PosiGen Cuts 166 Amid Solar Industry Downturn
TL/DR –
PosiGen, a Louisiana-based solar installer, has announced 166 layoffs and warned that another 92 employees could be cut within two weeks if new funding or a buyer isn’t secured. This comes after the company shut down most of its operations due to financial troubles associated with the rollback of federal solar tax credits. Industry experts warn that the downfall of PosiGen is not an isolated case – as many renewable energy firms that expanded under the tax framework of the Inflation Reduction Act now face a “credit cliff” with these incentives being rolled back, signaling potential widespread job losses and halted projects.
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PosiGen Announces Layoffs Amid Solar Industry Challenges
Solar installation company PosiGen, based in Louisiana, has reported imminent layoffs of 166 individuals in the St. Charles and Jefferson parishes. The company has also issued a warning that an additional 92 Louisiana-based employees may face job losses in the following two weeks unless new funding or a potential buyer is identified. This decision comes in the wake of financial difficulties that PosiGen links to the recent rollback of federal solar tax credits, leading to a significant reduction in its operations.
Since its establishment in 2011, PosiGen found success through the marketing of solar systems aimed at low-income households. The company’s growth was driven by state and federal incentives. At its height, PosiGen installed approximately 30,000 systems across 15 states under a 20-year lease model that didn’t require upfront payments or credit checks. It expanded rapidly following a $200 million investment from Brookfield Asset Management, bringing their total stake to $600 million since 2023. However, the company fell into vulnerability when it defaulted on a credit line in August, unable to raise long-term capital.
The financial distress comes in the aftermath of the One Big Beautiful Bill Act, which terminated the 30% Residential Clean Energy Credit in 2025 and plans to phase out the Commercial Clean Energy Investment Credit by 2027, reversing certain aspects of the 2022 Inflation Reduction Act. Treasury Secretary Janet Yellen visited PosiGen’s St. Rose headquarters in 2023, highlighting these credits as crucial to the Biden administration’s clean energy strategy.
Renewable energy businesses across the Gulf South and beyond, who flourished under the Inflation Reduction Act’s tax framework, may now face the same “credit cliff” that unravelled PosiGen. This has led to concerns about potential widespread job losses and delays in renewable energy projects.
Troy von Otnott, a local expert in solar energy and CEO of HotRok Energy, has expressed his concern at the situation, stating “This news is very bleak”. He added, “The Trump administration’s impact on the solar industry has led to mayhem. Most solar developers I know have already cut jobs and have halted work, and their future looks very bleak”. He further argues that the repercussions of these developments “betray the American worker” as they lead to job losses in various roles within the renewable energy industry.
The policy shift had particularly adverse effects on PosiGen, which already faced internal challenges. The company’s rapid expansion resulted in operational strain, with working capital getting entangled in pre-agreed projects. PosiGen missed an interest payment on its credit facility in early August and stated it was unable to attract new investment under the revised tax conditions. The company’s business model, deeply integrated with federal incentives, made it especially susceptible to sudden policy changes.
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