Policy turmoil worsens rooftop solar's woes\n\nChallenging market conditions, combined with the threat of lost federal tax credits, are crushing rooftop solar companies in the U.S.\n\nWhy it matters: The U.S. residential solar market was hoping for a recovery this year but instead is now facing dramatic policy turmoil. \n\nDriving the news: Residential solar firm Sunnova filed for Chapter 11 bankruptcy Sunday, after troubled months. \n\nHome solar loan company Solar Mosaic — backed by Warburg Pincus and Affinity Partners — filed for Chapter 11 bankruptcy Friday after recently stopping new loan issuances. Jefferies has been retained to oversee the process, and Mosaic will get $45 million in possession financing from existing lenders.\n\nCatch up quick: Sunpower, Titan Solar Power, and Sunworks all filed for bankruptcy last year. \n\nThe U.S. residential solar market was hit hard by the combination of high interest rates and cuts to California's solar subsidies. U.S. home rooftop installations cratered between 2023 and 2024, according to data from the Solar Energy Industries Association.\n\nThe big picture: The Trump administration's tax bill threatens to end incentives for residential solar systems and is being debated in the Senate.\n\nSEIA downgraded its five-year residential solar outlook by 9% and is now anticipating a slight contraction in installed capacity compared to 2024. Tax uncertainties prevented Solar Mosaic from securing its latest round of funding, Bloomberg reported.\n\nYes, but: Analysts and companies are expecting long-term growth in the U.S. residential solar market as homeowners look to solar rooftops as a way to add resiliency and lower energy bills. \n\nThe rooftop solar sector has long faced a \"solar coaster\" driven by policy and trade fluctuations. The boom in the U.S. residential solar market between 2020 and 2023 was also \"not sustainable,\" McKinsey points out.\n\nWhat's next: If President Trump's tax bill succeeds in slashing rooftop solar's tax incentives, expect even more turmoil.

Rooftop solar firms are hit by market and policy storm

U.S. rooftop solar companies face severe challenges due to policy turmoil and market conditions, including threats of lost federal tax credits. Major firms like Sunnova and Solar Mosaic have filed for bankruptcy, while industry analysts warn of long-term sustainability issues despite potential future growth.