Wall Street expects a year-over-year increase in earnings on higher revenues when Sunnova Energy (NOVA) reports results for the quarter ended December 2023. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.The earnings report, which is expected to be released on February 21, 2024, might help the stock move higher if these key numbers are better t ...

CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--Lumin, the pioneer and leading provider of responsive energy management solutions, today announced a partnership with Sunnova Energy International, Inc. (“Sunnova”) (NYSE: NOVA), one of the nation’s leading adaptive energy services companies, to integrate the Lumin Smart Panel and its intelligent energy management platform into Sunnova’s Adaptive Home offering. Through the partnership, the Lumin Smart Panel will be available to tens of thousands of homeowners through S ...

HOUSTON--(BUSINESS WIRE)--Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), a leading adaptive energy services company, announced today it will release its fourth quarter and full year 2023 results after the markets close on February 21, 2024, to be followed by a conference call to discuss the results at 8:00 a.m. Eastern Time on February 22, 2024. The conference call can be accessed live over the phone by dialing 833-470-1428, or for international callers, 929-526-1599. The access code for the l ...

HOUSTON--(BUSINESS WIRE)--Sunnova Energy International Inc. (“Sunnova”) (NYSE: NOVA), an industry-leading adaptive energy services company, is pleased to announce the upcoming opening of the Sunnova Adaptive Technology Center (ATC) in Q1 2024. This announcement underscores Sunnova’s steadfast commitment to delivering an exceptional customer experience and reinforces the distinctiveness of the Sunnova Adaptive Home™, Sunnova Adaptive Business™, and Sunnova Adaptive Community™ service offerings. The ATC will ...

Customer Growth and Engagement - Sunnova reached 386,000 customers as of 9/30/2023[4] - Customer additions increased by 74% in Q3 2023 compared to Q3 2022[5] - Battery attachment rate on origination was 34% in Q3 2023[5] - Battery penetration rate reached 15%[4] - Megawatthours under management increased by 73% since 9/30/2022[5] Financial Performance - Interest income from customer notes receivable was $26.8 million[7] - Adjusted EBITDA was $40.4 million[12] - Fully Burdened Unlevered Return in Q3 2023 was 12%[18] - The company had $759 million in unrestricted cash[8] Guidance - The company anticipates 135,000 – 145,000 customer additions for full year 2023[33] - The company anticipates Adjusted EBITDA of $235 Million – $255 Million for full year 2023[33] - The company anticipates 185,000 – 195,000 customer additions for full year 2024[34] - The company anticipates Adjusted EBITDA of $350 Million – $450 Million for full year 2024[34]

Sunnova Energy International Inc. (NYSE:NOVA) Q3 2023 Earnings Conference Call October 26, 2023 8:00 AM ET Company Participants Rodney McMahan – Vice President-Investor Relations John Berger – Chairman and Chief Executive Officer Robert Lane – Executive Vice President and Chief Financial Officer Conference Call Participants Philip Shen – ROTH MKM James West – Evercore ISI Ben Kallo – Baird Pavel Molchanov – Raymond James Sophie Karp – KeyBanc Praneeth Satish – Wells Fargo Jordan Levy – Truist Operator Good ...

Customer Base and Market Presence - The company serves over 386,000 customers across more than 45 U.S. states and territories, with a mission to provide clean, affordable, and reliable energy [124]. - As of September 30, 2023, the company has 386,200 customers, an increase of 106,800 from 279,400 customers as of December 31, 2022 [147]. - The weighted average number of systems increased to 368,500 for the three months ended September 30, 2023, compared to 236,700 for the same period in 2022 [148]. - The weighted average number of systems with loan agreements increased to 133,300 for the three months ended September 30, 2023, from 60,800 in the same period of 2022 [148]. - The number of systems increased from approximately 124,200 for the nine months ended September 30, 2022 to approximately 161,000 for the same period in 2023 [214]. Financial Performance - Revenue for the three months ended September 30, 2023, was $198.4 million, an increase of $49.0 million or 32.8% compared to $149.4 million in the same period in 2022 [196]. - Adjusted EBITDA for the three months ended September 30, 2023, was $40.4 million, compared to $41.3 million for the same period in 2022 [152]. - The company reported a net loss of $56.5 million for the three months ended September 30, 2023, compared to a net loss of $32.3 million for the same period in 2022 [152]. - Net loss attributable to stockholders for the three months ended September 30, 2023, was $63.1 million, a slight improvement from a loss of $64.5 million in the same period of 2022, showing a decrease of $1.4 million [196]. - Revenue for the nine months ended September 30, 2023, increased by $164.4 million to $526.5 million compared to $362.1 million for the same period in 2022 [212]. Capital and Financing - The company has raised over $14.5 billion in total capital commitments from equity, debt, and tax equity investors since inception through September 30, 2023 [127]. - In August 2023, the company amended its revolving credit facility, increasing the aggregate commitment amount from $775 million to $875 million and extending the maturity date to November 2025 [134]. - The company issued $400 million of 11.75% senior notes, maturing in October 2028 [137]. - The company received commitments of approximately $2.3 billion through tax equity funds, with $1.9 billion funded and $199.3 million remaining available for use as of September 30, 2023 [144]. - The company had undrawn committed capital of approximately $199.3 million under tax equity funds as of September 30, 2023 [228]. Expenses and Costs - Total operating expense for Q3 2023 was $236.6 million, up 33.5% from $177.1 million in Q3 2022 [157]. - Adjusted operating expense for Q3 2023 was $96.4 million, compared to $53.7 million in Q3 2022, reflecting an increase of 79.5% [157]. - Operations and maintenance expenses rose to $18.7 million, up from $9.8 million, an increase of $8.9 million or 91.0% year-over-year [196]. - General and administrative expenses increased to $111.5 million from $75.9 million, reflecting a rise of $35.6 million or 46.9% compared to the previous year [196]. - Interest expense increased significantly to $57.6 million from $20.8 million, a rise of $36.8 million or 176.5% year-over-year [196]. Investment and Tax Credits - The investment tax credit percentage for solar energy projects can range between 6% and 70%, depending on various factors, as extended by the IRA [172]. - The residential tax credit for solar energy systems will remain at 30% through the end of 2032, reducing to 26% in 2033 and 22% in 2034 [172]. - The Section 48(a) ITC is set at 30% for eligible solar property that begins construction before 2025, subject to specific requirements [165]. Operational Insights - The company has a differentiated dealer model that reduces exposure to labor shortages and lowers fixed costs compared to peers [125]. - The company offers solar service agreements typically ranging from 10 to 25 years, including operations and maintenance services [126]. - The company recognizes revenue from solar service agreements based on the amount of electricity delivered, with contracts typically having a term of 20 to 25 years [174]. - Seasonal variability in solar energy production is expected due to factors like shorter daylight hours in winter and poor weather conditions, although geographic diversity helps mitigate this variability [245]. - Weather conditions may limit the installation of solar energy and energy storage systems, particularly in the Northeastern U.S. during winter months, affecting revenue generation timing [247]. Future Outlook - The company expects to see increased adoption of energy storage systems due to advancements in technology and customer demand for energy independence [169]. - Upward pressure on prices of solar energy systems may occur due to increased demand and inflationary cost pressures [168]. - The Biden administration's commitment to a net-zero carbon economy by 2050 is expected to drive demand for renewable energy solutions [170].

