?

Every case is different, but the process typically takes several months. We start by reviewing your contract and the history of your system's performance. Once we have the evidence of breach or fraud, we move aggressively against the lender.

Don't Let a Predatory Loan Ruin Your Future

You shouldn't have to pay for a mistake made by a billion-dollar finance company and a fly-by-night solar installer. If you are struggling with mosaic solar loan problems, the time to act is now. The longer you wait, the more interest accrues and the harder it becomes to untangle the web of bankruptcy and contract transfers.

At Solar Freedom, we believe in holding these companies accountable. We've seen the damage these predatory contracts do to families, and we're here to help you fight back. We understand the stress of being trapped in a 25-year commitment that isn't delivering what was promised. Our team has the experience and the resources to take on the biggest names in solar finance.