Partial guarantee expected to support over
$5 billion in Sunnova solar loan originations, reduce the company’s
weighted average cost of capital, and generate interest
savings
Expands Sunnova’s reliable, clean, and
affordable energy services to underserved American communities and
accelerates the deployment of digital energy engagement and demand
response technologies
Sunnova Energy International, Inc. (Sunnova) (NYSE: NOVA), a
leading Energy as a Service (EaaS) provider, today announced it has
entered into a $3.0 billion partial loan guarantee agreement with
the U.S. Department of Energy (DOE) Loan Programs Office (LPO),
which equates to a 90% guarantee of up to $3.3 billion of term
loans, to support solar loans originated by Sunnova under a new
solar loan channel named “Project Hestia.”
Project Hestia is expected to provide disadvantaged homeowners
and communities with increased access to clean, flexible power via
Sunnova services by indirectly and partially guaranteeing the cash
flows associated with consumers' loans. Each energy system will
include access to Sunnova’s purpose-built technology, accessible by
smart phone or other personal electronic device. The technology is
designed to improve customer insights regarding their power usage
and will facilitate demand response behavior. This approach is
expected to expand access to Sunnova’s adaptive energy platform,
lay the foundation for future virtual power plant (VPP) activities,
decrease greenhouse gas emissions, and increase the demand response
benefits of residential power systems.
“Today marks the beginning of an exciting chapter in our pursuit
of a cleaner and more equitable energy landscape. With our
collaboration with the U.S. Department of Energy, we are embarking
on a journey that expands clean energy access and delivers economic
benefit to Americans in disadvantaged communities,” said William J.
(John) Berger, Chief Executive Officer of Sunnova Energy. “This
partnership reflects our commitment to innovation with
purpose.”
The DOE loan guarantee agreement will support the origination of
Sunnova loans associated with solar, storage, or other Sunnova
Adaptive Home™ technologies that utilize Sunnova’s purpose-built
demand response and VPP enabling software throughout the United
States and its territories. Sunnova anticipates the loan guarantee
agreement will support over an estimated $5.0 billion in Sunnova
loan originations, reduce the company’s weighted average cost of
capital, and generate interest savings.
Sunnova anticipates utilizing the DOE loan guarantee in
connection with its first Hestia asset backed securitization,
Hestia I, in the fourth quarter of 2023. "This is an important step
in structured solar investments that will accelerate solar adoption
and bring our best-in-class service to more underrepresented
customers," said Robert Lane, Executive Vice President and Chief
Financial Officer at Sunnova. "We expect the Hestia I issuance to
generate spreads commensurate with the expected credit uplift and
introduce new, investment-grade investors to Sunnova’s long-term
strategy."
The DOE loan guarantee agreement is issued pursuant to Title
XVII of the Energy Policy Act of 2005. Project Hestia is designed
to accelerate the deployment of new digital engagement and behavior
modification technologies. The Sunnova app and portal aims to
reduce greenhouse gas emissions, enhance the informed use of load
controllers and smart appliances, and support grid stability by
giving consumers near real-time insight into their residential
energy system and quantifying the location-specific emissions
impact of changes in consumer behavior.
Sunnova will provide DOE with monthly servicing reports
supplemented by hardware and software deployment information. To
measure project benefits, Sunnova will also measure and report on
the reduction in greenhouse gases associated with Project Hestia.
To advance economic and environmental benefits for disadvantaged
communities, Sunnova intends to use Project Hestia to finance
collateral pools that realize agreed criteria related to FICO
distributions, and certain concentrations of customers located in
disadvantaged communities.
Sunnova was advised by ATLAS SP Partners and Citi on the
transaction. Baker Botts acted as legal advisor to Sunnova and
Kramer Levin acted as legal advisor to the financial advisors.
About Sunnova
Sunnova Energy International Inc. (NYSE: NOVA) is a leading
Energy as a Service (“EaaS”) provider with customers across the
U.S. and its territories. Sunnova's goal is to be the source of
clean, affordable, and reliable energy with a simple mission: to
power energy independence so that home and business owners have the
freedom to live life uninterrupted®. For more information, please
visit sunnova.com.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act and Section 21E of
the Securities Exchange Act of 1934, as amended. Forward-looking
statements generally relate to future events or Sunnova’s future
financial or operating performance. In some cases, you can identify
forward-looking statements because they contain words such as
“may,” “will,” “should,” “expect,” “plan,” “anticipate,” “going
to,” “could,” “intend,” “target,” “project,” “contemplates,”
“believe,” “estimate,” “predict,” “potential” or “continue” or the
negative of these words or other similar terms or expressions that
concern Sunnova’s expectations, strategy, priorities, plans or
intentions. Forward-looking statements in this press release
include, but are not limited to, statements regarding Sunnova’s
ability to obtain future indebtedness, the benefits and impact of
the loan guarantee on individuals, communities, our operations and
financial, or otherwise, Sunnova’s current and future product
offerings to consumers including any deployments under the Hestia
program, timing such transactions and the issuance of any
asset-backed securities. Sunnova’s expectations and beliefs
regarding these matters may not materialize, and actual results in
future periods are subject to risks and uncertainties that could
cause actual results to differ materially from those projected,
including risks regarding our ability to forecast our business due
to our limited operating history and changes to our business and
financing markets results of operations and financial position, our
competition, changes in and compliance with regulations applicable
to our business and our dealers, fluctuations in the solar and
home-building markets, availability and cost of capital, supply
chain uncertainty, our ability to attract and retain dealers and
customers and our dealer and strategic partner relationships. The
forward-looking statements contained in this press release are also
subject to other risks and uncertainties, including those more
fully described in Sunnova’s filings with the SEC, including our
Annual Report on Form 10-K for the year ended December 31, 2022,
and our subsequent Quarterly Reports on Form 10-Q. The
forward-looking statements in this press release are based on
information available to Sunnova as of the date hereof, and Sunnova
disclaims any obligation to update any forward-looking statements,
except as required by law.
Source: Sunnova Energy International, Inc. View All News
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version on businesswire.com: https://www.businesswire.com/news/home/20230928310639/en/
Sunnova Media Contact: Srishti Ahuja Tandon
Srishti.ahujatandon@sunnova.com
Sunnova Investor Contact: Rodney McMahan 877-770-5211
IR@sunnova.com
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