Another Gut Punch Hits the Home Solar Business

Home solar marketing giant Sunnova Energy International Inc. filed for Chapter 11 bankruptcy on June 9 in a Texas court. It’s a big mess that says a lot about the shaky ground the residential solar industry’s standing on, a warning sign for an overhyped sector based largely on unsustainable business models dependent on seeking government rents.

Here are the details, as reported by Reuters and other media platforms:

• Big Debt, Bigger Problems: Sunnova’s filing reports a big $10.67 billion debt load, with assets and liabilities both pegged between $10 billion and $50 billion. That’s less a balance sheet than it is a cry for help. Back in March, the company warned investors that it had “substantial doubt” about staying afloat. Turns out they weren’t blowing smoke.