Sunnova Energy International Inc. (NYSE:NOVA) Q2 2023 Earnings Conference Call July 27, 2023 8:00 AM ET Company Participants Rodney McMahan - Vice President of Investor Relations William Berger - Chairman & Chief Executive Officer Robert Lane - Executive Vice President & CFO Conference Call Participants Andrew Percoco - Morgan Stanley Philip Shen - ROTH Brian Lee - Goldman Sachs Joseph Osha - Guggenheim Praneeth Satish - Wells Fargo Mark Strouse - JPMorgan Steve Fleishman - Wolfe Research Pavel Molchanov - ...

PART I - FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for June 30, 2023, indicate substantial growth in assets and liabilities, increased revenue, but also significantly widened net losses and increased cash usage from operations and investing [Unaudited Condensed Consolidated Balance Sheets](index=5&type=section&id=Unaudited%20Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheet Data (in thousands) | Account | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Cash and cash equivalents | $187,331 | $360,257 | | Total current assets | $746,766 | $948,389 | | Property and equipment, net | $4,512,510 | $3,784,801 | | Customer notes receivable, net | $3,228,299 | $2,466,149 | | **Total assets** | **$9,606,795** | **$8,336,892** | | Total current liabilities | $580,470 | $541,946 | | Long-term debt, net | $6,123,923 | $5,194,755 | | **Total liabilities** | **$7,618,670** | **$6,449,442** | | **Total equity** | **$1,888,044** | **$1,721,713** | [Unaudited Condensed Consolidated Statements of Operations](index=6&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations Data (in thousands, except per share amounts) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Revenue** | **$166,377** | **$147,012** | **$328,073** | **$212,734** | | Total operating expense, net | $226,148 | $149,743 | $436,625 | $249,671 | | Operating loss | ($59,771) | ($2,731) | ($108,552) | ($36,937) | | **Net loss** | **($100,781)** | **($13,831)** | **($211,127)** | **($35,935)** | | Net loss attributable to stockholders | ($86,091) | ($41,137) | ($167,174) | ($76,195) | | **Net loss per share** | **($0.74)** | **($0.36)** | **($1.45)** | **($0.67)** | [Unaudited Condensed Consolidated Statements of Cash Flows](index=7&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash used in operating activities | ($182,542) | ($162,343) | | Net cash used in investing activities | ($1,173,923) | ($893,992) | | Net cash provided by financing activities | $1,216,765 | $1,028,328 | | **Net decrease in cash, cash equivalents and restricted cash** | **($139,700)** | **($28,007)** | [Notes to Unaudited Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Condensed%20Consolidated%20Financial%20Statements) - Sunnova operates as an Energy as a Service provider, serving over **348,000 customers** across more than 45 U.S. states and territories, and has raised over **$13.3 billion** in total capital commitments since inception through June 30, 2023[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) - The company revised previously issued interim financial statements for Q1 and Q2 2022 to correct immaterial errors related to the credit valuation adjustment for its interest rate derivative financial instruments, resulting in adjustments to Other Assets and Accumulated Deficit[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - Contracted but not yet recognized revenue was approximately **$4.1 billion** as of June 30, 2023, with approximately **3%** expected to be recognized over the next 12 months[47](index=47&type=chunk) - As of June 30, 2023, total long-term debt (including current portion) was approximately **$6.37 billion**, a significant increase from **$5.41 billion** at year-end 2022, following new securitizations and amended revolving credit facilities in H1 2023[73](index=73&type=chunk)[82](index=82&type=chunk)[84](index=84&type=chunk) - As of June 30, 2023, the company had future commitments of **$216.4 million** to dealers, estimated purchase commitments of **$334.6 million** for solar equipment, and **$32.8 million** for information technology services[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights continued customer growth and revenue increases, despite significantly widened net losses driven by higher operating and interest expenses, a decline in Adjusted EBITDA, and successful new financing initiatives including a conditional DOE loan guarantee [Key Financial and Operational Metrics](index=41&type=section&id=Key%20Financial%20and%20Operational%20Metrics) Key Metrics | Metric | As of/For Period Ended June 30, 2023 | As of/For Period Ended June 30, 2022 | | :--- | :--- | :--- | | Number of customers | 348,600 | N/A (279,400 as of 12/31/22) | | Adjusted EBITDA (Q2) | $28.1 million | $39.7 million | | Adjusted EBITDA (H1) | $42.6 million | $52.2 million | | Estimated Gross Contracted Customer Value | $7.33 billion | N/A ($5.875 billion as of 12/31/22) | [Results of Operations](index=51&type=section&id=Results%20of%20Operations) - **Three Months Ended June 30, 2023 vs. 2022:** - **Revenue increased by $19.4 million (13.2%) to $166.4 million**, mainly due to more solar energy systems in service - **Operating expenses increased by $76.4 million**, driven by higher O&M costs ($22.6M), G&A expenses ($33.1M), and other cost of revenue ($21.6M) - **Net loss attributable to stockholders widened to $86.1 million from $41.1 million**[184](index=184&type=chunk)[185](index=185&type=chunk)[191](index=191&type=chunk) - **Six Months Ended June 30, 2023 vs. 2022:** - **Revenue increased by $115.3 million (54.2%) to $328.1 million**, driven by more systems, higher inventory sales, and increased service revenue - **Operating expenses increased by $187.0 million**, with significant rises in G&A ($64.2M), O&M ($26.6M), and cost of revenue - **Net loss attributable to stockholders widened to $167.2 million from $76.2 million**[199](index=199&type=chunk)[200](index=200&type=chunk)[206](index=206&type=chunk) - Interest expense, net, **increased significantly** in both the three-month period (**by $32.4 million**) and six-month period (**by $119.0 million**) year-over-year, primarily due to higher debt levels and changes in gains/losses on derivative