2024 and Recent Highlights
- Increased total cumulative solar power generation and energy
storage under management to 3.0 gigawatts and 1,662 megawatt hours,
respectively, as of December 31, 2024
- Grew total cash by 11% to $548 million as of December 31,
2024
- Announced a further optimization of operations estimated to
reduce annual cash costs by $70 million
- Signed a $185 million non-recourse asset-based loan facility
providing additional working capital, facility expected to close
and fund in the coming days subject to customary closing
conditions
Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), a
leading adaptive energy services company, today announced financial
results for the fourth quarter and full year ended December 31,
2024.
"Total cash increased by 11% in 2024. This was accomplished
without issuing new corporate capital. While total cash increased,
unrestricted cash remained relatively flat, below our estimated
$100 million increase. This miss was primarily due to lower tax
equity contributions stemming from timing delays of ITC sales,
fewer installed systems, and funds received in December classified
as restricted," said William J. (John) Berger, Sunnova's founder
and CEO.
Berger continued, "During 2024 and the first two months of 2025
we acted on several initiatives, including mandating domestic
content for our dealers to increase our weighted average ITC
percentage, raising price, simplifying our business to reduce
costs, and changing dealer payment terms to align with our own
funding sources. We believe, these actions better position Sunnova
in the current environment and support positive cash in 2025 and
beyond."
2024 Results
Customer agreements and incentives revenue, which is core to our
business operations, increased by 43% (+$163.4 million) in the year
ended December 31, 2024 compared to the year ended December 31,
2023 primarily due to an increase in the number of solar energy
systems in service and an increase in revenue generated per system
due to slightly larger average system sizes and higher battery
attachment rates, which increased from 27% for the year ended
December 31, 2023 to 34% for the year ended December 31, 2024.
SREC revenue increased by 16% (+$8.2 million) in the year ended
December 31, 2024 compared to the year ended December 31, 2023
primarily due to an increase in SREC volume in Massachusetts,
resulting in an increase in revenue of $5.0 million, an increase in
SREC volume in Pennsylvania, resulting in an increase in revenue of
$2.4 million, and an increase in SREC volume in New Jersey,
resulting in an increase in revenue of $5.5 million, partially
offset by a decrease in average SREC prices in New Jersey,
resulting in a decrease in revenue of $4.6 million. The amount of
SREC revenue recognized in each period is also affected by the
total number of solar energy systems, weather seasonality and hedge
and spot prices associated with the timing of the sale of
SRECs.
Loan revenue increased by 38% (+$13.2 million) in the year ended
December 31, 2024 compared to the year ended December 31, 2023
primarily due to an increase in the weighted average number of
systems with loan agreements, which increased from 85,800 for the
year ended December 31, 2023 to 103,400 for the year ended December
31, 2024 (+21%). Loan revenue, on a weighted average number of
systems basis, increased from $405 per system for the year ended
December 31, 2023 to $464 per system for the same period in 2024
(+15%) primarily due to an increase in higher priced products being
placed in service. Service revenue decreased by 27% (-$4.4 million)
in the year ended December 31, 2024 compared to the year ended
December 31, 2023 primarily due to a decrease in the number of
one-time transactions for repair services related to third-party
solar energy systems.
Solar energy system and product sales revenue decreased by 13%
(-$44.1 million) in the year ended December 31, 2024 compared to
the year ended December 31, 2023 primarily due to decreases in
inventory sales revenue, which is non-core to our business
operations, and direct sales revenue, partially offset by an
increase in cash sales revenue that increased due to an increase in
customers. Inventory sales revenue decreased by 43% (-$79.6
million) in the year ended December 31, 2024 compared to the year
ended December 31, 2023 primarily due to our strategic focus to
shift away from buying inventory to resell to our dealers or other
parties in order to focus on our core business of providing energy
services to our customers. Direct sales revenue decreased by 19%
(-$11.2 million) in the year ended December 31, 2024 compared to
the year ended December 31, 2023 primarily due to a 20% decrease in
the number of direct sales solar energy systems and energy storage
systems placed in service in 2024 when compared to the same period
in 2023. This decrease is partially due to a reduction in our
direct sales resources that have been redeployed to other functions
and partially due to a change to our in-service methodology in
mid-2024 to require additional procedures; thus, these projects now
take longer to be placed in service. Cash sales revenue increased
by 49% (+$46.7 million) in the year ended December 31, 2024
compared to the year ended December 31, 2023 primarily due to an
increase in the number of cash sales customers. This increase in
customers is primarily due to more cash sales of storage and solar
systems in 2024 whereas only solar systems were sold in 2023. The
number of cash sales customers increased from 5,800 for the year
ended December 31, 2023 to 7,200 for the year ended December 31,
2024 (+24%). On a per customer basis, cash sales revenue increased
from $16,564 per customer for the year ended December 31, 2023 to
$19,831 per customer for the same period in 2024 (+20%) primarily
due to larger system sizes with more storage included and thus,
higher revenue (and higher associated costs).
