Do you get sick of hearing “climate change” every day? Me too.
Whether the reason you can’t stand the term anymore is that you are one of the people believing it is all a big conspiracy theory or just because of the aggressive and kind of pathetic environmental activists’ actions, it doesn’t really matter.
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I mean, what kind of good does it do throwing soup at such a masterpiece as the Mona Lisa? I would bow in front of that painting. Also, how would that action actually help the environment?
Do they really think that such a disgraceful act would entice more people to join them in their ecological efforts? I think not.
Then, there are also those celebrities who constantly talk about climate change and donate a lot of money to the cause but then travel in their personal jets on a whim.
However, there are actually people, organizations, and companies that are doing the right things and doing the real work to save our planet. And yes, our planet actually needs our help to recover after we have driven it nearly to the end of the road.
Unfortunately, many green companies are having trouble surviving, as they are facing high interest rates, delayed tax credits, and challenges to secure funding. Recently, another solar company filed for bankruptcy.
Sunnova Energy has been grappling with severe financial difficulties.
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Sunnova Energy’s recent financial troubles
Sunova Energy (NOVA) is a publicly traded solar solutions provider with a market capitalization of around $26 million. The Houston, Texas-based company, founded in 2012, offers solar panel installations, battery storage, and related services to homeowners and businesses. It is considered one of the largest residential-solar companies in the U.S.
As of December 31, 2024, it operated a fleet of residential solar energy systems with a generation capacity of around 2,892 megawatts serving more than 441,000 customers across the U.S.
However, the company has been dealing with many challenges in the rooftop market, and it has suffered heavy net losses in recent years. The last few months revealed that the company is having serious financial troubles.
In February, the company laid off 15% of its workforce to save $35 million. Then, in March, the company informed investors that it may run out of money in the next 12 months.
Following the going concern announcement, in May, the US administration amended a $2.92 billion partial loan guarantee for Sunnova Energy, reducing the amount to $371.6 million.
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In the most recent news, one of Sunnova’s subsidiaries has gone bankrupt.
Sunnova subsidiary files for Chapter 11 bankruptcy
On June 1, Sunnova TEP Developer LLC, one of around 40 Sunnova Energy subsidiaries, filed for Chapter 11 bankruptcy in the Southern District of Texas, as reported in Solar Power World.
The company disclosed $100 million to $500 million in both assets and liabilities and indicated that there will be funds to distribute to unsecured creditors.
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According to the Chapter 11 filing, Sunnova’s board was already considering new strategies, including a possible sale, even before the filing, reports the USA Herald. The parent company formed a special committee to assess potential conflicts that could arise from any such transaction.
Sunnova is not the only solar company struggling in the challenging environment for the TPO market. Some of the major solar contractors that went bankrupt over the last couple of years include SunPower, Pink Energy, MC Solar, Harness Power, ASA, NM Solar Group, Erus Energy, Kuubix Energy, ADT Solar, Suntuity Renewables, Vision Solar, Solcius, Sunworks, Kayo Energy, Titan Solar Power, and many more.
As if the high interest rates aren’t enough, the solar companies might get another huge blow if the current budget bill debated in the Senate is passed. The bill would prohibit solar leasing companies from collecting the investment tax credit.
Year-to-date, Sunnova stock is down 84.91% trading at 20 cents per share.
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