Residential solar installer Sunnova more than doubled its revenue in the third quarter of 2022, although its net loss increased as well.
The higher net loss was primarily due to higher general and administrative expense and costs due to changes in the fair value of certain financial instruments and contingent consideration, Sunnova said.
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During the third quarter of 2022, Sunnova recorded a net loss of US$29.9 million, compared to US$25.9 million in Q3 2021.
However, cumulated net loss for the first nine months of the year was lower than the same period in 2021 – US$60.2 million compared to US$116.3 million a year ago. The lower net loss was primarily due to an increase in interest income of US$16.2 million due to the company’s larger customer loan portfolio.
Last August Sunnova announced it would issue US$425 million of convertible senior notes due in 2028, in order to pay off debts and fund operating costs.
Moreover, Sunnova’s revenue for Q3 2022 reached US$149.4 million, more than doubling the US$68.9 million recorded during the same period in 2021. The increased revenue was primarily driven by the increase of solar energy systems in service and the sale of inventory that began in April 2022.
The installer did, however, continue to increase its customer additions for the second quarter in a row, with 21,800 added, a 41% increase from Q3 2021 and the best month in the company’s history “through organic means”, according to its CEO William J. Berger.
While Q2 2021 recorded a higher number (see chart below), this was due to the acquisition of SunStreet and the addition of 33,5000 customers from its rival installer on top of Sunnova’s 12,700.
Sunnova expects growth to further escalate in 2023 due to increased demand for energy dependence and lower prices, as well as positive impacts from the Inflation Reduction Act (IRA).
Furthermore, the company effectively managed its emergency response to support its customers energy reliability and resilience during the recent hurricanes that impacted the US.
“As extreme weather events continue to wreak havoc, especially in areas on the frontline of climate change like Puerto Rico and Florida, the importance of battery storage performance during grid failure has become even more critical,” Berger added.