Sunnova Raises nearly $1 Billion Based on Strength of Business Approach
Company’s unique approach paves the way for solar installations, drives momentum and raises capital in residential solar industry as peers retool operations
HOUSTON, June 13, 2017 – Sunnova Energy Corporation, a leading residential solar service provider in the U.S., announced today it has raised aggregate capital of nearly $1 billion in the past three months after closing a $140 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 U.S. solar industry, with Sunnova’s leadership, is more competitive than ever with utility-scale power.
Prior to securing this latest $140 million debt funding from CIT and others, Sunnova secured an $80 million tax equity deal on March 14, a $255 million private securitization offering and a $360 million warehouse credit facility deal on April 24 and an $80 million private notes offering on April 25. To date, Sunnova has raised more than $2 billion since 2012.
The funds raised will support Sunnova’s growth and compelling free-market vision to continue offering homeowners more affordable energy options. Sunnova’s recent progress includes:
- Launching PowerStack™, Sunnova’s new affordable solar+storage residential service
- Expanding its solar ownership finance product to additional states
- Offering more solar options in additional markets such as Texas
“Sunnova is an established player in renewables and has been steadily increasing its market share over the years," said 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,” said 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,” said Sunnova CEO William J. (John) Berger. “Customers are beginning to realize 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,” said 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.”
Statements in this release that are not historical facts, including but not limited to statements regarding the company's capital availability and security; the company's strengthened financial position; the company's ability to meet its strategic growth objectives, are forward-looking statements that are based on current expectations. Although we believe our expectations are based on reasonable assumptions, we can give no assurance that these expectations will prove correct. Important factors such as market conditions, technology changes, capital needs and uses, results of operations and other risks and uncertainties beyond our control cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Any forward-looking statement speaks only as of the date on which such statement is made and we do not undertake any obligation to update or revise any forward-looking statement.
Sunnova is a different kind of power company, offering rooftop solar service to homeowners in the United States and its territories through our network of local sales and installation partners. Our mission is to change the energy industry by providing the choice of low-cost, worry-free solar power that generates long-term savings for our customers and continued business growth for partners. For more information, visit www.sunnova.com, follow @Sunnova_Solar on Twitter, and connect with us on Facebook and LinkedIn.
Founded in 1908, CIT (NYSE: CIT) is a financial holding company with $63 billion in assets as of March 31, 2017. Its principal bank subsidiary, CIT Bank, N.A. (Member FDIC, Equal Housing Lender), has more than $30 billion of deposits and more than $40 billion of assets. CIT provides financing, leasing, and advisory services principally to middle-market companies and small businesses across a wide variety of industries. It also offers products and services to consumers through its Internet bank franchise and a network of retail branches in Southern California, operating as OneWest Bank, a division of CIT Bank, N.A. For more information visit cit.com.
ABOUT COHNREZNICK CAPITAL
At CohnReznick Capital our team creates unprecedented firsts, having successfully raised more than $2.6 billion in tax equity for renewable energy projects, in addition to having executed more than 85 project and corporate financings for renewable energy assets, valuing more than $12 billion in aggregate. As the #1 ranked Renewable Energy Financial Advisor by IJ Global Magazine, we deliver exceptional service for financial institutions, infrastructure funds, strategic participants (IPPs and utilities), and leading global clean energy developers. Our team of experts helps our clients breakthrough the dynamic and evolving sustainability sector by simplifying project finance, M&A, capital raising and special situations. To learn more visit, www.cohnreznickcapital.com, follow @CR_Capital on Twitter, and connect with us on Facebook, Instagram & LinkedIn.