The loan agreement from the Energy Department’s Loan Programs Office was to support Project Hestia, a model that Sunnova has since moved away from in favor of power purchase agreements.
The Department of Energy (DOE) reportedly terminated a $3 billion loan guarantee awarded to Sunnova Energy, a residential energy-as-a-service provider.
The partial loan guarantee agreement made by the DOE’s Loan Programs Office in September 2023 was intended to support loans originated by Sunnova under its Project Hestia.
Project Hestia offered loans designed to help people access solar and virtual power plant (VPP) services in disadvantaged communities. However, Sunnova has moved away from this loan model in favor of power purchase agreements.
According to a Bloomberg report, Sunnova had used about $371 million of the government loan guarantee.
Sunnova has been in a downturn for more than a year, and announced it was laying off 15% of its workforce in February 2024. Three months ago the company’s future was in question following the company’s fourth quarter earnings and announcement that its cash flow is not sufficient to meet obligations and fund operations, A week later its CEO stepped down and Paul Mathews was named new president and CEO. Soon thereafter, Oaktree Capital Management, a global investment firm, bought roughly $400 million of Sunnova’s $8.5 billion in debt .
In April Sunnova reported it was engaged in discussions with stakeholders regarding plans to reduce debt and strengthen finances. Sunnova also said it is electing to enter into the 30-day grace period related to the interest payment due on April 1, 2025 on notes issued by Sunnova Energy Corporation. Sunnova said the grace period does not constitute an “Event of Default” under the indenture, and that it supports efforts to “preserve liquidity and enhance financial flexibility, while it continues constructive discussions with key financial stakeholders regarding solutions to strengthen its capital structure.”
The company named Robyn Liska as interim chief financial officer (CFO) effective Mar. 31, 2025, succeeding Eric M. Williams, who stepped down as executive vice president and CFO. Liska works alongside Paul Mathews, who is charged with implementing a $70 million cost reduction initiative, refinancing certain of its obligations due during the look-forward period and simplifying operations to better serve “high-margin” customers.
In what appears to be part of the effort to “preserve liquidity,” on April 28 the company opened an auction to unload an estimated $17 million worth of mostly energy storage hardware.
