Sunnova Energy To Layoff Over Half Its Workforce; Retail Remains Bullish

Sunnova Energy (NOVA) is set to lay off 718 employees, roughly 55% of its workforce, according to a Reuters report on Friday.

The company reportedly filed a Worker Adjustment and Retraining Notification (WARN) Act letter on May 30 notifying the state of the layoffs. The company did not disclose the cost implications or expenses related to the layoffs.

On June 1, Sunnova TEP Developer, one of nearly 40 units under the Sunnova Energy banner, filed for Chapter 11 bankruptcy protection in the Southern District of Texas. The unit disclosed estimated liabilities of $100 million to $500 million.

The company is in the middle of restructuring its debt and had warned back in March that its financial challenges could jeopardize its ability to stay in business. 

As of Dec. 31, Sunnova had a long-term net debt of $8.1 billion.

The outlook for the solar energy industry has grown increasingly uncertain, as U.S. President Donald Trump’s administration moves to expand fossil fuel production and roll back critical incentives that have supported renewable energy growth.

A Republican-led budget bill, dubbed by Trump as his “big, beautiful bill,” threatens to drive up the cost of solar power by eliminating the 30% tax credit for solar leasing companies that provide panels through monthly payment plans. 

The move is part of a broader effort to roll back clean energy incentives introduced under the Biden administration.

In May, the Trump administration canceled a $2.92 billion loan guarantee awarded to Sunnova Energy under the Biden administration.

However, retail sentiment on Stocktwits remained ‘bullish’.

One user expects the share price to double.

Shares closed up 7.94% on Friday. Year-to-date, the stock has fallen nearly 94%.