Sunnova Energy, a solar service company, announced that it will lay off 300 employees to reduce costs and streamline operations.

The 300 layoffs this time mainly come from its commercial department, accounting for 15% of the total number of employees in the company. Sunnova will save $35 million in cash annually due to layoffs.

Sunnova stated that the company is positioning itself to achieve long-term success in the constantly evolving market currently facing high interest rates and policy uncertainty.

Sunnova CEO John Berger said, "As we continue to focus on capital efficiency and high profit core customers through TPO, we must always optimize in the current economic and policy environment. In order to better position Sunnova's long-term success, we are taking proactive measures to simplify our operations while maintaining a strong foundation to support our valuable dealer network and end-user customers. These decisions are never easy, and we recognize their impact on every member of the team. For those who will not move forward with us, we are committed to providing support during the transition period and deeply appreciate everything they have done for our organization. We greatly appreciate their contributions and are committed to supporting those affected during the transition period. People

Sunnova collaborates with local solar installation companies to provide solar energy to customers through third-party ownership (TPO) contracts. The customer leases solar projects from Sunnova. Last year, Sunnova mandated that all its solar projects comply with domestic content requirements and provided a limited number of American made solar products to solar installers to complete the projects. Sunnova stated that this move will support domestic manufacturing, but also enable Sunnova to apply for larger investment tax credits in TPO projects.

However, due to high interest rates, the TPO market has experienced turbulence in the past few quarters. SunPower filed for bankruptcy in August 2024, while Sunrun will focus on energy storage and auxiliary electric vehicle services to withstand solar rollercoaster rides.