Another day, another large solar installer faces bankruptcy. This time, the latest company facing the “solar roller coaster” is Sunni Energy InternationalThis is the barrel of cash flow, which is not enough to meet its obligations and fundraising operations.
“Despite the total cash increase, unrestricted cash remains relatively flat, below the $100 million we estimate to increase,” said John Berger, Sunni founder and CEO. “This mistake is mainly due to the delayed timing of ITC sales, the lower tax equity caused by the lower tax equity that is listed as limited.”
In short, solar system and product sales revenue fell by $44.1 million (13%) despite an increase of $163.4 million (43%) in customer agreements and incentive revenue. The company said in a report released on March 3 that its cash flow is unable to meet its obligations and fund operations.
We are unrestricted in cash, cash flows in operating activities, and availability and commitments under existing financing agreements are not sufficient to meet obligations and fund operations, at least one year from the date on which we issue the consolidated financial statements, without the need to implement additional measures to manage our work capital to manage our net tax equity commitments or exempt additional tax equality commitments to ensure additional tax parity commitments.
The report also recommends that many steps the company may take to address cash flow issues, including refinancing obligations, taking on additional debt financing, reducing spending, modifying dealer payment terms and obtaining a tax equity investment commitment that is sufficient to continue operations. However, the report also warns that it can “provides no warranty that we will be able to successfully execute any of these plans or on acceptable terms or obtain financing in full.”
Warning signs may also appear earlier, the company lost better commerce bureau certification and cuts 15% of the labor force (300 positions) in February 2025.
when CNET reviews SonnovaWe praised its 25-year service guarantee, numerous financing options and a customer-centric approach and rated it as 6.5. That’s not enough to win the number one on our list, but due to Loan guarantee It has received help from the Biden administration to help low- and middle-income households adopt solar energy. Unfortunately, the plan could end due to the new administration and the possibility of Sunnis filing Chapter 11 bankruptcy.
The ups and downs of solar installation programs are not new to the industry. 2024, adtTitan Solar, Sunset and Lumio All of this declared bankruptcy or bankruptcy, although subsequently, SunPower was Complete solar energy In Chapter 11 Litigation.
With new solar manufacturers and tariffs from many of the U.S.’s closest trading partners, solar facilities may require Become more expensive in 2025. Sunni may be one of the first companies to face challenges in their business model this year, but it is unlikely to be the last one.
