$3 Billion Meltdown – Dark History of Unethical Sales

A solar company that received the largest federal loan in history from the Biden administration is on the brink of collapse as Sunnova Energy shares plummeted 71% amid disturbing allegations of elderly exploitation and political favoritism.

At a Glance

• Sunnova Energy, recipient of a historic $3 billion Biden administration loan, is facing potential bankruptcy with insufficient cash to meet obligations and continue operations
• The company has lost 71% of its stock value and has cut over 15% of its workforce (300 positions) in February 2025
• Allegations have emerged that Sunnova targeted elderly dementia patients with long-term solar panel leases, with at least 50 consumer complaints filed in Texas since 2022
• The entire U.S. solar industry is experiencing its most significant turmoil since becoming mainstream, with multiple companies declaring bankruptcy in 2024

Biden’s $3 Billion Solar Gamble Unravels

Just one year after securing a $3 billion loan from the Biden administration’s Department of Energy, Sunnova Energy International Inc. is teetering on the edge of financial collapse. The company recently issued a dire warning to investors that there is “substantial doubt” about its ability to remain in business, sending its shares into freefall. This massive loan, the largest ever given to a solar company in federal history, now appears to be another example of taxpayer dollars poured into a failing green energy initiative with suspicious political connections.

The financial picture for Sunnova is bleak. Despite increasing revenue from customer agreements by 43%, solar system sales have declined by 13%. The company has lost its Better Business Bureau accreditation and was forced to slash over 300 jobs in February. Most alarmingly, Sunnova has admitted its financial resources are inadequate to sustain operations for even a single year without drastic measures such as refinancing obligations, taking on additional debt, or securing new investment commitments.

“Sunnova Energy International Inc. shares plunged 71% as the company warned there’s substantial doubt it will remain in business.”

Disturbing Allegations and Political Connections

The financial turmoil at Sunnova is compounded by serious allegations of unethical business practices. Reports indicate the company has been accused of targeting elderly Americans, including those suffering from dementia, with predatory long-term solar panel leases. At least 50 consumer complaints have been filed against Sunnova in Texas since 2022 alone. These accusations have raised serious questions about why the Biden administration approved such an enormous loan to a company with questionable business practices.

Thanks @JesseBWatters for covering my story on allegations that Sunnova Energy scammed elderly dementia patients.

Sunnova just got a $3 billion loan from the Biden admin — the largest ever federal loan to a solar company.

Read my original story here: https://t.co/cS7XLwqsjP pic.twitter.com/w0ffiDQ2Et

— Alana Goodman (@alanagoodman) December 12, 2023

Sunnova’s connections to key Biden administration officials have drawn scrutiny from Republican lawmakers who are investigating potential conflicts of interest. The DOE’s loan program has a troubled history, including the infamous Solyndra bankruptcy after receiving a $535 million loan in 2011. The DOE inspector general had previously called for the suspension of the loan program due to non-compliance with conflict-of-interest rules and fraud risk, a recommendation that was apparently ignored when Sunnova received its record-breaking $3 billion.

Industry-Wide Solar Meltdown

Sunnova is not alone in its struggles. The entire solar industry is facing what experts describe as the most significant challenges since it became mainstream over a decade ago. Multiple major players including ADT, Titan Solar, SunPower, and Lumio have either declared bankruptcy or gone out of business in 2024. First Solar Inc. has reported increasing customer delays, while Sunrun Inc. announced expectations for flat installation volumes this year instead of growth.

“While total cash increased, unrestricted cash remained relatively flat, below our estimated $100 million increase,”

The industry faces additional headwinds from new tariffs on solar manufacturers that will likely increase installation costs in 2025. Rooftop solar businesses, already challenged by high costs, continue to grapple with changing government incentives and economic pressures. For customers who have already installed Sunnova systems, the company’s potential bankruptcy raises serious questions about whether their 25-year service guarantees will be honored or if they’ll be left with expensive, non-functioning equipment on their roofs.