instruments[193](index=193&type=chunk)[208](index=208&type=chunk) [Liquidity and Capital Resources](index=58&type=section&id=Liquidity%20and%20Capital%20Resources) - As of June 30, 2023, the company had **$187.3 million** in unrestricted cash and **$301.1 million** in available borrowing capacity[212](index=212&type=chunk) - The business model requires substantial outside financing, and the company believes its current cash and financing arrangements are sufficient for at least the next twelve months[212](index=212&type=chunk) - In April 2023, the U.S. Department of Energy (DOE) announced a conditional commitment to guarantee **90%** of up to approximately **$3.3 billion** of certain future financing arrangements for the company[122](index=122&type=chunk)[221](index=221&type=chunk) - During H1 2023, the company increased tax equity commitments, amended and increased several revolving credit facilities (EZOP, TEPH, AP8), and issued new asset-backed and loan-backed notes (SOLV and HELXI securitizations)[215](index=215&type=chunk)[216](index=216&type=chunk)[222](index=222&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=58&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate exposure on variable-rate debt, mitigated by derivatives, where a hypothetical 10% rate increase would raise interest expense by $2.8 million for Q2 and $5.0 million for H1 2023 - The primary market risk is **interest rate risk** on variable-rate debt, where a hypothetical **10% increase** in interest rates would have increased interest expense by **$2.8 million** for Q2 2023 and **$5.0 million** for H1 2023[234](index=234&type=chunk) [Controls and Procedures](index=58&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2023, with no material changes to internal control over financial reporting during Q2 2023 - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of June 30, 2023[235](index=235&type=chunk) - **No material changes** in internal control over financial reporting occurred during the second quarter of 2023[237](index=237&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=59&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any legal proceedings expected to materially adversely impact its financial position, results of operations, or liquidity - The company is **not currently party** to any legal proceedings expected to have a **material adverse impact** on its business[240](index=240&type=chunk) [Risk Factors](index=59&type=section&id=Item%201A.%20Risk%20Factors) A new risk factor has been added concerning adverse developments in the financial services industry, which could impact the company's business, financial condition, and access to capital - A **new risk factor** was added concerning **adverse developments in the financial services industry**, citing the failures of Silicon Valley Bank and Credit Suisse and the potential impact on liquidity and counterparty performance[242](index=242&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=60&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company issued 693,443 shares of common stock to a Lennar Corporation subsidiary in Q2 2023 as part of an earnout agreement from the SunStreet acquisition, exempt from registration - In Q2 2023, the company issued a total of **693,443 shares** of common stock to a subsidiary of Lennar Corporation as part of an earnout agreement related to the SunStreet acquisition[245](index=245&type=chunk) [Other Information](index=60&type=section&id=Item%205.%20Other%20Information) CEO William J. Berger adopted a Rule 10b5-1 trading plan to sell shares to cover tax obligations from vesting restricted stock units - CEO William J. Berger adopted a **Rule 10b5-1 trading plan** on May 2, 2023, to sell shares to cover tax obligations related to vesting restricted stock units[248](index=248&type=chunk)

PART I - FINANCIAL INFORMATION [SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS](index=4&type=section&id=SPECIAL%20NOTE%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) The report contains forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from projections - Forward-looking statements are subject to risks and uncertainties, and **actual outcomes may differ materially** from forecasts[11](index=11&type=chunk) - Key factors influencing actual results include federal, state, and local regulations, tax rebates and incentives, ability to raise capital, relationships with dealers, supply chain management, customer retention, and the performance of solar energy systems[12](index=12&type=chunk) [Item 1. Financial Statements.](index=10&type=section&id=Item%201.%20Financial%20Statements.) The company presents its unaudited condensed consolidated financial statements, including balance sheets, operations, and cash flows [UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS](index=5&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Condensed Consolidated Balance Sheet Highlights (in thousands) | Metric | March 31, 2023 | December 31, 2022 | Change | % Change | | :-------------------------------- | :------------- | :---------------- | :----- | :------- | | Total assets | $8,902,208 | $8,336,892 | $565,316 | 6.78% | | Total liabilities | $6,955,444 | $6,449,442 | $506,002 | 7.85% | | Total equity | $1,767,262 | $1,721,713 | $45,549 | 2.64% | | Cash and cash equivalents | $210,884 | $360,257 | $(149,373) | -41.46% | | Property and equipment, net | $4,054,373 | $3,784,801 | $269,572 | 7.12% | | Customer notes receivable, net | $2,864,545 | $2,466,149 | $398,396 | 16.15% | [UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS](index=6&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20OPERATIONS) Condensed Consolidated Statements of Operations Highlights (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change | % Change | | :---------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | :----- | :------- | | Revenue | $161,696 | $65,722 | $95,974 | 146.03% | | Total operating expense, net | $210,477 | $99,928 | $110,549 | 110.63% | | Operating loss | $(48,781) | $(34,206) | $(14,575) | 42.60% | | Interest expense, net | $85,607 | $(1,015) | $86,622 | -8534.29%| | Net loss | $(110,346) | $(22,104) | $(88,242) | 399.21% | | Net loss attributable to stockholders | $(81,083) | $(35,058) | $(46,025) | 