Cost of revenue—customer agreements and incentives, which is
core to our business operations, increased by 43% (+$64.2 million)
in the year ended December 31, 2024 compared to the year ended
December 31, 2023 primarily due to an increase in depreciation
related to solar energy systems and energy storage systems, which
increased by 46% (+$60.0 million). This increase is aligned with
the related revenue discussed above, which increased by 53%, and is
primarily due to an increase in the weighted average number of PPA
and lease systems from 168,500 for the year ended December 31, 2023
to 230,600 for the year ended December 31, 2024 (+37%). On a
weighted average number of systems basis, depreciation related to
solar energy systems and energy storage systems increased from $773
per system for the year ended December 31, 2023 to $825 per system
for the same period in 2024 (+7%). This overall increase is
primarily due to a higher percentage of solar energy systems with
storage and slightly larger average system sizes.
Cost of revenue related to service customers, loan agreements
and underwriting costs (such as credit checks, title searches and
the amortization of UCC filing costs) for new customers and solar
energy systems increased by 22% (+$4.2 million) in the year ended
December 31, 2024 compared to the year ended December 31, 2023
primarily due to increases in costs related to SRECs of $3.2
million, loan agreements of $1.6 million and UCC filings of $1.1
million, partially offset by a decrease of $1.9 million in internal
labor costs to perform maintenance services in-house for third
party contracts due to lower activity.
Cost of revenue—solar energy system and product sales decreased
by 10% (-$28.7 million) in the year ended December 31, 2024
compared to the year ended December 31, 2023 primarily due to a
decrease in inventory sales costs, which is non-core to our
business operations, partially offset by increases in cash sales
costs that increased due to an increase in customers and direct
sales costs. Inventory sales costs decreased by 41% (-$73.0
million) in the year ended December 31, 2024 compared to the year
ended December 31, 2023 primarily due to our strategic focus to
shift away from buying inventory to resell to our dealers or other
parties in order to focus on our core business of providing energy
services to our customers. Cash sales costs increased by 62%
(+$32.6 million) in the year ended December 31, 2024 compared to
the year ended December 31, 2023 primarily due to an increase in
the number of cash sales customers. This increase in customers is
primarily due to more cash sales of storage and solar systems in
2024 whereas only solar systems were sold in 2023. The number of
cash sales customers increased from 5,800 for the year ended
December 31, 2023 to 7,200 for the year ended December 31, 2024
(+24%). On a per customer basis, cash sales costs increased from
$9,077 per customer for the year ended December 31, 2023 to $11,835
per customer for the same period in 2024 (+30%) primarily due to
larger system sizes with more storage included and thus, higher
costs. Direct sales costs increased by 24% (+$11.5 million) in the
year ended December 31, 2024 compared to the year ended December
31, 2023. This increase is primarily due to an increase in direct
sales leases and PPAs installed, which have a higher cost basis
than the direct sales loans we principally sold in 2023. Cost of
revenue related to service customers, loan agreements and
underwriting costs (such as credit checks, title searches and the
amortization of UCC filing costs) for new customers and solar
energy systems increased by 22% (+$4.2 million) in the year ended
December 31, 2024 compared to the year ended December 31, 2023
primarily due to increases in costs related to SRECs of $3.2
million, loan agreements of $1.6 million and UCC filings of $1.1
million, partially offset by a decrease of $1.9 million in internal
labor costs to perform maintenance services in-house for third
party contracts due to lower activity.
