Sunnova Energy’s Bankruptcy Restructuring Hits Snag Over Tax Credit Dispute

A major creditor has challenged the court-approved sale of Sunnova Energy, throwing the solar provider’s Chapter 11 restructuring into uncertainty. The company, which filed for bankruptcy protection in June 2025, now faces potential delays as millions in federal tax incentives become a contentious issue.

Creditor Alleges Undisclosed Tax Risks

Enterprise Bank & Trust has petitioned the bankruptcy court to reconsider the asset sale, claiming Sunnova failed to disclose potential clawbacks of government subsidies. At stake are solar investment tax credits worth over $32 million that the bank acquired during 2023 and 2024.

Key concerns raised in the filing:

Should investors sell immediately? Or is it worth buying Sunnova Energy?

• Five-year restriction: Federal rules require repayment of tax benefits if associated solar projects are sold within five years
• Immediate hearing: The court will review the objection today

This legal challenge threatens to derail the planned August closing of Sunnova’s core business sale to a lender consortium and GoodFinch Management.

Financial Collapse Timeline

The tax credit dispute marks the latest development in Sunnova’s financial unraveling:

1. Government withdrawal: The U.S. Energy Department canceled a $3 billion loan guarantee in May 2025
2. Bankruptcy filing: June 2025 Chapter 11 petition listed liabilities between $10-50 billion
3. Delisting: NYSE suspended trading of Sunnova shares on June 10, 2025

Market observers now question whether the restructuring timeline can hold as the tax credit controversy adds another layer of complexity to the proceedings. The court’s decision on this objection could determine whether Sunnova emerges from bankruptcy as scheduled or faces further delays in its financial reorganization.