Sunnova’s Residential Exit: What It Means—and Why NATiVE Isn’t Going Anywhere

By Adam Glick, Solar Sherpa, NATiVE Solar

Sunnova’s Residential Solar Exit: What It Means—and Why NATiVE Isn’t Going Anywhere

The Sunnova residential solar exit just shook the Texas market. Sunnova, one of the biggest names in residential solar, announced it’s shutting down its residential division… For years, Sunnova pushed into the Texas market with “zero-down” throw out and godzilla-scale marketing schemes – any they installed a lot of residential solar Texas. Now they’re walking away from residential solar and trying to figure out a new brand & business model. It won’t look the same as it did -and it may be too late for them.

If you’re a homeowner (or a custom home builder) following the contours of the solar market and trying to understand how changes and new effect the Texas solar industry, here’s the truth: Not all solar companies are built the same. And NATiVE isn’t going anywhere. But first…

What Went Wrong with Sunnova?

The Sunnova residential solar exit didn’t come out of nowhere—it followed years of aggressive expansion built on shaky financial ground.

Sunnova didn’t build solar systems—they built financial products. They leased solar systems to homeowners but contracted with 3rd-party installers to do the design & installation work -and system maintenance.

They, like other similar large solar companies which have collapsed in the last fea years, had to purchase all the equipment, services and labor up front so they could give the homeowner customer the system for a $zero-down$, 25 year lease. It sounded like a good option to some customers -and these solar business grew. But they had to leverage their own credit facilities to do that. Following the money was cheap was a profitable business model -up to about 2023.

When consumer and business loan interest rates skyrocketed by mid-’23, these solar firms suddenly became financially “underwater” on a huge part of their installed customer portfolio. Then, having to raise the rates on the leasing terms for new customers made this option much less desirable for homeowners.

There’s a bit more to it, but these are the main points to take away :

Most customers didn’t own their solar/energy storage systems
Locked into 20–25 year lease or “PPA” contracts
Installations/service were handled by third-party solar contractors
Model dependent on high debt and low interest rates

When interest rates rose, their economics and business model unraveled. Now they’re exiting residential solar entirely. It’s a cautionary tale for anyone considering residential solar in Texas: Know who you’re partnering with, and understand the difference between leasing a system and owning one outright.

What Makes NATiVE Different?

We’re not in this for volume. And frankly, we aren’t here as the price leader. We’re here to build custom, high-performance residential energy systems that last the test of time for you and your family.

You own your system – which means full tax credit eligibility and better long-term value
We design it. We install it. We support it. – no outsourced crews or service handoffs
No leases, no PPAs, no gimmicks
No bloated financing games – we’re focused on design elegance & performance, not paper games
Top-Tear, Best-In-Class Components and Integrations

We work directly with homeowners and also align for project success with custom home builders, architects, and energy consultants. Our project partners are discerning Texans who care about doing it right the first time.