Operations and maintenance expense increased by 8% (+$8.0
million) in the year ended December 31, 2024 compared to the year
ended December 31, 2023 primarily due to an increase in charges
recognized for non-recoverable costs from terminated dealers of
$11.5 million. We recognized impairments on costs paid to certain
terminated dealers for work-in-progress solar energy systems and
energy storage systems that have cancelled or are estimated to
cancel and are not expected to be recovered, along with unearned
portions of exclusivity and bonus payments tied to such dealers,
which we estimate are not recoverable. We may continue to incur
charges of this nature. The increase is also due to (a) charges
recognized for non-recoverable prepaid design and engineering costs
of $4.0 million, (b) an increase in property insurance costs of
$3.6 million due to more assets to insure and an increase in
overall premium costs and (c) an increase in other impairments of
$2.5 million. This increase is partially offset by decreases in
costs related to the maintenance and servicing of solar energy
systems and energy storage systems of $7.7 million and
inventory-related impairments of $5.5 million. We consider the
inventory-related impairments of $20.0 million and $25.6 million in
the years ended December 31, 2024 and 2023, respectively, to be
non-core in nature and do not expect these types of impairments in
the future to be as significant due to our shift in strategic focus
in the latter half of 2023 to pivot away from buying inventory to
resell in order to focus on our core business of providing energy
services to our customers.
General and administrative expense increased by 19% (+$74.8
million) in the year ended December 31, 2024 compared to the year
ended December 31, 2023, which was reflective of our commitment to
proactively expand our platform to serve a consistently growing
base of customers and other stakeholders. Payroll and employee
related expenses increased by 15% (+$28.4 million) primarily due to
the additional employees we hired to serve our growing customer
base and to perform maintenance services in-house rather than by
third parties (which increased by 12%, or +$6.2 million) related to
maintaining and servicing solar energy systems. We believe
expanding our team in this area will position us to reduce
third-party expense that supports our core business. However, our
number of employees decreased by 12% from 2,047 at December 31,
2023 to 1,796 at December 31, 2024. Payroll and employee-related
expenses for employees not related to the operations and
maintenance work for our customers increased by 16% (+$22.3
million) in the year ended December 31, 2024 compared to the year
ended December 31, 2023. Depreciation expense not related to solar
energy systems and energy storage systems increased by 67% (+$15.6
million) primarily related to our software and business technology
projects, for which depreciation on those assets increased by 72%
(+$15.0 million) primarily due to an additional $24.7 million of
capitalized software and business technology projects being placed
in service during the prior twelve months. Financing deal costs
increased by $12.8 million primarily due to non-utilization fees
for certain tax equity funds. Consultants, contractors and
professional fees increased by 22% (+$8.1 million), software and
business technology expense increased by 25% (+$6.7 million), and
legal, insurance, office and business travel costs increased by 4%
(+$1.5 million) all due to the growth in our customers.
The provision for current expected credit losses decreased by
24% (-$11.1 million) in the year ended December 31, 2024 compared
to the year ended December 31, 2023 primarily due to a lower volume
of loan originations in 2024 compared to 2023 and the sale of
certain accessory loans in 2024.
Other operating (income) expense changed by $21.5 million in the
year ended December 31, 2024 compared to the year ended December
31, 2023 primarily due to a loss on sales of customer notes
receivable of $43.4 million, partially offset by changes in the
fair value of certain financial instruments and contingent
consideration of $20.5 million.
Interest expense, net increased by 32% (+$119.2 million) in the
year ended December 31, 2024 compared to the year ended December
31, 2023. This increase was primarily due to (a) an increase in
interest expense of $125.2 million primarily due to higher levels
of average debt outstanding in the year ended December 31, 2024 by
25% (+$1.6 billion) compared to the same period in 2023, resulting
in an increase in interest expense of $67.7 million, and an
increase in the weighted average interest rates by 0.73%, resulting
in an increase in interest expense of $55.3 million, (b) an
increase in amortization of deferred financing costs of $34.0
million, (c) an increase in amortization of debt discounts of $11.0
million and (d) a decrease in realized gains on derivatives of $5.6
million, partially offset by a decrease in unrealized losses on
derivatives of $63.5 million.
Interest income increased by 29% (+$34.0 million) in the year
ended December 31, 2024 compared to the year ended December 31,
2023. This increase was primarily due to an increase in interest
income from our loan agreements of 32% (+$31.7 million). The
weighted average number of systems with loan agreements, including
accessory loans, increased from approximately 120,400 for the year
ended December 31, 2023 to approximately 128,800 for the year ended
December 31, 2024. On a weighted average number of systems basis,
loan interest income increased from $821 per system for the year
ended December 31, 2023 to $1,014 per system for the year ended
December 31, 2024 primarily due to the sale of certain accessory
loans during 2024, which generate less interest income than
non-accessory loans.
Income tax benefit increased by $143.5 million in the year ended
December 31, 2024 compared to the year ended December 31, 2023
primarily due to ITC sales that resulted in an increase to income
tax benefit of $141.2 million.
