US residential solar installer Sunnova has secured a conditional commitment from the US Department of Energy which will offer up to US$3 billion in a partial loan guarantee.
The loan guarantee will support the company’s Project Hestia, which aims to offer disadvantaged individuals and communities better access to solar, battery storage or virtual power plant software.
To be eligible, the energy system must be outfitted with Sunnova’s technology which is designed to improve customer insights regarding their power usage and will facilitate demand response behaviour.
Sunnova added that the partial loan guarantee equates to a 90% guarantee of up to US$3.3 billion of financing to support loans originated by the company under Project Hestia.
It anticipated the loan guarantee will support up to US$5 billion in loan originations, reduce its weighted average cost of capital, and generate interest savings.
The transaction is expected to close in the second quarter of 2023.
“Project Hestia would make possible a historic private sector investment in disadvantaged American communities and energy infrastructure,” said William Berger, CEO of Sunnova.
“The DOE financing would accelerate the adoption of solar and storage, decrease greenhouse gas emissions, and expand the availability of reliable, clean, and affordable energy to those communities who benefit the most from low-cost energy,” added Berger.