131.29% | | Net loss per share attributable to stockholders—basic and diluted | $(0.70) | $(0.31) | $(0.39) | 125.81% | [UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS](index=7&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change | % Change | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | :------- | | Net cash used in operating activities | $(169,327) | $(92,129) | $(77,198) | 83.79% | | Net cash used in investing activities | $(524,295) | $(357,650) | $(166,645) | 46.59% | | Net cash provided by financing activities | $568,871 | $382,813 | $186,058 | 48.60% | | Net decrease in cash, cash equivalents and restricted cash | $(124,751) | $(66,966) | $(57,785) | 86.29% | | Cash, cash equivalents and restricted cash at end of period | $420,823 | $324,931 | $95,892 | 29.51% | [UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY](index=9&type=section&id=UNAUDITED%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20REDEEMABLE%20NONCONTROLLING%20INTERESTS%20AND%20EQUITY) Redeemable Noncontrolling Interests and Equity Highlights (in thousands) | Metric | March 31, 2023 | December 31, 2022 | Change | % Change | | :-------------------------------- | :------------- | :---------------- | :----- | :------- | | Redeemable Noncontrolling Interests | $179,502 | $165,737 | $13,765 | 8.31% | | Total Stockholders' Equity | $1,278,777 | $1,273,076 | $5,701 | 0.45% | | Noncontrolling Interests | $488,485 | $448,637 | $39,848 | 8.88% | | Total Equity | $1,767,262 | $1,721,713 | $45,549 | 2.64% | [NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS](index=10&type=section&id=NOTES%20TO%20UNAUDITED%20CONDENSED%20CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Description of Business and Basis of Presentation](index=10&type=section&id=%281%29%20Description%20of%20Business%20and%20Basis%20of%20Presentation) Sunnova operates as a leading Energy as a Service provider utilizing a differentiated dealer model for its solar and energy storage systems - Sunnova serves **over 309,000 customers** in more than 45 U.S. states and territories as a leading Energy as a Service provider[24](index=24&type=chunk) - The company utilizes a dealer model for customer origination, design, and installation, which provides **operational flexibility and reduces fixed costs**[25](index=25&type=chunk) - Services are offered through long-term agreements (leases, PPAs, loans, sales) typically lasting **10 to 25 years**, with ongoing monitoring, maintenance, and warranty services[26](index=26&type=chunk) Impact of Revisions on Consolidated Statement of Operations (Three Months Ended March 31, 2022, in thousands) | Metric | As Previously Reported | Revisions | As Revised | | :------------------------------------------ | :--------------------- | :-------- | :--------- | | Interest expense, net | $(2,490) | $1,475 | $(1,015) | | Loss before income tax | $(20,629) | $(1,475) | $(22,104) | | Net loss | $(20,629) | $(1,475) | $(22,104) | | Net loss attributable to stockholders | $(33,583) | $(1,475) | $(35,058) | | Net loss per share attributable to stockholders—basic and diluted | $(0.30) | $(0.01) | $(0.31) | [Significant Accounting Policies](index=12&type=section&id=%282%29%20Significant%20Accounting%20Policies) The company details its significant accounting policies, including revenue recognition methods, fair value measurements, and inventory valuation - The company uses estimates and assumptions in financial reporting, which are based on historical experience and reasonable assumptions, but **actual results may differ**[36](index=36&type=chunk) - Revenue recognition varies by contract type: PPAs are based on electricity delivered, leases on a straight-line basis, inventory sales upon shipment, SRECs upon transfer, cash sales upon home closing, and loan payments are split into interest income, principal reduction, and O&M revenue[47](index=47&type=chunk)[48](index=48&type=chunk)[51](index=51&type=chunk)[52](index=52&type=chunk)[53](index=53&type=chunk)[56](index=56&type=chunk) - Contracted but unrecognized revenue was approximately **$3.7 billion** as of March 31, 2023, with about 3% expected to be recognized over the next 12 months[45](index=45&type=chunk) Revenue Breakdown (in thousands) | Revenue Type | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :----------------------------- | :-------------------------------- | :-------------------------------- | | PPA revenue | $21,746 | $21,185 | | Lease revenue | $31,343 | $21,780 | | Inventory sales revenue | $59,914 | — | | Solar renewable energy certificate revenue | $7,791 | $6,244 | | Cash sales revenue | $16,819 | $11,348 | | Loan revenue | $7,143 | $3,376 | | Other revenue | $16,940 | $1,789 | | **Total Revenue** | **$161,696** | **$65,722** | [Property and Equipment](index=19&type=section&id=%283%29%20Property%20and%20Equipment) This section provides a detailed breakdown of the company's property and equipment, reflecting ongoing investments in customer contracts - The increase in property and equipment, net, is primarily driven by **investments in solar energy systems and energy storage systems** related to customer contracts[63](index=63&type=chunk) Property and Equipment, Net (in thousands) | Asset Category | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Solar energy systems and energy storage systems | $3,972,515 | $3,719,727 | | Construction in progress | $367,174 | $329,893 | | Property and equipment, gross | $4,495,113 | $4,192,983 | | Less: accumulated depreciation | $(440,740) | $(408,182) | | **Property and equipment, net** | **$4,054,373** | **$3,784,801** | [Detail of Certain Balance Sheet Captions](index=19&type=section&id=%284%29%20Detail%20of%20Certain%20Balance%20Sheet%20Captions) This section details components of other current assets, other assets, and other current liabilities on the balance sheet Other Current Assets (in thousands) | Asset Category | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Inventory | $182,949 | $152,113 | | Current portion of customer notes receivable | $133,150 | $114,910 | | Restricted cash | $52,699 | $51,733 | | **Total Other Current Assets** | **$402,975** | **$351,300** | Other Assets (in thousands) | Asset Category | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Construction