Sunnova Energy International Inc.

Founded in 2012 and publicly traded on the New York Stock Exchange under the ticker “NOVA” beginning in 2019, Sunnova sold rooftop solar and storage systems through long‑term leases, power purchase agreements, and loans, with a heavy focus on policy‑favored markets such as California and Puerto Rico. The company received a record Department of Energy (DOE) Loan Programs Office guarantee of up to roughly $3 billion for its Project Hestia platform, marketed as serving “disadvantaged” and lower‑income communities, which critics tied directly to the Biden administration’s climate and environmental‑justice goals. The second Trump administration subsequently canceled the DOE guarantee, and Sunnova’s assets were sold to Solaris Assets LLC, with servicing of many contracts shifting to SunStrong Management. ^{1  4  2  5  6  7} After persistent losses, heavy leverage, and growing consumer‑protection concerns, Sunnova filed for Chapter 11 bankruptcy in June 2025.  ³

Background

Sunnova was founded in 2012 in Houston, Texas by energy executive William J. “John” Berger and partners who had worked in power markets and solar development. The company described its model as “energy‑as‑a‑service,” focused on residential rooftop solar systems financed through long‑term leases and power-purchase agreements that reduced up-front costs for homeowners. Sunnova used a dealer network in which independent contractors sold and installed systems under Sunnova‑branded contracts rather than employing installers directly. It expanded from Texas into all 50 states and several territories, including Puerto Rico and Guam, taking advantage of state net‑metering policies and federal incentives that promoted rooftop solar. ^{8  9}

In 2016, Sunnova received a $300 million equity investment from private‑equity firm Energy Capital Partners, which called Sunnova a leading residential solar provider. The company later acquired homebuilder Lennar’s solar business to increase access to new‑construction homes. Sunnova went public in July 2019 on the New York Stock Exchange under the ticker NOVA, reorganizing as “Sunnova Energy International Inc.” By the early 2020s, Sunnova reported more than 441,000 customer accounts and approximately 3.0 gigawatts of contracted solar capacity, and it added battery storage and “virtual power plant” offerings. ^{10  11  12  13}

After Hurricane Maria in 2017, Sunnova expanded in Puerto Rico, presenting its rooftop solar and storage products as tools for improved resilience and “energy independence.” Puerto Rico later featured in Department of Energy descriptions of Sunnova’s Project Hestia platform as a target area for financing systems in “disadvantaged communities.” At the same time, investigative reporting and Puerto Rico Energy Bureau proceedings documented customer disputes over system performance during outages and contract terms, which later contributed to national criticism of Sunnova’s consumer practices. ^{4  14  15  16}

Federal Loan Guarantees and Energy Policy

In September 2023, the Department of Energy‘s Loan Programs Office, under then-President Biden’s appointee Jigar Shah, closed on a partial loan guarantee of up to $3 billion for Sunnova’s Project Hestia, described by DOE as its largest-ever commitment to solar power. The guarantee, issued under Title 17 of the Energy Policy Act as expanded by the Inflation Reduction Act, was intended to finance residential solar and battery installations for 75,000 to 115,000 homeowners, with DOE framing the program around “disadvantaged communities,” “environmental justice,” and reducing “high energy burdens.” DOE materials projected the project would “avoid at least an estimated 7.1 million tonnes of carbon dioxide” over 25 years. ^{17  18}

Republican lawmakers opened a congressional probe shortly after the guarantee closed. Then-House Energy and Commerce Committee Chair Cathy McMorris Rodgers (R-WA) and then-Senate Energy and Natural Resources Ranking Member John Barrasso (R-WY) wrote to Shah stating they were “alarmed” by reports of Sunnova pressing “elderly homeowners in poor health to sign long-term contracts costing tens of thousands of dollars,” and cited the Better Business Bureau’s “F rating” for Sunnova. Conservative critics at the Institute for Energy Research, National Review, and Reason drew comparisons to the Obama administration’s Solyndra loan controversy. ^{19  20  21  22}

In May 2025, the Trump administration de-obligated the guarantee at $2.92 billion, part of a broader rollback of Biden-era commitments. Approximately $371 million in Sunnova bonds had been backed by the now-canceled federal commitment. ^{2  20}

Operations and Finances

Sunnova offered residential rooftop solar and battery storage through long-term leases, power-purchase agreements, and direct financing, with its equipment sold and installed by a network of independent dealers rather than company employees. At its peak in 2024, Sunnova reported more than 441,000 customer accounts and approximately 3.0 gigawatts of contracted solar capacity, with battery storage attached to roughly 34 percent of systems, up from 27 percent the prior year. ^{23  24  9}