Net loss attributable to redeemable noncontrolling interests and
noncontrolling interests decreased by $4.6 million in the year
ended December 31, 2024 compared to the year ended December 31,
2023 primarily due to a decrease in loss attributable to redeemable
noncontrolling interests and noncontrolling interests from tax
equity funds added in 2022, 2023 and 2024. In addition to the net
loss attributable to redeemable noncontrolling interests and
noncontrolling interests, total stockholders' equity is increasing
as a result of the equity in subsidiaries attributable to parent.
This is a result of solar energy systems being sold to the tax
equity partnerships at fair market value, which exceeds the cost
reflected in the solar energy systems on the Consolidated Balance
Sheets.
Liquidity & Capital Resources
As of December 31, 2024, we had total cash and restricted cash
of $548.1 million, of which $211.2 million was unrestricted cash,
and $623.8 million of available borrowing capacity under our
various debt financing arrangements. As of December 31, 2024, we
also had undrawn committed capital of $537.3 million under our tax
equity funds, which may only be used to purchase and install solar
energy systems.
Term Loan Agreement
On March 2, 2025, Sunnova Solstice Borrower, LLC, a Delaware
limited liability company (the “Borrower”) and an indirect wholly
owned subsidiary of Sunnova Energy International Inc. (the
“Company”), entered into a Term Loan Agreement (the “Loan
Agreement”), by and among the Borrower, the lenders from time to
time party thereto (collectively, the “Lenders” and each
individually a “Lender”), and Wilmington Trust, National
Association, as Agent (the “Agent”). The Loan Agreement provides
for a $185 million secured term loan facility (the “Facility”),
subject to customary closing conditions. The scheduled maturity
date of the Loan Agreement is the earlier of (a) three years from
the closing date and (b) acceleration following the occurrence of
an event of default, as defined in the Loan Agreement. The Company
intends to use the proceeds from the Facility for general working
capital purposes.
The Facility bears interest at a rate of 15.00% per annum.
Interest may be paid in kind to the extent cash flows are
insufficient to make cash interest payments on any scheduled
payment date. The Borrower may prepay the Facility in full or in
part at any time, subject to a minimum repayment equal to a Minimum
Multiple of Invested Capital (“MOIC”) of 1.30x.
In connection with the transaction, the Company has agreed to
provide the Lenders $10 million in the form of original issue
discount or a cash fee. Such amount would be included in the
calculation of any MOIC that may be payable in connection with any
prepayment.
The Facility will be secured by, and payable from the cash flow
generated by, among other things, (a) a pledge of the membership
interests of the Borrower by its direct parent entity, Sunnova
Solstice Pledgor, LLC, (b) a pledge of the membership interests in
the Borrower’s subsidiaries at closing that directly or indirectly
own the membership interests in the issuers of the Company’s
existing securitization transactions (other than 2023-GRID1 (Hestia
I), 2024-GRID1 (Hestia II), RAYSI 2019-1 and RAYSI 2019-2 (RAYS I))
and (c) all assets of Borrower, its direct subsidiary Sunnova
Solstice Holdings, LLC, its direct subsidiaries Sunnova Solstice
ABS HoldCo, LLC and Sunnova Solstice ABS HoldCo II, LLC and each of
their respective direct subsidiaries up to the parent of a
subsidiary that is a “Depositor” under an existing securitization
transaction, in each case who collectively, indirectly own the
membership interests in the issuers of the Company’s existing
securitization transactions, but in each case of (a), (b) and (c),
excluding certain equity interests for regulatory risk retention
purposes.
The Loan Agreement includes (i) customary affirmative covenants
including, but not limited to, reporting, notice and information
obligations, maintenance of existence and insurance, compliance
with laws, payment of obligations, use of proceeds, further
assurances and assistance in involuntary bankruptcy proceedings,
distributions, additional collateral, and certain tax matters and
(ii) customary negative covenants including, but not limited to,
restrictions on incurrence of indebtedness, liens, modification of
collateral documents, fundamental changes, asset sales, restricted
payments and investments, change in business, affiliate
transactions, activities related to sanctions, money-laundering,
bankruptcy and similar matters, ERISA plans and employee matters,
settlement of disputes, separateness, and certain tax and
accounting matters.