in progress - customer notes receivable | $326,907 | $382,611 | | Restricted cash | $157,240 | $133,584 | | Exclusivity and other bonus arrangements with dealers, net | $144,568 | $121,313 | | Investments in solar receivables | $62,749 | $65,064 | | **Total Other Assets** | **$986,625** | **$961,891** | Other Current Liabilities (in thousands) | Liability Category | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Interest payable | $26,220 | $35,258 | | Deferred revenue | $38,938 | $30,172 | | **Total Other Current Liabilities** | **$72,884** | **$71,506** | [Asset Retirement Obligations ("ARO")](index=20&type=section&id=%285%29%20Asset%20Retirement%20Obligations%20%28%22ARO%22%29) The company accounts for asset retirement obligations related to the removal and restoration costs of solar energy systems - AROs are estimated costs for solar energy system removal and site restoration, **capitalized and depreciated over 30 years**[66](index=66&type=chunk) Changes in Asset Retirement Obligations (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :----------------------------- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $69,869 | $54,396 | | Additional obligations incurred | $3,355 | $2,573 | | Accretion expense | $1,081 | $840 | | **Balance at end of period** | **$74,292** | **$57,779** | [Customer Notes Receivable](index=21&type=section&id=%286%29%20Customer%20Notes%20Receivable) This section details the growing customer notes receivable from the loan program and the associated allowance for credit losses Customer Notes Receivable (in thousands) | Metric | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | Customer notes receivable | $3,089,154 | $2,662,307 | | Allowance for credit losses | $(91,459) | $(81,248) | | **Customer notes receivable, net** | **$2,997,695** | **$2,581,059** | | Estimated fair value, net | $2,940,803 | $2,554,948 | Changes in Allowance for Credit Losses (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------ | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $81,248 | $41,138 | | Provision for current expected credit losses | $10,211 | $6,644 | | **Balance at end of period** | **$91,459** | **$47,818** | Aging of Amortized Cost of Customer Notes Receivable (in thousands) | Aging Status | March 31, 2023 | December 31, 2022 | | :-------------------------- | :------------- | :---------------- | | 1-90 days past due | $89,799 | $91,668 | | 91-180 days past due | $27,743 | $16,859 | | Greater than 180 days past due | $35,638 | $14,504 | | **Total past due** | **$153,180** | **$123,031** | | Not past due | $2,935,974 | $2,539,276 | | **Total** | **$3,089,154** | **$2,662,307** | [Long-Term Debt](index=22&type=section&id=%287%29%20Long-Term%20Debt) The company's long-term debt increased to $5.6 billion, supported by various debt instruments and expanded credit facilities - Available borrowing capacity as of March 31, 2023, was **$220.7 million**, including $69.0 million under EZOP, $146.7 million under TEPH, and $5.0 million under IS revolving credit facilities[72](index=72&type=chunk) - EZOP revolving credit facility commitment **increased from $450.0 million to $775.0 million**, and TEPH revolving credit facility commitment **increased from $600.0 million to $700.0 million**, with agent changes due to Credit Suisse's securitized products sale[74](index=74&type=chunk)[76](index=76&type=chunk) - A new **$50.0 million secured revolving credit facility** was established for Sunnova Inventory Supply, LLC (IS) with Texas Capital Bank[78](index=78&type=chunk) Long-Term Debt, Net (in thousands) | Debt Type | March 31, 2023 | December 31, 2022 | | :------------------------------------ | :------------- | :---------------- | | SEI 0.25% convertible senior notes | $575,000 | $575,000 | | SEI 2.625% convertible senior notes | $600,000 | $600,000 | | Sunnova Energy Corporation 5.875% senior notes | $400,000 | $400,000 | | EZOP revolving credit facility | $706,000 | $500,000 | | TEPH revolving credit facility | $553,274 | $425,700 | | AP8 revolving credit facility | $148,774 | $74,535 | | IS revolving credit facility | $45,000 | — | | **Total Long-Term Debt, net** | **$5,621,437** | **$5,194,755** | [Derivative Instruments](index=26&type=section&id=%288%29%20Derivative%20Instruments) The company utilizes interest rate swaps and caps to hedge exposure to variable interest rates, recognizing a total unrealized gain of $23.6 million - EZOP, TEPH, and AP8 entered into interest rate swaps and caps for aggregate notional amounts of **$153.0 million, $119.6 million, and $75.0 million**, respectively, to hedge variable interest rate exposure[82](index=82&type=chunk)[83](index=83&type=chunk)[85](index=85&type=chunk) Fair Value of Interest Rate Swaps and Caps (in thousands) | Metric | March 31, 2023 | December 31, 2022 | | :---------------- | :------------- | :---------------- | | Derivative assets | $133,873 | $112,712 | Impact of Interest Rate Swaps and Caps on Statements of Operations (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :-------------------- | :-------------------------------- | :-------------------------------- | | Realized (gain) loss | $(6,707) | $591 | | Unrealized (gain) loss | $23,616 | $(33,874) | | **Total** | **$16,909** | **$(33,283)** | [Income Taxes](index=27&type=section&id=%289%29%20Income%20Taxes) The company's effective income tax rate was 0% due to a full valuation allowance on its deferred tax assets - Effective income tax rate was **0% for Q1 2023 and Q1 2022** due to a full valuation allowance on deferred tax assets[87](index=87&type=chunk) - **No reserve for uncertain tax positions** was recorded, and no significant change in unrecognized tax benefits is expected in the next twelve months[87](index=87&type=chunk) [Redeemable Noncontrolling Interests and Noncontrolling Interests](index=28&type=section&id=%2810%29%20Redeemable%20Noncontrolling%20Interests%20and%20Noncontrolling%20Interests) Capital commitments from Class A members of certain tax equity funds were increased during the first quarter of 2023 - Class A member of Sunnova TEP 7-B, LLC **increased capital commitment from $30.0 million to $125.0 million** in February 2023[88](index=88&type=chunk) - Class A