The price of electricity has increased by 13.2% since 2010. Installing a solar power system could help users avoid increases in electricity prices, especially if they can produce enough electricity to meet their needs. In some cases, surplus energy could be sold back to utility companies, offsetting any payments due to the use of grid-supplied electricity.

There are other benefits to installing a solar power system than saving on electricity. According to Zillow, between 2018 and 2019, homes with solar systems installed sold for 4.1% more than comparable homes without solar systems.

As more and more homeowners move towards more affordable, cleaner, and renewable energy solutions, the solar energy industry grows exponentially. Sunnova and other solar companies are stepping up to meet those demands.

 

Who is Sunnova?

Sunnova Energy International, Inc. is a solar company that was founded in 2012 in Houston, Texas. CEO John Berger believes the city is the optimal place for Sunnova’s headquarters, as there is an excellent understanding of solar in Houston.

The company strives to provide “a better energy service at a better price.” In addition, they help customers gain energy independence. More than 160 000 customers in over 31 states and territories have installed Sunnova solar systems.

Sunnova is one of the largest residential solar companies in the United States. They consistently meet the growing demand for residential solar power systems while implementing projects that benefit the environment. As part of this, the company is planning on entering the green bond market. A green bond is a casual (in other words, non-binding) commitment to put aside any proceeds from selling these types of bonds to be used for environmentally friendly projects.

Sunnova has started this process by launching its Green Financing Framework. This framework aligns with the Green Bond Principles. It stipulates the “eligible use of proceeds, the process for project evaluation and selection, the management of proceeds, and reporting.”

In a recent press release, Sunnova announced the intention to offer “$350 million aggregate principal amount of green senior notes due 2026 (the “notes”) in a private placement to qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended.” Sunnova intends to allocate “an amount equal to the net proceeds from the offering to finance or refinance, in whole or in part, existing or new eligible green projects.” This is in line with the company’s Green Financing Framework. The press release also contains Sunnova’s forward-looking statements that speak of Sunnova’s expectations regarding this move.

The company is dedicated to the growth of the solar industry, in particular, the residential solar market, through building strategic partnerships. For example, they recently expanded the Sunnova family through the acquisition of Lennar’s residential solar platform, SunStreet.

 

What products does Sunnova offer?

The company offers a variety of products, including home solar and battery storage systems. A solar-only system may not work during power outages or in adverse weather conditions like cloudy days. They will also only provide electricity while the sun shines – leaving you in the dark during the night. In some cases, users will need to use electricity from their utility. Adding a battery allows for energy storage that could provide your home with electricity during these times.

Sunnova is one of the largest installers of Tesla’s Residential Powerwall battery systems. The systems can accommodate different configurations. Self-consumption mode stores any excess energy to be used in your home at times when your solar system produces less energy than you need. The backup power mode stores energy that can only be used when there is a power outage, and you have no access to utility-supplied electricity. Time of Use or Optimization mode powers your home during peak pricing hours – reducing your electricity bill. This configuration will send any excess electricity produced by your solar system to the grid to gain net metering credits if you are eligible for this. The net metering system offsets any monies due to the utility for electricity used if you supply the grid with power from your residential solar system. Unfortunately, this program is only available in certain areas.

Sunnova can also replace your roof while installing your solar panels, enabling you to finance and install both easily. The benefit of this is that you can use one company to install both your new roof and solar power system. This service is offered to customers in the following states:

  • California.
  • Connecticut.
  • Florida.
  • Maryland.
  • Massachusetts.
  • New Jersey.
  • New York.
  • Pennsylvania.
  • Rhode Island.
  • Texas.

Sunnova offers excellent long-term customer service. The Sunnova Protect™ service plan covers the monitoring, maintenance, and repairs to your Sunnova solar system for 25 years. Suppose you use Sunnova to install a new roof. In that case, this is also covered by a 25-year manufacturer’s warranty along with a 10-year workmanship warranty. These warranties could be transferred to the new owner if you sell your home during this time. It is suggested that you consult the manufacturer’s warranty to ensure eligibility and familiarize yourself with any restrictions that may apply.

 

How does Sunnova +SunSafe work?

The Sunnova +SunSafe combination generates power when the sun shines – and stores it for use when it doesn’t. Energy generation and storage follow this process:

  1. The solar panels turn the sun’s rays into energy during the day.
  2. The solar energy moves through the system’s inverter, making the energy suitable for use in your home.
  3. You use the energy provided by your solar system.
  4. Any excess solar energy will charge the solar battery system. Suppose there is more energy left over after charging the battery storage system. In that case, it will be sent to your utility for net metering if you are eligible.

In most cases, you will still use some electricity from the grid, especially at night or when there are extended periods of cloudy weather in your area. Whether or not you will need to use electricity from the grid will depend on your battery configuration. Some configurations could offer you completely self-sustained electricity production, usage, and storage, negating the need to use power from your utility.

 

How much does a Sunnova system cost?

Sunnova offers flexible plans to cater to its client’s unique needs and budgets. They have three financing options.

Leasing

When you lease a solar system from Sunnova, the company owns and insures the system. The user makes monthly payments for leasing the solar system equipment as per the agreed contract. The user can utilize all the electricity produced by the system.

Sunnova guarantees the production of a set amount of energy. If your system does not produce that amount, Sunnova will make up the difference. Unfortunately, this guarantee is unavailable in Florida, Guam, Hawaii, Puerto Rico, and Saipan.

Power Purchase Agreement (PPA)

With a Power Purchase Agreement, Sunnova owns and insures the solar system. Users have the option to pre-pay for electricity at a lower rate. This option is only available in some areas.

A PPA allows for a steady monthly bill option where users pay a similar rate each month. Each year the account will be checked, and users either pay in for the additional energy used or receive a credit for energy not used. This option also provides an energy guarantee.

When a user has complied with the Power Purchase Agreement for five years or more, they are given the option to purchase the system. This allows them to own the system, and purchase is made according to a specified rate. This rate is usually lower than the user’s current utility rate.

Loan or Finance Agreement

With a Loan or Finance Agreement, the user owns and insures the system. In this case, the user will make steady monthly payments to pay off their solar power system. All the electricity produced by the system can be kept and used by the owner.

In some states, the owner could benefit from federal and state residential solar incentives. To be eligible for this, the user should have a tax liability that is at least as much as the tax credit value. These tax incentives can be changed or terminated due to executive, legislative, or regulatory changes. Users are advised to contact their personal tax advisor to learn more about solar power systems’ tax incentives.

Sunnova is one of the leading providers when it comes to solar installers. Joining the Sunnova family means you can gain energy independence by producing your own renewable energy. The solar company offers niche services relating to solar installation and energy storage with various financing options.

 

References: