Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 26, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-38995 | |
Entity Registrant Name | Sunnova Energy International Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 30-1192746 | |
Entity Address, Address Line One | 20 East Greenway Plaza, Suite 540 | |
Entity Address, City or Town | Houston | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77046 | |
City Area Code | 281 | |
Local Phone Number | 892-1588 | |
Title of 12(b) Security | Common Stock, $0.0001 par value per share | |
Trading Symbol | NOVA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 111,970,130 | |
Entity Central Index Key | 0001772695 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Current assets: | |||
Cash | $ 150,892 | $ 209,859 | |
Accounts receivable—trade, net | 11,802 | 10,243 | |
Accounts receivable—other | 21,536 | 21,378 | |
Other current assets, net of allowance of $837 and $707 as of March 31, 2021 and December 31, 2020, respectively | 192,580 | 215,175 | |
Total current assets | 376,810 | 456,655 | |
Property and equipment, net | 2,446,103 | 2,323,169 | |
Customer notes receivable, net of allowance of $20,082 and $16,961 as of March 31, 2021 and December 31, 2020, respectively | 622,901 | 513,386 | |
Other assets | 310,794 | 294,372 | |
Total assets | [1] | 3,756,608 | 3,587,582 |
Current liabilities: | |||
Accounts payable | 33,903 | 39,908 | |
Accrued expenses | 44,309 | 34,049 | |
Current portion of long-term debt | 116,205 | 110,883 | |
Other current liabilities | 22,932 | 26,013 | |
Total current liabilities | 217,349 | 210,853 | |
Long-term debt, net | 1,994,734 | 1,924,653 | |
Other long-term liabilities | 183,618 | 171,395 | |
Total liabilities | [1] | 2,395,701 | 2,306,901 |
Commitments and contingencies (Note 14) | |||
Redeemable noncontrolling interests | 137,122 | 136,124 | |
Stockholders' equity: | |||
Common stock, 108,553,802 and 100,412,036 shares issued as of March 31, 2021 and December 31, 2020, respectively, at $0.0001 par value | 11 | 10 | |
Additional paid-in capital—common stock | 1,547,375 | 1,482,716 | |
Accumulated deficit | (524,511) | (530,995) | |
Total stockholders' equity | 1,022,875 | 951,731 | |
Noncontrolling interests | 200,910 | 192,826 | |
Total equity | 1,223,785 | 1,144,557 | |
Total liabilities, redeemable noncontrolling interests and equity | $ 3,756,608 | $ 3,587,582 | |
[1] | The consolidated assets as of March 31, 2021 and December 31, 2020 include $1,510,026 and $1,471,796, respectively, of assets of variable interest entities ("VIEs") that can only be used to settle obligations of the VIEs. These assets include cash of $15,532 and $13,407 as of March 31, 2021 and December 31, 2020, respectively; accounts receivable—trade, net of $3,822 and $2,953 as of March 31, 2021 and December 31, 2020, respectively; accounts receivable—other of $813 and $583 as of March 31, 2021 and December 31, 2020, respectively; other current assets of $121,832 and $182,646 as of March 31, 2021 and December 31, 2020, respectively; property and equipment, net of $1,349,815 and $1,257,953 as of March 31, 2021 and December 31, 2020, respectively; and other assets of $18,212 and $14,254 as of March 31, 2021 and December 31, 2020, respectively. The consolidated liabilities as of March 31, 2021 and December 31, 2020 include $35,959 and $32,345, respectively, of liabilities of VIEs whose creditors have no recourse to Sunnova Energy International Inc. These liabilities include accounts payable of $3,303 and $2,744 as of March 31, 2021 and December 31, 2020, respectively; accrued expenses of $886 and $827 as of March 31, 2021 and December 31, 2020, respectively; other current liabilities of $3,740 and $3,284 as of March 31, 2021 and December 31, 2020, respectively; and other long-term liabilities of $28,030 and $25,490 as of March 31, 2021 and December 31, 2020, respectively. |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | |
Other current asset, allowance | $ 837 | $ 707 | |
Customer notes receivable, allowance | $ 20,082 | $ 16,961 | |
Common stock, issued (in shares) | 108,553,802 | 100,412,036 | |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | |
Assets | [1] | $ 3,756,608 | $ 3,587,582 |
Cash | 150,892 | 209,859 | |
Accounts receivable—trade, net | 11,802 | 10,243 | |
Accounts receivable—other | 21,536 | 21,378 | |
Other current assets | 192,580 | 215,175 | |
Property and equipment, net | 2,446,103 | 2,323,169 | |
Other assets | 310,794 | 294,372 | |
Liabilities | [1] | 2,395,701 | 2,306,901 |
Accounts payable | 33,903 | 39,908 | |
Accrued expenses | 44,309 | 34,049 | |
Other current liabilities | 22,932 | 26,013 | |
Other long-term liabilities | 183,618 | 171,395 | |
Primary beneficiary | |||
Assets | 1,510,026 | 1,471,796 | |
Cash | 15,532 | 13,407 | |
Accounts receivable—trade, net | 3,822 | 2,953 | |
Accounts receivable—other | 813 | 583 | |
Other current assets | 121,832 | 182,646 | |
Property and equipment, net | 1,349,815 | 1,257,953 | |
Other assets | 18,212 | 14,254 | |
Liabilities | 35,959 | 32,345 | |
Accounts payable | 3,303 | 2,744 | |
Accrued expenses | 886 | 827 | |
Other current liabilities | 3,740 | 3,284 | |
Other long-term liabilities | $ 28,030 | $ 25,490 | |
[1] | The consolidated assets as of March 31, 2021 and December 31, 2020 include $1,510,026 and $1,471,796, respectively, of assets of variable interest entities ("VIEs") that can only be used to settle obligations of the VIEs. These assets include cash of $15,532 and $13,407 as of March 31, 2021 and December 31, 2020, respectively; accounts receivable—trade, net of $3,822 and $2,953 as of March 31, 2021 and December 31, 2020, respectively; accounts receivable—other of $813 and $583 as of March 31, 2021 and December 31, 2020, respectively; other current assets of $121,832 and $182,646 as of March 31, 2021 and December 31, 2020, respectively; property and equipment, net of $1,349,815 and $1,257,953 as of March 31, 2021 and December 31, 2020, respectively; and other assets of $18,212 and $14,254 as of March 31, 2021 and December 31, 2020, respectively. The consolidated liabilities as of March 31, 2021 and December 31, 2020 include $35,959 and $32,345, respectively, of liabilities of VIEs whose creditors have no recourse to Sunnova Energy International Inc. These liabilities include accounts payable of $3,303 and $2,744 as of March 31, 2021 and December 31, 2020, respectively; accrued expenses of $886 and $827 as of March 31, 2021 and December 31, 2020, respectively; other current liabilities of $3,740 and $3,284 as of March 31, 2021 and December 31, 2020, respectively; and other long-term liabilities of $28,030 and $25,490 as of March 31, 2021 and December 31, 2020, respectively. |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income Statement [Abstract] | ||
Revenue | $ 41,276 | $ 29,829 |
Operating expense: | ||
Cost of revenue—depreciation | 17,408 | 12,986 |
Cost of revenue—other | 1,234 | 1,043 |
Operations and maintenance | 3,620 | 2,219 |
General and administrative | 42,320 | 27,893 |
Other operating income | 0 | (6) |
Total operating expense, net | 64,582 | 44,135 |
Operating loss | (23,306) | (14,306) |
Interest expense, net | 8,051 | 67,318 |
Interest income | (7,180) | (4,620) |
Other income | (113) | 0 |
Loss before income tax | (24,064) | (77,004) |
Income tax | 0 | 0 |
Net loss | (24,064) | (77,004) |
Net income (loss) attributable to redeemable noncontrolling interests and noncontrolling interests | 8,919 | (5,929) |
Net loss attributable to stockholders | $ (32,983) | $ (71,075) |
Net loss per share attributable to common stockholders—basic and diluted (in USD per share) | $ (0.31) | $ (0.85) |
Weighted average common shares outstanding—basic and diluted (in shares) | 106,359,220 | 84,001,151 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (24,064) | $ (77,004) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 19,543 | 14,946 |
Impairment and loss on disposals, net | 326 | 331 |
Amortization of deferred financing costs | 2,164 | 3,494 |
Amortization of debt discount | 1,720 | 4,663 |
Non-cash effect of equity-based compensation plans | 7,924 | 2,690 |
Unrealized (gain) loss on derivatives | (18,705) | 7,596 |
Unrealized gain on fair value option instruments | (113) | 0 |
Other non-cash items | (3,644) | 3,424 |
Changes in components of operating assets and liabilities: | ||
Accounts receivable | (1,771) | (2,755) |
Other current assets | (26,808) | 4,124 |
Other assets | (7,501) | (8,682) |
Accounts payable | (756) | 13,768 |
Accrued expenses | 10,626 | (17,227) |
Other current liabilities | (6,869) | (6,446) |
Other long-term liabilities | (1,980) | (1,034) |
Net cash used in operating activities | (49,908) | (58,112) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (117,459) | (141,231) |
Payments for investments and customer notes receivable | (122,532) | (50,448) |
Proceeds from customer notes receivable | 13,459 | 6,940 |
State utility rebates and tax credits | 111 | 135 |
Other, net | 208 | 289 |
Net cash used in investing activities | (226,213) | (184,315) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 311,280 | 583,681 |
Payments of long-term debt | (174,800) | (408,695) |
Payments on notes payable | (2,254) | (2,398) |
Payments of deferred financing costs | (6,273) | (10,619) |
Payments of debt discounts | (20) | (229) |
Proceeds from issuance of common stock, net | (1,037) | (41) |
Contributions from redeemable noncontrolling interests and noncontrolling interests | 40,802 | 102,342 |
Distributions to redeemable noncontrolling interests and noncontrolling interests | (2,833) | (1,373) |
Payments of costs related to redeemable noncontrolling interests and noncontrolling interests | (3,146) | (1,295) |
Other, net | (28) | (1) |
Net cash provided by financing activities | 161,691 | 261,372 |
Net increase (decrease) in cash and restricted cash | (114,430) | 18,945 |
Cash and restricted cash at beginning of period | 377,893 | 150,291 |
Cash and restricted cash at end of period | 263,463 | 169,236 |
Restricted cash included in other current assets | (43,603) | (30,502) |
Restricted cash included in other assets | (68,968) | (65,298) |
Cash at end of period | 150,892 | 73,436 |
Non-cash investing and financing activities: | ||
Change in accounts payable and accrued expenses related to purchases of property and equipment | 3,272 | 9,357 |
Change in accounts payable and accrued expenses related to payments for investments and customer notes receivable | (9,107) | (4,523) |
Non-cash conversion of convertible senior notes for common stock | 95,648 | 0 |
Supplemental cash flow information: | ||
Cash paid for interest | 28,180 | 25,369 |
Cash paid for income taxes | $ 0 | $ 0 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY - USD ($) $ in Thousands | Total | Cumulative-effect adjustment | Total Stockholders' Equity | Total Stockholders' EquityCumulative-effect adjustment | Common Stock | Additional Paid-in Capital - Common Stock | Accumulated Deficit | Accumulated DeficitCumulative-effect adjustment | Noncontrolling Interests |
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2019 | $ 127,129 | ||||||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||
Net income (loss) | 1,576 | ||||||||
Contributions from redeemable noncontrolling interests and noncontrolling interests | 3,170 | ||||||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (1,373) | ||||||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (187) | ||||||||
Equity in subsidiaries attributable to parent | 145 | ||||||||
Other, net | (44) | ||||||||
Redeemable noncontrolling interest, ending balance at Mar. 31, 2020 | 130,790 | ||||||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2019 | 83,980,885 | ||||||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | 691,111 | $ (9,908) | $ 645,935 | $ (9,908) | $ 8 | $ 1,007,751 | $ (361,824) | $ (9,908) | $ 45,176 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (78,580) | (71,075) | (71,075) | (7,505) | |||||
Issuance of stock, net (in shares) | 45,405 | ||||||||
Issuance of common stock, net | 214 | 214 | 214 | ||||||
Contributions from redeemable noncontrolling interests and noncontrolling interests | 99,172 | 99,172 | |||||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | 0 | ||||||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (894) | (894) | |||||||
Equity in subsidiaries attributable to parent | (145) | 24,164 | 24,164 | (24,309) | |||||
Equity-based compensation expense | 2,690 | 2,690 | 2,690 | ||||||
Other, net | (3) | (3) | |||||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2020 | 84,026,290 | ||||||||
Stockholders' equity, ending balance at Mar. 31, 2020 | 703,657 | 592,020 | $ 8 | 1,010,655 | (418,643) | 111,637 | |||
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2019 | 127,129 | ||||||||
Redeemable noncontrolling interest, ending balance at Dec. 31, 2020 | 136,124 | ||||||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2019 | 83,980,885 | ||||||||
Stockholders' equity, beginning balance at Dec. 31, 2019 | $ 691,111 | (9,908) | 645,935 | (9,908) | $ 8 | 1,007,751 | (361,824) | (9,908) | 45,176 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Accounting Standards Update [Extensible List] | nova:AccountingStandardsUpdate202006Member | ||||||||
Stockholders' equity, ending balance (in shares) at Dec. 31, 2020 | 100,412,036 | ||||||||
Stockholders' equity, ending balance at Dec. 31, 2020 | $ 1,144,557 | $ 2,254 | 951,731 | $ 2,254 | $ 10 | 1,482,716 | (530,995) | $ 2,254 | 192,826 |
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | |||||||||
Net income (loss) | 2,110 | ||||||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (1,090) | ||||||||
Equity in subsidiaries attributable to parent | 40 | ||||||||
Other, net | (62) | ||||||||
Redeemable noncontrolling interest, ending balance at Mar. 31, 2021 | 137,122 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income (loss) | (26,174) | (32,983) | (32,983) | 6,809 | |||||
Issuance of stock, net (in shares) | 8,141,766 | ||||||||
Issuance of common stock, net | 65,542 | 65,542 | $ 1 | 65,541 | |||||
Equity component of debt instrument | (8,807) | (8,807) | (8,807) | ||||||
Contributions from redeemable noncontrolling interests and noncontrolling interests | 40,802 | 40,802 | |||||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (1,743) | (1,743) | |||||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (55) | (55) | |||||||