member of Sunnova TEP 7-C, LLC **increased capital commitment from $41.0 million to $51.3 million** in March 2023[88](index=88&type=chunk) [Equity-Based Compensation](index=28&type=section&id=%2811%29%20Equity-Based%20Compensation) The company details its equity-based compensation plans and reports significant unrecognized compensation expense for outstanding awards - The aggregate number of shares for awards under the 2019 Long-Term Incentive Plan (LTIP) was **increased by 1,525,652 shares** in February 2023[89](index=89&type=chunk) Stock Option Activity Summary | Metric | March 31, 2023 | | :------------------------------------ | :------------- | | Outstanding Stock Options | 4,085,535 | | Weighted Average Exercise Price | $17.70 | | Total Unrecognized Compensation Expense | $12.3 million | | Weighted Average Period for Recognition | 2.46 years | Restricted Stock Unit Activity Summary | Metric | March 31, 2023 | | :------------------------------------ | :------------- | | Outstanding Restricted Stock Units | 2,449,142 | | Weighted Average Grant Date Fair Value | $17.14 | | Total Unrecognized Compensation Expense | $36.7 million | | Weighted Average Period for Recognition | 1.86 years | [Basic and Diluted Net Loss Per Share](index=29&type=section&id=%2812%29%20Basic%20and%20Diluted%20Net%20Loss%20Per%20Share) The company reports a basic and diluted net loss per share of $(0.70) for the three months ended March 31, 2023 - Equity-based compensation awards (5,037,823 shares) and convertible senior notes (34,150,407 shares) were **excluded from diluted EPS computation** for Q1 2023 as their inclusion would have been anti-dilutive[94](index=94&type=chunk) Basic and Diluted Net Loss Per Share (in thousands, except share and per share amounts) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net loss attributable to stockholders—basic and diluted | $(81,083) | $(35,058) | | Net loss per share attributable to stockholders—basic and diluted | $(0.70) | $(0.31) | | Weighted average common shares outstanding—basic and diluted | 115,073,975 | 113,499,426 | [Commitments and Contingencies](index=29&type=section&id=%2813%29%20Commitments%20and%20Contingencies) The company outlines its various commitments, including legal proceedings, dealer agreements, and substantial purchase obligations - The company is involved in routine legal proceedings but **does not expect a material adverse impact** on its financial position[95](index=95&type=chunk) - Estimated remaining purchase commitments under a supplier agreement are approximately **$457.1 million** through December 2023[100](index=100&type=chunk) Performance Guarantee Obligations (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :----------------------------- | :-------------------------------- | :-------------------------------- | | Balance at beginning of period | $4,845 | $5,293 | | Accruals | $1,015 | $329 | | Settlements | $(2,731) | $(3,148) | | **Balance at end of period** | **$3,129** | **$2,474** | Dealer Commitments (in thousands) | Year | Amount | | :---------------- | :----- | | Remaining 2023 | $43,187 | | 2024 | $74,399 | | 2025 | $58,986 | | 2026 | $36,904 | | 2027 | $30,000 | | **Total** | **$243,476** | [Subsequent Events](index=32&type=section&id=%2814%29%20Subsequent%20Events) The company reports significant financing developments after the reporting period, including a major DOE loan guarantee commitment - U.S. Department of Energy announced a conditional commitment to **guarantee 90% of up to approximately $3.3 billion** of future financing arrangements in April 2023[102](index=102&type=chunk) - In April 2023, **$300.0 million in Series 2023-1 Class A** solar asset-backed notes and **$23.5 million in Series 2023-1 Class B** solar asset-backed notes (SOLV Notes) were issued[103](index=103&type=chunk) - Tax equity investors **increased capital commitments** for Sunnova TEP V-C, LLC and Sunnova TEP 6-A, LLC in April 2023[104](index=104&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.](index=33&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations.) Management discusses the company's financial condition, operational results, key metrics, and significant business trends [Company Overview](index=33&type=section&id=Company%20Overview) Sunnova is a leading Energy as a Service provider that leverages a dealer model to deliver clean, affordable, and reliable energy - Sunnova is a leading Energy as a Service provider with a mission to **power energy independence** for home and business owners[106](index=106&type=chunk) - The company uses a differentiated dealer model to originate, design, and install solar and energy storage systems, providing **operational flexibility and lower fixed costs**[107](index=107&type=chunk) - Solar service agreements typically range from **10 to 25 years** and include comprehensive services like operations, maintenance, monitoring, and repairs[108](index=108&type=chunk) - As of March 31, 2023, Sunnova serves **over 309,000 customers** with more than **1,763 megawatts** of generation capacity[113](index=113&type=chunk) [Recent Developments](index=35&type=section&id=Recent%20Developments) The company details significant financing activities, including increased tax equity, expanded credit facilities, and a major DOE loan guarantee - Tax equity investors **increased capital commitments by $95.0 million** in February and March 2023, and by an additional **$7.8 million** in April 2023[114](index=114&type=chunk)[197](index=197&type=chunk) - EZOP revolving credit facility commitment **increased from $450.0 million to $775.0 million**, and TEPH revolving credit facility commitment **increased from $600.0 million to $700.0 million**[115](index=115&type=chunk)[117](index=117&type=chunk)[198](index=198&type=chunk)[199](index=199&type=chunk) - AP8 revolving credit facility commitment **increased from $75.0 million to $150.0 million**[118](index=118&type=chunk)[200](index=200&type=chunk) - Sunnova Inventory Supply, LLC (IS) entered into a new **$50.0 million secured revolving credit facility**[119](index=119&type=chunk)[201](index=201&type=chunk) - The U.S. Department of Energy conditionally committed to **guarantee 90% of up to approximately $3.3 billion** of future financing