Sunnova Energy files for Chapter 11 bankruptcy protection

Sunnova Energy announced on Sunday that it filed for Chapter 11 bankruptcy in the United States. The residential solar panel installer is struggling with a huge debt pile and slow demand.

Sunnova, a company that is restructuring its debts, warned in March it might not be able continue to operate as a business.

According to a filing in court, the company's estimated assets and liabilities ranged from $10 billion to $50 million.

Sunnova announced last week that it would cut about 55%, or 718, of its workforce in an effort to reduce spending.

Last month, the Trump administration, which is pushing for maximum oil and gas production to be achieved, canceled a $2.92 billion partial loan guarantee that had been awarded to Sunnova during the Biden administration.

The filing comes as the U.S. Residential Solar Energy Industry is under enormous pressure due to higher interest rates, reductions in incentives in California's top market as well as the threat that green energy subsidies will be eliminated.

Last month, companies that install solar panels in U.S. homes warned that a Republican budget plan that was advanced by Congress could have a negative impact on the industry.

Massive blow to the industry

By eliminating the generous subsidies for homeowners, which had bolstered industry growth. Reporting by Tanay Christy and Angela Dhumal in Bengaluru, Editing by Shinjini Ganuli and Tasimzahid, and Saumyadeb Chkrabarty

(source: Reuters)