Sunnova Energy sinks as Congress seeks ‘history of predatory sales practices’ (NYSE:NOVA)

Sunnova Energy (NYSE:NOVA) -12.5% in Friday’s trading after leading congressional Republicans disclosed a letter sent to the Department of Energy Loan Programs Office questioning a $3B partial loan guarantee to the company.

House Energy and Commerce Committee Chair Cathy McMorris Rodgers and Senate Energy and Natural Resources Ranking Member John Barrasso said they are “alarmed about recent, credible reports that Sunnova has racked up numerous consumer complaints, including those alleging troubling sales practices,” such as pressuring elderly homeowners in poor health to sign long-term contracts costing tens of thousands of dollars.

According to the letter, the reports cite interviews with people who struggled to deal with large contracts that their elderly parents signed shortly before passing away, as well as state consumer complaints alleging maintenance delays and predatory sales strategies.

Other rooftop solar installers also are weighed by the news, including Sunrun (RUN) -6.9%, SunPower (SPWR) -6.7%, Maxeon Solar Technologies (MAXN) -3.9%, Enphase Energy (ENPH) -3.2%, SolarEdge Technologies (SEDG) -3%.

ETF: (TAN)

In September, the DoE closed a $3B& partial loan guarantee to Sunnova’s (NOVA) Project Hestia that was billed as “the single largest commitment ever made by the federal government to solar power.”