Sunnova Stock In Focus After US Scraps $3B Loan Guarantee, Retail’s Bearish

The company has reportedly utilized approximately $371 million of the guarantee, which was awarded during the presidency of Joe Biden.

Sunnova (NOVA) stock garnered retail attention in extended trading on Wednesday after the solar company said that the U.S. has scrapped a $2.92 billion loan guarantee awarded to the firm.

Bloomberg reported, citing the company, that the Department of Energy terminated the guarantee on Friday after Sunnova officials informed the government that it did not intend to use the rest of the facility.

The company has reportedly utilized approximately $371 million of the guarantee, which was awarded during Joe Biden’s presidency, to aid in solar installations in low-income households.

Sunnova has been grappling with higher costs due to elevated interest rates and lukewarm demand in the residential solar market, which has been impacted by the lowering of state incentives in key markets like California.

The company has recently made several top-level executive changes, including appointing a new chief executive officer and financial officer.

It has also raised concerns about its ability to continue as a going concern and is restructuring its debt. Bloomberg had reported earlier that the company could file for bankruptcy in the coming weeks.

The outlook for solar energy has dimmed over the past few weeks, as President Donald Trump’s administration has moved to revitalize fossil fuel production and cut valuable incentives for renewable energy.

Retail sentiment on Stocktwits was in the ‘bearish’ (44/100) territory, while retail chatter was ‘high.’

“This was known already, it’s already cooked in the price,” one retail trader said.

Sunnova stock has slumped nearly 94% this year.

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