When you see restaurants, supermarkets, healthcare, and trucking companies going bankrupt at an alarming rate, you might wonder what chances to survive have eco-friendly and sustainable businesses.
In today’s fast-paced world, who cares about the environment, right? After all, if we did care about nature, and our life-bearing planet we wouldn’t be where we are now.
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At the same time, data shows that 72% of consumers say they purchase more green products than they did half a decade ago, and 57% of consumers are willing to change their purchasing habits to help reduce negative environmental impact, reports Business Dasher.
Indeed, there are more talks about climate change, there are more eco-friendly alternatives in the offering, and there are more scientists fighting to preserve endangered ecosystems than ever before. However, at the same time, there are even more greedy corporations having only one interest in mind: more money.
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It almost seems like the battle is lost before it has even begun. Surviving as a “green” company is hard. Fighting against plastic production, motivating people to recycle, reduce waste, oftentimes seems utopian. After all, we need a change of collective consciousness.
And that’s how another green company, this time a major solar player just went bankrupt.
Sunnova Energy, once the biggest residential solar company in the U.S., files for Chapter 11 bankruptcy.
Image source: T. Schneider via Shuttertock.com
Sunnova Energy files for Chapter 11 amid rising debts
Sunnova Energy NOVA is perhaps the biggest residential solar company in the United States, offering solar panel installations, battery storage, and related services to homeowners and businesses. The Houston, Texas-based company has, or more precisely, had a market capitalization of $27.45 million as it just went bankrupt.
While in December it was serving more than 441,000 customers across the country, Sunnova reported net losses over the past years, and this year turned out to be fatal.
First, in February, Sunnova laid off 15% of its workforce in an effort to save $35 million. The following month it made a going concern announcement.
Then, in May, the US administration amended a $2.92 billion partial loan guarantee for Sunnova reducing the amount to $371.6 million.
On May 30, the company laid off 718 employees (around 55% of its workforce), reported Solar Power World.
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.
On Sunday, June 8, the solar giant itself filed for Chapter 11 bankruptcy protection in Texas, listing its estimated assets and liabilities between $10 billion and $50 billion.
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The company owes some solar installers more than $75 million. Among other creditors Sunnova owns millions, are banks and financial institutions.
As of December 31, the company had a total debt of $10.67 billion.
Atlas and Lennar Homes deals, maximizing value for stakeholders
Sunnova also announced on Monday it has entered into an agreement with Atlas SP Partners and Lennar Homes, under which it would sell certain assets to each company for $15 million and $26 million, respectively. The agreement is pending the court’s approval.
The solar company plans to continue regular operations during the sale process.
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“Today’s actions mark a critical step towards securing a value-maximizing outcome for Sunnova’s stakeholders,” stated Paul Mathews, Chief Executive Officer of Sunnova. “Throughout this process, maintaining continuity of service for our customers is our top priority as we work to secure a long-term solution for our business operations under new ownership.”
Solar companies are dealing with high interest rates, delayed tax credits, and challenges to secure funding. And to make things even worse, another major kick could come if the current budget bill is passed as it would end the tax credit for residential solar.
Among huge solar contractors that filed for bankruptcy over the last couple of years are SunPower, Solar Mosaic, 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 more.
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