This significant layoff marks the latest indicator of severe challenges facing Sunnova. In March, the company issued a warning expressing doubts about its ability to continue as a going concern. At the industry level, the U.S. residential solar market is under substantial pressure. Persistently high interest rates, incentive phase-outs in key state California, and broad concerns over potential reductions in green energy subsidies collectively hinder sector growth.

Sunnova’s financial strain is partly driven by shifting policy landscapes. Last month, the U.S. government revoked a $2.92 billion partial loan guarantee commitment previously awarded to the company, which restricted its financing access. Earlier this month, its subsidiary Sunnova TEP Developer LLC filed for Chapter 11 bankruptcy protection in the U.S., highlighting its liquidity crisis.