Sunnova Energy International filed for Chapter 11 bankruptcy on June 8, 2025. Its Chapter 11 plan was confirmed by the bankruptcy court on November 12, 2025, with the Effective Date occurring November 14, 2025. Substantially all of Sunnova's assets were sold to Solaris Assets, LLC for approximately $118 million, with day-to-day operations now run by SunStrong Management, LLC. If you were a Sunnova customer, your contract did not disappear — but your rights and options just changed dramatically.

Solar Freedom is actively reviewing former Sunnova contracts. Below is what every Sunnova customer needs to understand right now.

What Actually Happened

Sunnova was the second-largest installer of third-party-owned residential solar in the U.S., with roughly 500,000 customers. By March 2025, the company warned investors it might not be able to continue operations. It laid off over 700 employees — more than 55% of its workforce — in late May 2025, then filed Chapter 11 in early June.

Through a court-supervised sale process, the bondholders' ad hoc group formed Solaris Assets, LLC and acquired substantially all of Sunnova's assets for approximately $118 million. The company's core servicing operations transitioned to SunStrong Management, LLC. The bankruptcy plan was confirmed November 12, 2025; a Creditor Trustee was appointed to handle claims and wind-down.

Is My Sunnova Contract Still Valid?

Generally, yes — but not necessarily under the terms you originally signed. The Sale Transaction transferred the asset-backed securities, tax equity partnerships, and customer agreements to the new ownership structure. Sunnova publicly stated during the bankruptcy that existing leases, PPAs, loan agreements, service agreements, warranties, and production guarantees would continue to be honored, and that asset-backed security and tax equity affiliates were structured to be "bankruptcy remote."

In practice, customers report mixed experiences:

• Many continue to receive normal service through SunStrong
• Some report degraded customer service, billing errors, and unanswered warranty claims
• Some report aggressive collections and rate changes from the new servicer
• Some report being told their contract "can't be cancelled" — without legal basis

If your service has degraded or your contract terms feel different post-transition, that is a contract issue worth a free legal review.

The Bankruptcy Bar Date — Critical for Customer Claims

The bankruptcy court set deadlines for filing proofs of claim. The General Bar Date was August 6, 2025 and the Governmental Bar Date was December 5, 2025. If you had a damages claim against Sunnova — for fraud, misrepresentation, contract breach, or warranty failure — and you didn't file a proof of claim by those dates, your right to recover from the Sunnova bankruptcy estate is likely barred.

However, this does not bar claims against:

• The new owner (Solaris/SunStrong) for issues arising after the sale
• Independent dealers and installers who originated your contract (Sunnova used roughly 175 active dealer partners)
• Lenders who financed your loan (Mosaic, Sunlight, GoodLeap, etc.)
• Salespeople individually for fraud claims
• Successor parties under contract assumption rules

Many of the strongest Sunnova-related cases now run against the lender or installer, not Sunnova itself.

The 6 Strongest Legal Options for Former Sunnova Customers

Option 1: TILA Rescission Against Your Lender

If you financed your Sunnova system with a loan secured by your home, the lender (often Mosaic, Sunlight Financial, GoodLeap, or Dividend) is independently liable for TILA disclosure violations. The 3-year rescission window applies regardless of what happens to Sunnova.

Option 2: Fraud Claims Against the Original Dealer

Sunnova relied on independent dealers for sales. Those dealers — many still operating — remain liable for fraud, misrepresentation, and UDAP violations. The bankruptcy doesn't shield them.

Option 3: UCC-1 Lien Removal

If you're trying to sell your house and a Sunnova-era UCC-1 fixture filing is blocking title, you can demand termination under UCC § 9-513 — and challenge defects in the filing. The transition to new servicer often surfaces administrative gaps that make these challenges easier.

Option 4: Successor Liability Claims

Solaris/SunStrong assumed contracts subject to certain liabilities. If they materially change service terms or fail to honor warranty/production guarantees, they face direct contract liability — separate from anything Sunnova did or didn't do.

Option 5: Performance Guarantee Breach

Sunnova PPAs typically include kWh production guarantees. If your system has underproduced, the new servicer is on the hook for those guarantees going forward. Document the gap and demand compensation.

Option 6: State UDAP Claims

State unfair and deceptive practices laws apply to anyone in the chain — original Sunnova dealer, the lender, the new servicer. Many UDAP statutes allow treble damages and fee-shifting.

What to Do This Week

1. Save every document. Original contract, all invoices, monitoring data, every communication with Sunnova or SunStrong.
2. Pull your loan documents if you financed. Identify the lender — that's where TILA rescission lives.
3. Pull 24 months of production data. Compare to the contracted production schedule. Gaps are leverage.
4. Document any service degradation since the SunStrong transition.
5. Get a free contract review. Bankruptcy creates options that didn't exist before — but they expire if you don't act.

Specifically If You're Selling Your Home

The bankruptcy transition often creates administrative confusion that you can use. UCC-1 filings recorded by Sunnova may now technically be held by an entity (Solaris) that doesn't fully understand its own portfolio. Termination demands sent during transitions get either fast compliance or revealing defects. Move now if you have a closing.

Frequently Asked Questions

Is my Sunnova contract cancelled because of bankruptcy?

Not automatically. Existing leases, PPAs, loans, and service agreements were assumed by the new ownership and continue in force. However, the bankruptcy creates new legal angles, and you may have grounds to cancel under TILA, fraud, or UDAP claims that are entirely unaffected by the bankruptcy.

Who do I pay now — Sunnova or SunStrong?

Day-to-day servicing is now handled by SunStrong Management, LLC under Solaris Assets, LLC ownership. Follow whatever billing instructions the new servicer provides — but document any rate changes or term changes carefully.

Did I miss the bankruptcy claim deadline?

The General Bar Date was August 6, 2025 and the Governmental Bar Date was December 5, 2025. If you missed those deadlines, your claim against the Sunnova estate is likely barred — but claims against your lender, original installer/dealer, or the new servicer are not affected.

Can I cancel my contract because Sunnova went bankrupt?

Bankruptcy alone is generally not a cancellation ground. But the underlying contract may still be voidable on independent grounds (fraud, TILA, performance breach, etc.), and the bankruptcy transition often surfaces administrative defects you can use as leverage.

What if SunStrong is providing worse service than Sunnova did?

Material service degradation is a contract issue and may breach warranty, performance guarantee, or service agreement provisions. Document everything and get a legal review.

This article is educational and not legal advice. Solar Freedom is not affiliated with Sunnova, Solaris Assets, or SunStrong Management. Information about bankruptcy proceedings is current as of November 2025; consult a licensed attorney about your specific situation.