Louisiana-based solar company PosiGen lays off hundreds, shutters most operations. Here's why.

Louisiana solar panel installer PosiGen is laying off 166 local employees and ceasing most of its operations nationwide after facing a cash crunch amid rollbacks in federal renewable energy tax credits. 

The company, which operates facilities in St. Charles and Jefferson parishes, notified state and local officials of the layoffs on Monday, saying it defaulted on a credit line and couldn’t raise the long-term capital necessary to maintain its existing headcount. 

PosiGen said an additional 92 employees in Louisiana could be laid off in the next two weeks if it can’t find additional funding or a way to sell what remains of its business. 

Founded in 2011, PosiGen specializes in marketing solar energy systems to low-income households and rode a wave of state and local solar credits that allowed it to grow quickly for much of the past decade.

But it said its ability to secure new investments, which were needed to fund recent expansions, were hampered by the passage in July of President Donald Trump’s tax and spending bill, which cancels certain renewable energy tax credits starting next year. 

The collapse of PosiGen comes as other clean energy companies struggle to adjust to the sudden changes in the tax code. 

“Companies in the renewable energy industry — from electricians, manufacturers, engineers, to installers — expanded to meet growing energy demands. Now, because of the recent federal actions they have no off ramps,” Monika Gerhart, executive director of the Gulf States Renewable Energy Industries Association, said in a statement.

PosiGen’s founder and executive chairman, Tom Neyhart, did not immediately respond to a request for comment. Calls to the numbers listed in its state filings were not returned.

PosiGen has installed nearly 30,000 solar systems in 15 states. The company’s business model heavily depends on tax credits, which allows it to partner with banks or other financial institutions to fund installation of solar panels, which are then leased to homeowners. Its primary offering is a 20-year, no money down, no escalating lease that doesn’t require a minimum credit score or income level to qualify.

In 2023, then-Treasury Secretary Janet Yellen visited PosiGen’s headquarters in St. Rose as part of a tour promoting President Joe Biden’s legislative accomplishments, including the Inflation Reduction Act, which encouraged investments in solar through the extension and expansion of renewable energy tax credits.  

Much of those tax credits were rolled back under the One Big Beautiful Bill Act, which terminates a 30% tax credit for homeowners at the end of this year and a similar credit that can be used for commercial solar installations at the end of 2027.

In December, international investment firm Brookfield Asset Management boosted its investment in PosiGen by $200 million, bringing its total investment in the company since 2023 to $600 million. That followed a $100 million round of new financing in 2022. 

According to the notice it sent to state officials, PosiGen recently experienced rapid growth “due to certain external opportunities” that put a strain on its operations.

The company said it spent its working capital on the solar projects it was already under contract to complete. In early August, the company missed an interest payment on its credit facility. 

“This all occurred in the shadow of the passage of a new federal tax law that cancelled certain federal renewable energy tax credits as of the end of 2025, adding regulatory uncertainty to the renewables industry and making it more difficult for the Company to secure financing,” John Truschinger, Posigen’s chief administrative officer, wrote in the notice.