Equity in subsidiaries attributable to parent | (40) | 37,213 | 37,213 | (37,253) | |||||
Equity-based compensation expense | 7,924 | 7,924 | 7,924 | ||||||
Other, net | (475) | 1 | 1 | (476) | |||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2021 | 108,553,802 | ||||||||
Stockholders' equity, ending balance at Mar. 31, 2021 | $ 1,223,785 | $ 1,022,875 | $ 11 | $ 1,547,375 | $ (524,511) | $ 200,910 |
Description of Business and Bas
Description of Business and Basis of Presentation | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation We are a leading residential solar and energy storage service provider, serving over 116,000 customers in more than 25 United States ("U.S.") states and territories. Sunnova Energy Corporation was incorporated in Delaware on October 22, 2012 and formed Sunnova Energy International Inc. ("SEI") as a Delaware corporation on April 1, 2019. We completed our initial public offering on July 29, 2019 (our "IPO"); and in connection with our IPO, all of Sunnova Energy Corporation's ownership interests were contributed to SEI. Unless the context otherwise requires, references in this report to "Sunnova," the "Company," "we," "our," "us," or like terms, refer to SEI and its consolidated subsidiaries. We have a differentiated residential solar dealer model in which we partner with local dealers who originate, design and install our customers' solar energy systems and energy storage systems on our behalf. Our focus on our dealer model enables us to leverage our dealers' specialized knowledge, connections and experience in local markets to drive customer origination while providing our dealers with access to high quality products at competitive prices, as well as technical oversight and expertise. We believe this structure provides operational flexibility, reduces exposure to labor shortages and lowers fixed costs relative to our peers, furthering our competitive advantage. We provide our services through long-term residential solar service agreements with a diversified pool of high credit quality customers. Our solar service agreements typically are structured as either a legal-form lease (a "lease") of a solar energy system or energy storage system to the customer, the sale of the solar energy system's output to the customer under a power purchase agreement ("PPA") or the purchase of a solar energy system or energy storage system with financing provided by us (a "loan"). The initial term of our solar service agreements is typically 10, 15 or 25 years, during which time we provide or arrange for ongoing services to customers, including monitoring, maintenance and warranty services. Our lease and PPA agreements typically include an opportunity for customers to renew for up to an additional 10 years, via two five-year renewal options. Customer payments and rates can be fixed for the duration of the solar service agreement or escalated at a pre-determined percentage annually. We also receive tax benefits and other incentives from leases and PPAs, a portion of which we finance through tax equity, non-recourse debt structures and hedging arrangements in order to fund our upfront costs, overhead and growth investments. Our future success depends in part on our ability to raise capital from third-party investors and commercial sources. We have an established track record of attracting capital from diverse sources. From our inception through March 31, 2021, we have raised more than $6.9 billion in total capital commitments from equity, debt and tax equity investors. Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements ("interim financial statements") include our consolidated balance sheets, statements of operations, statements of redeemable noncontrolling interests and equity and statements of cash flows and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") from records maintained by us. We have condensed or omitted certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP pursuant to the applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. As such, these interim financial statements should be read in conjunction with our 2020 annual audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K filed with the SEC on February 25, 2021. Our interim financial statements reflect all normal recurring adjustments necessary, in our opinion, to state fairly our financial position and results of operations for the reported periods. Amounts reported for interim periods may not be indicative of a full year period because of our continual growth, seasonal fluctuations in demand for power, timing of maintenance and other expenditures, changes in interest expense and other factors. Our interim financial statements include our accounts and those of our subsidiaries in which we have a controlling financial interest. In accordance with the provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, Consolidation , we consolidate any VIE of which we are the primary beneficiary. We form VIEs with our investors in the ordinary course of business to facilitate the funding and monetization of certain attributes associated with our solar energy systems. The typical condition for a controlling financial interest is holding a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve holding a majority of the voting interests. A primary beneficiary is defined as the party that has (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. We do not consolidate a VIE in which we have a majority ownership interest when we are not considered the primary beneficiary. We have considered the provisions within the contractual arrangements that grant us power to manage and make decisions that affect the operation of our VIEs, including determining the solar energy systems contributed to the VIEs, and the installation, operation and maintenance of the solar energy systems. We consider the rights granted to the other investors under the contractual arrangements to be more protective in nature rather than substantive participating rights. As such, we have determined we are the primary beneficiary of our VIEs and evaluate our relationships with our VIEs on an ongoing basis to determine whether we continue to be the primary beneficiary. We have eliminated all intercompany transactions in consolidation. Revisions We have revised our previously issued interim financial statements to correct immaterial classification errors pertaining to the Class A members' interests in certain of our tax equity funds. We incorrectly classified the Class A members' interests as redeemable noncontrolling interests whereas these interests should have been classified as noncontrolling interests. These misclassifications impacted our consolidated statements of redeemable noncontrolling interests and equity. The following table presents the impact of these revisions on the financial statements: Redeemable Noncontrolling As Previously Revisions As As Previously Revisions As (in thousands) December 31, 2019 $ 172,305 $ (45,176) $ 127,129 $ — $ 45,176 $ 45,176 Net income (loss) (5,929) 7,505 1,576 — (7,505) (7,505) Contributions from redeemable noncontrolling interests and noncontrolling interests 102,342 (99,172) 3,170 — 99,172 99,172 Distributions to redeemable noncontrolling interests (1,373) — (1,373) — — — Costs related to redeemable noncontrolling interests and noncontrolling interests (707) 894 187 — (894) (894) Equity in subsidiaries attributable to parent (24,164) 24,309 145 — (24,309) (24,309) Other, net (47) 3 (44) — (3) (3) March 31, 2020 $ 242,427 $ (111,637) $ 130,790 $ — $ 111,637 $ 111,637 Coronavirus ("COVID-19") Pandemic The ongoing COVID-19 pandemic has resulted and may continue to result in widespread adverse impacts on the global economy. Our first priority in our response to this pandemic has been the health and safety of our employees, customers and dealers. To that end, we quickly implemented preventative measures to minimize unnecessary risk of exposure, which we have continued to follow. We have experienced some resulting disruptions to our business operations as the COVID-19 virus has continued to circulate through the states and U.S. territories in which we operate. To adjust to federal social distancing guidelines, stay-at-home orders and similar government measures, our dealers expanded the use of digital tools and origination channels and created new methods that offset restrictions on their ability to meet with potential new customers in person. The service and installation of solar energy systems has continued during the COVID-19 pandemic. This reflects residential solar services' designation as an essential service in all of our service territories. In order to adhere to all applicable state and federal health and safety guidelines, we and our dealers have moved to a contact-free process for installers and service technicians. In addition, an increasing number of jurisdictional authorities, as well as local utilities, are accepting electronic submissions for permits, and inspections are being performed in many locations through video calls and other electronic means. Throughout the COVID-19 pandemic, we have seen minimal impact to our supply chain as our technicians and dealers have largely been able to successfully procure the equipment needed to service and install solar energy systems. We cannot predict the full impact the COVID-19 pandemic or the significant disruption and volatility currently being experienced in the capital markets will have on our business, cash flows, liquidity, financial condition and results of operations at this time due to numerous uncertainties. The ultimate impact will depend on future developments, including, among other |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Included below are updates to significant accounting policies disclosed in our 2020 annual audited consolidated financial statements. Use of Estimates The application of GAAP in the preparation of the interim financial statements requires us to make estimates and assumptions that affect the amounts reported in the interim financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ materially from those estimates. Accounts Receivable Accounts Receivable — Trade. Accounts receivable — trade primarily represents trade receivables from residential customers that are generally collected in the subsequent month. Accounts receivable — trade is recorded net of an allowance for credit losses, which is based on our assessment of the collectability of customer accounts based on the best available data at the time. We review the allowance by considering factors such as historical experience, customer credit rating, contractual term, aging category and current economic conditions that may affect a customer's ability to pay to identify customers with potential disputes or collection issues. We write off accounts receivable when we deem them uncollectible. As of March 31, 2021, we have not experienced a significant increase in delinquent customer accounts and have not made any significant adjustments to our allowance for credit losses related to accounts receivable — trade as a result of the COVID-19 pandemic. The following table presents the changes in the allowance for credit losses recorded against accounts receivable — trade, net in the unaudited condensed consolidated balance sheets: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 912 $ 960 Impact of ASC 326 adoption — (240) Provision for current expected credit losses 396 402 Write off of uncollectible accounts (496) (385) Recoveries 36 9 Other, net — 1 Balance at end of period $ 848 $ 747 Accounts Receivable—Other. Accounts receivable—other primarily represents receivables related to the sale of inventory. Inventory Inventory is stated at the lower of cost and net realizable value using the first-in, first-out method. Inventory primarily represents raw materials, such as energy storage systems, photovoltaic modules, inverters, meters and other associated equipment purchased. These materials are typically sold to dealers or held for use as original parts on new solar energy systems or replacement parts on existing solar energy systems. We remove these items from inventory and record the transaction in typically one of these manners: (a) expense to operations and maintenance expense when installed as a replacement part for a solar energy system, (b) expense to cost of sales if sold directly or (c) capitalize to property and equipment when installed as an original part on a solar energy system. We periodically evaluate our inventory for unusable and obsolete items based on assumptions about future demand and market conditions. Based on this evaluation, provisions are made to write inventory down to market value. The following table presents the detail of inventory as recorded in other current assets in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Energy storage systems and components $ 29,769 $ 18,122 Modules and inverters 77,277 83,904 Meters 638 563 Total $ 107,684 $ 102,589 As of March 31, 2021 and December 31, 2020, we recorded accrued expenses of $13.5 million and $8.9 million, respectively, for inventory purchases. Fair Value of Financial Instruments Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or a liability. