Sunnova records best ever quarter in sales as revenue jumps, brands US climate bill ‘perfect’

Facebook
Twitter
LinkedIn
Reddit
Email
Sunnova has added 17,300 new customers during the second quarter of 2022 and bringing its total to 225,000. Image: Sunnova.

US residential solar installer Sunnova has recorded its best ever quarter in terms of sales, while a strong customer backlog and increased installations have helped drive revenue upwards, although its net losses have increased on last quarter.

Speaking as the installer disclosed its Q2 2022 financial results, Sunnova chief executive William J. Berger said the company recorded its “best quarter for sales in company history” which will create “a significant backlog of customers” that are set to be placed in-service before the end of the year.

The Texas-based company posted net losses of US$37 million for Q2, up from US$20 million Q1, when the company had hoped its losses were in decline. For the first half of the year, the company recorded a cumulative net loss of US$30.3 million, three times less than the US$90.3 million recorded at the end of June 2021.

At the same time, Sunnova’s revenue jumped significantly in Q2 with the company taking in an expectation-beating US$147 million, a substantial increase on the US$80.5 million it recorded in Q1, causing its stock to jump overnight on Wednesday (27 July).

In the first half of this year, the company has already doubled its revenue (US$212 million) compared to H1 2021, when it stood at US$107 million.

The increased revenue was primarily due to the increased number of residential solar systems in operation from the company, along with SunStreet’s acquisition in April 2021 and an increase in inventory sales revenue, the company said.

Furthermore, after a light dip in new customer additions during the previous quarter, Sunnova added 17,300 new customers in Q2 2022, bringing the total to 225,000 as of 30 June 2022.

“As centralised utilities continue to increase their rates, demand remains strong for our energy services while homeowners seek to offset rising energy costs and increase their energy reliability,” Berger said.

As of 30 June 2022, Sunnova has a total of 225,000 customers with a “significant” backlog to be added later this year. Image: PV Tech

Even though the installer increased the number of customers from the previous quarters, it still fell short of the installer’s expectations due to delays in receiving permission to operate (PTO) from some utilities, Berger said during a conference call with analysts.

“While missing these targets was frustrating, investors should consider these shortfalls to be timing driven, as we still expect to hit our 2022 customer additions target with a more back-end weighting and we will ultimately still collect the principal owed to us over the terms of the solar loans,” Berger explained.

Numbers are also down year-on-year (as shown in the chart) but this is due to the more than 30,000 customers added from the SunStreet acquisition in April 2021.

Despite missing some of its targets during Q2 2022, Sunnova has maintained its guidance for 2022, expecting new customer additions of between 85,000 – 89,000 and earnings within a range of US$117 – US$137 million.

When quizzed by analysts on how the recently agreed climate bill might support Sunnova’s business, Berger said it was the “perfect” bill for the company.

“If you had to write a bill that was perfect for our company as a residential energy service provider like a Sunnova, this bill would be the perfect bill,” he said, adding that the ITC extension was crucial to the company’s operations, while the manufacturing tax credits included in the bill would ensure the domestic supply of PV modules.

Conference call transcript from Seeking Alpha.

7 September 2022
The demand for rooftop solar PV is soaring, driven by falling costs of the technology against energy crises that are gripping countries globally. But while an increasing number of households turn to solar to generate their own electricity, there is now a need for more specialist equipment, technologies and services to ensure the solar transition can reach as many customers as possible. Delivering these is now a major challenge for rooftop solar installers. This webinar will analyse the characteristics of the rooftop solar market, discussing how the products, logistics, installation and servicing of solar systems has evolved in line with consumer demands.

Read Next

August 12, 2022
ACWA Power posted strong H1 2022 results as it continues to divert its portfolio to renewables and low-carbon technologies.
August 11, 2022
Finlay Colville, Solar Media's head of market research, lays out the UK's path to achieving 40GW+ of solar PV by 2030 after rebounding from recent headwinds in its solar sector
August 11, 2022
US solar tracker supplier Array Technologies has bounced back from a difficult 2021 by posting strong Q2 2022 financial results mainly due to its acquisition of STI Norland, while upcoming tailwinds could buoy its performance further still moving through the year.
August 10, 2022
US solar tracker manufacturer FTC Solar has cut its net losses compared with last quarter and Q2 2021 but has seen its revenue collapse, blaming a hostile solar environment in the US that has seen project delays and cancellations, which it said it now hoped was coming to an end.
August 9, 2022
The passing of the Inflation Reduction Act (IRA) could bolster opportunities for Clearway Energies, according to Roth Capital Partners.
August 8, 2022
Energy technology company AES Corporation is still on track to reach its target of 4.5-5.5GW in long-term renewables and energy storage contracts in 2022, having already signed 1,618MW in the year to date, according the firm’s Q2 financial report.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
London
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event