Sunnova Energy Files For Bankruptcy Amid Weak Solar Panel Demand

Sunnova Energy (NOVA), a maker of residential solar panels, has filed for Chapter 11 bankruptcy protection in the U.S.

The bankruptcy filing comes amid weak demand for residential solar panels throughout the U.S. and mounting debt levels. Sunnova’s stock is down 30% on news of the insolvency.

Sunnova filed for protection from its creditors 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 $10 billion U.S. in assets and total debt of $10.67 billion U.S., according to the court filing.

Sunnova said last week it would layoff about 55% of its workforce, or 718 employees, in a bid to cut costs.

The bankruptcy filing comes at a time when the U.S. solar industry is under pressure from high interest rates, a reduction in incentives, and fears of subsidy rollbacks for clean energy projects.

U.S. President Donald Trump’s administration is pushing to maximize oil and gas production and recently canceled a loan guarantee of $2.92 billion U.S. that was awarded to Sunnova by the previous administration of President Joe Biden.

Last year, rival SunPower collapsed following an investigation by the U.S. Securities and Exchange Commission (SEC) about its accounting practices.

Solar panel companies have warned that President Trump’s current budget bill could deal a massive blow to the industry by eliminating a generous subsidy for homeowners.

Sunnova’s stock has plunged 95% this year and currently trades at $0.22 U.S. per share.