The Department of Energy (DOE) canceled a Biden administration multi-billion-dollar partial loan guarantee to a green energy company facing financial instability and a history of alleged misconduct, according to Reuters. In 2023, the Biden DOE announced a $3 billion partial loan guarantee to Sunnova Energy, a Houston-based company that provides solar panels and EV chargers, in furtherance of its broader green energy agenda. The Trump DOE canceled the loan guarantee Wednesday, dealing a blow to Sunnova— which has been accused in the past of ripping off elderly customers — as itnavigatesfinancial struggles,accordingto Reuters. At the time it was announced, the Biden DOE guarantee was considered thelargestloan commitmentever made by the government to a solar company. Sunnova has drawn scrutiny for allegedly exploiting dementia patients by signing them up for expensive, long-term solar panel contracts, The Washington Free Beaconreportedin November 2023.(RELATED: GOP Senator Really Doesn't Want To Take 'Big Hammer' To Biden's Massive Climate Bill) WASHINGTON, DC – DECEMBER 13: U.S. Energy Secretary Jennifer Granholm (R) is joined by National Nuclear Security Administration head Jill Hruby and other officials for a news conference at the Department of Energy headquarters to announce a breakthrough in fusion research on December 13, 2022, in Washington, DC. (Photo by Chip Somodevilla/Getty Images) During the Biden administration's lame duck period, the DOE's Loan Programs Office (LPO) — the office that made the deal with Sunnova —extendedtens of billions of dollars in new loans. Critics havequestionedthe efficacy of LPO, arguing that the office props up questionable businesses that might not otherwise survive in a competitive market at taxpayers' expense. Furthermore, Jigar Shah, the LPO's director under the Biden administration, has beencriticizedfor providing taxpayer-funded loans to companies linked to a trade association he helped establish prior to working for the federal government. In March, Sunnovaexpressed"substantial doubt" about its ability to continue operations, citing inadequate cash flow and high interest rates. The company had accessed about $371 million of the guaranteed funds before the DOE withdrew the guarantee, according toBloomberg News. The loan cancellation reflects a broader shift in energy policy under the Trump administration away from Biden's green agenda. Trump's DOE "will deploy capital only if it's in the best interest of American taxpayers," Energy Secretary Chris Wrighttoldthe Daily Caller News Foundation in March. "The first and primary tool is private capital and private businesses. Most of these things, with a reasonable business climate, will happen in the marketplace," Wright said at the time. Neither the DOE nor Sunnova responded to the Daily Caller News Foundation's requests for comment. All content created by the Daily Caller News Foundation, an independent and nonpartisan newswire service, is available without charge to any legitimate news publisher that can provide a large audience. All republished articles must include our logo, our reporter's byline and their DCNF affiliation. For any questions about our guidelines or partnering with us, please contactlicensing@dailycallernewsfoundation.org.
