WASHINGTON (Reuters) -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 Wednesday.
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 22 cents 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.
(Reporting by Jasper Ward, Timothy Gardner and Nichola Groom; Editing by David Gregorio)
