The PosiGen solar lawsuits center on two main actions tied to the company’s late-2025 collapse: the Connecticut Green Bank sued to recover $22.2 million in loans and accused lender Brookfield Asset Management of engineering PosiGen’s default, and a group of PosiGen’s own nonbankrupt affiliates sued the company for allegedly diverting $10.5 million in project revenues. PosiGen filed for Chapter 11 bankruptcy on November 24, 2025, and a Brookfield subsidiary later bought most of its residential solar assets, leaving tens of thousands of low- and moderate-income homeowners with systems on their roofs and unresolved questions about service.
The Connecticut Green Bank Lawsuit Against PosiGen and Brookfield
The Connecticut Green Bank, a quasi-public agency that partnered with PosiGen between 2015 and 2021 to lease solar panels to lower-income households, filed suit in federal court in late October 2025, shortly before PosiGen’s bankruptcy. The Green Bank had extended $56.7 million in loans to PosiGen over the partnership and sought repayment of $22.2 million still outstanding.1Inside Investigator. CT Green Bank Sues Bankrupt PosiGen for $22 Million in Loans
The complaint went well beyond debt collection. The Green Bank alleged that Brookfield Asset Management had effectively engineered PosiGen’s default to seize the company’s assets. According to the complaint, Brookfield orchestrated mass layoffs of PosiGen’s operating staff while issuing limited weekly bridge loans to the financial unit where Brookfield’s own money was invested, protecting its interests while stripping value from the rest of the company.2ImpactAlpha. PosiGen Bankruptcy Highlights Solar Industry Woes and Puts Brookfield in the Hot Seat The Green Bank also alleged that Brookfield violated the parties’ credit agreement, interfered with the Green Bank’s contract with PosiGen, and carried out a fraudulent transfer of assets while PosiGen was insolvent.1Inside Investigator. CT Green Bank Sues Bankrupt PosiGen for $22 Million in Loans
The Green Bank’s position was structurally weak: its debt sat behind Brookfield’s, placing it second in line for any recovery. Brookfield rejected the claims, saying it had stepped in to provide financing to prevent a “catastrophic outcome” for all stakeholders and calling the allegations meritless.1Inside Investigator. CT Green Bank Sues Bankrupt PosiGen for $22 Million in Loans The Green Bank filed an amended complaint in December 2025 and sought an injunction, which the court denied. The case was dismissed with prejudice on February 10, 2026, following a settlement.3Paul, Weiss. Brookfield Asset Management to Acquire PosiGen Assets in Bankruptcy Sale
The Affiliate Lawsuit Over Diverted Project Revenues
On December 8, 2025, a group of PosiGen’s own nonbankrupt affiliates filed a complaint in the Texas bankruptcy court accusing the company of diverting $10.5 million in project revenues to fund its Chapter 11 case. The affiliates alleged PosiGen ran what they called an “illicit, unauthorized centralized cash collection system,” funneling revenues from individual project companies into a single bank account under PosiGen’s control instead of the segregated accounts required by their agreements.4Bloomberg Law. Bankrupt PosiGen Accused of Diverting Solar Project Cash in Suit PosiGen’s own bankruptcy filings acknowledged that its centralized cash management system did not meet the requirements of its governing documents, which mandated that lease collections be deposited in specific accounts without commingling.5Bankruptcy Court for the Southern District of Texas. PosiGen PBC, Case No. 25-90787 Declaration
How PosiGen Collapsed
Founded in New Orleans in 2011, PosiGen leased rooftop solar to low- and moderate-income homeowners, evaluating applicants on projected savings and payment history rather than credit scores. By mid-2025, it served roughly 40,000 residential customers across 15 states, including Louisiana, Connecticut, Massachusetts, New Jersey, Pennsylvania, Rhode Island, and Mississippi.6pv magazine USA. Residential Solar Installer PosiGen Files for Bankruptcy
Growth was fueled in part by $600 million in debt financing from Brookfield Asset Management beginning in 2023.7Canary Media. PosiGen Wins Another $200M for Lower-Income Rooftop Solar6pv magazine USA. Residential Solar Installer PosiGen Files for Bankruptcy8Wall Street Journal. PosiGen Files for Bankruptcy as Solar Tax Credits Roll Back
Federal policy compounded the pressure. The “Big Beautiful Bill,” signed on July 4, 2025, terminated the 30% residential solar tax credit effective January 1, 2026, cutting short a credit that had been scheduled to run through 2034 under the Inflation Reduction Act.9EnergySage. Congress Passes Bill Ending Residential Solar Tax Credit The Solar Energy Industries Association projected nearly 200,000 job losses in 2026, and multiple installers and financing companies filed for bankruptcy in the first half of the year.10Arizona Mirror. Trump’s Tax Bill Eliminates Clean Energy Incentives
Who Owns the Solar Systems Now, and What Customers Are Experiencing
The bankruptcy moved toward liquidation rather than reorganization. On February 11, 2026, the court approved a global settlement and an asset sale via credit bid to Brookfield and affiliated lenders, together with a $41 million debtor-in-possession financing facility.11Elevenflo. PosiGen PBC Bankruptcy Case The joint plan of liquidation was confirmed on February 24, 2026, and became effective two days later. Brookfield holds a majority of the beneficial interests in the litigation trust created under the plan.12Kroll. PosiGen, PBC Restructuring
A newly formed Brookfield subsidiary called Renewbrook Energy acquired the majority of PosiGen’s residential rooftop systems and related contracts, covering tens of thousands of customers across more than 15 states.13Renewbrook Energy. Renewbrook Energy Acquires a Major Portfolio of Residential Solar Systems From PosiGen Solar A smaller portion of assets went to SunStrong Management.14Solar Power World. Renewbrook Energy Acquires PosiGen’s Orphaned Residential Solar Projects Renewbrook hired Omnidian, a solar asset management firm, to handle technical support, performance monitoring, and maintenance coordination, and directed customers to a dedicated support site for information about the transition.
The transition has been rough for many homeowners. Customer comments and reviews through the first half of 2026 describe repeated difficulties: inability to reach support representatives, confusion about which entity now manages accounts, systems that stopped producing power with no one to call, billing discrepancies, and roof damage from installations that remains unrepaired.14Solar Power World. Renewbrook Energy Acquires PosiGen’s Orphaned Residential Solar Projects The Better Business Bureau lists 169 complaints against PosiGen over the past three years, with customer service issues and service or repair problems accounting for the largest categories. As of mid-2026, the BBB reports it is “unable to locate the business,” and recent complaints are classified as unpursuable.15Better Business Bureau. PosiGen Inc. BBB Complaints If your system was installed by PosiGen, current service now runs through Renewbrook and Omnidian for most customers, or SunStrong for a smaller group.
Remaining Proceedings
As of mid-2026, the PosiGen bankruptcy case remains active under Plan Administrator Ephraim Diamond. A WARN Act settlement addressing claims related to the mass layoffs that preceded the filing was approved on May 11, 2026, after a fairness hearing before Judge Christopher M. Lopez.16Kroll. PosiGen PBC Docket Information The specific terms, including the number of affected employees and the settlement amount, have not been made public in the available docket entries. The Plan Administrator continues to manage claims administration, with creditors filing motions and objections through June 2026.