Sunnova Energy will lay off 718 workers

Sunnova Energy announced on June 5, that it will lay off approximately 55% of its employees or 718 workers in an effort to reign in spending, as the residential solar panels installer struggles with a massive amount of debt and a sluggish market.

In March, the company warned that it may not be able continue to operate as a going-concern.

Sunnova has not provided details of the charges that it will incur as a result of the layoffs.

Last month, the Biden Administration, under President Donald Trump, canceled a $2.92 billion partial loan guarantee that had been awarded to Sunnova.

In the United States, Sunnova TEP Developer filed a Chapter 11 bankruptcy petition earlier this month.

This development comes as the U.S. Residential Solar Energy Industry is under enormous pressure due to higher interest rates, the reduction of incentives in California's top market, and the threat of eliminating subsidies for green energy.

Solar panel companies in the United States said that a Republican budget bill, which has been advanced by Congress, could be a major blow to their industry. It would eliminate a generous homeowner subsidy that had bolstered its growth. (Reporting and editing by Shinjini Ganuli, Pooja Dasai and Shounak Dsgupta in Bengaluru)

(source: Reuters)