Major US Solar Company Files for Bankruptcy Protection

The administration had earlier canceled a loan guarantee for the enterprise.

The logo of Sunnova Energy International Inc. on a screen during the company's IPO on the floor of the New York Stock Exchange in New York City on July 25, 2019. Brendan McDermid/Reuters

Sunnova Energy International Inc., one of the largest solar companies in the United States, filed for Chapter 11 relief to facilitate a sale process for some of the business’s assets and operations, according to a June 9 statement from the company.

Founded in 2012, Houston-based Sunnova has more than 2,000 dealers serving roughly 441,000 customers across 51 states and territories of the United States. Its main products are solar panels and batteries. The company has announced asset sales to Atlas SP Partners and Lennar Homes LLC to secure new capital to support operations.

According to a June 10 Securities and Exchange Commission notice, the New York Stock Exchange has commenced delisting Sunnova stock and suspended its trading. The company started the year trading at over $4, but by March, it had lost most of its value.

The current Trump administration’s shift in focus from energy sources like solar and wind toward more conventional sources like oil, coal, and nuclear could be contributing to the challenges facing companies in the renewable energy sector.

At the end of May, the administration canceled a partial loan guarantee of $2.92 billion awarded to Sunnova.

In 2023, the Department of Energy under the Biden administration guaranteed a $3 billion partial loan to Sunnova’s Project Hestia, which aimed to install rooftop solar and battery storage solutions across residences in Houston, Texas, and Orocovis, Puerto Rico.

Sunnova had plans to expand operations based on President Joe Biden’s Inflation Reduction Act (IRA) tax incentives for homeowners.

The IRA had modified the Residential Clean Energy Credit to increase tax credits available to individual taxpayers who installed solar, wind, geothermal, biomass, or fuel cell technology, from 26 percent of the cost of the installed system to 30 percent.

Under the One Big Beautiful Bill Act, which narrowly passed the House vote on May 22, there are provisions to terminate incentives in the renewable energy sector.

The Residential Clean Energy Credit, earlier planned to expire between 2032 to 2034, is now slated to expire by the end of 2025.

The new bill also seeks to accelerate the termination of the advanced manufacturing tax credit for wind and solar energy components.

Curbing Renewable Energy

Before Sunnova’s announcement, California-based fintech company Solar Mosaic had filed for bankruptcy on June 8. Mosaic is an online lending platform that has “funded $15 billion in loans to date, helping more than 500,000 households make their homes more sustainable and efficient,” according to a company statement.

Both Sunnova and Solar Mosaic will remain operational without disruption throughout the Chapter 11 process.

Macroeconomic challenges, ranging from high interest rates and the federal administration’s shifting energy priorities, may have contributed to the decline in these companies’ outlooks and the feasibility of their future performance.

According to the Energy Information Administration, roughly 60 percent of electricity generation in the United States in 2023 came from fossil fuels—coal, natural gas, and petroleum—21 percent from renewable sources, and 19 percent from nuclear.

“By 2025, domestic solar energy generation is expected to increase by 75 percent, and wind by 11 percent,” the Department of Energy said.

Based on a recent analysis by renewables advocate E2, there have been major disruptions to the sector since the start of 2025.

“10,000 new jobs cancelled since January alone; more losses expected if Senate approves ‘One Big Beautiful Bill Act,’” the May 29 report reads. Companies have canceled $4.5 billion in investments in new battery, electric vehicle, and wind projects, anticipating the impact of the bill.

Citing project cancellations and ongoing business uncertainties, a group of 13 House Republicans sent a letter on June 6 asking senators to make amendments regarding the tax credit provisions in the bill.

Meanwhile, the White House touted the major wins of the One Big Beautiful Bill in a June 3 statement.

“It ends Biden’s war on American energy. The bill finally unleashes American energy dominance by opening federal lands and waters to oil, gas, coal, geothermal, and mineral leasing,” the White House stated, citing an acknowledgement from the Independent Petroleum Association of America.

The bill improves the ability of independent oil and natural gas producers to supply reliable, affordable energy to the American people, the association said.