Sunnova Energy filed for Chapter 11 bankruptcy in June 2025, one of the largest residential solar failures on record — roughly 500,000 customers and around $8.9 billion in debt. If you have a Sunnova lease, power-purchase agreement (PPA), loan, or battery, the most important thing to know is this: your contract did not disappear, your panels still work, and your manufacturer warranties are almost certainly intact. What changed is who you deal with. This guide explains what happened, what stays the same, and the seven things to confirm in writing so a servicing change doesn't turn into a problem at tax time, claim time, or when you sell.
What happened to Sunnova
Sunnova Energy International and several affiliates filed for Chapter 11 protection in June 2025 (with one development entity, Sunnova TEP Developer, filing on June 1 and the main cases following on June 8). Unlike a pure installer, Sunnova was primarily a financier and dealer network — it financed and serviced systems that local dealer-installers physically put on roofs. That distinction matters: your panels were likely installed by a separate company, and the panel and inverter manufacturers are different companies still.
Through the bankruptcy, the court approved a sale of Sunnova's operating assets to a group of debtor-in-possession lenders, and SunStrong, a solar asset-management company, was designated to take over customer servicing. Critically, the court's early "first-day" motions allowed the company to keep servicing systems and to continue honoring loans, leases, PPAs, service agreements, warranties, and production guarantees during the process. In plain terms: the lights stayed on and the contracts kept running while ownership of the servicing changed hands.
Your contract is still binding — keep paying
The single most common and most costly mistake after a solar bankruptcy is to stop paying. A Chapter 11 filing does not cancel your lease, PPA, or loan. Those are legal obligations that survive the bankruptcy unless they are formally rejected through the court — and the agreements were specifically kept in force here. Stopping payments can trigger late fees, collections, credit damage, and default remedies, with no upside.
The terms you signed — your rate, your escalator, your buyout schedule, your end-of-term options — generally cannot be changed without your consent. What can change is the name on the bill and the address or portal you pay to. That is exactly why verifying the details below, in writing, matters.
Can you cancel your Sunnova lease, PPA, or loan?
This is the most common question after the bankruptcy news, and the honest answer is that the Chapter 11 filing does not give you a right to cancel, and in most cases you cannot simply walk away. Your lease, PPA, or loan is a binding contract that survived the bankruptcy, and it was specifically kept in force. Stopping payments is not cancelling; it is defaulting, which can trigger late fees, collections, and credit damage with no benefit to you.
What people usually mean by "cancel" is one of four things, and each has a real path:
- Rescind a brand-new contract. If you signed within the last few days, your agreement and state law may give you a short cancellation window (often three business days). That window is about the sale, not the bankruptcy, and it closes fast.
- Buyout. Most leases and PPAs have a buyout schedule that lets you purchase the system and end the monthly payment. Your buyout price and earliest date are in your contract; the request now goes through the current servicer.
- Payoff. A solar loan can be paid off early, which releases any UCC lien on the equipment. Get the payoff quote and the lien-release process from the loan holder in writing.
- Transfer at sale. When you sell the home, a qualified buyer can assume the lease or PPA, or the financing is paid off at closing. This is the most common way homeowners actually get out of a solar contract.
What almost never works is a company that calls or mails you promising to "cancel" your Sunnova contract for a fee. Your contract terms are protected, and the servicing change does not create a cancellation right, so treat any pressure to sign something new as a warning sign. If a servicer genuinely fails to perform its obligations, that is a dispute to document and escalate, not a shortcut to a free cancellation. When in doubt, get the specific numbers (your buyout price, your payoff amount, your remaining term) in writing before you act.
Who services your account now
As of 2026, SunStrong Management services many former Sunnova lease, PPA, and battery-lease accounts. But "many" is not "all," and servicing assignments have shifted in waves, so you should not assume — you should confirm. Until you have written confirmation of your current servicer of record and where payments route, treat any call, text, or email claiming to be your "new solar company" with caution.
Do not rely on a phone call alone. Get the servicer's identity, your account number, and the payment instructions in writing (an emailed statement or a logged-in portal screen), and keep it with your solar documents.
Equipment warranty vs. Sunnova's promises
It helps to separate two different things that people lump together as "the warranty":
- Manufacturer equipment warranties — the 10–25 year coverage on your panels (e.g., the panel maker) and your inverter or battery (e.g., the inverter/battery maker). These are obligations of the manufacturer, not Sunnova, and they remain valid. If a panel or inverter fails, you claim against the manufacturer, often through any qualified installer.
- Sunnova's service and production promises — workmanship coverage, system monitoring, repair dispatch, and any production guarantee. These ran through Sunnova and now run through the servicer. This is the layer most affected by the bankruptcy, and the one to confirm is still being honored and by whom.
If you don't know what equipment you have, your original install paperwork or plan set lists the panel and inverter makes and models. (Our installer-out-of-business guide walks through identifying your equipment and filing manufacturer claims directly.)
Seven things to verify in writing
This is the practical core. Confirm each of these and save the documentation:
| # | Verify | Why it matters |
|---|---|---|
| 1 | Servicer of record | Who you call for service and who sends your bill. Get it in writing. |
| 2 | Payment routing | Where and how your payment goes now. Wrong routing = missed payment + default risk. |
| 3 | Contract type & terms | Lease, PPA, or loan; your rate, escalator, and remaining term — unchanged. |
| 4 | UCC-1 fixture filing | Loans/leases often have a UCC lien on the equipment. You'll need the payoff/holder at sale. |
| 5 | Monitoring connectivity | Confirm your production app/portal still reports, so you'd notice an outage. |
| 6 | Battery warranty path | If you have storage, confirm who honors the battery warranty and service. |
| 7 | End-of-term & buyout options | Your buyout price and renewal/removal options at term end — in writing. |
If you can't get clear written answers on any of these, that's a signal to dig further before you need them — not after a claim is denied or a closing stalls.
If you're selling your home
A Sunnova lease, PPA, or loan becomes a transaction issue the moment you list. The buyer generally must qualify for and assume a lease or PPA, or the financing must be paid off — and any UCC-1 fixture filing has to be addressed in title and escrow. With servicing now at SunStrong, the transfer or payoff request goes through the current servicer, and getting that started early is the difference between a smooth closing and a delayed one.
For the real-estate mechanics, see our guides on solar leases at closing, solar UCC-1 liens, and what happens to a solar lease when the company goes bankrupt. The short version: find the current servicer and the UCC holder, request the transfer or payoff in writing, and do it before you're under contract.
Watch for scams and bad advice
High-profile bankruptcies attract bad actors. After the Sunnova news, expect calls and mailers from companies offering to "fix," "buy out," or "take over" your system — some legitimate, some not. Two rules keep you safe: never give payment or account information to an inbound caller you didn't verify, and never sign a new agreement to "save" your system without independent review. Your existing contract terms are protected; you rarely need to act fast, and pressure to do so is itself a warning sign.
Know exactly what's on your system before you sell or refinance
A SolarDisclosure™ report identifies your servicer, the UCC lien and payoff holder, installer and warranty standing, permits, and net-metering status — so a Sunnova account is documented, not a question mark, at closing.
Order a disclosure report →Sources & further reading
- Sunnova Energy — SEC Form 8-K, Chapter 11 filing press release
- EnergySage — Sunnova bankruptcy and what it means for the residential solar industry
- EnergySage — What to do if your solar installer goes out of business
Company-specific guides for other major residential solar failures:
This article is general information, not legal, tax, or financial advice. Bankruptcy servicing assignments and contract details change — verify your specific servicer, account terms, and UCC status in writing before acting.