Another day, another big solar installer faces bankruptcy. This time, the latest company to face the "solar coaster" is Sunnova Energy International, which is looking down the barrel at a cash flow that's insufficient to meet its obligations and fund operations."While total cash increased, unrestricted cash remained relatively flat, below our estimated $100 million increase," said John Berger, Sunnova's founder and CEO. "This miss was primarily due to lower tax equity contributions stemming from timing delays of ITC sales, fewer installed systems and funds received in December classified as restricted."Put more simply, while customer agreements and incentives revenue increased by $163.4 million (43%), solar energy system and product sales revenue declined by $44.1 million (13%). In its report, released March 3, the company says its cash flow is unable to meet its obligations and fund operations. Can solar panels save you money? Interested in understanding the impact solar can have on your home? Enter some basic information below, and well instantly provide a free estimate of your energy savings. "Our unrestricted cash, cash flows from operating activities, and availability and commitments under existing financing agreements are not sufficient to meet obligations and fund operations for a period of at least one year from the date we issue our consolidated financial statements without implementing additional measures to manage our working capital, secure additional tax equity investment commitments or waivers of conditions to access existing tax equity commitments, and refinance certain of our obligations."The report also suggests a number of steps the company may take to address the cash flow issue, including refinancing obligations, taking on additional debt financing, reducing expenditures, revising dealer payment terms and obtaining tax equity investment commitment sufficient to continue operating. However, the report also warns that it can "offer no assurances we will be able to successfully implement any of these plans or obtain financing at acceptable terms or at all."Warning signs may also have been present earlier, with the company losing Better Business Bureau accreditation and cutting more than 15% of its workforce (300 positions) in February 2025. Zooey Liao/CNETWhen CNET reviewed Sunnova, we praised it for its 25-year service guarantee, numerous financing options and customer-centered approach, awarding it a 6.5 rating. This wasn't enough to earn it a top spot on our list, but it earned a mention because of the loan guarantees it had gained from the Biden administration to help low- and moderate-income families adopt solar. Unfortunately, this program will likely come to an end both due to the new administration and the significant possibility that Sunnova may need to file Chapter 11 bankruptcy. Considering Solar Panels? Our email course will walk you through how to go solar By signing up, you confirm you are 16+, will receive newsletters and promotional content and agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.The ups and downs of solar installers aren't new to the industry. In 2024, ADT, Titan Solar, SunPower and Lumio all declared bankruptcy or went out of business, though subsequently, SunPower was acquired by Complete Solar in Chapter 11 proceedings.With new tariffs on solar manufacturers and many of the US' closest trading partners, solar installations are likely to become more expensive in 2025. Sunnova may be one of the first companies to face serious challenges to its business model this year, but it's not likely to be the last. Considering Solar Panels? Our email course will walk you through how to go solar By signing up, you confirm you are 16+, will receive newsletters and promotional content and agree to our Terms of Use and acknowledge the data practices in our Privacy Policy. You may unsubscribe at any time.