A subsidiary of Sunnova Energy, a solar solutions provider in decline, has filed for Chapter 11 bankruptcy protection in the Southern District of Texas. Sunnova TEP Developer LLC, one of about 40 subsidiaries listed under the Sunnova Energy banner, made the filing on June 1.
Sunnova mostly operates as a residential solar and storage system integrator throughout the United States. The company works with local solar installation companies to offer customers solar through third-party ownership (TPO) contracts. Customers lease their solar projects from Sunnova.
The TPO market has experienced a turbulent last few quarters due to high interest rates, and residential solar companies have felt the pinch. SunPower filed for bankruptcy in August 2024, and Sunrun has increased its focus on energy storage and ancillary EV services to weather the solarcoaster. Sunnova laid off 15% of its workforce in February 2025 to save $35 million but is still in a freefall. This week, there have been unconfirmed reports on LinkedIn of further layoffs at the company.
In Sunnova’s bankruptcy filing this week, the subsidiary listed debts between $100 million and $500 million. The petition was filed by Sunnova’s chief restructuring officer Ryan Omohundro.
Earlier in May, Sunnova disclosed that the Dept. of Energy had reduced its potential loan for solar + storage offerings in disadvantaged communities from $3 billion down to $371.6 million.
