Sunnova Energy Corp., a residential solar service provider in the U.S., says it has obtained $80 million in tax equity funding commitments from U.S. Bancorp Community Development Corp. (USBCDC), which will enable the development of new residential solar projects with a total value of more than $200 million.
According to the solar provider, this deal marks the first transaction between USBCDC, a division of U.S. Bank, and Sunnova, in addition to Sunnova’s entry into the tax equity market. CohnReznick Capital Markets Securities (CRCMS) was the financial advisor to Sunnova for the deal.
Sunnova says it 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.
“USBCDC’s confidence in Sunnova, and renewables in general, speaks to the opportunities available in the power industry,” says 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 cashflow, 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,” continues Berger.
“We are excited to partner with Sunnova to support the continued deployment of residential solar installations around the U.S.,” says 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.”
Conor McKenna, managing director at CRCMS, adds, “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. This funding allows Sunnova to further their goal of operating cashflow positive in the near term.”