Sunnova TEP Developer, a residential solar and energy storage developer, and subsidiary of Sunnova, filed for Chapter 11 protection in the U.S. Bankruptcy Court for the Southern District of Texas.
The company reported $100 million to $500 million in both assets and liabilities and indicates that there will be funds available for distribution to unsecured creditors. Sunnova’s shares were down nearly 9% at the close of trading on June 2.
Sunnova has been in a downturn for more than a year, and announced it was laying off 15% of its workforce in February 2024. Three months ago the company’s future was in question following the company’s fourth quarter earnings and announcement that its cash flow was not sufficient to meet obligations and fund operations.
A week later its CEO stepped down and Paul Mathews was named new president and CEO. Soon thereafter, Oaktree Capital Management, a global investment firm, bought roughly $400 million of Sunnova’s $8.5 billion in debt .
The latest blow came when the Department of Energy (DOE) reportedly terminated a $3 billion loan guarantee awarded to Sunnova Energy, a residential energy-as-a-service provider. The partial loan guarantee agreement made by the DOE’s Loan Programs Office in September 2023 was intended to support loans originated by Sunnova under its Project Hestia.
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Many customers such as myself, have been stuck with using Sunnova as our warranty provider when the installation company bails and leaves Florida or the companies flat go out of business. I see the problems of the financial issues stem from being bounced from original installer to another company if repairs are needed, then left to go back to Sunnova. I am one of those stuck being bounced from one company to the other. Ex: Trinity pulled out of Florida on Jan. 11, 2025. Systems did not get connected and repairs were not completed. So your company you trusted to complete your install now is gone. Sunnova sends out a Sub-Contractor for repairs due to be done. The Sub- Contractor. ( Castaways) really doesn’t want to do repairs, like finding leaks. You then go to Trinity, they bounce you to the Sub, sub comes out for the 2nd visit takes panels off finds the leak. Then it’s blamed on the roofers, roof is 2 yrs old. Then sub contractor NEVER cuts your system back on. Meanwhile Utility company sends you a bill for $567. Sunnova is sending invoice for now $700. This scenario is awful only because this is not my fault. It is Trinity’s fault for not completing there jobs for clients before they bailed and also left all of us with no job! Sunnova must not try to handle the issues because they have our financing…….Are you tiered after all this HELL YES. Sunnova has worked with me but this is a prime reason of having financial issues. Why should customers pay on lease/Loan if Sunnova has the warranty and sub-contractors they are sending out don’t seem to care what type of job they are having to do and are carelessly don’t cut the system back on. The customer is the looser. I want payments moved to the back of my lease and I what the companies involved to pay the 2 moths of my utilities which is now $1140. Again the problem comes with leaving customer high and dry. The other side of this is if your not going to get things right from the beginning the companies involved she have to pay the payments in question. Ultimately, Sunnova needs to take care of their customers because our warranty is with them not the installers. Oh, I am in the business and this has been a mess. If only Trinity already finished the installs in Florida before leaving us all high and dry.