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes inputs that may be used to measure fair value as follows: • Level 1—Observable inputs that reflect unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. • Level 2—Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy must be determined based on the lowest level input that is significant to the fair value measurement. An assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability. Our financial instruments include accounts receivable, notes receivable, accounts payable, accrued expenses, long-term debt and interest rate swaps. The carrying values of accounts receivable, accounts payable and accrued expenses approximate the fair values due to the fact that they are short-term in nature (Level 1). We estimate the fair value of our customer notes receivable based on interest rates currently offered under the loan program with similar maturities and terms (Level 3). We estimate the fair value of our fixed-rate long-term debt based on interest rates currently offered for debt with similar maturities and terms (Level 3). We determine the fair values of the interest rate derivative transactions based on a discounted cash flow method using contractual terms of the transactions. The floating interest rate is based on observable rates consistent with the frequency of the interest cash flows (Level 2). See Note 6, Customer Notes Receivable, Note 7, Long-Term Debt and Note 8, Derivative Instruments. Revenue The following table presents the detail of revenue as recorded in the unaudited condensed consolidated statements of operations: Three Months Ended 2021 2020 (in thousands) PPA revenue $ 16,834 $ 12,633 Lease revenue 16,397 11,542 Solar renewable energy certificate revenue 5,957 4,363 Loan revenue 1,195 599 Other revenue 893 692 Total $ 41,276 $ 29,829 We recognize revenue from contracts with customers as we satisfy our performance obligations at a transaction price reflecting an amount of consideration based upon an estimated rate of return. We express this rate of return as the solar rate per kilowatt hour ("kWh") in the customer contract. The amount of revenue we recognize does not equal customer cash payments because we satisfy performance obligations ahead of cash receipt or evenly as we provide continuous access on a stand-ready basis to the solar energy system. We reflect the differences between revenue recognition and cash payments received in accounts receivable, other assets or deferred revenue, as appropriate. Revenue allocated to remaining performance obligations represents contracted revenue we have not yet recognized and includes deferred revenue as well as amounts that will be invoiced and recognized as revenue in future periods. Contracted but not yet recognized revenue was approximately $1.7 billion as of March 31, 2021, of which we expect to recognize approximately 4% over the next 12 months. We do not expect the annual recognition to vary significantly over approximately the next 20 years as the vast majority of existing solar service agreements have at least 20 years remaining, given the average age of the fleet of solar energy systems under contract is less than four years. PPAs. Customers purchase electricity from us under PPAs. Pursuant to ASC 606, we recognize revenue based upon the amount of electricity delivered as determined by remote monitoring equipment at solar rates specified under the PPAs. All customers must pass our credit evaluation process. The PPAs generally have a term of 25 years with an opportunity for customers to renew for up to an additional 10 years, via two five-year renewal options. Leases . We are the lessor under lease agreements for solar energy systems and energy storage systems, which do not meet the definition of a lease under ASC 842 and are accounted for as contracts with customers under ASC 606. We recognize revenue on a straight-line basis over the contract term as we satisfy our obligation to provide continuous access to the solar energy system. All customers must pass our credit evaluation process. The lease agreements generally have a term of 25 years with an opportunity for customers to renew for up to an additional 10 years, via two five-year renewal options. We provide customers under our lease agreements a performance guarantee that each solar energy system will achieve a certain specified minimum solar energy production output, which is a significant proportion of its expected output. The specified minimum solar energy production output may not be achieved due to natural fluctuations in the weather or equipment failures from exposure and wear and tear outside of our control, among other factors. We determine the amount of the guaranteed output based on a number of different factors, including: (a) the specific site information relating to the tilt of the panels, azimuth (a horizontal angle measured clockwise in degrees from a reference direction) of the panels, size of the system, and shading on site; (b) the calculated amount of available irradiance (amount of energy for a given flat surface facing a specific direction) based on historical average weather data and (c) the calculated amount of energy output of the solar energy system. While actual irradiance levels can significantly change year over year due to natural fluctuations in the weather, we expect the levels to average out over the term of a 25-year lease and to approximate the levels used in determining the amount of the performance guarantee. Generally, weather fluctuations are the most likely reason a solar energy system may not achieve a certain specified minimum solar energy production output. If the solar energy system does not produce the guaranteed production amount, we are required to refund a portion of the previously remitted customer payments, where the repayment is calculated as the product of (a) the shortfall production amount and (b) the dollar amount (guaranteed rate) per kWh that is fixed throughout the term of the contract. These remittances of a customer's payments, if needed, are payable in January following the end of the first three years of the solar energy system's placed in service date and then every annual period thereafter. See Note 14, Commitments and Contingencies. Solar Renewable Energy Certificates. Each solar renewable energy certificate ("SREC") represents one megawatt hour (1,000 kWh) generated by a solar energy system. SRECs can be sold with or without the actual electricity associated with the renewable-based generation source. We account for the SRECs we generate from our solar energy systems as governmental incentives with no costs incurred to obtain them and do not consider those SRECs output of the underlying solar energy systems. We classify these SRECs as inventory held until sold and delivered to third parties. As we did not incur costs to obtain these governmental incentives, the inventory carrying value for the SRECs was $0 as of March 31, 2021 and December 31, 2020. We enter into economic hedges related to expected production of SRECs through forward contracts. The contracts require us to physically deliver the SRECs upon settlement. We recognize the related revenue under ASC 606 upon satisfaction of the performance obligation to transfer the SRECs to the stated counterparty. Payments are typically received within one month of transferring the SREC to the counterparty. The costs related to the sales of SRECs are generally limited to broker fees (recorded in cost of revenue—other), which are only paid in connection with certain transactions. In certain circumstances we are required to purchase SRECs on the open market to fulfill minimum delivery requirements under our forward contracts. Loans. See discussion of loan revenue in the " Loans " section below. Other Revenue. Other revenue includes certain state and utility incentives, revenue from the direct sale of energy storage systems to customers and sales of service plans. We recognize revenue from state and utility incentives in the periods in which they are earned. We recognize revenue from the direct sale of energy storage systems in the period in which the storage components are placed in service. Service plans are available to customers whose solar energy system was not originally sold by Sunnova. We recognize revenue from service plan contracts over the life of the contract, which is typically five years or ten years. Loans We offer a loan program, under which the customer finances the purchase of a solar energy system or energy storage system through a solar service agreement, typically for a term of 10, 15 or 25 years. We recognize cash payments received from customers on a monthly basis under our loan program (a) as interest income, to the extent attributable to earned interest on the contract that financed the customer's purchase of the solar energy system or energy storage system; (b) as a reduction of a note receivable on the balance sheet, to the extent attributable to a return of principal (whether scheduled or prepaid) on the contract that financed the customer's purchase of the solar energy system or energy storage system; and (c) as revenue, to the extent attributable to payments for operations and maintenance services provided by us. To qualify for the loan program, a customer must pass our credit evaluation process, which requires the customer to have a minimum FICO ® score of 650 to 720 depending on certain circumstances, and we secure the loans with the solar energy systems or energy storage systems financed. The credit evaluation process is performed once for each customer at the time the customer is entering into the solar service agreement with us. Our investments in solar energy systems and energy storage systems related to the loan program that are not yet placed in service are recorded in other assets in the consolidated balance sheets and are transferred to customer notes receivable upon being placed in service. Customer notes receivable are recorded at amortized cost, net of an allowance for credit losses (as described below), in other current assets and customer notes receivable in the consolidated balance sheets. Accrued interest receivable related to our customer notes receivable is recorded in accounts receivable—trade, net in the consolidated balance sheets. Interest income from customer notes receivable is recorded in interest income in the consolidated statements of operations. The amortized cost of our customer notes receivable is equal to the principal balance of customer notes receivable outstanding and does not include accrued interest receivable. Customer notes receivable continue to accrue interest until they are written off against the allowance, which occurs when the balance is 180 days or more past due unless the balance is in the process of collection. Customer notes receivable are considered past due one day after the due date based on the contractual terms of the loan agreement. In all cases, customer notes receivable balances are placed on a nonaccrual status or written off at an earlier date when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously written off and expected to be written off. Accrued interest receivable for customer notes receivable placed on a nonaccrual status is recorded as a reduction to interest income. Interest received on such customer notes receivable is accounted for on a cash basis until the customer notes receivable qualifies for the return to accrual status. Customer notes receivable are returned to accrual status when there is no longer any principal or interest amounts past due and future payments are reasonably assured. The allowance for credit losses is deducted from the customer notes receivable amortized cost to present the net amount expected to be collected. It is measured on a collective (pool) basis when similar risk characteristics (such as financial asset type, customer credit rating, contractual term and vintage) exist. In determining the allowance for credit losses, we identify customers with potential disputes or collection issues and consider our historical level of credit losses and current economic trends that might impact the level of future credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics, such as differences in underwriting standards. Expected credit losses are estimated over the contractual term of the loan agreements based on the best available data at the time, and adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: (a) we have a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual customer or (b) the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by us. As of March 31, 2021, we have not experienced a significant increase in delinquent customer notes receivable and have not made any significant adjustments to our allowance for credit losses related to loans as a result of the COVID-19 pandemic. See Note 6, Customer Notes Receivable. Deferred Revenue Deferred revenue consists of amounts for which the criteria for revenue recognition have not yet been met and includes (a) down payments and partial or full prepayments from customers, (b) differences due to the timing of energy production versus billing for certain types of PPAs and (c) payments for unfulfilled performance obligations from the loan program which will be recognized on a straight-line basis over the remaining term of the respective solar service agreements. Deferred revenue was $58.9 million as of December 31, 2019. The following table presents the detail of deferred revenue as recorded in other current liabilities and other long-term liabilities in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Loans $ 122,583 $ 93,859 PPAs and leases 13,599 11,787 SRECs 290 1,163 Total (1) $ 136,472 $ 106,809 (1) Of this amount, $9.0 million and $3.8 million is recorded in other current liabilities as of March 31, 2021 and December 31, 2020, respectively. During the three months ended March 31, 2021 and 2020, we recognized revenue of $2.5 million and $997,000, respectively, from amounts recorded in deferred revenue at the beginning of the respective years. New Accounting Guidance New accounting pronouncements are issued by the FASB or other standard setting bodies and are adopted as of the specified effective date. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity's Own Equity: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , to simplify the accounting for certain financial instruments with characteristics of liabilities and equity by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. This ASU also expands the required disclosures related to the terms and features of convertible instruments, how the instruments have been reported and information about events, conditions and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. This ASU is effective for annual and interim reporting periods in 2022. We adopted this ASU in January 2021 using the modified retrospective approach, which resulted in a cumulative-effect adjustment to stockholders' equity of $2.3 million. |
Property and Equipment