The Loan Agreement includes events of default including, but not
limited to, (a) failure to pay accrued interest subject to the
applicable cure period, (b) failure to pay principal, any unpaid
MOIC or any accrued interest on the applicable maturity date, (c)
failure to make other payments within 5 business days of the due
date, (d) any representation, warranty or certification is
incorrect when made, subject to applicable cure periods, (e)
default under applicable covenants in the loan agreements, subject
to applicable cure periods, (f) certain events related to
insolvency, bankruptcy or liquidation, (g) certain final judgments,
subject to applicable cure, (h) change of control of the Borrower,
(i) cross-defaults, subject to applicable grace periods, to the
securitization transactions and other indebtedness of the
Borrower’s subsidiaries whose indirect residual equity interest are
pledged as collateral under the Facility, (j) replacement or
removal of securitization or project company manager or servicers,
and (k) failure to comply with certain covenants in favor of the
Lenders during the occurrence of certain insolvency events of
securitization or project company manager or servicers. Upon the
occurrence, and during the continuance, of an event of default, the
Agent may, in addition to other customary rights and remedies,
declare any outstanding obligations under the Facility including
the MOIC Amount immediately due and payable.
Going Concern
Our unrestricted cash, cash flows from operating activities and
availability and commitments under existing financing agreements
are not sufficient to meet obligations and fund operations for a
period of at least one year from the date we issue our consolidated
financial statements without implementing additional measures to
manage our working capital, secure additional tax equity investment
commitments or waivers of conditions to access existing tax equity
commitments, and refinance certain of our obligations. Management's
plans to address these conditions are described in Note 2,
Significant Accounting Policies, to our consolidated financial
statements included in our Annual Report on Form 10-K as of
December 31, 2024, to be filed with the Securities and Exchange
Commission. While management has fully implemented certain aspects
of its plan at this time, management cannot conclude completing
future components of its plans are probable at this time as certain
aspects of these plans are, at least in part, beyond management's
unilateral control. Therefore, substantial doubt exists regarding
our ability to continue as a going concern for a period of at least
one year from the date we issue our consolidated financial
statements.
Management's plans to address these conditions include certain
or all of the following: (a) refinancing certain of our obligations
due during the look-forward period, (b) executing additional debt
financing that can be used for general corporate purposes, (c)
reducing expenditures, (d) revising dealer payment terms and (e)
obtaining tax equity investment commitment that is sufficient to
continue operating our business model. We can offer no assurances
we will be able to successfully implement any of these plans or
obtain financing at acceptable terms or at all. To support
executing elements of this plan, we have hired a financial advisor
to help us manage certain aspects of our debt management and
refinancing efforts. See Note 7, Long-Term Debt of our Annual
Report on Form 10-K as of December 31, 2024, to be filed with the
Securities and Exchange Commission, for further discussion of our
debt obligations.
Conference Call Information
Sunnova is hosting a conference call for analysts and investors
to discuss its fourth quarter and full year 2024 results at 8:00
a.m. Eastern Time, on March 3, 2025. The conference call can be
accessed live over the phone by dialing 833-470-1428 or
404-975-4839. The access code for the live call is 601536.
A replay will be available two hours after the call and can be
accessed by dialing 866-813-9403 or 929-458-6194. The access code
for the replay is 736946. The replay will be available until March
6, 2025.
Interested investors and other parties may also listen to a
simultaneous webcast of the conference call by logging onto the
Investor Relations section of Sunnova’s website.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, 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," "expects,"
"plans," "anticipates," "going to," "could," "intends," "target,"
"projects," "contemplates," "believes," "estimates," "predicts,"
"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 release include, but are not limited to,
statements regarding our level of growth, customer value
propositions, technological developments, service levels, the
ability to achieve our operational and financial targets, operating
performance, including our outlook and guidance, demand for
Sunnova’s products and services, future financing and ability to
raise capital therefrom, and liquidity forecasts. 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 the substantial doubt
about our ability to continue as a going concern and risks
regarding our ability to forecast our business due to fluctuations
in the solar and home-building markets, availability of capital,
supply chain uncertainties, results of operations and financial
position, our competition, changes in regulations applicable to our
business, and our ability to attract and retain dealers and
customers and manage our dealer and strategic partner
relationships. The forward-looking statements contained in this
release are also subject to other risks and uncertainties,
including those more fully described in Sunnova’s filings with the
Securities and Exchange Commission, including Sunnova’s annual
report on Form 10-K for the year ended December 31, 2023, and
subsequent quarterly reports on Form 10-Q. The forward-looking
statements in this 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 an
industry-leading adaptive energy services company focused on making
clean energy more accessible, reliable, and affordable for
homeowners and businesses. Through its adaptive energy platform,
Sunnova provides a better energy service at a better price to
deliver its mission of powering energy independence. For more
information, visit sunnova.com.
