Without taking the interaction into account, each site could be occupied by two electrons, one with spin up and one with spin down. Due to the interaction the electrons would then feel a strong Coulomb repulsion, which Mott argued splits the band in two: The lower band is then occupied by the first electron per site, the upper by the second. If each site is only occupied by a single electron the lower band is completely filled and the upper band completely empty, the system thus a so-called Mott insulator.
https://en.wikipedia.org/wiki/Metal-insulator_transition