Trump Administration Cancels $3 Billion Sunnova Solar Loan Guarantee

The Trump administration has canceled a partial $2.92 to $3 billion loan guarantee originally awarded to Sunnova Energy, a residential solar panel installer, reversing a commitment made under the Biden administration to support rooftop solar installations, especially for lower-income homeowners. This decision, confirmed by multiple sources, reflects the administration's strategic shift toward maximizing oil and gas production and reducing federal support for the clean energy sector. Sunnova, which has been restructuring its debt and facing financial difficulties, had already indicated it would not utilize the loan guarantee further, having used only a fraction of the funds. The Department of Energy's Loan Programs Office, which administered the loan, faces an uncertain future amid proposed budget cuts and organizational restructuring. This cancellation adds to the challenges confronting the residential solar market, including rising interest rates and increased competition from tax credit-driven leasing options. Both the Department of Energy and Sunnova have refrained from detailed comments on the cancellation and its implications.