WASHINGTON, May 28 (Reuters) -

President Donald Trump's administration has canceled a

partial loan guarantee of $2.92 billion that had been awarded to

residential solar panel installer Sunnova Energy ( NOVA ), the company

said on Wednesday.

The administration, which is pushing to maximize oil and gas

production, has said it is reviewing financing from the

Department of Energy's Loan Programs Office to companies

involved in alternative energy.

A source familiar with the matter said the DOE had

"de-obligated" the loan guarantee, meaning the federal

government is not responsible for the financing. Bloomberg News

first reported the move.

In April 2023, former President Joe Biden's administration

announced the partial loan guarantee of up to $3 billion to back

financing for Sunnova's rooftop solar installations.

But Sunnova, one of the largest U.S. residential solar

companies, has struggled in recent months. This year, Sunnova

has said it was working to restructure debt and explore

strategic alternatives for its business. The company has also

warned investors it may be unable to continue as a going

concern. Its shares closed at 22 cents on Wednesday.

Under Biden, the LPO aimed to speed development of the clean

energy sector, with loans to companies that struggled to obtain

private financing.

The office faces an uncertain future with job cuts

implemented by Elon Musk's so-called Department of Government

Efficiency and reductions to the LPO outlined in the House

budget bill.

The Department of Energy did not immediately respond to a

request for comment.