DOE Cancels $3 Billion Loan Guarantee for Sunnova’s Solar Project

The Department of Energy has canceled a $3 billion loan guarantee for Sunnova, a leading rooftop solar company, according to the company. The DOE had previously agreed to guarantee up to 90% of financing for Sunnova’s Project Hestia, which aimed to create a virtual power plant by integrating solar panels and batteries.
The loan guarantee was formally “de-obligated” after an agreement between Sunnova and the DOE, according to a source familiar with the company. Sunnova had utilized approximately $371 million of the loan guarantee, but none of the funds came from taxpayer dollars.
The DOE did not immediately respond to requests for comment, though Sunnova had signaled in March through SEC filings that it would no longer pursue the loan guarantee “for the foreseeable future.” The decision comes as the DOE reviews its programs and evaluates the future of its loan office.
This move marks a significant shift in federal support for solar energy projects, raising questions about the DOE’s priorities and the future of virtual power plants.

Published: 5/29/2025