PosiGen, a primary solar power developer, has announced the shutdown of most U.S. operations and initiated significant layoffs across multiple states due to recent federal policy changes and financial hardships.
The main reason for PosiGen’s problems is that the federal government recently ended key solar tax credits. A new law passed by Congress in 2025 means the critical 30% solar tax credit will disappear at the end of this year.
PosiGen’s CEO, Peter Shaper, explained in a letter: “PosiGen is experiencing significant financial difficulties and is therefore required to cease most of its operations throughout the United States, effective immediately.” These credits were essential for PosiGen’s leasing business model, making solar affordable for families with no upfront payment or credit check.
One industry observer said, “The cancellation of a 30% credit for homeowners… has made it more difficult for the company to secure financing.”
After federal incentives helped solar companies grow, the sudden change left PosiGen and others short on cash and unsure about the future.
Layoffs and Operational Shutdowns Across the U.S.
PosiGen’s shutdown affects many states, with offices closing and large-scale layoffs in Connecticut, Pennsylvania, Louisiana, New Jersey, Massachusetts, Rhode Island, and Mississippi.
In Connecticut, 78 workers lost their jobs, and the company might close all its locations if funding isn’t found soon. One laid-off employee shared, “Hundreds of employees, including myself, were laid off with little warning. Contractors and partners were left unpaid. Families who trusted our mission of ‘Solar for All’ were left in limbo.”
Similar layoffs hit Louisiana, with at least 166 jobs lost, and the company warned that more could come. “For weeks afterward, employees were told to keep reassuring partners that payments were coming, even as the company knew the money was gone. That decision didn’t just endanger relationships—it destroyed trust and credibility that had taken years to build,” said another former employee.
Ripple Effects and Industry Concerns
The effects of PosiGen’s collapse are felt far beyond just the workers who lost their jobs. Community leaders and state officials worry that ending federal support for solar power will hurt the clean energy industry, threaten all the recent job gains, and slow down efforts to fight climate change.
PosiGen’s official notice explained, “The company has now determined that it cannot secure sufficient capital to continue most of its operations and avoid the need for significant headcount reduction.”
Mission-driven organizations are scrambling: “…federal policies are squeezing renewable energy companies to the breaking point. Mission-driven organizations like PosiGen can’t survive on slogans alone when political headwinds and financing realities are ignored,” said a former employee, reflecting on the broader lesson for solar power companies.
Customer stories echo the concern. One PosiGen customer, Cambridge Raynor, told WHYY: “My question to them was, ‘What happens to us now? Do our bills go up? Does something change for our service? What happens if you guys throw in the towel? What happens with these panels? What happens with all this equipment attached to my house?”
She added, “PosiGen was a move in a better direction of more sustainable energy, where we are less reliant on imported energy. And now, just like that, it’s gone.”
PosiGen’s shutdown is a stark example of how fast-changing regulatory climates and financial realities can reshape the future of sustainable energy in America.