Green Dominoes Fall: Sunnova Files For Bankruptcy After SunPower’s Collapse

Sunnova Energy International Inc. has become the second major publicly traded rooftop solar firm to file for bankruptcy within a year following SunPower’s collapse in August 2024. The bankruptcy filing in Texas underscores the mounting pressure across the green energy space, as the recent Republican-led budget bill passed by Congress includes provisions to eliminate subsidies for solar companies. 

Shares of Sunnova crashed 30% in premarket trading after the company filed for bankruptcy in Texas on Sunday, listing between $10 billion and $50 billion in liabilities and assets. The filing follows earlier warnings about its deteriorating capital structure amid ongoing negotiations with creditors.

Last month, the Trump administration terminated a $3 billion federal loan guarantee program for Sunnova, of which the company had drawn roughly $371 million. The guarantee was part of the Biden-Harris regime’s broader push for green energy, aimed at accelerating the adoption of clean technology in response to what Democrats claim is an imminent “climate crisis.” Their solution? Tax humanity more and buy clean tech—much of it sourced from China. Nothing suspicious here…

Sunnova warned that weakening demand for rooftop panels has been a combination of “stubbornly high interest rates, along with regulatory and political uncertainties” in recent years. 

Ahead of the filing, Sunnova announced last week that it would lay off about 55% of its workforce, or 718 employees, to reduce expenses and begin restructuring efforts.

A last-minute tweak in President Trump’s “Big Beautiful Bill,” passed by Congress last month, would eliminate subsidies for solar leasing companies, making rooftop systems less affordable and presumably shrinking demand if the BBB is passed.

According to energy research firm Wood Mackenzie, if the BBB is passed, this would result in as much as 40% less residential solar capacity being installed over the next five years. 

The takeaway isn’t just Sunnova’s bankruptcy—it’s the broader understanding that the rooftop solar installation industry is in serious trouble. For those eyeing jobs or new ventures in the space, it’s probably wise to head to the sidelines until there’s more clarity on BBB and its potential impact on clean energy subsidies.