Property and Equipment | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment The following table presents the detail of property and equipment, net as recorded in the unaudited condensed consolidated balance sheets: Useful Lives As of As of (in years) (in thousands) Solar energy systems 35 $ 2,447,218 $ 2,298,427 Construction in progress 151,166 160,618 Asset retirement obligations 30 37,811 35,532 Information technology systems 3 35,649 35,077 Computers and equipment 3-5 1,913 1,727 Leasehold improvements 3-6 2,776 2,770 Furniture and fixtures 7 811 811 Vehicles 4-5 1,638 1,638 Other 5-6 157 157 Property and equipment, gross 2,679,139 2,536,757 Less: accumulated depreciation (233,036) (213,588) Property and equipment, net $ 2,446,103 $ 2,323,169 Solar Energy Systems. The amounts included in the above table for solar energy systems and substantially all the construction in progress relate to our customer contracts (including PPAs and leases). These assets had accumulated depreciation of $206.1 million and $188.8 million as of March 31, 2021 and December 31, 2020, respectively. |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Captions | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Detail of Certain Balance Sheet Captions | Detail of Certain Balance Sheet Captions The following table presents the detail of other current assets as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Inventory $ 107,684 $ 102,589 Restricted cash 43,603 73,020 Current portion of customer notes receivable 29,077 24,035 Other prepaid assets 9,318 8,645 Prepaid inventory — 3,352 Deferred receivables 2,075 2,678 Current portion of other notes receivable 820 853 Other 3 3 Total $ 192,580 $ 215,175 The following table presents the detail of other assets as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Restricted cash $ 68,968 $ 95,014 Construction in progress - customer notes receivable 102,242 85,604 Exclusivity and other bonus arrangements with dealers, net 62,600 55,709 Straight-line revenue adjustment, net 35,877 33,411 Derivative assets 14,291 — Other 26,816 24,634 Total $ 310,794 $ 294,372 The following table presents the detail of other current liabilities as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Interest payable $ 10,318 $ 17,718 Deferred revenue 9,026 3,754 Current portion of performance guarantee obligations 2,349 3,308 Current portion of operating and finance lease liability 1,217 1,206 Other 22 27 Total $ 22,932 $ 26,013 |
Asset Retirement Obligations ("
Asset Retirement Obligations ("ARO") | 3 Months Ended |
Mar. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Asset Retirement Obligations ("ARO") | Asset Retirement Obligations ("ARO") AROs consist primarily of costs to remove solar energy system assets and costs to restore the solar energy system sites to the original condition, which we estimate based on current market rates. For each solar energy system, we recognize the fair value of the ARO as a liability and capitalize that cost as part of the cost basis of the related solar energy system. The related assets are depreciated on a straight-line basis over 30 years, which is the estimated average time a solar energy system will be installed in a location before being removed, and the related liabilities are accreted to the full value over the same period of time. We revise our estimated future liabilities based on recent actual experiences, including third party cost estimates, average size of solar energy systems and inflation rates, which we evaluate at least annually. Changes in our estimated future liabilities are recorded as either a reduction or addition in the carrying amount of the remaining unamortized asset and the ARO and either decrease or increase our depreciation and accretion expense amounts prospectively. The following table presents the changes in AROs as recorded in other long-term liabilities in the unaudited condensed consolidated balance sheets: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 41,788 $ 31,053 Additional obligations incurred 2,290 2,067 Accretion expense 652 489 Other (16) (15) Balance at end of period $ 44,714 $ 33,594 |
Customer Notes Receivable
Customer Notes Receivable | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Customer Notes Receivable | Customer Notes Receivable We offer a loan program, under which the customer finances the purchase of a solar energy system or energy storage system through a solar service agreement for a term of 10, 15 or 25 years. The following table presents the detail of customer notes receivable as recorded in the unaudited condensed consolidated balance sheets and the corresponding fair values: As of As of (in thousands) Customer notes receivable $ 672,897 $ 555,089 Allowance for credit losses (20,919) (17,668) Customer notes receivable, net (1) $ 651,978 $ 537,421 Estimated fair value, net $ 664,534 $ 548,238 (1) Of this amount, $29.1 million and $24.0 million is recorded in other current assets as of March 31, 2021 and December 31, 2020, respectively. The following table presents the changes in the allowance for credit losses related to customer notes receivable as recorded in the unaudited condensed consolidated balance sheets: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 17,668 $ 1,091 Impact of ASC 326 adoption — 9,235 Provision for current expected credit losses (1) 3,251 1,811 Other, net — (1) Balance at end of period $ 20,919 $ 12,136 (1) In addition, we recognized $62,000 and $53,000 of provision for current expected credit losses during the three months ended March 31, 2021 and 2020, respectively, related to our long-term receivables for our customer leases. As of March 31, 2021 and December 31, 2020, we invested $102.2 million and $85.6 million, respectively, in loan solar energy systems and energy storage systems not yet placed in service. For the three months ended March 31, 2021 and 2020, interest income related to our customer notes receivable was $7.1 million and $4.4 million, respectively. As of March 31, 2021 and December 31, 2020, accrued interest receivable related to our customer notes receivable was $1.8 million and $1.2 million, respectively. As of March 31, 2021 and December 31, 2020, there were no customer notes receivable not accruing interest and thus, there was no allowance recorded for loans on nonaccrual status. For the three months ended March 31, 2021 and 2020, interest income of $0 was recognized for loans on nonaccrual status and accrued interest receivable of $0 was written off by reversing interest income. We consider the performance of our customer notes receivable portfolio and its impact on our allowance for credit losses. We also evaluate the credit quality based on the aging status and payment activity. The following table presents the aging of the amortized cost of customer notes receivable: As of As of (in thousands) 1-90 days past due $ 9,202 $ 8,504 91-180 days past due 1,815 1,733 Greater than 180 days past due 6,780 6,855 Total past due 17,797 17,092 Not past due 655,100 537,997 Total $ 672,897 $ 555,089 As of March 31, 2021 and December 31, 2020, the amortized cost of our customer notes receivable more than 90 days past due but not on nonaccrual status was $8.6 million. The following table presents the amortized cost by origination year of our customer notes receivable based on payment activity. Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Payment performance: Performing $ 129,799 $ 261,183 $ 131,093 $ 84,994 $ 30,426 $ 28,622 $ 666,117 Nonperforming (1) — 267 1,319 1,874 1,931 1,389 $ 6,780 Total $ 129,799 $ 261,450 $ 132,412 $ 86,868 $ 32,357 $ 30,011 $ 672,897 (1) A nonperforming loan is a loan in which the customer is in default and has not made any scheduled principal or interest payments for 181 days or more. |
Long-Term Debt
Long-Term Debt | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term DebtOur subsidiaries with long-term debt include SEI, Sunnova Energy Corporation, Helios Issuer, LLC ("HELI"), Sunnova EZ-Own Portfolio, LLC ("EZOP"), Sunnova Helios II Issuer, LLC ("HELII"), Sunnova RAYS I Issuer, LLC ("RAYSI"), Sunnova Helios III Issuer, LLC ("HELIII"), Sunnova TEP Holdings, LLC ("TEPH"), Sunnova TEP Inventory, LLC ("TEPINV"), Sunnova Sol Issuer, LLC ("SOLI"), Sunnova Helios IV Issuer, LLC ("HELIV"), Sunnova Asset Portfolio 8, LLC ("AP8"), Sunnova Sol II Issuer, LLC ("SOLII") and Sunnova Helios V Issuer, LLC ("HELV"). The following table presents the detail of long-term debt, net as recorded in the unaudited condensed consolidated balance sheets: Three Months Ended As of March 31, 2021 Year Ended As of December 31, 2020 Long-term Current Long-term Current (in thousands, except interest rates) SEI 9.75% convertible senior notes 21.70 % $ — $ — 14.53 % $ 95,648 $ — Debt discount, net — — (37,394) — Deferred financing costs, net — — (239) — Sunnova Energy Corporation Notes payable 8.39 % — — 7.14 % — 2,254 HELI Solar asset-backed notes 6.65 % 201,759 6,538 6.55 % 205,395 6,329 Debt discount, net (2,020) — (2,241) — Deferred financing costs, net (3,607) — (4,004) — EZOP Revolving credit facility 3.65 % 109,400 — 4.39 % 171,600 — Debt discount, net (1,266) — (1,431) — HELII Solar asset-backed notes 5.80 % 221,668 10,606 5.71 % 227,574 11,707 Debt discount, net (40) — (42) — Deferred financing costs, net (4,896) — (5,085) — RAYSI Solar asset-backed notes 5.57 % 119,281 5,744 5.49 % 120,391 5,836 Debt discount, net (1,334) — (1,376) — Deferred financing costs, net (4,229) — (4,334) — HELIII Solar loan-backed notes 4.06 % 119,044 12,295 4.01 % 122,047 13,065 Debt discount, net (2,395) — (2,423) — Deferred financing costs, net (2,298) — (2,326) — TEPH Revolving credit facility 5.73 % 304,570 — 5.81 % 239,570 — Debt discount, net (3,332) — (3,815) — TEPINV Revolving credit facility 12.19 % 27,434 22,302 10.80 % 25,240 29,464 Debt discount, net (997) — (1,322) — Deferred financing costs, net (1,442) — (1,758) — SOLI Solar asset-backed notes 3.94 % 379,771 15,383 3.91 % 384,258 15,416 Debt discount, net (110) — (113) — Deferred financing costs, net (8,660) — (8,915) — HELIV Solar loan-backed notes 4.10 % 125,659 16,127 3.97 % 129,648 16,515 Debt discount, net (849) — (885) — Deferred financing costs, net (3,754) — (3,905) — AP8 Revolving credit facility 5.56 % 21,205 4,395 5.31 % 42,047 4,386 SOLII Solar asset-backed notes 3.28 % 246,872 5,853 3.18 % 248,789 5,911 Debt discount, net (79) — (80) — Deferred financing costs, net (5,825) — (5,866) — HELV Solar loan-backed notes 2.31 % 169,760 16,962 — — Debt discount, net (949) — — — Deferred financing costs, net (3,607) — — — Total $ 1,994,734 $ 116,205 $ 1,924,653 $ 110,883 Availability. As of March 31, 2021, we had $281.1 million of available borrowing capacity under our various financing arrangements, consisting of $90.6 million under the EZOP revolving credit facility, $156.1 million under the TEPH revolving credit facility and $34.4 million under the AP8 revolving credit facility. There was no available borrowing capacity under any of our other financing arrangements. As of March 31, 2021, we were in compliance with all debt covenants under our financing arrangements. Weighted Average Effective Interest Rates. The weighted average effective interest rates disclosed in the table above are the weighted average stated interest rates for each debt instrument plus the effect on interest expense for other items classified as interest expense, such as the amortization of deferred financing costs, amortization of debt discounts and commitment fees on unused balances for the period of time the debt was outstanding during the indicated periods. SEI Debt . During the three months ended March 31, 2021, the remaining holders of our 9.75% convertible senior notes converted approximately $97.1 million aggregate principal amount, including accrued and unpaid interest to the date of each conversion, of our 9.75% convertible senior notes into common stock. See Note 11, Stockholders' Equity. TEPH Debt . In January 2021, we amended the TEPH revolving credit facility to, among other things, (a) permit certain transactions in SRECs (or proceeds therefrom) and related hedging arrangements and exclude certain of such amounts from the calculation of net cash flow available to service the indebtedness and (b) allow for borrowings with respect to certain ancillary components. HELV Debt. In February 2021, we pooled and transferred eligible solar loans and the related receivables into HELV, a special purpose entity, that issued $150.1 million in aggregate principal amount of Series 2021-A Class A solar loan-backed notes and $38.6 million in aggregate principal amount of Series 2021-A Class B solar loan-backed notes (collectively, the "HELV Notes") with a maturity date of February 2048. The HELV Notes were issued at a discount of 0.001% for Class A and 2.487% for Class B and bear interest at an annual rate of 1.80% and 3.15%, respectively. The cash flows generated by these solar loans are used to service the monthly principal and interest payments on the HELV Notes and satisfy HELV's expenses, and any remaining cash can be distributed to Sunnova Helios V Depositor, LLC, HELV's sole member. In connection with the HELV Notes, certain of our affiliates receive a fee for managing and servicing the solar energy systems pursuant to management and service agreements. In addition, Sunnova Energy Corporation has guaranteed, among other things, (a) the obligations of certain of our subsidiaries to manage and service the solar energy systems pursuant to management and servicing agreements and (b) certain of our subsidiaries' obligations to repurchase or substitute certain ineligible solar loans eventually sold to HELV pursuant to the related sale and contribution agreement. HELV is also required to maintain certain reserve accounts for the benefit of the holders of the HELV Notes, each of which must be funded at all times to the levels specified in the HELV Notes. The holders of the HELV Notes have no recourse to our other assets except as expressly set forth in the HELV Notes. EZOP and AP8 Debt. In February 2021, proceeds from the HELV Notes were used to repay $107.3 million and $29.5 million in aggregate principal amount of outstanding EZOP and AP8 debt, respectively. In March 2021, we amended the EZOP revolving credit facility to, among other things, (a) extend the maturity date to November 2023 and (b) increase the maximum facility amount from $200.0 million to $350.0 million. Fair Values of Long-Term Debt . The fair values of our long-term debt and the corresponding carrying amounts are as follows: As of March 31, 2021 As of December 31, 2020 Carrying Estimated Carrying Estimated (in thousands) SEI 9.75% convertible senior notes $ — $ — $ 95,648 $ 100,482 Sunnova Energy Corporation notes payable — — 2,254 2,254 HELI solar asset-backed notes 208,297 216,578 211,724 220,941 EZOP revolving credit facility 109,400 109,400 171,600 171,600 HELII solar asset-backed notes 232,274 266,817 239,281 286,579 RAYSI solar asset-backed notes 125,025 138,191 126,227 146,506 HELIII solar loan-backed notes 131,339 139,181 135,112 149,489 TEPH revolving credit facility 304,570 304,570 239,570 239,570 TEPINV revolving credit facility 49,736 49,736 54,704 54,704 SOLI solar asset-backed notes 395,154 404,116 399,674 427,511 HELIV solar loan-backed notes 141,786 136,672 146,163 145,433 AP8 revolving credit facility 25,600 25,600 46,433 46,433 SOLII solar asset-backed notes 252,725 241,066 254,700 254,674 HELV solar loan-backed notes 186,722 182,359 — — Total (1) $ 2,162,628 $ 2,214,286 $ 2,123,090 $ 2,246,176 (1) Amounts exclude the net deferred financing costs (classified in debt) and net debt discounts of $51.7 million and $87.6 million as of March 31, 2021 and December 31, 2020, respectively. For the EZOP, TEPH, TEPINV and AP8 debt, the estimated fair values approximate the carrying amounts due primarily to the variable nature of the interest rates of the underlying instruments. For the notes payable, the estimated fair value approximates the carrying amount due primarily to the short-term nature of the instruments. For the convertible senior notes and the HELI, HELII, RAYSI, HELIII, SOLI, HELIV, SOLII and HELV debt, we determined the estimated fair values based on a yield analysis of similar type debt. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Interest Rate Swaps on EZOP Debt. During the three months ended March 31, 2021 and 2020, EZOP unwound interest rate swaps with a notional amount of $131.7 million and $0, respectively, and recorded a realized loss of $68,000 and $59,000, respectively. The following table presents a summary of the outstanding derivative instruments: As of March 31, 2021 As of December 31, 2020 Effective Termination Fixed Aggregate Effective Termination Fixed Aggregate (in thousands, except interest rates) EZOP March 2021 July 2033 1.000% $ 180,181 June 2020 - September 2029 - 0.483% - 2.620% $ 130,373 TEPH September 2018 - January 2023 - 0.121% - 2.534% 270,170 September 2018 - January 2023 - 0.528% - 2.114% 202,272 TEPINV December 2019 December 2022 2.500% 40,132 December 2019 December 2022 2.500% 51,025 Total $ 490,483 $ 383,670 The following table presents the fair value of the interest rate swaps as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Other assets $ 14,291 $ — Other long-term liabilities — (13,407) Total, net $ 14,291 $ (13,407) We did not designate the interest rate swaps as hedging instruments for accounting purposes. As a result, we recognize changes in fair value immediately in interest expense, net. The following table presents the impact of the interest rate swaps as recorded in the unaudited condensed consolidated statements of operations: Three Months Ended 2021 2020 (in thousands) Realized loss $ 591 $ 31,898 Unrealized (gain) loss (18,705) 7,596 Total $ (18,114) $ 39,494 |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income TaxesOur effective income tax rate is 0% for the three months ended March 31, 2021 and 2020. Total income tax differs from the amounts computed by applying the statutory income tax rate to loss before income tax primarily as a result of our valuation allowance. We assessed whether we had any significant uncertain tax positions taken in a filed tax return, planned to be taken in a future tax return or claim, or otherwise subject to interpretation and determined there were none not more likely than not to be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position, or prospectively approved when such approval may be sought in advance. Accordingly, we recorded no reserve for uncertain tax positions. Should a provision for any interest or penalties relative to unrecognized tax benefits be necessary, it is our policy to accrue for such in our income tax accounts. There were no such accruals as of March 31, 2021 and December 31, 2020 and we do not expect a significant change in gross unrecognized tax benefits in the next twelve months. Our tax years after 2011 remain subject to examination by the IRS and by the taxing authorities in the states and territories in which we operate. |
Redeemable Noncontrolling Inter
Redeemable Noncontrolling Interests and Noncontrolling Interests | 3 Months Ended |
Mar. 31, 2021 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests and Noncontrolling Interests | Redeemable Noncontrolling Interests and Noncontrolling InterestsThe carrying values of the redeemable noncontrolling interests were equal to or greater than the redemption values as of March 31, 2021 and December 31, 2020. See Note 15, Subsequent Events. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity Common Stock During the three months ended March 31, 2021, the remaining holders of our 9.75% convertible senior notes converted approximately $97.1 million aggregate principal amount, including accrued and unpaid interest to the date of each conversion, of our 9.75% convertible senior notes into 7,196,035 shares of our common stock. |
Equity-Based Compensation
Equity-Based Compensation | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based CompensationIn March 2021, the aggregate number of shares of common stock that may be issued pursuant to awards under the 2019 Long-Term Incentive Plan (the "LTIP") was increased by 2,214,561, an amount which, together with the shares remaining available for grant under the LTIP, is equal to 5,020,602, or 5% of the number of shares of common stock outstanding as of December 31, 2020. Stock Options The following table summarizes stock option activity: Number Weighted Weighted Weighted Aggregate (in thousands) Outstanding, December 31, 2020 3,266,348 $ 16.06 5.82 $ 94,962 Granted 75,031 $ 40.50 9.97 $ 18.35 Exercised (491,125) $ 16.30 $ 15,549 Outstanding, March 31, 2021 2,850,254 $ 16.66 5.69 $ 68,865 Exercisable, March 31, 2021 2,775,223 $ 16.01 5.57 $ 68,841 Vested and expected to vest, March 31, 2021 2,850,254 $ 16.66 5.69 $ 68,865 Non-vested, March 31, 2021 75,031 $ 18.35 The number of stock options that vested during the three months ended March 31, 2021 and 2020 was 0 and 265,207, respectively. The grant date fair value of stock options that vested during the three months ended March 31, 2021 and 2020 was $0 and $791,000, respectively. As of March 31, 2021, there was $1.4 million of total unrecognized compensation expense related to stock options, which is expected to be recognized over the weighted average period of 2.23 years. Restricted Stock Units The following table summarizes restricted stock unit activity: Number of Weighted Outstanding, December 31, 2020 2,059,184 $ 11.95 Granted 426,243 $ 38.95 Vested (657,484) $ 18.50 Forfeited (11,294) $ 16.22 Outstanding, March 31, 2021 1,816,649 $ 15.89 The number of restricted stock units that vested during the three months ended March 31, 2021 and 2020 was 657,484 and 27,083, respectively. The grant date fair value of restricted stock units that vested during the three months ended March 31, 2021 and 2020 was $12.2 million and $325,000, respectively. As of March 31, 2021, there was $26.4 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over the weighted average period of 1.99 years. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss Per Share | Basic and Diluted Net Loss Per Share The following table sets forth the computation of our basic and diluted net loss per share: Three Months Ended 2021 2020 (in thousands, except share and per share amounts) Net loss attributable to common stockholders—basic and diluted $ (32,983) $ (71,075) Net loss per share attributable to common stockholders—basic and diluted $ (0.31) $ (0.85) Weighted average common shares outstanding—basic and diluted 106,359,220 84,001,151 The following table presents the weighted average shares of common stock equivalents that were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive: Three Months Ended 2021 2020 Equity-based compensation awards 4,902,790 5,872,563 Convertible senior notes 1,682,132 4,230,768 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal. We are a party to a number of lawsuits, claims and governmental proceedings which are ordinary, routine matters incidental to our business. In addition, in the ordinary course of business, we periodically have disputes with dealers and customers. We do not expect the outcomes of these matters to have, either individually or in the aggregate, a material adverse effect on our financial position or results of operations. Performance Guarantee Obligations. As of March 31, 2021, we recorded $2.9 million relating to our guarantee of certain specified minimum solar energy production output under our leases and loans, of which $2.3 million is recorded in other current liabilities and $556,000 is recorded in other long-term liabilities in the unaudited condensed consolidated balance sheet. As of December 31, 2020, we recorded $5.7 million relating to these guarantees, of which $3.3 million is recorded in other current liabilities and $2.4 million is recorded in other long-term liabilities in the unaudited condensed consolidated balance sheet. The changes in our aggregate performance guarantee obligations are as follows: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 5,718 $ 6,468 Accruals for obligations issued 433 683 Settlements made in cash (3,246) (3,844) Balance at end of period $ 2,905 $ 3,307 Operating and Finance Leases . We lease real estate and certain office equipment under operating leases and vehicles and certain other office equipment under finance leases. The following table presents the detail of lease expense and lease income as recorded in general and administrative expense and other operating income, respectively, in the unaudited condensed consolidated statements of operations: Three Months Ended 2021 2020 (in thousands) Operating lease expense $ 336 $ 336 Finance lease expense: Finance lease amortization expense 25 2 Interest on lease liabilities 3 — Short-term lease expense 10 16 Variable lease expense 261 7 Total $ 635 $ 361 The following table presents the detail of right-of-use assets and lease liabilities as recorded in other assets and other current liabilities As of As of (in thousands) Right-of-use assets: Operating leases $ 8,558 $ 8,779 Finance leases 367 391 Total right-of-use assets $ 8,925 $ 9,170 Current lease liabilities: Operating leases $ 1,108 $ 1,094 Finance leases 110 112 Long-term leases liabilities: Operating leases 9,885 9,742 Finance leases 178 203 Total lease liabilities $ 11,281 $ 11,151 Other information related to leases was as follows: Three Months Ended 2021 2020 (in thousands) Cash paid (received) for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ (42) $ 11 Operating cash flows from finance leases 3 — Financing cash flows from finance leases 28 1 Right-of-use assets obtained in exchange for lease obligations: Operating leases — — Finance leases — — (1) Includes reimbursements in 2021 of $423,000 for leasehold improvements. As of As of Weighted average remaining lease term (years): Operating leases 8.23 8.47 Finance leases 3.74 3.99 Weighted average discount rate: Operating leases 3.93 % 3.93 % Finance leases 3.38 % 3.39 % Future minimum lease payments under our non-cancelable leases as of March 31, 2021 were as follows: Operating Finance (in thousands) Remaining 2021 $ 1,155 $ 91 2022 1,559 88 2023 1,594 69 2024 1,616 55 2025 1,633 — 2026 and thereafter 5,984 — Total 13,541 303 Amount representing interest (2,021) (15) Amount representing leasehold incentives (527) — Present value of future payments 10,993 288 Current portion of lease liability (1,108) (110) Long-term portion of lease liability $ 9,885 $ 178 Letters of Credit . In connection with various security arrangements for an office lease, we have a letter of credit outstanding of $375,000 as of March 31, 2021 and December 31, 2020. The letter of credit is cash collateralized for the same amount or a lesser amount and this cash is classified as restricted cash recorded in other current assets and other assets in the unaudited condensed consolidated balance sheets. Guarantees or Indemnifications . We enter into contracts that include indemnifications and guarantee provisions. In general, we enter into contracts with indemnities for matters such as breaches of representations and warranties and covenants contained in the contract and/or against certain specified liabilities. Examples of these contracts include dealer agreements, debt agreements, asset purchases and sales agreements, service agreements and procurement agreements. We are unable to estimate our maximum potential exposure under these agreements until an event triggering payment occurs. We do not expect to make any material payments under these agreements. Dealer Commitments. As of March 31, 2021 and December 31, 2020, the net unamortized balance of payments to dealers for exclusivity and other similar arrangements was $62.6 million and $55.7 million, respectively. Under these agreements, we paid $3.7 million and $5.3 million during the three months ended March 31, 2021 and 2020, respectively. We could be obligated to make maximum payments, excluding additional amounts payable on a per watt basis if even higher thresholds are met, as follows: Dealer (in thousands) Remaining 2021 $ 31,530 2022 40,118 2023 18,110 2024 7,970 2025 938 2026 and thereafter — Total $ 98,666 Purchase Commitments. In August 2019, we amended an agreement with a supplier in which we agreed to purchase a minimum amount of energy storage systems and components for five years. In December 2020, we amended an agreement with a supplier in which we agreed to purchase a certain amount of energy storage systems and components for one year. These purchases are recorded to inventory in other current assets in the consolidated balance sheets. Under these agreements, we could be obligated to make minimum purchases as follows: Purchase (in thousands) Remaining 2021 $ 15,642 2022 26,810 2023 26,605 2024 19,807 2025 — 2026 and thereafter — Total $ 88,864 Information Technology Commitments. We have certain long-term contractual commitments related to information technology software services and licenses. Future commitments as of March 31, 2021 were as follows: Information (in thousands) Remaining 2021 $ 8,026 2022 2,216 2023 26 2024 26 2025 7 2026 and thereafter — Total $ 10,301 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of SunStreet. In February 2021, we entered into an Agreement and Plan of Merger (the "Merger Agreement") with certain of our subsidiaries, SunStreet Energy Group, LLC, a Delaware limited liability company ("SunStreet"), and LEN X, LLC, a Florida limited liability company, the sole member of SunStreet and a wholly owned subsidiary of Lennar Corporation. Pursuant to the Merger Agreement, in April 2021,we acquired SunStreet, Lennar Corporation's residential solar platform, in exchange for up to 6,984,225 shares of our common stock (the "Acquisition"), comprised of 3,095,329 shares in initial consideration issued at closing, subject to purchase price adjustment, and up to 3,888,896 shares issuable as earnout consideration after closing of the Acquisition. Noncontrolling Interests. In April 2021, we admitted a tax equity investor as the Class A member of Sunnova TEP V-D, LLC ("TEPVD"), a subsidiary of Sunnova TEP V-D Manager, LLC, which is the Class B member of TEPVD. The Class A member of TEPVD made a total capital commitment of approximately $50.0 million. