(Reuters) -Sunnova Energy said on Wednesday that it has agreed to sell a portion of its residential solar installation business to Omnidian for $7 million in cash, along with the assumption of certain liabilities, as part of a stalking horse deal.
Last month, Sunnova filed for bankruptcy as the U.S.-based residential solar panel installer grappled with mounting debt and softening demand, highlighting challenges faced by the industry, including higher interest rates, reduced incentives in California, and concerns over potential subsidy rollbacks.
In its bankruptcy filing, Sunnova estimated its assets and liabilities to be in the range of $10 billion to $50 billion.
Sunnova said Seattle-headquartered Omnidian, as part of the deal, will assume customer service and system management for a substantial portion of its in-service customers.
Omnidian provides protection and performance plans for residential and commercial solar and energy storage systems, according to its website.
U.S. President Donald Trump’s administration, pushing to maximize oil and gas production, canceled a $2.92 billion partial loan guarantee in May that had been approved under former president Joe Biden.
(Reporting by Gursimran Kaur in Bengaluru; Editing by Mohammed Safi Shamsi and Sherry Jacob-Phillips)
Brought to you by www.srnnews.com