Despite consistent revenue growth, the company reported persistent net losses throughout its public life. In 2024, Sunnova reported total revenue of $839.9 million, a 17 percent increase year-over-year, but posted a net loss of $447.8 million. Interest expense alone reached $491.2 million in 2024, a 32 percent increase from the prior year, driven by a capital structure that carried approximately $10.67 billion in total debt, including $8.9 billion in long-term debt. At the time of its June 2025 bankruptcy filing, the company held approximately $13.5 million in cash. ^{24  25}

Bankruptcy and Aftermath

In March 2025, Sunnova issued a going-concern warning and founder John Berger resigned as chairman, president, and chief executive officer; chief operating officer Paul S. Mathews was named his replacement. The company laid off more than 700 employees, representing more than 55 percent of its workforce. Sunnova and certain subsidiaries, including Sunnova TEP Developer, LLC, filed for Chapter 11 bankruptcy petitions in June 2025, in the U.S. Bankruptcy Court for the Southern District of Texas. A court-supervised sale resulted in almost all assets being acquired by Solaris Assets LLC, with SunStrong Management assuming servicing of in-service customer systems. Bloomberg Law reported that the bankruptcy deepened energy hardship for some Puerto Rico residents, who were left managing non-functioning or partially functioning systems while continuing to pay under existing contracts. ^{26  27  28  29  6  30}

Controversies and Criticism

Sunnova accumulated a large volume of consumer complaints throughout its operation, with the Better Business Bureau issuing the company an “F” rating over what it described as a pattern of deceptive sales practices, poor customer service, and maintenance failures. Congressional investigators and class-action law firms alleged that Sunnova and its dealer network targeted elderly and vulnerable homeowners with misleading pitches for long-term contracts costing tens of thousands of dollars. One widely cited case involved Terry Blythe, a Texas resident whose father, then 86 years old and suffering from dementia, was signed into a 25-year solar panel lease in 2020; Blythe described it as “the biggest ripoff I’ve ever seen.” Sunnova stated that all customers undergo a “thorough validation process” and that it does not decline agreements based on age. ^{18  31}

In Puerto Rico, the island’s Energy Bureau found that Sunnova violated disclosure rules by failing to adequately explain how systems would perform during grid outages and ordered the company to change its business practices. More than 500 customer complaints had been filed with the bureau. In 2024, shareholders filed class-action securities suits alleging Sunnova misled investors about the scope of consumer complaints and related regulatory risk. Connecticut Attorney General William Tong (D) announced a 2026 investigation into SunStrong Management’s handling of systems inherited from Sunnova, citing approximately 65 consumer complaints. ^{32  16  31  33}

Associations and Related Organizations

Sunnova’s receipt of the Project Hestia loan guarantee drew scrutiny over the company’s political connections. The Washington Free Beacon reported that Biden administration Department of Energy Loan Programs Office Director Jigar Shah had prior organizational ties to Sunnova lead independent director Anne Slaughter Andrew through the Cleantech Leaders Roundtable, a nonprofit trade organization Shah founded in 2017. Senator John Barrasso’s November 2023 ethics review request noted that Andrew was married to a former Democratic National Committee official and cited her overlapping roles as a potential conflict of interest; critics argued that political connections influenced the award of the record federal guarantee. Sunnova’s own sustainability reporting and Green Financing Framework aligned the company with ESG and “climate” investment standards, positioning it within the broader network of organizations and financial institutions promoting federal “clean energy” goals. ^{18  34  35  36}

On the corporate side, private-equity firm Energy Capital Partners provided Sunnova’s foundational $300 million equity investment in 2016 and remained a significant stakeholder through the company’s public life. Following the 2025 bankruptcy, Solaris Assets LLC acquired all Sunnova’s substantive assets through the court-supervised sale process. SunStrong Management, a weather-dependent-energy asset manager, assumed servicing of customer contracts previously held by Sunnova and other bankrupt residential solar providers including SunPower, and became the subject of a 2026 Connecticut attorney general investigation over consumer complaints tied to its handling of those inherited accounts. ^{10  6  37}

Leadership

William J. “John” Berger founded Sunnova in 2012 and worked as chairman, president, and chief executive officer until his resignation in March 2025 amid the company’s going-concern crisis. Before founding Sunnova, Berger founded SunCap Financial, a residential solar service provider, and Standard Renewable Energy, a provider and installer of weather-dependent energy products, giving him more than two decades of experience in the electric power industry. ^{7  27}

Paul S. Mathews worked as chief operating officer before being named president and chief executive officer in March 2025, leading the company through its Chapter 11 proceedings and asset sale. C. Park Shaper, a Sunnova board member since October 2015, was named chairman of the board upon Berger’s resignation. Robyn Liska was interim chief financial officer, and Ryan Omohundro was appointed chief restructuring officer in April 2025. ^{38  39}