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements ("interim financial statements") include our consolidated balance sheets, statements of operations, statements of redeemable noncontrolling interests and equity and statements of cash flows and have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") from records maintained by us. We have condensed or omitted certain information and note disclosures normally included in the financial statements prepared in accordance with GAAP pursuant to the applicable rules and regulations of the Securities and Exchange Commission ("SEC") regarding interim financial reporting. As such, these interim financial statements should be read in conjunction with our 2020 annual audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K filed with the SEC on February 25, 2021. Our interim financial statements reflect all normal recurring adjustments necessary, in our opinion, to state fairly our financial position and results of operations for the reported periods. Amounts reported for interim periods may not be indicative of a full year period because of our continual growth, seasonal fluctuations in demand for power, timing of maintenance and other expenditures, changes in interest expense and other factors. Our interim financial statements include our accounts and those of our subsidiaries in which we have a controlling financial interest. In accordance with the provisions of the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 810, Consolidation , we consolidate any VIE of which we are the primary beneficiary. We form VIEs with our investors in the ordinary course of business to facilitate the funding and monetization of certain attributes associated with our solar energy systems. The typical condition for a controlling financial interest is holding a majority of the voting interests of an entity. However, a controlling financial interest may also exist in entities, such as VIEs, through arrangements that do not involve holding a majority of the voting interests. A primary beneficiary is defined as the party that has (a) the power to direct the activities of a VIE that most significantly impact the VIE's economic performance and (b) the obligation to absorb losses or receive benefits from the VIE that could potentially be significant to the VIE. We do not consolidate a VIE in which we have a majority ownership interest when we are not considered the primary beneficiary. We have considered the provisions within the contractual arrangements that grant us power to manage and make decisions that affect the operation of our VIEs, including determining the solar energy systems contributed to the VIEs, and the installation, operation and maintenance of the solar energy systems. We consider the rights granted to the other investors under the |
Use of Estimates | Use of Estimates The application of GAAP in the preparation of the interim financial statements requires us to make estimates and assumptions that affect the amounts reported in the interim financial statements and accompanying notes. We base our estimates on historical experience and on various other assumptions believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. Actual results could differ materially from those estimates. |
Accounts Receivable | Accounts Receivable Accounts Receivable — Trade. Accounts receivable — trade primarily represents trade receivables from residential customers that are generally collected in the subsequent month. Accounts receivable — Accounts Receivable—Other. Accounts receivable—other primarily represents receivables related to the sale of inventory. |
Inventory | Inventory Inventory is stated at the lower of cost and net realizable value using the first-in, first-out method. Inventory primarily represents raw materials, such as energy storage systems, photovoltaic modules, inverters, meters and other associated equipment purchased. These materials are typically sold to dealers or held for use as original parts on new solar energy systems or replacement parts on existing solar energy systems. We remove these items from inventory and record the transaction in typically one of these manners: (a) expense to operations and maintenance expense when installed as a replacement part for a solar energy system, (b) expense to cost of sales if sold directly or (c) capitalize to property and equipment when installed as an original part on a solar energy system. We periodically evaluate our inventory for unusable and obsolete items based on assumptions about future demand and market conditions. Based on this evaluation, provisions are made to write inventory |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions market participants would use in pricing an asset or a liability. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 establishes a three-tier fair value hierarchy, which prioritizes inputs that may be used to measure fair value as follows: • Level 1—Observable inputs that reflect unadjusted quoted market prices in active markets for identical assets or liabilities that are accessible at the measurement date. • Level 2—Observable inputs other than Level 1 prices, such as quoted market prices for similar assets or liabilities in active markets, quoted market prices in markets that are not active or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3—Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy must be determined based on the lowest level input that is significant to the fair value measurement. An assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and consideration of factors specific to the asset or liability. Our financial instruments include accounts receivable, notes receivable, accounts payable, accrued expenses, long-term debt and interest rate swaps. The carrying values of accounts receivable, accounts payable and accrued expenses approximate the fair values due to the fact that they are short-term in nature (Level 1). We estimate the fair value of our customer notes receivable based on interest rates currently offered under the loan program with similar maturities and terms (Level 3). We estimate the fair value of our fixed-rate long-term debt based on interest rates currently offered for debt with similar maturities and terms (Level 3). We determine the fair values of the interest rate derivative transactions based on a discounted cash flow method using contractual terms of the transactions. The floating interest rate is based on observable rates consistent with the frequency of the interest cash flows (Level 2). See Note 6, Customer Notes Receivable, Note 7, Long-Term Debt and Note 8, Derivative Instruments. |
Revenue / Loans / Deferred Revenue | Revenue We recognize revenue from contracts with customers as we satisfy our performance obligations at a transaction price reflecting an amount of consideration based upon an estimated rate of return. We express this rate of return as the solar rate per kilowatt hour ("kWh") in the customer contract. The amount of revenue we recognize does not equal customer cash payments because we satisfy performance obligations ahead of cash receipt or evenly as we provide continuous access on a stand-ready basis to the solar energy system. We reflect the differences between revenue recognition and cash payments received in accounts receivable, other assets or deferred revenue, as appropriate. Revenue allocated to remaining performance obligations represents contracted revenue we have not yet recognized and includes deferred revenue as well as amounts that will be invoiced and recognized as revenue in future periods. Contracted but not yet recognized revenue was approximately $1.7 billion as of March 31, 2021, of which we expect to recognize approximately 4% over the next 12 months. We do not expect the annual recognition to vary significantly over approximately the next 20 years as the vast majority of existing solar service agreements have at least 20 years remaining, given the average age of the fleet of solar energy systems under contract is less than four years. PPAs. Customers purchase electricity from us under PPAs. Pursuant to ASC 606, we recognize revenue based upon the amount of electricity delivered as determined by remote monitoring equipment at solar rates specified under the PPAs. All customers must pass our credit evaluation process. The PPAs generally have a term of 25 years with an opportunity for customers to renew for up to an additional 10 years, via two five-year renewal options. Leases . We are the lessor under lease agreements for solar energy systems and energy storage systems, which do not meet the definition of a lease under ASC 842 and are accounted for as contracts with customers under ASC 606. We recognize revenue on a straight-line basis over the contract term as we satisfy our obligation to provide continuous access to the solar energy system. All customers must pass our credit evaluation process. The lease agreements generally have a term of 25 years with an opportunity for customers to renew for up to an additional 10 years, via two five-year renewal options. We provide customers under our lease agreements a performance guarantee that each solar energy system will achieve a certain specified minimum solar energy production output, which is a significant proportion of its expected output. The specified minimum solar energy production output may not be achieved due to natural fluctuations in the weather or equipment failures from exposure and wear and tear outside of our control, among other factors. We determine the amount of the guaranteed output based on a number of different factors, including: (a) the specific site information relating to the tilt of the panels, azimuth (a horizontal angle measured clockwise in degrees from a reference direction) of the panels, size of the system, and shading on site; (b) the calculated amount of available irradiance (amount of energy for a given flat surface facing a specific direction) based on historical average weather data and (c) the calculated amount of energy output of the solar energy system. While actual irradiance levels can significantly change year over year due to natural fluctuations in the weather, we expect the levels to average out over the term of a 25-year lease and to approximate the levels used in determining the amount of the performance guarantee. Generally, weather fluctuations are the most likely reason a solar energy system may not achieve a certain specified minimum solar energy production output. If the solar energy system does not produce the guaranteed production amount, we are required to refund a portion of the previously remitted customer payments, where the repayment is calculated as the product of (a) the shortfall production amount and (b) the dollar amount (guaranteed rate) per kWh that is fixed throughout the term of the contract. These remittances of a customer's payments, if needed, are payable in January following the end of the first three years of the solar energy system's placed in service date and then every annual period thereafter. See Note 14, Commitments and Contingencies. Solar Renewable Energy Certificates. Each solar renewable energy certificate ("SREC") represents one megawatt hour (1,000 kWh) generated by a solar energy system. SRECs can be sold with or without the actual electricity associated with the renewable-based generation source. We account for the SRECs we generate from our solar energy systems as governmental incentives with no costs incurred to obtain them and do not consider those SRECs output of the underlying solar energy systems. We classify these SRECs as inventory held until sold and delivered to third parties. As we did not incur costs to obtain these governmental incentives, the inventory carrying value for the SRECs was $0 as of March 31, 2021 and December 31, 2020. We enter into economic hedges related to expected production of SRECs through forward contracts. The contracts require us to physically deliver the SRECs upon settlement. We recognize the related revenue under ASC 606 upon satisfaction of the performance obligation to transfer the SRECs to the stated counterparty. Payments are typically received within one month of transferring the SREC to the counterparty. The costs related to the sales of SRECs are generally limited to broker fees (recorded in cost of revenue—other), which are only paid in connection with certain transactions. In certain circumstances we are required to purchase SRECs on the open market to fulfill minimum delivery requirements under our forward contracts. Loans. See discussion of loan revenue in the " Loans " section below. Other Revenue. Other revenue includes certain state and utility incentives, revenue from the direct sale of energy storage systems to customers and sales of service plans. We recognize revenue from state and utility incentives in the periods in which they are earned. We recognize revenue from the direct sale of energy storage systems in the period in which the storage components are placed in service. Service plans are available to customers whose solar energy system was not originally sold by Sunnova. We recognize revenue from service plan contracts over the life of the contract, which is typically five