Sunnova raises nearly USD1bn
Sunnova Energy Corporation, a residential solar service provider in the US, has raised aggregate capital of nearly USD1 billion in the past three months after closing a USD140 million round of debt funding with CIT Group and other investors this past week, with CohnReznick Capital advising Sunnova on both the tax equity and debt raise.
The amount raised in such a short amount of time, all while increasing customers’ and investors’ faith in the business, is further proof that Sunnova’s innovative approach is driving solar industry leadership and powering the company’s record-setting growth in distributed generation. It is also a strong sign that the US solar industry, with Sunnova’s leadership, is more competitive than ever with utility-scale power.
Prior to securing this latest USD140 million debt funding from CIT and others, Sunnova secured an USD80 million tax equity deal on March 14, a USD255 million private securitisation offering and a USD360 million warehouse credit facility deal on April 24 and an USD80 million private notes offering on April 25. To date, Sunnova has raised more than USD2 billion since 2012.
“Sunnova is an established player in renewables and has been steadily increasing its market share over the years," says Mike Lorusso, managing director of CIT’s Energy Finance group. “Their agile business model and demonstrable success delivering low-cost clean power created an ideal opportunity to add an energy leader to our investment portfolio.”
“We are excited to support Sunnova in their continued growth as an industry leader who has demonstrated innovation and impressive market growth and to be a part of their continued expansion,” says Conor McKenna, Principal & Managing Director, CohnReznick Capital.
“Our free market approach to solar and strong customer growth are evidenced by Sunnova’s ability to continue raising funds and growing our customer base. Today’s announcement should send a clear message: The future of solar is now, and that momentum for change is propelling us forward,” says Sunnova CEO William J (John) Berger. “Customers are beginning to realise they have a choice. That choice is not only cleaner but more affordable.”
“Sunnova is ready to work with any utility or policymaker to ensure solar and non-solar customers are treated fairly and brought into the next century of power generation and delivery in America,” Berger added.
“We started Sunnova with the promise of being a different kind of power company,” says Jordan Kozar, Sunnova’s CFO. “Our business model is predicated on offering consumers a choice in a market that has offered limited choices for nearly a century. That choice needs to be affordable and sustainable – two criteria we meet through our innovative and disciplined approach.”