arrangements in April 2023[120](index=120&type=chunk)[202](index=202&type=chunk) - In April 2023, **$323.5 million in SOLV Notes** (solar asset-backed notes) were issued[121](index=121&type=chunk)[203](index=203&type=chunk) [Key Financial and Operational Metrics](index=38&type=section&id=Key%20Financial%20and%20Operational%20Metrics) The company presents key metrics to evaluate performance, showing growth in customer numbers and an increase in Adjusted EBITDA Customer and System Metrics | Metric | As of March 31, 2023 | As of December 31, 2022 | Change | | :---------------------------------------------------- | :------------------- | :---------------------- | :----- | | Number of customers | 309,300 | 279,400 | 29,900 | | Weighted average number of systems (Q1 2023) | 293,500 | 199,900 (Q1 2022) | 93,600 | Adjusted EBITDA Reconciliation (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Net loss | $(110,346) | $(22,104) | | Interest expense, net | $85,607 | $(1,015) | | Depreciation expense | $32,671 | $24,740 | | Amortization expense | $7,338 | $7,288 | | Non-cash compensation expense | $9,515 | $10,864 | | Provision for current expected credit losses | $10,259 | $6,657 | | **Adjusted EBITDA** | **$14,553** | **$12,547** | Interest Income, Principal Proceeds, and Solar Receivables (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :---------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Interest income from customer notes receivable | $20,088 | $10,832 | | Principal proceeds from customer notes receivable, net of related revenue | $29,098 | $20,413 | | Proceeds from investments in solar receivables | $2,132 | $1,798 | Adjusted Operating Expense (in thousands, except per system data) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | | Total operating expense, net | $210,477 | $99,928 | | Depreciation expense | $(32,671) | $(24,740) | | Non-cash compensation expense | $(9,515) | $(10,864) | | Cost of revenue related to inventory sales | $(51,779) | — | | **Adjusted Operating Expense** | **$78,422** | **$46,980** | | Adjusted Operating Expense per weighted average system | $267 | $235 | Estimated Gross Contracted Customer Value (in millions) | Metric | As of March 31, 2023 | As of December 31, 2022 | | :------------------------------------ | :------------------- | :---------------------- | | Estimated gross contracted customer value (6% discount rate) | $6,751 | $5,875 | [Significant Factors and Trends Affecting Our Business](index=43&type=section&id=Significant%20Factors%20and%20Trends%20Affecting%20Our%20Business) Key business drivers include financing availability, the impact of the Inflation Reduction Act, rising interest rates, and energy storage adoption - Future growth is highly dependent on the ability to **raise capital from third-party investors** on competitive terms, including debt and tax equity[150](index=150&type=chunk) - The **Inflation Reduction Act (IRA)** expanded and extended tax credits (Section 48(a) ITC, Section 25D Credit) for solar and energy storage projects, potentially increasing demand for services[150](index=150&type=chunk)[156](index=156&type=chunk) - **Rising interest rates and inflationary pressures** could affect capital raising ability and increase costs[152](index=152&type=chunk) - Increased demand for energy storage systems is expected due to technological advancements, **enhanced energy resilience**, and independence from the grid[154](index=154&type=chunk) - Government regulations, policies, and incentives (e.g., net metering, SRECs, tax credits) are **crucial for promoting distributed solar energy**, and adverse changes could harm the business[156](index=156&type=chunk)[157](index=157&type=chunk) [Components of Results of Operations](index=45&type=section&id=Components%20of%20Results%20of%20Operations) This section details the various components of revenue and operating expenses, defining recognition methods and cost categories - Revenue recognition methods vary by contract type: PPA (electricity delivered), Lease (straight-line access), Inventory Sales (shipment), SREC (transfer), Cash Sales (home closing), Loan (interest, principal, O&M services), and Other Revenue (earned, placed in service, straight-line)[158](index=158&type=chunk)[159](index=159&type=chunk)[160](index=160&type=chunk)[163](index=163&type=chunk)[164](index=164&type=chunk)[166](index=166&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - Cost of revenue includes **depreciation on solar energy systems**, costs related to inventory sales, and other direct costs like SREC broker fees and credit checks[169](index=169&type=chunk)[170](index=170&type=chunk) - Operations and maintenance expense covers third-party services, property insurance, taxes, and warranties, while general and administrative expense includes employee costs, professional fees, IT, marketing, and depreciation on non-solar assets[171](index=171&type=chunk)[172](index=172&type=chunk) - Other operating income primarily reflects **changes in fair values of financial instruments** related to solar receivables and contingent consideration[174](index=174&type=chunk) [Results of Operations—Three Months Ended March 31, 2023 Compared to Three Months Ended March 31, 2022](index=49&type=section&id=Results%20of%20Operations%E2%80%94Three%20Months%20Ended%20March%2031%2C%202023%20Compared%20to%20Three%20Months%20Ended%20March%2031%2C%202022) Revenue grew 146% year-over-year, but net loss widened due to higher operating expenses and a substantial increase in net interest expense - Revenue increased by **$96.0 million**, primarily due to **$59.9 million from inventory sales** (which began in April 2022) and an increase in the weighted average number of solar energy systems in service[182](index=182&type=chunk)[183](index=183&type=chunk) - Cost of revenue—inventory sales increased by **$51.8 million**, directly correlating with the new inventory sales revenue[185](index=185&type=chunk) - General and administrative expense increased by **$31.0 million**, driven by higher payroll, credit loss provisions, consultant fees, legal expenses, depreciation, and IT costs[188](index=188&type=chunk) - Net interest expense increased by **$86.6 million**, mainly due to **$57.5 million in unrealized