Residential solar and energy storage supplier Sunnova has filed for bankruptcy protection in Texas (Chapter 11), with estimated assets and liabilities ranging from $10 billion to $50 billion. One of the many subsidiaries under the company filed for bankruptcy last week, and its parent company was also included in the list of bankruptcy applicants this weekend.

Sunnova owes millions of dollars to multiple banks and financial institutions, but many local solar installation companies are also listed as unsecured creditors. Sunnova provides solar energy services to customers through local installation companies and third-party ownership (TPO) contracts, while homeowners lease solar projects from Sunnova. According to the bankruptcy filing, the company owes up to $75 million to some solar installers.

Sunnova also revealed in a filing with the US Securities and Exchange Commission that it laid off 718 employees (approximately 55% of its total workforce) on May 30th.

The TPO market has recently suffered setbacks, with SunPower, a residential solar energy supplier, filing for bankruptcy last summer, and financing provider Mosaic also filing for bankruptcy this week. If the budget bill currently under review by Congress is passed, it will prohibit solar leasing companies from enjoying the Investment Tax Credit (ITC). Without ITC, many solar companies operating in the TPO field will face greater disadvantages.