Energy Department cancels $3 billion solar loan guarantee with Houston-based Sunnova Energy

Claire Hao | Source: Houston Chronicle | Posted 06/02/2025

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The Trump administration's Department of Energy has canceled most of its $3 billion partial loan guarantee with Houston-based Sunnova Energy, the once-mighty rooftop solar company now struggling to avoid bankruptcy.

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The U.S. Department of Energy has canceled a $3 billion loan guarantee with Sunnova Energy, a Houston-based rooftop solar company facing financial difficulties. This cancellation effectively ends Project Hestia, which aimed to make solar energy more accessible to low-income communities and residents of Puerto Rico. Sunnova initiated the cancellation, stating it no longer planned to utilize the program, which had been touted as the largest federal commitment to solar energy.

The decision aligns with the Trump administration's broader efforts to roll back support for clean energy initiatives established under the Biden administration. Critics have raised concerns about Sunnova's suitability for the program, citing a history of consumer complaints. Despite the cancellation, experts indicate that taxpayer dollars are not at risk, as the loan guarantee was structured to only require government payouts in extreme financial crises. Sunnova's struggles reflect broader challenges in the residential solar industry, including high interest rates and reduced state subsidies.

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Energy Department cancels $3 billion solar loan guarantee with Houston-based Sunnova Energy

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