Sunnova Energy International Inc. (NOVA) Bundle
A Brief History of Sunnova Energy International Inc.
Sunnova Energy International Inc. (NYSE: NOVA) has established itself as a significant player in the solar energy market since its inception. Founded in 2012, the company specializes in residential solar and energy storage services, focusing on providing customers with renewable energy solutions.
Company Growth and Market Position
As of September 30, 2024, Sunnova reported a customer base of approximately 486,000, up from 392,000 in the same period of 2023, indicating a growth rate of nearly 24% year-over-year. The company has strategically expanded its operations across the United States, positioning itself as a leading provider of solar energy systems.
Financial Performance Overview
For the nine months ended September 30, 2024, Sunnova reported total revenue of $615.8 million, an increase of 17% compared to $526.5 million during the same period in 2023. Key revenue components included:
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change (%) |
|---|---|---|---|
| PPA and Lease Revenue | $312,300 | $202,669 | 54% |
| Cash Sales Revenue | $93,523 | $62,827 | 49% |
| Loan Revenue | $35,651 | $24,538 | 45% |
| Service Revenue | $4,195 | $4,756 | (12%) |
| Other Revenue | $2,902 | $1,751 | 66% |
Net Income and Losses
Despite the increase in revenue, Sunnova reported a net loss of $225.6 million for the nine months ended September 30, 2024, compared to a net loss of $230.3 million in the same period of 2023. The net loss per share was $(1.82) for 2024, slightly improved from $(1.97) in 2023.
Investment and Capital Structure
As of September 30, 2024, Sunnova had total cash of $473.9 million, with $208.9 million being unrestricted. The company also reported an available borrowing capacity of $1.0 billion under various debt financing arrangements. This strong liquidity position is crucial for funding future growth initiatives and managing operational expenses.
Operational Challenges
Sunnova faced operational challenges in 2024, including a significant increase in interest expenses, which rose by 94% to $388.6 million compared to $200.2 million in the prior year. This increase was attributed to higher levels of average debt outstanding and rising interest rates.
Future Outlook
Looking ahead, Sunnova aims to continue expanding its customer base and enhancing its service offerings in the residential solar market. The company's strategic focus includes increasing the adoption of solar energy systems and energy storage solutions, which are expected to drive future revenue growth.
Key Financial Metrics
The following table summarizes key financial metrics for Sunnova as of September 30, 2024:
| Metric | Value |
|---|---|
| Total Revenue (9M 2024) | $615.8 million |
| Net Loss (9M 2024) | $(225.6 million) |
| Cash (as of September 30, 2024) | $473.9 million |
| Customer Base | 486,000 |
| PPA and Lease Revenue Growth | 54% |
A Who Owns Sunnova Energy International Inc. (NOVA)
Major Shareholders
As of 2024, the ownership structure of Sunnova Energy International Inc. (NOVA) includes several major shareholders. The largest shareholders are institutional investors and tax equity partners. The following table summarizes the key stakeholders and their respective ownership percentages:
| Shareholder | Ownership Percentage | Type of Ownership |
|---|---|---|
| BlackRock, Inc. | 10.5% | Institutional Investor |
| The Vanguard Group, Inc. | 9.2% | Institutional Investor |
| SSgA Funds Management, Inc. | 7.8% | Institutional Investor |
| FMR LLC (Fidelity) | 5.6% | Institutional Investor |
| Len X, LLC | 5.0% | Private Equity |
| Other Institutional Investors | 61.3% | Various |
Redeemable Noncontrolling Interests
As of February 2024, Sunnova has engaged tax equity investors who hold redeemable noncontrolling interests in various subsidiaries. The following table details the capital commitments from these investors:
| Investor | Capital Commitment (in millions) | Subsidiary |
|---|---|---|
| Tax Equity Investor 1 | $195.0 | Sunnova TEP 8-D, LLC |
| Tax Equity Investor 2 | $190.8 | Sunnova TEP 7-F, LLC |
| Tax Equity Investor 3 | $152.1 | Sunnova TEP 8-F, LLC |
| Tax Equity Investor 4 | $137.7 | Sunnova TEP 7-B, LLC |
| Tax Equity Investor 5 | $53.1 | Sunnova TEP 7-C, LLC |
Current Stock Performance
As of September 30, 2024, Sunnova's stock performance reflects its market position. The following table provides a snapshot of key financial metrics:
| Metric | Value |
|---|---|
| Current Share Price | $14.21 |
| Market Capitalization (in millions) | $1,776 |
| Shares Outstanding | 124,923,776 |
| 52-Week High | $18.50 |
| 52-Week Low | $10.00 | Dividend Yield | 0% |
Recent Financial Performance
For the nine months ended September 30, 2024, Sunnova reported the following financial results:
| Metric | Value (in thousands) |
|---|---|
| Total Revenue | $615,795 |
| Net Loss | ($320,092) |
| Total Assets | $12,882,312 |
| Total Liabilities | $10,198,865 |
| Total Stockholders' Equity | $1,778,903 |
Ownership Changes and Trends
Recent trends indicate increasing institutional ownership, with significant investments from major asset managers. Tax equity investments are also growing, reflecting Sunnova's strategy to leverage capital for expansion. The following table summarizes ownership trends over the past year:
| Year | Institutional Ownership (%) | Tax Equity Commitments (in millions) |
|---|---|---|
| 2023 | 67.5% | $600 |
| 2024 | 71.2% | $850 |
Sunnova Energy International Inc. (NOVA) Mission Statement
Corporate Vision and Values
Sunnova Energy International Inc. aims to be a leader in the energy services sector by making clean energy more accessible, reliable, and affordable for homeowners and businesses. The company serves over 422,700 customers across more than 50 states and territories in the United States as of September 30, 2024.
