Sunnova Bankruptcy Update: Critical Opt-Out Deadline to Protect Your Legal Rights
If you have a solar contract with Sunnova Energy Corporation, an important bankruptcy deadline could determine whether you keep or lose your right to sue.
In late 2025, Sunnova filed for Chapter 11 bankruptcy protection. The Bankruptcy Court has now confirmed Sunnova’s reorganization plan, which includes a broad legal release that can permanently eliminate consumer claims unless you opt out by a court-ordered deadline.
This article explains:
what the Sunnova bankruptcy means for homeowners,
the January 26, 2026 opt-out deadline, and
what legal rights consumers can still enforce
What Happened in the Sunnova Bankruptcy?
Sunnova’s bankruptcy allowed the company to restructure its debts and continue operating. As part of that process, the Court approved a plan that includes a “Third-Party Release.”
This release can:
block lawsuits and arbitrations,
eliminate fraud and misrepresentation claims, and
prevent homeowners from canceling or challenging their solar contracts
unless the consumer affirmatively opts out.
Many homeowners are unaware that doing nothing counts as consent under bankruptcy law.
The Sunnova Opt-Out Deadline (This Is the Most Important Part)
⏰ January 26, 2026 at 11:59 p.m. Central Time
This is the final deadline set by the Bankruptcy Court for most consumers to opt out of the Sunnova releases.
If you miss this deadline, you may permanently lose the right to:
continue an existing lawsuit or arbitration,
file a new legal claim,
seek damages for misrepresentation or fraud,
challenge Sunnova’s lien or UCC filing, or
cancel or rescind your solar contract.
Once the deadline passes, these rights may be irreversibly released.
Who Needs to Opt Out?
You should strongly consider opting out if you:
signed a solar agreement with Sunnova or a Sunnova-related entity,
were promised savings that never materialized,
experienced installation defects, roof damage, or system failure,
were misled about tax credits, system ownership, or financing, or
are currently in a lawsuit or arbitration against Sunnova.
Most residential customers fall into the bankruptcy category called “General Unsecured Claims,” which are eligible to opt out.
What Happens If You Opt Out?
Opting out preserves your legal rights.
Specifically, it allows you to:
continue or file a lawsuit or arbitration,
pursue contract cancellation or rescission,
challenge liens filed against your home,
seek declaratory relief voiding the agreement, and
pursue claims against Sunnova and other responsible parties.
Importantly, opting out does NOT affect your solar service or billing.
What Happens If You Do Nothing?
If you do not opt out by the deadline:
your claims may be deemed released,
lawsuits and arbitrations may be dismissed,
your recovery may be limited to a small bankruptcy trust payout, and
you may lose leverage to cancel or unwind the contract.
In many cases, consumers who fail to opt out are left with no meaningful remedy.
Can Consumers Still Cancel Sunnova Contracts After Bankruptcy?
Yes — in many cases, especially where the contract was induced by fraud or misrepresentation.
Even after bankruptcy, courts and arbitrators may still grant:
rescission (undoing the contract),
declaratory judgments voiding the agreement, and
lien invalidation clearing the home’s title.
However, preserving these remedies often depends on timely opting out.
Why This Matters for Solar Fraud and Consumer Protection Cases
Solar bankruptcy cases often involve:
inflated savings projections,
undisclosed financing structures,
misleading sales tactics, and
defective installations.
The Sunnova bankruptcy does not automatically erase consumer protection laws, but it does impose procedural deadlines that homeowners must follow to preserve their rights.
Failing to act in time can undo years of otherwise valid legal claims.
What Homeowners Should Do Now
Confirm whether you are affected by the Sunnova bankruptcy
Submit an opt-out election before January 26, 2026
Consult a consumer-protection or solar fraud attorney
Preserve documentation related to your solar system and contract
How Our Firm Helps Sunnova Customers
Our firm represents homeowners in:
solar panel fraud cases,
contract cancellation and rescission actions,
arbitration and litigation against solar companies, and
lien challenges related to solar financing.
If you have a Sunnova contract, we can:
determine whether you should opt out,
prepare and file the opt-out on your behalf, and
evaluate whether your contract can be canceled or unwound.
Free Consultation – Don’t Miss the Deadline
The opt-out deadline is January 26, 2026.
After that date, many legal options may be lost forever.
📞 Call us today or
📩 Request a free consultation online
to protect your rights before time runs out.