Shares of the Biden administration-backed Sunnova Energy International Inc. plummeted over 50% after the green energy company announced substantial doubt that it could stay in business on Monday. [emphasis, links added]
Barron’s reported that the company’s stock crashed by 64%, down to 60 cents per share, after Sunnova wrote in a statement that its “unrestricted cash, cash flows from operating activities and availability and commitments under existing financing agreements are not sufficient to meet obligations and fund operations.”
Sunnova also announced that “substantial doubt exists regarding our ability to continue as a going concern for at least one year from the date we issue our consolidated financial statements.”
The Houston-based company is known for providing several energy services, including solar panels and EV chargers.
The company marketed renewable energy as a reliable and superior source. “Life is unpredictable. Your power shouldn’t be,” the struggling power company’s website reads.
The Washington Free Beacon reported that the Biden administration awarded Sunnova a $3 billion partial loan guarantee in 2023, which it dubbed “the largest federal loan to a solar company in history.”
The Beacon also noted that the company has been accused of scamming dementia patients into signing on decades-long solar panel leases.
“The fourth quarter of 2024 was a challenging time for our industry,” John Berger, Sunnova’s chief executive officer, told Bloomberg. “Stubbornly high interest rates, along with regulatory and political uncertainties, made both consumers and capital providers more cautious.”
Congress and the Trump administration announced plans to cut the tax credits that Sunnova was counting on, according to Bloomberg.
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