Sunnova Energy Corporation, a residential solar service provider in the U.S., has obtained $80 million in tax equity funding commitments from U.S. Bancorp Community Development Corporation (USBCDC), which will enable the development of new residential solar projects with a total value of more than $200 million. The deal marks the first transaction between USBCDC, a division of U.S. Bank (NYSE: USB), and Sunnova as well as Sunnova’s entry into the tax equity market. CohnReznick Capital Markets Securities (CRCMS) was the financial advisor to Sunnova for the deal.
Sunnova intends to use the funds to further its growth in the residential solar market through affordable solar service options for homeowners. To date, Sunnova has raised more than $1.5 billion from equity and other financing transactions.
“It has been an honor to work with USBCDC on this round of financing,” said Jordan Kozar, Chief Financial Officer. “We are proud of the trust that investment partners, such as USBCDC, place in us. It’s a trust earned through financial responsibility and consistently meeting our commitments.”
“USBCDC’s confidence in Sunnova, and renewables in general, speaks to the opportunities available in the power industry,” said Sunnova CEO William J. Berger. “While some in our industry chase growth at any cost, we believe that steady, sustainable growth is good business practice – one that is essential to proving the viability of new energy sources. Sunnova’s growth is focused on achieving positive cash flow, long-term profitability and cementing our leadership role in the residential power market.”
“We continue to believe that the solar industry can and should operate independent of government subsidies, and we will pursue opportunities that allow us to expand solar adoption throughout the country,” continued Berger.
“We are excited to partner with Sunnova to support the continued deployment of residential solar installations around the U.S.,” said Adam Altenhofen, Vice President of Renewable Energy Investments at USBCDC. “Consumer demand for clean affordable energy continues to remain strong, and USBCDC is looking forward to helping meet that demand while also supporting job creation in our local communities.”
“We enjoyed working with Sunnova on their first tax equity deal in assisting them in optimizing their capital structure and adding to their proven financing track record of having previously raised over $1.5 billion of institutional capital, including equity, debt and warehouse facilities and tax equity,” stated Conor McKenna, Managing Director at CRCMS Capital. “This funding allows Sunnova to further their goal of operating cash flow positive in the near term.”
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