Republican leaders in the House and Senate have launched an investigation into the Department of Energy (DOE) following a $3 billion award to a solar energy company, Sunnova Energy Corporation, that has been accused of scamming vulnerable customers. House Energy and Commerce Chair Cathy McMorris Rodgers and Senate Energy and Natural Resources Ranking Member John Barrasso expressed concern about the DOE’s decision to reward Sunnova in a letter to DOE Loan Programs Office Director Jigar Shah. The letter highlighted reports of Sunnova scamming and misleading consumers, including pressuring elderly homeowners in poor health to sign expensive long-term contracts.
The DOE Loan Programs Office had announced in late September that it closed a $3 billion partial loan guarantee to Sunnova’s Project Hestia, which aims to provide solar and battery storage to low-income individuals as part of President Biden’s green energy agenda. The project is expected to benefit 75,000 to 115,000 homeowners across the U.S. and Puerto Rico. However, the Republican leaders emphasized that the reports of Sunnova’s deceptive practices are not isolated incidents.
Previous incidents involving Sunnova have raised concerns. The Better Business Bureau issued an alert for the company, assigning it an “F rating” due to deceptive sales practices, poor customer service, and delayed repairs. Consumers reported that their issues were only resolved after filing complaints with the Better Business Bureau. Moreover, a report by Puerto Rico’s Energy Bureau accused Sunnova of misleading consumers on costs, contract length, and potential savings.
In recent years, Sunnova has faced numerous complaints, including allegations of scamming vulnerable consumers, particularly the elderly and sick. The Washington Free Beacon reported instances of door-to-door Sunnova salesmen persuading elderly individuals to sign 25-year solar panel leases. The company has faced backlash for allegedly taking advantage of elderly and mentally impaired customers.
Sunnova, which went public in 2019, offers rooftop solar panel installations to residential customers through low-cost leases. However, the company has experienced significant financial losses and a steep decline in its stock price. In 2021 and 2022, Sunnova reported losses of $147.5 million and $130 million, respectively. Since January 2021, its stock price has fallen by over 77%.
The Department of Energy and Sunnova have not responded to requests for comment on the investigation.
This probe by Republican leaders raises questions about the DOE’s decision-making process and the potential exploitation of vulnerable consumers by Sunnova. As the Biden administration pushes forward with its green energy agenda, scrutiny over the allocation of funds and partnerships with private companies becomes increasingly important. The outcome of this investigation could have implications for future energy initiatives and the protection of consumers.
