U.S.-based solar solutions provider PosiGen has filed proceedings under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas.

The company reported assets and liabilities of $100 million to $500 million, respectively. PosiGen’s filing indicates that it has funds available for distribution to unsecured creditors.

It stated that the current U.S. administration’s cuts to solar energy tax credits and subsidies had affected its cash flow. PosiGen had initially focused on scaling development capacity. However, the company’s $600 million first-lien credit facility was fully drawn by July 2025, and lenders were unwilling to commit additional capital.

In its filing, PosiGen stated that the lack of accessible government financing programs also hampered its ability to fund new solar system construction projects.

Recently, Brookfield Asset Management, PosiGen’s primary financial backer, served foreclosure notices communicating its intent to seize equity pledges on tax equity partnerships. This represents roughly 30,000 of the company’s 40,000 customers.

The transition plan discussed transferring the seized assets to Omnidian. This would leave PosiGen’s remaining 10,000 customers and associated liabilities and would provide no funding for a Chapter 11 process.

After the foreclosure plan was issued, PosiGen’s board determined that a court-supervised process was necessary and rejected the plan.

The Chapter 11 process aims to centralize disputes, halt litigation, and maximize value for stakeholders by keeping the servicing platform and development assets intact for a potential transaction.

Multiple renewable energy companies in the U.S. have filed for bankruptcy this year.

Recently, solar and storage solutions company Pine Gate Renewables filed proceedings under Chapter 11 in the U.S. Bankruptcy Court for the Southern District of Texas and will pursue plans to sell its assets.

In June this year, Meyer Burger and its subsidiaries and debtor affiliates in the U.S. filed for Chapter 11 protection in Delaware.

In the same month, U.S. residential solar fintech and energy-efficient home improvement platform Solar Mosaic filed for relief under Chapter 11 of the U.S. Bankruptcy Code in Texas.

In August, the U.S. Treasury Department announced new rules limiting how wind and solar companies can claim federal tax breaks.

In July, President Donald Trump signed an executive order directing the Secretary of the Treasury to terminate the clean electricity production and investment tax credits for wind and solar facilities and implement the enhanced foreign entity of concern restrictions identified in the ‘One Big Beautiful Bill’ Act.