Solar installer Sunnova issued a “going concern” warning as the company runs short on cash.

The stock is currently down around 68% as investors gauge the risk that Sunnova is headed for bankruptcy, a frequent outcome for companies that issue such warnings. In a bid to stave off insolvency, Sunnova said Monday it is planning to refinance debt, raise new debt, and cut expenses. 

Houston-based Sunnova is one of the largest solar installers in the U.S., bringing in $840 million in revenue last year. Sunnova reported a net loss of $447 million in 2024, a narrower loss than the previous year. The company had once been valued as much as $4.5 billion. Its market cap has since plunged to around $63 million.

The news comes as the solar industry has been bracing for a rough road ahead. Last week, Sunrun, the country’s largest installer, lowered its guidance for cash generation in 2025 on expectations that installations will be flat this year.

Much of the industry’s turbulence can be traced to high interest rates and uncertainty about the future of the Inflation Reduction Act.

Solar installers have benefitted in the past from low interest rates, which make solar loans and leasing attractive to consumers. By spreading the cost of rooftop solar out over many years, consumers don’t have to pay up front and often save relative to their monthly utility bills. But as rates have risen, it can take longer for consumers to benefit financially.

On the policy front, the Inflation Reduction Act extended tax credits that were set to expire at the end of last year. The new credits run through 2032, though the Trump Administration has vowed to unravel the law.

The outlook isn’t bleak everywhere. First Solar, a large solar manufacturer, beat the street in its Q4 earnings report, sending the stock up. And in many cases, solar remains the cheapest form of new generating capacity.

There’s a reason that insiders refer to the industry as the “solar coaster.”