SUNNOVA ENERGY INTERNATIONAL
INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands, except share
amounts and share par values)
As of December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
211,192
$
212,832
Accounts receivable—trade, net
43,670
40,767
Accounts receivable—other, net
318,330
253,350
Other current assets, net of allowance of
$5,550 and $4,659 as of December 31, 2024 and 2023,
respectively
454,311
429,299
Total current assets
1,027,503
936,248
Property and equipment, net
7,411,954
5,638,794
Customer notes receivable, net of
allowance of $134,499 and $111,818 as of December 31, 2024 and
2023, respectively
3,925,256
3,735,986
Intangible assets, net
105,214
134,058
Other assets
883,772
895,885
Total assets (1)
$
13,353,699
$
11,340,971
Liabilities, Redeemable
Noncontrolling Interests and Equity
Current liabilities:
Accounts payable
$
699,396
$
355,791
Accrued expenses
131,266
122,355
Current portion of long-term debt
327,228
483,497
Other current liabilities
165,861
133,649
Total current liabilities
1,323,751
1,095,292
Long-term debt, net
8,133,179
7,030,756
Other long-term liabilities
1,211,676
1,086,011
Total liabilities (1)
10,668,606
9,212,059
Redeemable noncontrolling interests
260,562
165,872
Stockholders' equity:
Common stock, 125,067,917 and 122,466,515
shares issued as of December 31, 2024 and 2023, respectively, at
$0.0001 par value
13
12
Additional paid-in capital—common
stock
1,785,041
1,755,461
Retained earnings (accumulated
deficit)
46,590
(228,583
)
Total stockholders' equity
1,831,644
1,526,890
Noncontrolling interests
592,887
436,150
Total equity
2,424,531
1,963,040
Total liabilities, redeemable
noncontrolling interests and equity
$
13,353,699
$
11,340,971
(1) The consolidated assets as of December
31, 2024 and 2023 include $7,023,751 and $5,297,816, respectively,
of assets of variable interest entities ("VIEs") that can only be
used to settle obligations of the VIEs. These assets include cash
of $96,508 and $54,674 as of December 31, 2024 and 2023,
respectively; accounts receivable—trade, net of $23,950 and $13,860
as of December 31, 2024 and 2023, respectively; accounts
receivable—other of $280,039 and $187,607 as of December 31, 2024
and 2023, respectively; other current assets of $647,464 and
$693,772 as of December 31, 2024 and 2023, respectively; property
and equipment, net of $5,827,836 and $4,273,478 as of December 31,
2024 and 2023, respectively; and other assets of $147,954 and
$74,425 as of December 31, 2024 and 2023, respectively. The
consolidated liabilities as of December 31, 2024 and 2023 include
$419,902 and $278,016, respectively, of liabilities of VIEs whose
creditors have no recourse to Sunnova Energy International Inc.
These liabilities include accounts payable of $293,329 and $197,072
as of December 31, 2024 and 2023, respectively; accrued expenses of
$1,330 and $157 as of December 31, 2024 and 2023, respectively;
other current liabilities of $8,486 and $7,269 as of December 31,
2024 and 2023, respectively; and other long-term liabilities of
$116,757 and $73,518 as of December 31, 2024 and 2023,
respectively.
SUNNOVA ENERGY INTERNATIONAL
INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
(in thousands, except share
and per share amounts)
Year Ended
December 31,
2024
2023
Revenue:
Customer agreements and incentives
$
541,530
$
378,136
Solar energy system and product sales
298,392
342,517
Total revenue
839,922
720,653
Operating expense:
Cost of revenue—customer agreements and
incentives
213,407
149,206
Cost of revenue—solar energy system and
product sales
249,555
278,291
Operations and maintenance
104,947
96,997
General and administrative
458,982
384,223
Goodwill impairment
—
13,150
Provision for current expected credit
losses and other bad debt expense
35,094
46,199
Other operating (income) expense
17,478
(3,978
)
Total operating expense, net
1,079,463
964,088
Operating loss
(239,541
)
(243,435
)
Interest expense, net
491,172
371,937
Interest income
(149,918
)
(115,872
)
Loss on extinguishment of long-term debt,
net
4,551
—
Other (income) expense
6,940
3,949
Loss before income tax
(592,286
)
(503,449
)
Income tax (benefit) expense
(144,513
)
(1,023
)
Net loss
(447,773
)
(502,426
)
Net income (loss) attributable to
