July 9 (Reuters) - Sunnova Energy ( NOVAQ ) said on

Wednesday that it has agreed to sell a portion of its

residential solar installation business to Omnidian for $7

million in cash, along with the assumption of certain

liabilities, as part of a stalking horse deal.

Last month, Sunnova filed for bankruptcy as the U.S.-based

residential solar panel installer grappled with mounting debt

and softening demand, highlighting challenges faced by the

industry, including higher interest rates, reduced incentives in

California, and concerns over potential subsidy rollbacks.

In its bankruptcy filing, Sunnova estimated its assets and

liabilities to be in the range of $10 billion to $50 billion.

Sunnova said Seattle-headquartered Omnidian, as part of the

deal, will assume customer service and system management for a

substantial portion of its in-service customers.

Omnidian provides protection and performance plans for

residential and commercial solar and energy storage systems,

according to its website.

U.S. President Donald Trump's administration, pushing to

maximize oil and gas production, canceled a $2.92 billion

partial loan guarantee in May that had been approved under

former president Joe Biden.