Sunnova Receives $3 Billion from DOE for Clean Energy Access

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Sunnova Energy International has received a partial loan agreement from the Department of Energy to support the company’s project of providing clean energy services, including access to virtual power plant systems that can help with grid resilience, to disadvantaged homeowners and communities.

The agreement will support Sunnova’s new solar loan channel, Project Hestia, which will indirectly and partially guarantee cash flows associated with consumers’ loans. The DOE loan contains a 90% guarantee of up to $3.3 billion of term loans.

The project will make distributed energy resources, including rooftop solar, battery storage, and virtual power plant (VPP)-ready, consumer-facing software, available to more U.S. homeowners. The DOE said the loan is the largest commitment made by the federal government to solar power and its first loan guarantee for a VPP.

Through Project Hestia, about 75,000 to 115,000 homeowners may receive loans for Sunnova’s clean energy systems, which include rooftop solar installations, residential battery systems, and smart software. The systems will specifically benefit communities that would otherwise have difficulty accessing clean energy.

Over the next 25 years, the project is expected to avoid about 7.1 million tons of carbon dioxide emissions.

The DOE loan guarantee will back the company’s first Hestia asset-backed securitization in the fourth quarter of 2023.

"This is an important step in structured solar investments that will accelerate solar adoption and bring our best-in-class service to more underrepresented customers," said Robert Lane, executive vice president and CFO at Sunnova. "We expect the Hestia I issuance to generate spreads commensurate with the expected credit uplift and introduce new, investment-grade investors to Sunnova’s long-term strategy."

Sunnova’s Software Provides Cost, Emissions Savings for Consumers

Part of Sunnova's project will include customer access to VPPs, which work by offering homeowners data on energy consumption, grid energy demand, and the overall programming of their energy system. With this information, consumers may reduce their energy consumption or use a battery instead of grid energy, and some power companies will compensate for such energy savings.

In Sunnova’s case, the home solar systems they provide may generate more energy than needed for a given household at certain times, especially if homeowners use their energy efficiently. Excess energy may then be directed back to the grid, and homeowners are paid for that energy supply in areas where such services are provided.

Sunnova will also offer its app and portal to those receiving installations, helping customers reduce greenhouse gas emissions, inform their use of load controllers and smart appliances, and support grid stability. The app also allows customers a visual of location-specific emissions, so they may see specifically where changes in energy usage have contributed to emissions prevention.

As a part of the agreement, Sunnova will provide the DOE with monthly servicing reports and will measure and report emissions reductions associated with Project Hestia.

Environment + Energy Leader