Image: Sunnova

The U.S. Department of Energy (DOE) has significantly reduced its loan guarantee for residential solar company Sunnova, scaling it down from a previously approved US$3 billion to US$371.6 million.

According to Sunnova, the revised figure reflects the total value of partial guarantees that had already been issued in support of the company’s securitization activities. The adjustment was disclosed in a Form 8-K filing submitted to the U.S. Securities and Exchange Commission (SEC) on May 29, 2025. In the filing, the company revealed that the Loan Guarantee Agreement with the DOE had been formally amended on May 22, 2025.

Sunnova originally secured the loan guarantee from the DOE in 2023, with the intention of using the funds to expand its energy monitoring and analytics platform. At the time, the company committed to providing the DOE with monthly performance reports, including metrics on greenhouse gas emissions reductions based on customers’ use of solar panels instead of fossil fuel-generated electricity.

The downsizing comes as Sunnova faces ongoing financial challenges. The company posted a net loss of US$448 million in 2024, marking its second consecutive year of losses. Additionally, Sunnova has recently received a non-compliance notice from the New York Stock Exchange (NYSE), requiring the company to raise its stock price above the minimum listing threshold of US$1.

This development also follows closely on the heels of another DOE action: the termination of 24 project awards issued by the Office of Clean Energy Demonstrations (OCED), totaling more than US$3.7 billion in financing. These awards primarily supported carbon capture and sequestration (CCS) technologies, alongside other decarbonization efforts. However, the DOE has not disclosed the specific projects affected by the cancellations.