President Donald Trump's administration has canceled a partial loan guarantee of $2.92 billion that had been awarded to residential solar panel installer Sunnova Energy, the company said on May 28.
The administration, which is pushing to maximize oil and gas production, has said it is reviewing financing from the Department of Energy's Loan Programs Office to companies involved in alternative energy.
A source familiar with the matter said the DOE had "de-obligated" the loan guarantee, meaning the federal government is not responsible for the financing. Bloomberg News first reported the move.
In April 2023, former President Joe Biden's administration announced the partial loan guarantee of up to $3 billion to back financing for Sunnova's rooftop solar installations.
But Sunnova, one of the largest U.S. residential solar companies, has struggled in recent months. This year, Sunnova has said it was working to restructure debt and explore strategic alternatives for its business. The company has also warned investors it may be unable to continue as a going concern. Its shares closed at $0.22 on Wednesday.
Under Biden, the LPO aimed to speed development of the clean energy sector, with loans to companies that struggled to obtain private financing.
The office faces an uncertain future with job cuts implemented by Elon Musk's so-called Department of Government Efficiency and reductions to the LPO outlined in the House budget bill.
The Department of Energy did not immediately respond to a request for comment.
Recommended Reading
Espada E&P Startup Nabs Carnelian Backing for Onshore M&A Run
2025-06-16 - Espada Energy Partners, backed by Carnelian funds, joins a new wave of startup E&Ps hunting for M&A opportunities.
Energy Executives Plan EQV Group’s Second Blank-Check IPO
2025-06-13 - The $350 million of funds raised will go into escrow alongside the $350 million raised from EQV Group’s first SPAC IPO as the 10-month-old prospective M&A buyer has not yet done a deal.
Ex-Weatherford Chief Guns for 2nd Energy SPAC on Heels of 1st
2025-06-30 - Former Weatherford International CEO Bernard Duroc-Danner is planning Pyrophyte Acquisition Corp. II, a blank check company led and advised by a wide range of financial and energy executives including Riverstone Holdings’ co-founders.
Top US Private Producers See Opportunity in Market Volatility
2025-06-30 - Privately held oil and gas producers from Surge Energy, Northeast Natural Energy, Anschutz Exploration, Greylock Energy and Jonah Energy dish on their plans in the Delaware, Midland Appalachian basins, where they ready to pounce on M&A opportunities.
Global Energy Market Balancing, Despite Widespread Volatility
2025-06-04 - Following a series of shocks at the beginning of 2025, investor activity is approaching a more normal level, executives at BOK Financial, EIV Capital and Comerica Bank say.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.