redeemable noncontrolling interests and noncontrolling
interests
(79,880
)
(84,465
)
Net loss attributable to stockholders
$
(367,893
)
$
(417,961
)
Net loss per share attributable to
stockholders—basic and diluted
$
(2.96
)
$
(3.53
)
Weighted average common shares
outstanding—basic and diluted
124,240,517
118,344,728
SUNNOVA ENERGY INTERNATIONAL
INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in thousands)
Year Ended
December 31,
2024
2023
CASH FLOWS FROM OPERATING
ACTIVITIES
Net loss
$
(447,773
)
$
(502,426
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation
229,012
153,387
Impairment and loss on disposals, net
55,904
56,592
Amortization of intangible assets
28,432
28,432
Amortization of deferred financing
costs
59,222
25,226
Amortization of debt discount
30,130
19,174
Non-cash effect of equity-based
compensation plans
28,192
25,535
Non-cash direct sales revenue
(49,350
)
(60,590
)
Provision for current expected credit
losses and other bad debt expense
35,094
46,199
Unrealized loss on derivatives
3,771
67,318
Unrealized (gain) loss on fair value
instruments and equity securities
(17,294
)
188
Loss on sales of customer notes
receivable
43,448
—
Loss on extinguishment of long-term debt,
net
4,551
—
Other non-cash items
(11,695
)
7,332
Changes in components of operating assets
and liabilities:
Accounts receivable
(108,220
)
101,125
Other current assets
(144,361
)
(105,743
)
Other assets
(76,682
)
(115,488
)
Accounts payable
9,210
(5,493
)
Accrued expenses
(2,907
)
(11,213
)
Other current liabilities
22,109
43,665
Other long-term liabilities
(1,641
)
(10,782
)
Net cash used in operating activities
(310,848
)
(237,562
)
CASH FLOWS FROM INVESTING
ACTIVITIES
Purchases of property and equipment
(1,642,838
)
(1,832,714
)
Payments for investments and customer
notes receivable
(302,614
)
(909,488
)
Proceeds from customer notes
receivable
226,256
180,721
Proceeds from sales of customer notes
receivable
84,874
—
Proceeds from investments in solar
receivables
11,915
11,582
Other, net
6,632
5,238
Net cash used in investing activities
(1,615,775
)
(2,544,661
)
CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from long-term debt
2,780,375
3,507,828
Payments of long-term debt
(1,835,474
)
(1,406,022
)
Payments on notes payable
(8,890
)
(7,151
)
Payments of deferred financing costs
(61,053
)
(75,920
)
Proceeds from issuance of common stock,
net
(1,668
)
81,316
Contributions from redeemable
noncontrolling interests and noncontrolling interests
1,212,142
692,894
Distributions to redeemable noncontrolling
interests and noncontrolling interests
(589,037
)
(48,986
)
Payments of costs related to redeemable
noncontrolling interests and noncontrolling interests
(27,412
)
(11,881
)
Proceeds from sales of investment tax
credits for redeemable noncontrolling interests and noncontrolling
interests
519,906
5,971
Other, net
(8,557
)
(6,998
)
Net cash provided by financing
activities
1,980,332
2,731,051
Net increase (decrease) in cash, cash
equivalents and restricted cash
53,709
(51,172
)
Cash, cash equivalents and restricted cash
at beginning of period
494,402
545,574
Cash, cash equivalents and restricted cash
at end of period
548,111
494,402
Restricted cash included in other current
assets
(78,240
)
(62,188
)
Restricted cash included in other
assets
(258,679
)
(219,382
)
Cash and cash equivalents at end of
period
$
211,192
$
212,832
Key Operational Metrics
Supplemental Items
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(in thousands)
Net loss
$
(127,681
)
$
(234,836
)
$
(447,773
)
$
(502,426
)
Interest expense, net
$
102,530
$
171,782
$
491,172
$
371,937
Interest income
$
(40,262
)
$
(34,202
)
$
(149,918
)
$
(115,872
)
Income tax (benefit) expense
$
14,900
$
609
$
(144,513
)
$
(1,023
)
Depreciation expense
$
62,924
$
45,430
$
229,012
$
153,387
Amortization expense
$
8,012
$
7,471
$
30,738
$
29,583
Non-cash compensation expense
$
3,079
$
5,723
$
28,192
$
25,535
ARO accretion expense
$
1,840
$
1,414
$
6,652
$
4,905
Non-cash disaster (gains) losses
$
—
$
465
$
(3,094
)
$
3,865
Loss on extinguishment of long-term debt,
net
$
4,551
$
—
$
4,551
$
—
Unrealized (gain) loss on fair value
instruments and equity securities
$
(1,931
)
$
(658
)
$
(17,294
)
$
188
Amortization of payments to dealers for
