The financially challenged residential solar company plans to auction an estimated $17 million of energy storage from Generac and other components.
Sunnova Energy, a financially distressed residential solar power company, is preparing to auction off an estimated $17 million worth of mostly energy storage hardware. Bidding opens April 28.
The auction, hosted by Silicon Valley Disposition (SVD), includes 454 lots described as “Enphase batteries, Generac batteries, current transformers, optimizers, cables, battery cabinets, transfer switches, solar panels, and assorted parts for installation.”
The bulk of the inventory appears to be Generac batteries, along with a variety of supporting components. Other manufacturers include Ecofaster, IronRidge, LG Prosolar, Qcells, REC, SolarEdge, Trina, Unirac and Verde. In total, the auctioneer lists 149,516 unique items. Of that total, products from Enphase, Generac, IronRidge, and Unirac account for more than 98%. Twenty-nine solar panels are also included.
According to a press release from the auctioneer, the portfolio is valued at $17 million. SVD notes it reserves the right to sell the entire lot to a single buyer or divide the hardware among multiple bidders.
An 18% auctioneer’s fee will be added to all sales.
Per the terms & conditions, all items are sold “as is,” with no warranties. The listing does not specify whether any manufacturer warranties can be transferred to new owners. All equipment is stored in a warehouse in Houston, Texas.
Sunnova partnered with Generac in 2022 to grow its home energy storage business. More recently, the company has shown signs of financial distress. It replaced its CEO earlier this year and laid off roughly 15% of its workforce—about 300 employees. Shortly after the layoffs, Sunnova disclosed $2.12 million in bonuses for four executives.
In March, The Wall Street Journal reported that Sunnova was preparing to meet with creditors to explore ways to reduce its $8.5 billion in debt. Options under consideration include bankruptcy or converting some near-term bonds into equity.
Sunnova’s struggles underscore a broader challenge within the third-party ownership model for residential solar. These companies invest significant capital upfront to install systems and generate revenue through monthly payments over long-term contracts, typically with 10- to 15-year return horizons. This model requires continuous volume to sustain operations, including a large payroll and financing obligations.
If that volume slows—due to rising interest rates, reduced customer demand, or policy shifts—cash flow can collapse quickly. In 2024, the residential solar segment declined by 25% to 31%, according to Ohm Analytics and Wood Mackenzie, dragging down the distributed solar market overall. As reported by pv magazine USA, the sector faced a “reckoning” last year, marked by bankruptcies and consolidation. Sunnova’s mounting financial pressures, in this context, reflect the fragility of a high-risk, capital-intensive model during a demand downturn.
