A major solar installer in Philly is ceasing most operations amid federal tax credit rollbacks

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A major installer of solar panels on homes in Philadelphia is shutting down most of its operations amid “significant” financial difficulties.

PosiGen, a solar installer focused on making solar accessible to homeowners of all income levels through a no-up-front-cost leasing model, laid off 49 employees in its Montgomery County office Sunday, according to a notice filed with the state, as well as 78 employees in Connecticut. The company operates in Pennsylvania, New Jersey and five other states.

PosiGen has installed roughly 2,500 of the more than 4,000 solar arrays built on homes and businesses in the Philadelphia area through Solarize Greater Philadelphia, a program run by the Philadelphia Energy Authority to connect households with vetted solar installers.

In a letter to employees obtained by WHYY News, PosiGen’s CEO cited recent rollbacks of federal tax credits for solar energy as one reason for its troubles. The “One Big Beautiful Bill” signed by President Donald Trump last month terminates a 30% tax credit for homeowners at the end of this year and a similar credit that can be used for commercial solar installations — integral to PosiGen’s current leasing model — at the end of 2027.

“[PosiGen] is experiencing significant financial difficulties and is therefore required to cease most of its operations throughout the United States, effective immediately,” Peter Shaper, PosiGen’s CEO, wrote in the letter.

A more affordable solar model struggles with Trump’s tax credit changes

PosiGen offers an alternative to traditional rooftop solar with a lower barrier to entry.

The company owns the solar panels it installs on homeowners’ roofs, leasing use of the panels — including the energy they produce — back to the customer. Homeowners make monthly lease payments to PosiGen, which are less than what they’d otherwise pay to electric utilities. PosiGen only signs leases with customers who will save money through the arrangement and does not require a minimum credit score or any up-front payment.

The company had recently experienced “rapid growth” but struggled with “liquidity,” according to the letter Shaper wrote. PosiGen was able to borrow money for the short term while it tried to solve its long-term financing issue, he wrote.

“Ultimately, the Company’s efforts to raise long term capital, including through a possible asset securitization transaction, failed,” he wrote. “This all occurred in the shadow of the passage of a new federal tax law that cancelled certain federal renewable energy tax credits as of the end of 2025, adding regulatory uncertainty to the renewables industry and making it more difficult for the Company to secure financing.”

Uncertainty for solar lease customers in the Philadelphia area

It’s not clear what impact PosiGen’s restructuring — and possible dissolution — will have on the company’s current customers, particularly any whose solar panels are not yet installed.

Cambridge Raynor, who began leasing a solar array from PosiGen on the roof of her Overbrook home a few years ago, said she was not informed by the company about its scaling back of operations. After hearing about the layoffs from WHYY on Tuesday, Raynor said she called PosiGen’s customer service line.

“My question to them was, ‘What happens to us now?’” she said. “Do our bills go up? Does something change for our service? What happens if you guys, like, throw in the towel? What happens with these panels? What happens with all of this equipment that is attached to my house?”

Raynor said a customer service representative assured her that contracts will be honored as they currently stand, with the only change being a potential delay in services such as repairs. Still, the changes at PosiGen are troubling to Raynor.

“PosiGen was a move in a better direction of more sustainable energy, where we are less reliant on imported energy,” Raynor said. “And now, just like that, it’s gone.”

PosiGen did not respond to WHYY’s requests for comment. Two former employees told WHYY News they expect another company may buy the solar panels, but the terms of customers’ leases won’t change. They requested anonymity so as not to violate any potential nondisclosure agreements.

The Philadelphia Energy Authority is committed to ensuring that’s the case.

“[Philadelphia Energy Authority] will work with our customers who have leases with PosiGen to ensure that the terms of their agreements are upheld, and will ensure the [Solarize Greater Philadelphia] Program continues uninterrupted with its other installer partners,” Katie Bartolotta, the organization’s vice president for policy and strategic partnerships, said in a written statement.

PosiGen was hailed for bringing solar to lower-income areas

PosiGen’s downfall could deal a blow to the accessibility of solar power in the Philadelphia area, since it has served households who cannot afford the upfront costs of installing solar themselves.

In a news release earlier this month, the Philadelphia Energy Authority credited PosiGen with boosting the percentage of Philly households with rooftop solar who earn low to moderate incomes above the national average.

“This progress is due in large part to the Solarize program’s expanded offerings,” the release read. “Since 2021, installer PosiGen has offered a solar leasing option, enabling homeowners of all income levels to go solar with no upfront cost and no minimum credit score.”

The Philadelphia Energy Authority and PosiGen touted the company’s model as recently as Friday, when the two held an event in West Philadelphia to promote the affordability of solar leasing, despite the federal tax credit rollbacks.

Kyle Wallace, formerly the vice president of public policy and government affairs at PosiGen, told WHYY News on Friday the tax credit PosiGen uses to reduce the up-front cost of its systems and offer an affordable lease price would continue to be available for systems placed in service by the end of 2027. After that, the company may need to raise the price of leases for new customers, he said.

“There are still solar options out there,” Wallace said. “While some of the credits are ending at the end of this year, there’s still going to be options like leasing that will make solar accessible even beyond 2025.”

Wallace said last week that PosiGen thought solar energy would continue to grow and that the company was particularly “bullish” about the opportunity presented by battery storage paired with rooftop solar.

He was laid off days later, according to a post on LinkedIn.