exclusivity and other bonus arrangements
$
2,471
$
1,987
$
8,745
$
6,944
Provision for current expected credit
losses
$
9,944
$
6,048
$
24,442
$
35,515
Non-cash impairments
$
1,033
$
28,889
$
47,833
$
50,995
ITC sales
$
270,882
$
193,003
$
645,521
$
207,425
Loss on sales of non-core customer notes
receivable
$
—
$
—
$
23,962
$
—
ITC buyer underutilization fees
$
12,766
$
—
$
12,766
$
—
Other, net
$
—
$
(1,639
)
$
—
$
3,571
Interest income
$
40,262
$
34,202
$
149,918
$
115,872
Principal proceeds from customer notes
receivable, net of related revenue
$
47,672
$
43,787
$
179,378
$
146,701
Proceeds from investments in solar
receivables
$
2,642
$
2,874
$
11,915
$
11,582
Supplemental Expense Items
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
(in thousands)
Total operating expense, net
$
268,031
$
290,849
$
1,079,463
$
964,088
Depreciation expense
$
(62,924
)
$
(45,430
)
$
(229,012
)
$
(153,387
)
Amortization expense
$
(8,012
)
$
(7,471
)
$
(30,738
)
$
(29,583
)
Non-cash compensation expense
$
(3,079
)
$
(5,723
)
$
(28,192
)
$
(25,535
)
ARO accretion expense
$
(1,840
)
$
(1,414
)
$
(6,652
)
$
(4,905
)
Non-cash disaster gains (losses)
$
—
$
(465
)
$
3,094
$
(3,865
)
Amortization of payments to dealers for
exclusivity and other bonus arrangements
$
(2,471
)
$
(1,987
)
$
(8,745
)
$
(6,944
)
Provision for current expected credit
losses
$
(9,944
)
$
(6,048
)
$
(24,442
)
$
(35,515
)
Non-cash impairments
$
(1,033
)
$
(28,889
)
$
(47,833
)
$
(50,995
)
Cost of revenue related to direct
sales
$
(12,593
)
$
(14,850
)
$
(59,571
)
$
(48,049
)
Cost of revenue related to cash sales
$
(29,757
)
$
(18,643
)
$
(85,214
)
$
(52,644
)
Cost of revenue related to inventory
sales
$
(23,890
)
$
(47,355
)
$
(103,332
)
$
(176,371
)
Unrealized gain on fair value
instruments
$
3,990
$
638
$
24,234
$
3,761
Gain on held-for-sale loans
$
—
$
8
$
37
$
19
Loss on sales of customer notes
receivable
$
(22
)
$
—
$
(43,448
)
$
—
ITC buyer underutilization fees
(12,766
)
—
(12,766
)
—
Other, net
$
—
$
1,639
$
—
$
(3,571
)
As of
December 31, 2024
As of
December 31, 2023
Number of customers
441,200
419,200
Three Months Ended
December 31,
Year Ended
December 31,
2024
2023
2024
2023
Weighted average number of systems,
excluding loan agreements and cash sales
308,000
243,800
283,000
219,100
Weighted average number of systems with
loan agreements, including accessory loans
109,900
150,000
128,800
120,400
Weighted average number of systems with
cash sales
18,700
11,500
16,000
9,300
Weighted average number of systems
436,600
405,300
427,800
348,800
Key Terms for Our Key Metrics
Number of Customers. We define number of customers to
include every unique premises on which a Sunnova product or
Sunnova-financed product is installed or on which Sunnova is
obligated to perform services for a counterparty. We track the
total number of customers as an indicator of our historical growth
and our rate of growth from period to period.
Weighted Average Number of Systems. We calculate the
weighted average number of systems based on the number of months a
customer and any additional service obligation related to a solar
energy system is in-service during a given measurement period. The
weighted average number of systems reflects the number of systems
at the beginning of a period, plus the total number of new systems
added in the period adjusted by a factor that accounts for the
partial period nature of those new systems. For purposes of this
calculation, we assume all new systems added during a month were
added in the middle of that month. The number of systems for any
end of period will exceed the number of customers, as defined
above, for that same end of period as we are also including any
additional services and/or contracts a customer or third party
executed for the additional work for the same residence or
business. We track the weighted average system count in order to
accurately reflect the contribution of the appropriate number of
systems to key financial metrics over the measurement period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20250302530009/en/
Investor Contact: Rodney McMahan IR@sunnova.com 281-971-3323
Media Contact: Russell Wilkerson Russell.Wilkerson@sunnova.com
203-581-2114
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