Sunnova Vitality Corp., among the many largest U.S. residential photo voltaic third-party possession suppliers, is planning an preliminary public providing that might worth the Houston-based firm at greater than $1 billion together with debt, in response to a Tuesday report from Reuters citing nameless sources.
Sunnova declined to touch upon Reuters’ report that it has filed confidential paperwork to carry an IPO later this 12 months. The corporate, based in 2012, has seen greater than $2.5 billion in funding from backers together with Vitality Capital Companions, Triangle Peak Companions, and Quantum Strategic Companions.
Sunnova has constructed up a big market share within the residential photo voltaic financing market, offering leases and loans for methods put in through a nationwide community of contractors. On the finish of 2018, Sunnova was the fourth largest residential photo voltaic third-party possession (TPO) supplier in the US, behind Sunrun, Vivint Photo voltaic, and SunPower, in response to Wooden Mackenzie Energy & Renewables’s U.S. Residential Photo voltaic Finance Replace.
What differentiates Sunnova from these opponents, nevertheless, is that Sunnova additionally gives residential photo voltaic loans, permitting the corporate to benefit from that rising market as nicely, Alison Mond, WoodMac photo voltaic analyst, famous Tuesday.
On the finish of 2018, Sunnova was the seventh largest residential photo voltaic financier total, together with each TPO gamers and mortgage suppliers, behind Sunrun, Mosaic, Loanpal, Daylight Monetary, Vivint Photo voltaic, and Dividend Finance.
Sunnova has raised extra financing than a few of its largest opponents which have additionally taken the IPO route. For instance, Sunrun had raised $681 million in enterprise financing when it went public in 2015, elevating one other $251 million to attain an preliminary market capitalization of $1.36 billion. SolarCity (now Tesla) raised roughly $90 million in its 2012 IPO to attain an preliminary market capitalization of about $600 million.
However then, in fact, the U.S. residential photo voltaic market is way bigger, and the merchandise being offered and financed less expensive, than they had been even a number of years in the past. Sunnova’s most up-to-date increase of $775 million in April 2017 included the corporate’s first asset-backed securitization, and one of many largest within the trade’s historical past.
Sunnova’s reported IPO could give the market a measure of traders’ urge for food for a residential photo voltaic supplier that depends solely on its community of regional sellers and contracts to put in the photo voltaic and storage methods it sells, WoodMac photo voltaic analyst Austin Perea famous.
In contrast, Sunrun, Tesla/SolarCity, Vivint, and SunPower all do a mix of direct and channel companion installations. “The query to ask right here can be whether or not Sunnova’s IPO says something concerning the long-term viability of the nationwide installer mannequin,” Perea stated.
Sunnova has additionally adopted its opponents into the enterprise of offering behind-the-meter batteries alongside photo voltaic methods, launching its SunSafe product in March 2018 and now promoting in California, Arizona, Hawaii, Puerto Rico and Texas. That’s in comparison with market chief SunRun, which sells its BrightBox package deal to Hawaii, Arizona, Nevada, New York and Massachusetts.