In an 8-K filing with the Securities and Exchange Commission on May 29, 2025, Sunnova Energy Corporation disclosed that it had amended its Loan Guarantee Agreement with the U.S. Dept. of Energy on May 22, 2025. The amendment reduced the maximum aggregate amount of partial guarantees from $3 billion to $371.6 million. This is equal to the total partial guarantees previously issued for Sunnova’s two solar loan ABS transactions under Project Hestia. Project Hestia’s goal was to provide disadvantaged homeowners and communities with increased access to flexible power via Sunnova solar + storage services by indirectly and partially guaranteeing the cash flows associated with consumers’ loans.
Although the amendment reduced all remaining capacity of its partial loan guarantee to Sunnova’s Project Hestia, it does not affect the existing guarantees provided by the DOE to the two transactions referenced above. As such, credit rating agency KBRA does not expect this amendment, in and of itself, to affect the existing ratings of the two transactions.
KBRA previously alerted the market to Sunnova’s going concern issue in a press release published on March 4, 2025, and will continue to monitor developments related to Sunnova’s financial health, potential manager transitions and the performance of Sunnova transactions.
News item from KBRA