years or ten years. Loans We offer a loan program, under which the customer finances the purchase of a solar energy system or energy storage system through a solar service agreement, typically for a term of 10, 15 or 25 years. We recognize cash payments received from customers on a monthly basis under our loan program (a) as interest income, to the extent attributable to earned interest on the contract that financed the customer's purchase of the solar energy system or energy storage system; (b) as a reduction of a note receivable on the balance sheet, to the extent attributable to a return of principal (whether scheduled or prepaid) on the contract that financed the customer's purchase of the solar energy system or energy storage system; and (c) as revenue, to the extent attributable to payments for operations and maintenance services provided by us. To qualify for the loan program, a customer must pass our credit evaluation process, which requires the customer to have a minimum FICO ® score of 650 to 720 depending on certain circumstances, and we secure the loans with the solar energy systems or energy storage systems financed. The credit evaluation process is performed once for each customer at the time the customer is entering into the solar service agreement with us. Our investments in solar energy systems and energy storage systems related to the loan program that are not yet placed in service are recorded in other assets in the consolidated balance sheets and are transferred to customer notes receivable upon being placed in service. Customer notes receivable are recorded at amortized cost, net of an allowance for credit losses (as described below), in other current assets and customer notes receivable in the consolidated balance sheets. Accrued interest receivable related to our customer notes receivable is recorded in accounts receivable—trade, net in the consolidated balance sheets. Interest income from customer notes receivable is recorded in interest income in the consolidated statements of operations. The amortized cost of our customer notes receivable is equal to the principal balance of customer notes receivable outstanding and does not include accrued interest receivable. Customer notes receivable continue to accrue interest until they are written off against the allowance, which occurs when the balance is 180 days or more past due unless the balance is in the process of collection. Customer notes receivable are considered past due one day after the due date based on the contractual terms of the loan agreement. In all cases, customer notes receivable balances are placed on a nonaccrual status or written off at an earlier date when they are deemed uncollectible. Expected recoveries do not exceed the aggregate of amounts previously written off and expected to be written off. Accrued interest receivable for customer notes receivable placed on a nonaccrual status is recorded as a reduction to interest income. Interest received on such customer notes receivable is accounted for on a cash basis until the customer notes receivable qualifies for the return to accrual status. Customer notes receivable are returned to accrual status when there is no longer any principal or interest amounts past due and future payments are reasonably assured. The allowance for credit losses is deducted from the customer notes receivable amortized cost to present the net amount expected to be collected. It is measured on a collective (pool) basis when similar risk characteristics (such as financial asset type, customer credit rating, contractual term and vintage) exist. In determining the allowance for credit losses, we identify customers with potential disputes or collection issues and consider our historical level of credit losses and current economic trends that might impact the level of future credit losses. Adjustments to historical loss information are made for differences in current loan-specific risk characteristics, such as differences in underwriting standards. Expected credit losses are estimated over the contractual term of the loan agreements based on the best available data at the time, and adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals and modifications unless either of the following applies: (a) we have a reasonable expectation at the reporting date that a troubled debt restructuring will be executed with an individual customer or (b) the extension or renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancelable by us. As of March 31, 2021, we have not experienced a significant increase in delinquent customer notes receivable and have not made any significant adjustments to our allowance for credit losses related to loans as a result of the COVID-19 pandemic. See Note 6, Customer Notes Receivable. Deferred Revenue |
New Accounting Guidance | New Accounting Guidance New accounting pronouncements are issued by the FASB or other standard setting bodies and are adopted as of the specified effective date. In August 2020, the FASB issued ASU No. 2020-06, Debt—Debt with Conversion and Other Options and Derivatives and Hedging—Contracts in Entity's Own Equity: Accounting for Convertible Instruments and Contracts in an Entity's Own Equity , to simplify the accounting for certain financial instruments with characteristics of liabilities and equity by removing the separation models for convertible debt with a cash conversion feature and convertible instruments with a beneficial conversion feature. This ASU also expands the required disclosures related to the terms and features of convertible instruments, how the instruments have been reported and information about events, conditions and circumstances that can affect how to assess the amount or timing of an entity's future cash flows related to those instruments. This ASU is effective for annual and interim reporting periods in 2022. We adopted this ASU in January 2021 using the modified retrospective approach, which resulted in a cumulative-effect adjustment to stockholders' equity of $2.3 million. |
Description of Business and B_2
Description of Business and Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of accounting revisions | The following table presents the impact of these revisions on the financial statements: Redeemable Noncontrolling As Previously Revisions As As Previously Revisions As (in thousands) December 31, 2019 $ 172,305 $ (45,176) $ 127,129 $ — $ 45,176 $ 45,176 Net income (loss) (5,929) 7,505 1,576 — (7,505) (7,505) Contributions from redeemable noncontrolling interests and noncontrolling interests 102,342 (99,172) 3,170 — 99,172 99,172 Distributions to redeemable noncontrolling interests (1,373) — (1,373) — — — Costs related to redeemable noncontrolling interests and noncontrolling interests (707) 894 187 — (894) (894) Equity in subsidiaries attributable to parent (24,164) 24,309 145 — (24,309) (24,309) Other, net (47) 3 (44) — (3) (3) March 31, 2020 $ 242,427 $ (111,637) $ 130,790 $ — $ 111,637 $ 111,637 |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Accounting Policies [Abstract] | |
Changes in the allowance for credit losses | The following table presents the changes in the allowance for credit losses recorded against accounts receivable — trade, net in the unaudited condensed consolidated balance sheets: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 912 $ 960 Impact of ASC 326 adoption — (240) Provision for current expected credit losses 396 402 Write off of uncollectible accounts (496) (385) Recoveries 36 9 Other, net — 1 Balance at end of period $ 848 $ 747 The following table presents the changes in the allowance for credit losses related to customer notes receivable as recorded in the unaudited condensed consolidated balance sheets: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 17,668 $ 1,091 Impact of ASC 326 adoption — 9,235 Provision for current expected credit losses (1) 3,251 1,811 Other, net — (1) Balance at end of period $ 20,919 $ 12,136 (1) In addition, we recognized $62,000 and $53,000 of provision for current expected credit losses during the three months ended March 31, 2021 and 2020, respectively, related to our long-term receivables for our customer leases. |
Schedule of inventory | The following table presents the detail of inventory as recorded in other current assets in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Energy storage systems and components $ 29,769 $ 18,122 Modules and inverters 77,277 83,904 Meters 638 563 Total $ 107,684 $ 102,589 |
Disaggregation of revenue | The following table presents the detail of revenue as recorded in the unaudited condensed consolidated statements of operations: Three Months Ended 2021 2020 (in thousands) PPA revenue $ 16,834 $ 12,633 Lease revenue 16,397 11,542 Solar renewable energy certificate revenue 5,957 4,363 Loan revenue 1,195 599 Other revenue 893 692 Total $ 41,276 $ 29,829 |
Deferred revenue schedule | The following table presents the detail of deferred revenue as recorded in other current liabilities and other long-term liabilities in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Loans $ 122,583 $ 93,859 PPAs and leases 13,599 11,787 SRECs 290 1,163 Total (1) $ 136,472 $ 106,809 (1) Of this amount, $9.0 million and $3.8 million is recorded in other current liabilities as of March 31, 2021 and December 31, 2020, respectively. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | The following table presents the detail of property and equipment, net as recorded in the unaudited condensed consolidated balance sheets: Useful Lives As of As of (in years) (in thousands) Solar energy systems 35 $ 2,447,218 $ 2,298,427 Construction in progress 151,166 160,618 Asset retirement obligations 30 37,811 35,532 Information technology systems 3 35,649 35,077 Computers and equipment 3-5 1,913 1,727 Leasehold improvements 3-6 2,776 2,770 Furniture and fixtures 7 811 811 Vehicles 4-5 1,638 1,638 Other 5-6 157 157 Property and equipment, gross 2,679,139 2,536,757 Less: accumulated depreciation (233,036) (213,588) Property and equipment, net $ 2,446,103 $ 2,323,169 |
Detail of Certain Balance She_2
Detail of Certain Balance Sheet Captions (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of other current assets | The following table presents the detail of other current assets as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Inventory $ 107,684 $ 102,589 Restricted cash 43,603 73,020 Current portion of customer notes receivable 29,077 24,035 Other prepaid assets 9,318 8,645 Prepaid inventory — 3,352 Deferred receivables 2,075 2,678 Current portion of other notes receivable 820 853 Other 3 3 Total $ 192,580 $ 215,175 |
Schedule of other assets | The following table presents the detail of other assets as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Restricted cash $ 68,968 $ 95,014 Construction in progress - customer notes receivable 102,242 85,604 Exclusivity and other bonus arrangements with dealers, net 62,600 55,709 Straight-line revenue adjustment, net 35,877 33,411 Derivative assets 14,291 — Other 26,816 24,634 Total $ 310,794 $ 294,372 |
Schedule of other current liabilities | The following table presents the detail of other current liabilities as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Interest payable $ 10,318 $ 17,718 Deferred revenue 9,026 3,754 Current portion of performance guarantee obligations 2,349 3,308 Current portion of operating and finance lease liability 1,217 1,206 Other 22 27 Total $ 22,932 $ 26,013 |
Asset Retirement Obligations _2
Asset Retirement Obligations ("ARO") (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in AROs | The following table presents the changes in AROs as recorded in other long-term liabilities in the unaudited condensed consolidated balance sheets: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 41,788 $ 31,053 Additional obligations incurred 2,290 2,067 Accretion expense 652 489 Other (16) (15) Balance at end of period $ 44,714 $ 33,594 |
Customer Notes Receivable (Tabl
Customer Notes Receivable (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Receivables [Abstract] | |
Fair values of notes receivable and corresponding carrying amounts | The following table presents the detail of customer notes receivable as recorded in the unaudited condensed consolidated balance sheets and the corresponding fair values: As of As of (in thousands) Customer notes receivable $ 672,897 $ 555,089 Allowance for credit losses (20,919) (17,668) Customer notes receivable, net (1) $ 651,978 $ 537,421 Estimated fair value, net $ 664,534 $ 548,238 (1) Of this amount, $29.1 million and $24.0 million is recorded in other current assets as of March 31, 2021 and December 31, 2020, respectively. |
Changes in the allowance for credit losses | The following table presents the changes in the allowance for credit losses recorded against accounts receivable — trade, net in the unaudited condensed consolidated balance sheets: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 912 $ 960 Impact of ASC 326 adoption — (240) Provision for current expected credit losses 396 402 Write off of uncollectible accounts (496) (385) Recoveries 36 9 Other, net — 1 Balance at end of period $ 848 $ 747 The following table presents the changes in the allowance for credit losses related to customer notes receivable as recorded in the unaudited condensed consolidated balance sheets: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 17,668 $ 1,091 Impact of ASC 326 adoption — 9,235 Provision for current expected credit losses (1) 3,251 1,811 Other, net — (1) Balance at end of period $ 20,919 $ 12,136 (1) In addition, we recognized $62,000 and $53,000 of provision for current expected credit losses during the three months ended March 31, 2021 and 2020, respectively, related to our long-term receivables for our customer leases. |
Financing receivable, past due | The following table presents the aging of the amortized cost of customer notes receivable: As of As of (in thousands) 1-90 days past due $ 9,202 $ 8,504 91-180 days past due 1,815 1,733 Greater than 180 days past due 6,780 6,855 Total past due 17,797 17,092 Not past due 655,100 537,997 Total $ 672,897 $ 555,089 |
