Solar developer PosiGen is shutting down most of its operations in the U.S., including in Connecticut where it has cut 78 jobs.
The move comes after Congress removed most federal tax credits for solar installations at the urging of the Trump administration.
PosiGen says that the cancellation of a 30% credit for homeowners, which will now expire at the end of 2025, has made it more difficult for the company to secure financing.
The company has laid off 78 employees at its facilities located in Shelton, Danbury and Wethersfield. It says it will keep the facilities open in the short term as it seeks financing to remain in business or pursues a sale. Eight employees have been retained to staff the Connecticut locations, but they will also be laid off if the company cannot find a resolution by Sept. 13, 2025.
PosiGen said it had been experiencing rapid growth in recent years as the demand for solar increased, and that growth challenged the company’s liquidity. The company’s main business is in leased solar installations for low- to moderate-income households.
It has run a partnership with the Connecticut Green Bank, called Solar for All, since 2015.
The Inflation Reduction Act of 2022, passed under former President Joe Biden, extended tax breaks for homeowners and businesses installing solar and other renewable energy sources through 2032. But the Big Beautiful Bill passed in the most recent session reverses that.
It also imposes new restrictions on clean energy tax credits for “foreign entities of concern,” which affects companies that use solar components made in China.
“The company was forced to use its working capital to advance toward completion of the solar systems it is obligated to complete, and quickly found itself in a precarious liquidity position,” John Truschinger, the company’s chief administrative officer said in a letter sent to municipalities where the company has facilities. “Ultimately, the company’s efforts to raise long-term capital, including through a possible asset securitization transaction, failed.”
In June, Louisiana-based PosiGen urged Senators to amend the bill’s treatment of tax credits, saying it would have devastating consequences on domestic energy production and energy costs.
“We’ve helped tens of thousands of working class families save on their energy costs with rooftop solar leasing—without requiring high credit scores, high incomes, or upfront costs,” said Tom Neyhart, founder of PosiGen before the passage of the bill. “Immediately eliminating the energy credits in the way that the House bill does would punish businesses, increase energy costs, and shut out the very families who need this support the most.”
