Residential Solar Sector Reels as Sunnova Energy Collapses Under Debt Burden

The residential solar industry faces a watershed moment as Sunnova Energy International Inc., once a promising solar startup, has filed for Chapter 11 bankruptcy protection. The June 2025 filing marks a dramatic collapse for the company, which is now grappling with liabilities estimated between $10 billion and $50 billion. Its equity, trading under the ticker NOVAQ, has become virtually worthless, with shares plummeting to a fraction of a cent.

Sunnova’s descent into insolvency can be traced directly to the U.S. Federal Reserve’s aggressive interest rate hikes. The company’s previously viable business model, heavily reliant on government solar incentives, buckled under the weight of soaring financing costs. A debt Read more...