Republican leaders in Congress are scrutinizing the Department of Energy (DOE) for awarding a substantial $3 billion loan to Sunnova Energy Corporation, a Houston-based solar energy company accused of deceptive practices towards consumers. House Energy and Commerce Chair Cathy McMorris Rodgers and Senate Energy and Natural Resources Ranking Member John Barrasso have raised concerns about the company’s history of customer complaints in a letter addressed to Jigar Shah, Director of DOE’s Loan Programs Office.
The letter specifically highlights alarming consumer allegations against Sunnova, including aggressive sales tactics targeting elderly customers and failure to uphold maintenance commitments. These concerns are underscored by a series of consumer complaints and a negative assessment from the Better Business Bureau, which has criticized Sunnova for its pattern of deceptive sales practices and unreliable customer service.
Sunnova’s Project Hestia, supported by the DOE loan, aims to provide solar and battery storage solutions to low-income households across the U.S. and Puerto Rico, marking a significant federal investment in solar energy. However, the Republicans’ letter points out that the issues raised in various complaints and reports are not isolated incidents, indicating a pattern of questionable business practices.
In 2019, a report by Puerto Rico’s Energy Bureau accused Sunnova of misleading consumers about costs, contract terms, and savings projections. Moreover, following Hurricane Maria, Sunnova faced a surge of complaints in Puerto Rico, where it holds a significant market share.
Additionally, recent reports have surfaced alleging that Sunnova sales representatives have exploited vulnerable individuals, including the elderly and those with health issues, by persuading them to sign lengthy solar panel leases.
In defense, a Sunnova spokesperson stated that the company adheres to a rigorous validation process for all customers, regardless of age, to ensure understanding and consent to contract terms. The spokesperson emphasized Sunnova’s commitment to resolving customer issues throughout their agreement term.
Founded in 2012 and going public in 2019, Sunnova has experienced financial challenges, including substantial annual losses and a steep decline in its stock value. As of now, both the DOE and Sunnova have not provided comments regarding the congressional inquiry.