The Trump administration has canceled a $2.92 billion partial loan guarantee previously awarded to Sunnova Energy, a leading U.S. residential solar panel installer. The Department of Energy (DOE) “de-obligated” the funding, meaning the federal government will no longer back the financing, according to a source familiar with the matter. Bloomberg News first reported the move.
This decision comes as the administration ramps up its support for traditional fossil fuels, particularly oil and gas, while scrutinizing alternative energy investments under the DOE’s Loan Programs Office (LPO). Originally announced in April 2023 during President Joe Biden’s tenure, the loan guarantee—up to $3 billion—was meant to support financing for Sunnova’s rooftop solar installations across underserved communities.
Sunnova has faced significant financial challenges in recent months. In 2025, the company announced it was exploring strategic alternatives and restructuring its debt. It also warned investors of potential bankruptcy, raising concerns about its ability to continue operations. Sunnova’s stock closed at just $0.22 on Wednesday.
Under Biden, the LPO was revitalized to fund clean energy projects that struggled to secure private financing. However, the future of the office remains uncertain amid proposed budget cuts and workforce reductions from the newly formed Department of Government Efficiency, led by Elon Musk.
The Department of Energy has not yet issued an official comment on the loan cancellation. As the U.S. clean energy landscape faces policy reversals, the loss of federal support for Sunnova could signal a broader shift in national energy priorities.
This development underscores growing tensions between clean energy goals and fossil fuel interests, with solar energy firms increasingly caught in the crossfire of shifting federal energy strategies.