*

Sunnova's total debt was $10.67 billion as of December 31

*

It entered into a sale process for certain assets and

business

operations

*

Sunnova is the second residential solar company to file

for

bankruptcy in June

(Adds Sunnova's assets sale process in paragraph 4, adds

bullets)

By Tanay Dhumal

June 9 (Reuters) - Sunnova Energy ( NOVA ) said on

Sunday it had filed for Chapter 11 bankruptcy protection in the

United States, as the residential solar panel installer buckled

under the pressure of mounting debt and weakening demand.

Sunnova is the second residential solar company to file for

bankruptcy this month, reflecting the challenges faced by the

industry as it struggles to cope with higher interest rates, an

incentive cut in top market California and fears of subsidy

rollbacks.

Last week, privately held Solar Mosaic filed for bankruptcy

protection, while industry pioneer SunPower collapsed

a year back.

On Monday, Sunnova said it had entered into agreements with

Atlas SP Partners and Lennar Homes under which it would sell

certain assets to each company for a value of $15 million and

$16 million respectively, pending court approval. The company

will continue its regular operations throughout the sale

process.

Sunnova filed for protection in the Bankruptcy Court for the

Southern District of Texas after warning in March that it might

not be able to continue as a going concern.

The company listed its estimated assets and liabilities in

the range of $10 billion to $50 billion and had a total debt of

$10.67 billion as of December 31, according to a court filing.

Sunnova said last week it would lay off about 55% of its

workforce, or 718 employees, in a bid to cut spending.

Earlier this month, its unit, Sunnova TEP Developer, had

also filed for Chapter 11 bankruptcy protection.

President Donald Trump's administration, which is pushing to

maximize oil and gas production, canceled a partial loan

guarantee of $2.92 billion last month that was awarded to

Sunnova by the Biden administration.

Companies that put solar panels on U.S. homes said last

month that a Republican budget bill that has advanced in

Congress could deal a massive blow to the industry by

eliminating a generous subsidy for homeowners that had

buttressed the industry's growth.

"Depending on what happens with the tax bill in Congress,

the conditions in this market may become even worse in 2026,

because Congress is considering ending the tax credit for

residential solar," Raymond James analyst Pavel Molchanov said.