- Sunnova Energy International Inc (NYSE:NOVA), an Energy as a Service (EaaS) provider, announced a conditional commitment by the U.S. Department of Energy (DOE) Loan Programs Office (LPO) to provide an up to $3.0 billion partial loan guarantee, which equates to a 90% guarantee of up to $3.3 billion of financing to support a new solar loan channel named “Project Hestia.”
- Project Hestia would provide disadvantaged individuals and communities with increased access to Sunnova services by indirectly and partially guaranteeing the cash flows associated with those consumers’ loans.
- Each energy system must be outfitted with Sunnova’s purpose-built technology.
- If issued, the DOE loan guarantee would support the origination of Sunnova loans associated with solar, storage, or other Sunnova Adaptive Home technologies that utilize Sunnova’s purpose-built demand response and VPP-enabling software.
- Sunnova anticipates the DOE loan guarantee will support up to $4.0 – $5.0 billion in Sunnova loan originations, reduce the company’s weighted average cost of capital, and generate interest savings.
- The DOE loan guarantee would be issued under Title XVII of the Energy Policy Act of 2005.
- Sunnova has agreed to provide monthly servicing reports supplemented by hardware and software deployment information to DOE.
- Sunnova has also agreed to measure the reduction in greenhouse gases associated with Project Hestia.
- The transaction is expected to close in the second quarter of 2023. Sunnova plans to issue its first securitization under the program in 1H 2023.
- Wall Street Journal writes that the Biden administration has sought to attract private capital to clean-energy projects by making the investments less risky.
- The government hopes that guaranteeing the payments will unleash billions of dollars in rooftop solar deployments.
- Price Action: NOVA shares are up 11.90% at $17.71 on the last check Thursday.
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