losses on derivatives** and **$32.6 million in higher interest expense** from increased debt levels[190](index=190&type=chunk) - Interest income increased by **$13.9 million**, primarily due to a significant increase in the weighted average number of systems with loan agreements (from 41,700 to 88,700)[191](index=191&type=chunk) Key Financial Results (in thousands) | Metric | Three Months Ended March 31, 2023 | Three Months Ended March 31, 2022 | Change | % Change | | :------------------------------------------ | :-------------------------------- | :-------------------------------- | :----- | :------- | | Revenue | $161,696 | $65,722 | $95,974 | 146.03% | | Operating loss | $(48,781) | $(34,206) | $(14,575) | 42.60% | | Interest expense, net | $85,607 | $(1,015) | $86,622 | -8534.29%| | Net loss attributable to stockholders | $(81,083) | $(35,058) | $(46,025) | 131.29% | [Liquidity and Capital Resources](index=52&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains liquidity through diversified funding sources, with $420.8 million in total cash and $220.7 million in available borrowing capacity - As of March 31, 2023, total cash was **$420.8 million** ($210.9 million unrestricted), with **$220.7 million** in available borrowing capacity[194](index=194&type=chunk) - The company's liquidity and financial condition were **not materially affected** by recent adverse developments in the financial services industry (e.g., Silicon Valley Bank, Credit Suisse)[195](index=195&type=chunk) - Net cash used in operating activities increased by **$77.2 million**, and net cash used in investing activities increased by **$166.6 million**, primarily due to increased payments to dealers and purchases of property and equipment[205](index=205&type=chunk)[206](index=206&type=chunk) - Net cash provided by financing activities increased by **$186.1 million**, driven by higher contributions from redeemable noncontrolling interests and net borrowings under debt facilities[208](index=208&type=chunk) - Seasonal variability in solar energy production is mitigated by **geographic diversity**, and certain service agreements are designed to insulate customers from monthly fluctuations[209](index=209&type=chunk)[210](index=210&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk.](index=56&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk.) The company's primary market risk exposure is to interest rate changes on its variable-rate debt, which is partially hedged - Primary market risk exposure is to **changes in interest rates** on variable-rate debt[215](index=215&type=chunk) - A hypothetical **10% increase in interest rates** would have increased interest expense by **$2.2 million** for the three months ended March 31, 2023[215](index=215&type=chunk) [Item 4. Controls and Procedures.](index=56&type=section&id=Item%204.%20Controls%20and%20Procedures.) Management concluded that disclosure controls and procedures were effective as of March 31, 2023, with no material changes in internal controls - Disclosure controls and procedures were evaluated and **deemed effective** as of March 31, 2023, providing reasonable assurance for timely and accurate financial reporting[216](index=216&type=chunk) - **No material changes** in internal control over financial reporting occurred during the first quarter of 2023[217](index=217&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings.](index=57&type=section&id=Item%201.%20Legal%20Proceedings.) The company is involved in routine legal proceedings not expected to have a material adverse impact on its financial position - The company is a party to routine legal proceedings but **does not expect a material adverse impact** on its financial position, results of operations, or liquidity[220](index=220&type=chunk) [Item 1A. Risk Factors.](index=57&type=section&id=Item%201A.%20Risk%20Factors.) No material changes to risk factors were reported, except for new risks related to adverse developments in the financial services industry - No material changes to risk factors, except for new risks concerning **adverse developments in the financial services industry**[221](index=221&type=chunk) - Adverse developments affecting financial institutions (e.g., SVB, Credit Suisse) could impact **access to capital**, ability to meet obligations, and overall business, despite current performance of counterparties[222](index=222&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.](index=57&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds.) This item is marked as 'Not applicable,' indicating no unregistered sales of equity securities or use of proceeds to report [Item 3. Defaults Upon Senior Securities.](index=57&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities.) This item is marked as 'Not applicable,' indicating no defaults upon senior securities to report for the period [Item 4. Mine Safety Disclosures.](index=57&type=section&id=Item%204.%20Mine%20Safety%20Disclosures.) This item is marked as 'Not applicable,' indicating no mine safety disclosures are required for the company [Item 5. Other Information.](index=57&type=section&id=Item%205.%20Other%20Information.) This item states 'None,' indicating no other information required to be disclosed under this section PART IV [Item 6. Exhibits.](index=59&type=section&id=Item%206.%20Exhibits.) This section lists all exhibits filed with the report, including agreements, amendments, and required certifications - Includes amendments to credit agreements for Sunnova EZ-Own Portfolio, LLC (EZOP), Sunnova TEP Holdings, LLC (TEPH), and Sunnova Asset Portfolio 8, LLC (AP8)[229](index=229&type=chunk) - Details the Credit Agreement for Sunnova Inventory Supply, LLC (IS)[229](index=229&type=chunk) - Contains certifications from the Chief Executive Officer and Chief Financial Officer as required by the Sarbanes-Oxley Act[229](index=229&type=chunk)[230](index=230&type=chunk) SIGNATURES [SIGNATURES](index=61&type=section&id=SIGNATURES) The report is certified by the signatures of the company's authorized officers on April 27, 2023 - The report was signed by **William J. Berger, Chief Executive Officer and Director**, and **Robert L. Lane, Chief Financial Officer**, on April 27, 2023[235](index=235&type=chunk)