Released June 11, 2025 | SUGAR LAND
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Written by Daniel Graeber for Industrial Info Resources (Sugar Land, Texas)--Ostensibly to support shareholder value, U.S. rooftop-solar energy company Sunnova (Houston, Texas) announced it was filing for bankruptcy.
"Today's actions mark a critical step towards securing a value-maximizing outcome for Sunnova's stakeholders," Paul Mathews, the chief executive officer of Sunnova, said late Monday.
The company said it was filing for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. Sunnova said it aims to sell off some of its assets in a court-supervised process, with completion expected in about 45 days.
The company in March said it didn't have enough cash flow to meet its obligations for another year without reconsidering its investment commitments or refinancing. Management at the time said it was unlikely that they would be able to continue for long with existing corporate plans.
"Therefore, substantial doubt exists regarding our ability to continue as a going concern for a period of at least one year from the date we issue our consolidated financial statements," a March statement read.
According to its website, the company provides products and services in all but nine states.
News reports indicate Sunnova has laid off 718 employees, which is about 55% of its former workforce.
The company recorded a net loss over fiscal years 2023 and 2024. While making no reference to the political climate, the bankruptcy filing may be telling about the fate of the domestic industry.
Natural gas accounts for the bulk of the electricity on the U.S. grid, though renewables had been catching up. The U.S. Department of Energy estimates that solar power posted the largest increase in its power generation forecast, with year-on-year gains of 35% expected in 2025.
That drops off to 18% to 2026, however. A pro-fossil fuels leader, U.S. President Donald Trump has leaned heavily on incentivizing the oil and gas industry during his second term in office. On the campaign trail, he pledged to cancel any funding leftover from his predecessor Joe Biden's signature Inflation Reduction Act, including support for renewable energy programs.
A $3 billion loan guarantee for Sunnova from the Biden administration was canceled by Trump in late May. The Trump administration has said many of Biden's spending policies were "radical" and "wasteful."
Elsewhere, the federal government used an emergency order to keep the 60-year-old J.H. Campbell coal-fired plant running in Michigan, citing the risk of high demand this summer.
For more information, see May 28, 2025, article - Federal Order Keeps 60-Year-Old Michigan Coal Plant Running.
The Republican Party, of which Trump is a member, has long been critical of the renewable energy sector. During Barack Obama's tenure as president, from 2009 to 2017, his Republican opponents blasted a federal loan for solar energy company Solyndra, which eventually collapsed under bankruptcy.
More recently, legislators in Texas recently failed to pass a measure that would have thrown up more roadblocks for renewable power.
Meanwhile, Mathews at Sunnova said the company would continue servicing its existing customers during the bankruptcy proceedings.
"We have built an innovative power provider, and I continue to believe deeply in the future of our industry and the promise of residential solar and storage," he said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
"Today's actions mark a critical step towards securing a value-maximizing outcome for Sunnova's stakeholders," Paul Mathews, the chief executive officer of Sunnova, said late Monday.
The company said it was filing for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the Southern District of Texas. Sunnova said it aims to sell off some of its assets in a court-supervised process, with completion expected in about 45 days.
The company in March said it didn't have enough cash flow to meet its obligations for another year without reconsidering its investment commitments or refinancing. Management at the time said it was unlikely that they would be able to continue for long with existing corporate plans.
"Therefore, substantial doubt exists regarding our ability to continue as a going concern for a period of at least one year from the date we issue our consolidated financial statements," a March statement read.
According to its website, the company provides products and services in all but nine states.
News reports indicate Sunnova has laid off 718 employees, which is about 55% of its former workforce.
The company recorded a net loss over fiscal years 2023 and 2024. While making no reference to the political climate, the bankruptcy filing may be telling about the fate of the domestic industry.
Natural gas accounts for the bulk of the electricity on the U.S. grid, though renewables had been catching up. The U.S. Department of Energy estimates that solar power posted the largest increase in its power generation forecast, with year-on-year gains of 35% expected in 2025.
That drops off to 18% to 2026, however. A pro-fossil fuels leader, U.S. President Donald Trump has leaned heavily on incentivizing the oil and gas industry during his second term in office. On the campaign trail, he pledged to cancel any funding leftover from his predecessor Joe Biden's signature Inflation Reduction Act, including support for renewable energy programs.
A $3 billion loan guarantee for Sunnova from the Biden administration was canceled by Trump in late May. The Trump administration has said many of Biden's spending policies were "radical" and "wasteful."
Elsewhere, the federal government used an emergency order to keep the 60-year-old J.H. Campbell coal-fired plant running in Michigan, citing the risk of high demand this summer.
For more information, see May 28, 2025, article - Federal Order Keeps 60-Year-Old Michigan Coal Plant Running.
The Republican Party, of which Trump is a member, has long been critical of the renewable energy sector. During Barack Obama's tenure as president, from 2009 to 2017, his Republican opponents blasted a federal loan for solar energy company Solyndra, which eventually collapsed under bankruptcy.
More recently, legislators in Texas recently failed to pass a measure that would have thrown up more roadblocks for renewable power.
Meanwhile, Mathews at Sunnova said the company would continue servicing its existing customers during the bankruptcy proceedings.
"We have built an innovative power provider, and I continue to believe deeply in the future of our industry and the promise of residential solar and storage," he said.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
