Solar Setback: Trump Administration Cancels $2.92 Billion Loan for Sunnova

In a significant policy shift, President Donald Trump's administration has canceled a partial loan guarantee initially awarded to the residential solar panel installer Sunnova Energy, valued at $2.92 billion. The government's move aligns with its strategic emphasis on maximizing oil and gas production.

The Department of Energy's decision to "de-obligate" the loan guarantee indicates that the federal government is relinquishing its responsibility for this financial backing, a position first reported by Bloomberg News. This decision contradicts the Biden administration's earlier commitment made in April 2023 to support Sunnova's rooftop solar installations with a partial loan guarantee of up to $3 billion.

Sunnova, one of the major players in the U.S. residential solar market, has found itself in financial difficulties, striving to restructure its debt and explore new strategic options. The company has also cautioned investors about its ability to remain operational. Meanwhile, broader clean energy support initiatives are under threat due to planned cuts by the Department of Government Efficiency and proposed reductions in House budget allocations.

(With inputs from agencies.)