Sunnova lays off 300 employees, focuses on ‘high-margin business’

By Chris Crowell February 20, 2025

Forecasts for residential solar continue to trend downward. Persistently high interest rates and policy uncertainty has moved much of the market from a loans to a leases, and that transition continues to cause cashflow issues for various players. Roth Capital, which was initially optimistic heading into 2025, just lowered its 2025 US residential outlook to down 10% year over year from flat.

To try and right its ship, Sunnova Energy International announced 300 layoffs to reduce costs, mostly within its commercial organization, as it is “prioritizing its highest-value customer segments to drive efficiency and higher cash generation.”

“These actions will reduce its workforce by more than 15%, contributing approximately $35 million towards total estimated annual cash savings of approximately $70 million, contributing to a leaner and more agile organization,” the company wrote in a statement.

The company estimates that its cash savings will come from a mix of lower expenses and lower cash components of capitalized costs.

These moves show Sunnova is aiming for capital efficiency, cash generation, and an emphasis on its high-margin lease (i.e., Third-Party Ownership) product.

“As we continue to focus on capital efficiency and our high-margin core customers through TPO origination, we must always optimize within the current economic and policy landscape,” said William J. (John) Berger, Chief Executive Officer of Sunnova. “To better position Sunnova for long-term success, we are taking proactive steps to streamline our operations while maintaining a strong foundation to support our valued dealer network and end-use customers. These decisions are never easy, and we recognize the impact they have on every member of the team.”