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Sunnova files for bankruptcy on residential solar woes
Sunnova files for bankruptcy on residential solar woes

CNBC

time14 hours ago

  • Business
  • CNBC

Sunnova files for bankruptcy on residential solar woes

Sunnova Energy said on Sunday it had filed for Chapter 11 bankruptcy protection in the United States, as the residential solar panel installer buckled under the pressure of mounting debt and weakening demand. Shares were down 36.4% at 14 cents in premarket trading. Sunnova filed for protection in the Bankruptcy Court for the Southern District of Texas after warning in March that it might not be able to continue as a going concern. The company listed its estimated assets and liabilities in the range of $10 billion to $50 billion and has a total debt of $10.67 billion as of December 31, according to a court filing. Sunnova said last week it would lay off about 55% of its workforce, or 718 employees, in a bid to cut spending. Earlier this month, its unit, Sunnova TEP Developer, had also filed for Chapter 11 bankruptcy protection. The company's bankruptcy filing comes at a time when the U.S. residential solar energy industry is under immense pressure from higher interest rates; a reduction in incentives in the top market, California; and fears of subsidy rollbacks for clean energy. President Donald Trump's administration, which is pushing to maximize oil and gas production, canceled a partial loan guarantee of $2.92 billion last month that was awarded to Sunnova by the Biden administration. Last year, peer SunPower, once a pioneer of the U.S. residential solar market, also collapsed following a subpoena from the U.S. Securities and Exchange Commission about its accounting practices and the departure of its CEO. Companies that put solar panels on U.S. homes said last month a Republican budget bill that has advanced in Congress could deal a massive blow to the industry by eliminating a generous subsidy for homeowners that had buttressed the industry's growth.

Sunnova Energy to cut 55% of workforce amid financial restructure
Sunnova Energy to cut 55% of workforce amid financial restructure

Yahoo

time14 hours ago

  • Business
  • Yahoo

Sunnova Energy to cut 55% of workforce amid financial restructure

US-based solar energy company Sunnova Energy has announced a workforce reduction, laying off 55% of its employees - 718 individuals - as reported by Reuters. The move is part of a broader effort to curb spending as the residential solar panel installer contends with a debt burden and waning demand. The company is currently undergoing debt restructuring and indicated in March 2025 the possibility of not being able to sustain its operations. The layoffs come without detailed disclosure of the associated costs. In a recent setback, the US administration under President Donald Trump revoked a partial loan guarantee of $2.92bn granted to Sunnova by the preceding Biden administration. Adding to the company's challenges, Sunnova TEP Developer, a subsidiary, filed for Chapter 11 bankruptcy protection at the beginning of June 2025. These developments occur amidst a period of significant strain for the US residential solar energy sector, which is facing multiple headwinds: rising interest rates, scaled-back incentives in the key Californian market and the looming threat of green energy subsidy cuts. In May 2025, industry stakeholders expressed concern over a Republican budget bill in Congress that could severely impact the sector by eliminating a key homeowner subsidy that has supported industry expansion. Sunnova reported a revenue increase to $840m for the full year 2024, marking a 17% rise from the previous year. The company also recorded principal proceeds of $191m. As part of its cost-saving measures, Sunnova has streamlined operations by reducing its headcount by more than 15%. This contributes approximately $35m towards estimated total annual cash savings of $70m. "Sunnova Energy to cut 55% of workforce amid financial restructure" was originally created and published by Power Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.

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