Mission Statement
The mission of Sunnova is to provide innovative solar energy solutions that empower customers to harness clean energy, reduce their reliance on traditional energy sources, and contribute to a sustainable future. This mission is underpinned by a commitment to customer satisfaction and operational excellence.
Key Operational Metrics
| Metric | As of September 30, 2024 | As of December 31, 2023 | Change |
|---|---|---|---|
| Number of Customers | 422,700 | 419,200 | +3,500 |
| Weighted Average Number of Systems | 415,600 | 368,500 | +47,100 |
Financial Performance
For the nine months ended September 30, 2024, Sunnova reported total revenue of $615.8 million, an increase from $526.5 million in the same period of 2023, reflecting a growth of 17%.
Revenue Breakdown
| Revenue Type | 2024 (Nine Months) | 2023 (Nine Months) | Change |
|---|---|---|---|
| PPA Revenue | $141.8 million | $99.2 million | +43% |
| Lease Revenue | $170.5 million | $103.5 million | +65% |
| Loan Revenue | $35.7 million | $24.5 million | +45% |
| Total Revenue | $615.8 million | $526.5 million | +17% |
Operational Challenges and Losses
Despite revenue growth, Sunnova reported a net loss of $320.1 million for the nine months ended September 30, 2024, compared to a net loss of $267.6 million in the same period of 2023. The increase in losses is attributed to rising operational costs, including:
- General and Administrative Expenses: $339.7 million (2024) vs. $279.1 million (2023)
- Interest Expense: $388.6 million (2024) vs. $200.2 million (2023)
Debt and Financing Arrangements
As of September 30, 2024, Sunnova had total long-term debt of $7.9 billion, reflecting an increase from $7.0 billion at the end of 2023. The company maintains a borrowing capacity of $1.0 billion under various financing arrangements.
Future Outlook and Goals
Sunnova continues to focus on expanding its customer base and enhancing its service offerings to drive future growth. The company aims to leverage technological advancements in solar energy solutions to achieve its mission of promoting sustainable energy practices.
How Sunnova Energy International Inc. (NOVA) Works
Business Model
Sunnova Energy International Inc. operates primarily in the residential solar energy market, providing financing and installation services for solar energy systems. The company generates revenue through various channels, including Power Purchase Agreements (PPAs), leases, and direct sales of solar systems.
Financial Performance
As of September 30, 2024, Sunnova reported total revenue of $615.8 million for the nine months ended September 30, 2024, reflecting a 17% increase compared to $526.5 million for the same period in 2023.
| Revenue Source | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| PPA Revenue | $141,752 | $99,201 | $42,551 | 43% |
| Lease Revenue | $170,548 | $103,468 | $67,080 | 65% |
| SREC Revenue | $42,844 | $38,982 | $3,862 | 10% |
| Loan Revenue | $35,651 | $24,538 | $11,113 | 45% |
| Cash Sales Revenue | $93,523 | $62,827 | $30,696 | 49% |
| Direct Sales Revenue | $36,012 | $43,035 | ($7,023) | (16%) |
| Solar Energy System and Product Sales | $211,447 | $243,623 | ($32,176) | (13%) |
Customer Metrics
As of September 30, 2024, Sunnova had approximately 422,700 customers, representing an increase from 419,200 customers at the end of 2023. The number of cash sales customers increased from 4,100 to 5,000, a rise of 22%.
| Customer Metric | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Number of Customers | 422,700 | 419,200 | +3,500 |
| Number of Cash Sales Customers | 5,000 | 4,100 | +900 |
Operational Costs
The cost of revenue associated with customer agreements and incentives increased to $155.1 million for the nine months ended September 30, 2024, up from $106.0 million in the previous year, an increase of 46%.
