Sunnova Expands Energy as a Service Offerings to Commercial Businesses

Rhea-AI Summary

Sunnova Energy International Inc. (NYSE: NOVA) has announced the establishment of a new Business Markets division to serve the commercial solar segment. This expansion targets commercial, industrial, and agricultural sectors, aiming to provide sustainable energy solutions and budget certainty amid rising utility rates. The initiative is bolstered by the Inflation Reduction Act, which is projected to increase commercial solar deployments by 20% over the next five years. Sunnova plans to utilize its dealer network for rapid market entry and will offer flexible financing options and a 25-year service guarantee, enhancing energy reliability for businesses.

Positive

• Expansion into the commercial solar market with a total addressable market of approximately 145GW, currently only 5% penetrated.
• Anticipates a 20% increase in commercial solar deployments supported by the Inflation Reduction Act.
• Offers a complete suite of energy technologies and flexible financing options tailored to businesses.

Negative

• None.

Establishes new Business Markets division to serve commercial solar segments

HOUSTON--(BUSINESS WIRE)-- Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), a leading U.S. Energy as a Service (EaaS) provider, announced today that it is expanding its energy service offerings to the commercial solar market.

Leveraging the Company’s extensive experience in residential solar, Sunnova is expanding into the commercial market to serve the commercial, industrial, agricultural, commercial real estate, non-profit, and public sectors to help business customers become more sustainable and resilient while also providing budget certainty in the face of rising utility rates.

Entry into the commercial sector is supported by the passing of the Inflation Reduction Act, which is expected to increase deployment of commercial solar projects by 20% over the next five years, according to the SEIA/Wood Mackenzie Power & Renewables U.S. Solar Market Insight report. With the expansion of Sunnova’s energy services into the underserved commercial market, businesses will be able to take control of their energy costs by transitioning to solar, gaining resilient backup power, and tapping into available revenue streams such as selling excess solar energy back to the grid or participating in local grid services.

“Electricity usage can be one of the biggest and most unpredictable costs facing businesses, and unexpectedly losing power due to a utility outage can create additional expense and hardship,” said William J. (John) Berger, founder and CEO at Sunnova. “We see a significant growth opportunity in the commercial solar market that is a natural extension of our market-leading services on the residential side. We look forward to providing businesses with solutions that will reduce their energy costs and provide local energy generation, as well as insights and control. Our systems offer protection against utility power outages with integrated battery storage, and the ability to reduce carbon emissions. We have helped hundreds of thousands of homeowners across the country realize the benefits of solar and now we will be helping companies adapt to an ever-changing energy landscape by transforming into Sunnova Adaptive Businesses™.”

With a total addressable market of approximately 145GW that is only 5% penetrated, according to Wood Mackenzie, Sunnova will be leveraging its network of dealers who have wanted to sell commercial solar, or who already do, to facilitate a rapid market entry.

“We are excited to enter this underserved sector of the market to help businesses manage their energy needs with a differentiated and innovative approach,” said Michael Grasso, EVP, Chief Marketing and Growth Officer at Sunnova. “Sunnova will offer businesses a complete suite of energy technologies, finance options, and services tailored to meet their specific energy needs, business goals, and local utility rate structures. This expansion of our service offerings will allow us to do for business customers what we have done for residential customers—provide a better energy service at a better price through our new adaptive business technology solutions and 25-year service guarantee, the Sunnova Protect® Business plan.”

Sunnova will also provide flexible financing options for systems starting at 50kW that are catered to the preferences and tax status of each business.

For more information on Sunnova Business Markets, 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 the implementation and development of Sunnova’s entry into the commercial market as well as its impact on Sunnova and its customers. 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, the effects of the coronavirus pandemic on our business and operations, results of operations and financial position, our competition, changes in regulations applicable to our business, fluctuations in the solar and home-building markets, availability 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, 2021 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.

About Sunnova
Sunnova Energy International Inc. (NYSE: NOVA) is leading U.S. 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 homeowners have the freedom to live life uninterrupted®.
For more information, please visit sunnova.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20220919005124/en/

Media Contact

Alina Eprimian

Director, Communications

Alina.Eprimian@sunnova.com



Investor & Analyst Contact

Rodney McMahan

Vice President, Investor Relations

Rodney.McMahan@sunnova.com

281.971.3323

Source: Sunnova Energy International Inc.

FAQ

What is Sunnova Energy's new initiative as of 2023?

Sunnova Energy has launched a Business Markets division aimed at serving the commercial solar sector.

How does the Inflation Reduction Act affect Sunnova's commercial solar market entry?

The Inflation Reduction Act is expected to boost commercial solar project deployments by 20% over the next five years, aiding Sunnova's expansion.

What sectors will Sunnova serve with its commercial solar solutions?

Sunnova will target commercial, industrial, agricultural, commercial real estate, non-profit, and public sectors.

What is the total addressable market size for Sunnova's new services?

The total addressable market for Sunnova's commercial solar services is approximately 145GW.

What financing options will Sunnova provide for commercial solar systems?

Sunnova will offer flexible financing options for systems starting at 50kW, customized to meet business needs.