Houston, Texas-based Sunnova has closed on a $250 million dollar round of funding. The round was led by Franklin Square Funds and Barclays was the placement agent.
Sunnova focuses on third-party financing, not on cash sales or loans. Solar leases and power purchase agreements are where it wants to remain engaged in, and not deviate from them. The company competes in the residential solar power space with Vivint, SolarCity, CPF and Sunrun. While it might seem like a crowded industry, residential
solar in America has an enormous upside – especialy when you consider that currently only about one percent of electricity is generated by solar power there.
“The demand for affordable energy is substantial. The rapid growth Sunnova is experiencing in the markets we serve is propelled by our dedication to provide high-quality resources in support of our market leadership and customer service,” explained Sunnova Chief Executive Officer William J. (John) Berger.
The US is often a leader in technology, but has been lagging in the development of solar power compared with some other countries like Germany.
This is all to say America can expands its solar power generation rapidly. The cost of home solar PV systems has dropped very much in the last six years. Even if America’s solar power production increases from one percent of all electricity to ten percent, there will be plenty of room to operate for companies like Sunnova and SolarCity which are competing in the same space.
Founded in 2010, Sunnova is a privately held company located in Texas but it provides nationwide coverage. It currently operates in 22 states and territories.
It would be great if some of the other southern states would start investing more in solar power. They have very strong solar potential, but have lagged in terms of state policies that support solar power. A large solar power player located in Texas could signal that solar power is a viable alternative to the state’s traditional sources of gas and oil.