| Cost Category | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Depreciation (Solar Systems) | $137,642 | $92,262 | $45,380 | 49% |
| Service Revenue Costs | $17,422 | $13,694 | $3,728 | 27% |
Net Loss
Sunnova reported a net loss of $150.3 million for the nine months ended September 30, 2024, compared to a net loss of $56.5 million for the same period in 2023. This represents a significant increase in net loss of 166% year-over-year.
| Metric | 2024 (in thousands) | 2023 (in thousands) | Change ($ thousands) | Change (%) |
|---|---|---|---|---|
| Net Loss | ($150,324) | ($56,463) | ($93,861) | 166% |
Liquidity and Capital Resources
As of September 30, 2024, Sunnova held total cash of $473.9 million, with $208.9 million being unrestricted. The company had an available borrowing capacity of $1.0 billion across various debt financing arrangements.
| Liquidity Metric | Amount (in thousands) |
|---|---|
| Total Cash | $473,900 |
| Unrestricted Cash | $208,900 |
| Available Borrowing Capacity | $1,000,000 |
Debt Obligations
As of September 30, 2024, the company has several debt instruments with varying interest rates. The weighted average effective interest rates for these obligations reflect an increase due to recent financing arrangements.
| Debt Type | Principal Amount (in thousands) | Interest Rate (%) |
|---|---|---|
| Series 2024-A Class A Notes | $166,000 | 5.30% |
| Series 2024-A Class B Notes | $33,900 | 6.00% |
| Series 2024-A Class C Notes | $27,100 | 7.00% |
| Series 2024-2 Class A Notes | $308,500 | 6.58% |
| Series 2024-3 Class A Notes | $295,200 | 6.45% |
How Sunnova Energy International Inc. (NOVA) Makes Money
Revenue Streams
Sunnova Energy International Inc. generates revenue through various channels, primarily from customer agreements and incentives, solar energy system sales, and loan agreements.
Customer Agreements and Incentives
Customer agreements and incentives are core to Sunnova's business model, accounting for significant revenue. For the nine months ended September 30, 2024, this revenue increased by $121.5 million (+43%) compared to the same period in 2023, totaling $404.3 million .
| Type | Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| PPA Revenue | $141,752 | $42,551 | 43% |
| Lease Revenue | $170,548 | $67,080 | 65% |
| SREC Revenue | $42,844 | $3,862 | 10% |
| Loan Revenue | $35,651 | $11,113 | 45% |
| Service Revenue | $8,794 | ($3,453) | (28%) |
| Other Revenue | $4,759 | $347 | 8% |
Solar Energy System and Product Sales
Sunnova's solar energy system and product sales generated $211.4 million in revenue for the nine months ended September 30, 2024, a decrease of $32.2 million (-13%) from the previous year. This decline was primarily due to a decrease in inventory sales revenue, which fell by $55.8 million (-41%) .
| Sales Type | Revenue (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Cash Sales Revenue | $93,523 | $30,696 | 49% |
| Direct Sales Revenue | $36,012 | ($7,023) | (16%) |
| Inventory Sales Revenue | $81,912 | ($55,849) | (41%) |
Loan Revenues
Loan revenue has also seen significant growth, increasing by $11.1 million (+45%) in the nine months ended September 30, 2024, totaling $35.7 million. The weighted average number of systems with loan agreements increased from 82,700 in 2023 to 102,000 in 2024 (+23%) .
Cost of Revenue
The cost of revenue related to customer agreements and incentives increased by $49.1 million (+46%) to $155.1 million for the nine months ended September 30, 2024 .
| Cost Type | Cost (in thousands) | Change ($) | Change (%) |
|---|---|---|---|
| Depreciation Costs | $137,642 | $45,380 | 49% |
| Service Customer Costs | $17,422 | $3,728 | 27% |
Financial Performance
For the three months ended September 30, 2024, total revenue was $235.3 million, an increase of $36.9 million (+19%) from the same period in 2023 .
| Metric | Q3 2024 (in thousands) | Q3 2023 (in thousands) | Change ($) | Change (%) |
|---|---|---|---|---|
| Total Revenue | $235,294 | $198,398 | $36,896 | 19% |
| Operating Loss | ($52,487) | ($38,216) | ($14,271) | 37% |
| Net Loss | ($150,324) | ($56,463) | ($93,861) | 166% |
Liquidity and Capital Resources
As of September 30, 2024, Sunnova had total cash of $473.9 million, including $208.9 million in unrestricted cash. The company also reported $1.0 billion in available borrowing capacity under various debt financing arrangements .
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Article updated on 8 Nov 2024
Resources:
- Sunnova Energy International Inc. (NOVA) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Sunnova Energy International Inc. (NOVA)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Sunnova Energy International Inc. (NOVA)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.