At Prevost Law Firm, we stay ahead of solar industry developments that may impact homeowners. Especially those misled by aggressive or deceptive solar panel sales tactics.
Sunnova Energy, one of the nation’s largest residential solar providers, has filed for Chapter 11 bankruptcy.
The Houston-based company filed for bankruptcy in June 2025, just days after laying off more than half its workforce and disclosing its inability to maintain financial stability. Sunnova’s goal is to sell “all or substantially all” of its assets through the court-supervised bankruptcy process in an attempt to return value to stakeholders.
What Led to Sunnova’s Collapse?
Sunnova was once a rising star in the clean energy sector, offering solar and battery storage systems to homeowners across the country. But a combination of market pressures, including high interest rates, the rollback of state incentives, tariff challenges, and the possible elimination of federal tax credits, has rocked the residential solar industry as a whole.
Sunnova was especially vulnerable due to its business model and financial structure.
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Relying heavily on third-party dealers instead of in-house sales teams helped the company scale quickly, but also made it dependent on others to uphold ethical sales practices and maintain consumer trust.
In recent years, allegations of misleading sales tactics and poor-quality installations from these dealers further damaged the company’s reputation.
As of the filing, Sunnova reported approximately $8.9 billion in long-term debt and just $13.5 million in cash, underscoring the severity of its financial situation.
What Happens to Homeowners Now?
Despite the bankruptcy filing, Sunnova has stated it will continue servicing its existing customers’ solar and battery systems.
However, the future remains uncertain.
For homeowners who financed solar systems through Sunnova or its partners, and especially those who now face issues with performance, billing, or misrepresentation, the bankruptcy may affect how and when claims can be resolved. It may also limit the company’s ability to address service or warranty issues going forward.
At Prevost Law Firm, we have helped thousands of homeowners across the country take legal action against solar companies that use fraudulent sales tactics, bury misleading loan terms in paperwork, or fail to deliver on their promises.
Prevost Law Firm’s Stance on Sunnova’s Bankruptcy
Sunnova’s recent bankruptcy filing triggers an automatic pause on legal proceedings in many of our clients’ cases. Until the court appoints a trustee and outlines next steps, no legal action can be taken against Sunnova.
We understand how discouraging this delay may feel, but we believe it could ultimately benefit homeowners.
As our head attorney Neal Prevost explains:
“No one wants a delay, but this may actually work in your favor. Bankruptcy puts everything on the table, and while it slows things down, it may create new legal options we can pursue on your behalf.”
Our legal team is actively monitoring the bankruptcy process and preparing for multiple outcomes. We remain fully committed to protecting our clients’ rights and will continue to provide updates as the situation unfolds.
What You Can Do
If you signed a contract with Sunnova or believe you were misled by a solar sales company, you may still have legal options, even during bankruptcy proceedings.
Depending on your situation, you may be able to pursue a claim against the lender or installer involved in your contract.
We offer no-cost claim reviews to help you understand your rights. Our team is experienced in navigating complex cases involving bankrupt or insolvent companies, and we’re committed to helping homeowners pursue justice and financial relief.
Don’t wait to find out if your contract is enforceable or if you have legal recourse.
Click here to schedule your free case review with Prevost Law Firm.