Financing receivable amortized cost of customer notes receivable | The following table presents the amortized cost by origination year of our customer notes receivable based on payment activity. Amortized Cost by Origination Year 2021 2020 2019 2018 2017 Prior Total (in thousands) Payment performance: Performing $ 129,799 $ 261,183 $ 131,093 $ 84,994 $ 30,426 $ 28,622 $ 666,117 Nonperforming (1) — 267 1,319 1,874 1,931 1,389 $ 6,780 Total $ 129,799 $ 261,450 $ 132,412 $ 86,868 $ 32,357 $ 30,011 $ 672,897 (1) A nonperforming loan is a loan in which the customer is in default and has not made any scheduled principal or interest payments for 181 days or more. |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The following table presents the detail of long-term debt, net as recorded in the unaudited condensed consolidated balance sheets: Three Months Ended As of March 31, 2021 Year Ended As of December 31, 2020 Long-term Current Long-term Current (in thousands, except interest rates) SEI 9.75% convertible senior notes 21.70 % $ — $ — 14.53 % $ 95,648 $ — Debt discount, net — — (37,394) — Deferred financing costs, net — — (239) — Sunnova Energy Corporation Notes payable 8.39 % — — 7.14 % — 2,254 HELI Solar asset-backed notes 6.65 % 201,759 6,538 6.55 % 205,395 6,329 Debt discount, net (2,020) — (2,241) — Deferred financing costs, net (3,607) — (4,004) — EZOP Revolving credit facility 3.65 % 109,400 — 4.39 % 171,600 — Debt discount, net (1,266) — (1,431) — HELII Solar asset-backed notes 5.80 % 221,668 10,606 5.71 % 227,574 11,707 Debt discount, net (40) — (42) — Deferred financing costs, net (4,896) — (5,085) — RAYSI Solar asset-backed notes 5.57 % 119,281 5,744 5.49 % 120,391 5,836 Debt discount, net (1,334) — (1,376) — Deferred financing costs, net (4,229) — (4,334) — HELIII Solar loan-backed notes 4.06 % 119,044 12,295 4.01 % 122,047 13,065 Debt discount, net (2,395) — (2,423) — Deferred financing costs, net (2,298) — (2,326) — TEPH Revolving credit facility 5.73 % 304,570 — 5.81 % 239,570 — Debt discount, net (3,332) — (3,815) — TEPINV Revolving credit facility 12.19 % 27,434 22,302 10.80 % 25,240 29,464 Debt discount, net (997) — (1,322) — Deferred financing costs, net (1,442) — (1,758) — SOLI Solar asset-backed notes 3.94 % 379,771 15,383 3.91 % 384,258 15,416 Debt discount, net (110) — (113) — Deferred financing costs, net (8,660) — (8,915) — HELIV Solar loan-backed notes 4.10 % 125,659 16,127 3.97 % 129,648 16,515 Debt discount, net (849) — (885) — Deferred financing costs, net (3,754) — (3,905) — AP8 Revolving credit facility 5.56 % 21,205 4,395 5.31 % 42,047 4,386 SOLII Solar asset-backed notes 3.28 % 246,872 5,853 3.18 % 248,789 5,911 Debt discount, net (79) — (80) — Deferred financing costs, net (5,825) — (5,866) — HELV Solar loan-backed notes 2.31 % 169,760 16,962 — — Debt discount, net (949) — — — Deferred financing costs, net (3,607) — — — Total $ 1,994,734 $ 116,205 $ 1,924,653 $ 110,883 |
Schedule of carrying values and estimated fair values of debt instruments | Fair Values of Long-Term Debt . The fair values of our long-term debt and the corresponding carrying amounts are as follows: As of March 31, 2021 As of December 31, 2020 Carrying Estimated Carrying Estimated (in thousands) SEI 9.75% convertible senior notes $ — $ — $ 95,648 $ 100,482 Sunnova Energy Corporation notes payable — — 2,254 2,254 HELI solar asset-backed notes 208,297 216,578 211,724 220,941 EZOP revolving credit facility 109,400 109,400 171,600 171,600 HELII solar asset-backed notes 232,274 266,817 239,281 286,579 RAYSI solar asset-backed notes 125,025 138,191 126,227 146,506 HELIII solar loan-backed notes 131,339 139,181 135,112 149,489 TEPH revolving credit facility 304,570 304,570 239,570 239,570 TEPINV revolving credit facility 49,736 49,736 54,704 54,704 SOLI solar asset-backed notes 395,154 404,116 399,674 427,511 HELIV solar loan-backed notes 141,786 136,672 146,163 145,433 AP8 revolving credit facility 25,600 25,600 46,433 46,433 SOLII solar asset-backed notes 252,725 241,066 254,700 254,674 HELV solar loan-backed notes 186,722 182,359 — — Total (1) $ 2,162,628 $ 2,214,286 $ 2,123,090 $ 2,246,176 (1) Amounts exclude the net deferred financing costs (classified in debt) and net debt discounts of $51.7 million and $87.6 million as of March 31, 2021 and December 31, 2020, respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding derivative instruments | The following table presents a summary of the outstanding derivative instruments: As of March 31, 2021 As of December 31, 2020 Effective Termination Fixed Aggregate Effective Termination Fixed Aggregate (in thousands, except interest rates) EZOP March 2021 July 2033 1.000% $ 180,181 June 2020 - September 2029 - 0.483% - 2.620% $ 130,373 TEPH September 2018 - January 2023 - 0.121% - 2.534% 270,170 September 2018 - January 2023 - 0.528% - 2.114% 202,272 TEPINV December 2019 December 2022 2.500% 40,132 December 2019 December 2022 2.500% 51,025 Total $ 490,483 $ 383,670 |
Fair value of interest rate swaps | The following table presents the fair value of the interest rate swaps as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Other assets $ 14,291 $ — Other long-term liabilities — (13,407) Total, net $ 14,291 $ (13,407) Three Months Ended 2021 2020 (in thousands) Realized loss $ 591 $ 31,898 Unrealized (gain) loss (18,705) 7,596 Total $ (18,114) $ 39,494 |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock option activity | The following table summarizes stock option activity: Number Weighted Weighted Weighted Aggregate (in thousands) Outstanding, December 31, 2020 3,266,348 $ 16.06 5.82 $ 94,962 Granted 75,031 $ 40.50 9.97 $ 18.35 Exercised (491,125) $ 16.30 $ 15,549 Outstanding, March 31, 2021 2,850,254 $ 16.66 5.69 $ 68,865 Exercisable, March 31, 2021 2,775,223 $ 16.01 5.57 $ 68,841 Vested and expected to vest, March 31, 2021 2,850,254 $ 16.66 5.69 $ 68,865 Non-vested, March 31, 2021 75,031 $ 18.35 |
Restricted stock unit activity | The following table summarizes restricted stock unit activity: Number of Weighted Outstanding, December 31, 2020 2,059,184 $ 11.95 Granted 426,243 $ 38.95 Vested (657,484) $ 18.50 Forfeited (11,294) $ 16.22 Outstanding, March 31, 2021 1,816,649 $ 15.89 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per share | The following table sets forth the computation of our basic and diluted net loss per share: Three Months Ended 2021 2020 (in thousands, except share and per share amounts) Net loss attributable to common stockholders—basic and diluted $ (32,983) $ (71,075) Net loss per share attributable to common stockholders—basic and diluted $ (0.31) $ (0.85) Weighted average common shares outstanding—basic and diluted 106,359,220 84,001,151 |
Schedule of antidilutive weighted average shares | The following table presents the weighted average shares of common stock equivalents that were excluded from the computation of diluted net loss per share for the periods presented because including them would have been anti-dilutive: Three Months Ended 2021 2020 Equity-based compensation awards 4,902,790 5,872,563 Convertible senior notes 1,682,132 4,230,768 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of performance guarantee obligations | The changes in our aggregate performance guarantee obligations are as follows: As of March 31, 2021 2020 (in thousands) Balance at beginning of period $ 5,718 $ 6,468 Accruals for obligations issued 433 683 Settlements made in cash (3,246) (3,844) Balance at end of period $ 2,905 $ 3,307 |
Lease expense | The following table presents the detail of lease expense and lease income as recorded in general and administrative expense and other operating income, respectively, in the unaudited condensed consolidated statements of operations: Three Months Ended 2021 2020 (in thousands) Operating lease expense $ 336 $ 336 Finance lease expense: Finance lease amortization expense 25 2 Interest on lease liabilities 3 — Short-term lease expense 10 16 Variable lease expense 261 7 Total $ 635 $ 361 Other information related to leases was as follows: Three Months Ended 2021 2020 (in thousands) Cash paid (received) for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ (42) $ 11 Operating cash flows from finance leases 3 — Financing cash flows from finance leases 28 1 Right-of-use assets obtained in exchange for lease obligations: Operating leases — — Finance leases — — (1) Includes reimbursements in 2021 of $423,000 for leasehold improvements. As of As of Weighted average remaining lease term (years): Operating leases 8.23 8.47 Finance leases 3.74 3.99 Weighted average discount rate: Operating leases 3.93 % 3.93 % Finance leases 3.38 % 3.39 % |
Lease assets and liabilities | The following table presents the detail of right-of-use assets and lease liabilities as recorded in other assets and other current liabilities As of As of (in thousands) Right-of-use assets: Operating leases $ 8,558 $ 8,779 Finance leases 367 391 Total right-of-use assets $ 8,925 $ 9,170 Current lease liabilities: Operating leases $ 1,108 $ 1,094 Finance leases 110 112 Long-term leases liabilities: Operating leases 9,885 9,742 Finance leases 178 203 Total lease liabilities $ 11,281 $ 11,151 |
Operating lease, future minimum lease payments | Future minimum lease payments under our non-cancelable leases as of March 31, 2021 were as follows: Operating Finance (in thousands) Remaining 2021 $ 1,155 $ 91 2022 1,559 88 2023 1,594 69 2024 1,616 55 2025 1,633 — 2026 and thereafter 5,984 — Total 13,541 303 Amount representing interest (2,021) (15) Amount representing leasehold incentives (527) — Present value of future payments 10,993 288 Current portion of lease liability (1,108) (110) Long-term portion of lease liability $ 9,885 $ 178 |
Other commitments | Dealer Commitments. As of March 31, 2021 and December 31, 2020, the net unamortized balance of payments to dealers for exclusivity and other similar arrangements was $62.6 million and $55.7 million, respectively. Under these agreements, we paid $3.7 million and $5.3 million during the three months ended March 31, 2021 and 2020, respectively. We could be obligated to make maximum payments, excluding additional amounts payable on a per watt basis if even higher thresholds are met, as follows: Dealer (in thousands) Remaining 2021 $ 31,530 2022 40,118 2023 18,110 2024 7,970 2025 938 2026 and thereafter — Total $ 98,666 |
Future commitments | Purchase Commitments. In August 2019, we amended an agreement with a supplier in which we agreed to purchase a minimum amount of energy storage systems and components for five years. In December 2020, we amended an agreement with a supplier in which we agreed to purchase a certain amount of energy storage systems and components for one year. These purchases are recorded to inventory in other current assets in the consolidated balance sheets. Under these agreements, we could be obligated to make minimum purchases as follows: Purchase (in thousands) Remaining 2021 $ 15,642 2022 26,810 2023 26,605 2024 19,807 2025 — 2026 and thereafter — Total $ 88,864 Information (in thousands) Remaining 2021 $ 8,026 2022 2,216 2023 26 2024 26 2025 7 2026 and thereafter — Total $ 10,301 |
Description of Business and B_3
Description of Business and Basis of Presentation - Narrative (Details) customer in Thousands, $ in Billions | 3 Months Ended | 20 Months Ended |
Mar. 31, 2021staterenewal_optioncustomer | Mar. 31, 2021USD ($)state | |
Subsidiary, Sale of Stock [Line Items] | ||
Number of customers | customer | 116 | |
Number of states in which entity operates (more than) | state | 25 | 25 |
Maximum renewal term | 10 years | |
Equity cure contribution | $ | $ 6.9 | |
Lease and Power Purchase Agreement (PPA) | ||
Subsidiary, Sale of Stock [Line Items] | ||
Number of options to renew term | renewal_option | 2 | |
Renewal term | 5 years | |
Minimum | ||
Subsidiary, Sale of Stock [Line Items] | ||
Agreement term | 10 years | |
Median | ||
Subsidiary, Sale of Stock [Line Items] | ||
Agreement term | 15 years | |
Maximum | ||
Subsidiary, Sale of Stock [Line Items] | ||
Agreement term | 25 years |
Description of Business and B_4
Description of Business and Basis of Presentation - Revision of Interim Financials (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Redeemable Noncontrolling Interests | ||
Redeemable noncontrolling interest, beginning balance | $ 136,124 | $ 127,129 |
Net income (loss) | 2,110 | 1,576 |
Contributions from redeemable noncontrolling interests and noncontrolling interests | 3,170 | |
Distributions to redeemable noncontrolling interests and noncontrolling interests | (1,090) | (1,373) |
Costs related to redeemable noncontrolling interests and noncontrolling interests | 187 | |
Equity in subsidiaries attributable to parent | 40 | 145 |
Other, net | (62) | (44) |
Redeemable noncontrolling interest, ending balance | 137,122 | 130,790 |
Noncontrolling Interests | ||
Stockholders' equity, beginning balance | 1,144,557 | 691,111 |
Net income (loss) | (26,174) | (78,580) |
Contributions from redeemable noncontrolling interests and noncontrolling interests | 40,802 | 99,172 |
Distributions to redeemable noncontrolling interests and noncontrolling interests | (1,743) | |
Costs related to redeemable noncontrolling interests and noncontrolling interests | (55) | (894) |
Equity in subsidiaries attributable to parent | (40) | (145) |
Other, net | (475) | (3) |
Stockholders' equity, ending balance | 1,223,785 | 703,657 |
Noncontrolling Interests | ||
Noncontrolling Interests | ||
Stockholders' equity, beginning balance | 192,826 | 45,176 |
Net income (loss) | 6,809 | (7,505) |
Contributions from redeemable noncontrolling interests and noncontrolling interests | 40,802 | 99,172 |
Distributions to redeemable noncontrolling interests and noncontrolling interests | (1,743) | 0 |
Costs related to redeemable noncontrolling interests and noncontrolling interests | (55) | (894) |
Equity in subsidiaries attributable to parent | (37,253) | (24,309) |
Other, net | (476) | (3) |
Stockholders' equity, ending balance | $ 200,910 | 111,637 |
As Previously Reported | ||
Redeemable Noncontrolling Interests | ||
Redeemable noncontrolling interest, beginning balance | 172,305 | |
Net income (loss) | (5,929) | |
Contributions from redeemable noncontrolling interests and noncontrolling interests | 102,342 | |
Distributions to redeemable noncontrolling interests and noncontrolling interests | (1,373) | |
Costs related to redeemable noncontrolling interests and noncontrolling interests | (707) | |
Equity in subsidiaries attributable to parent | (24,164) | |
Other, net | (47) | |
Redeemable noncontrolling interest, ending balance | 242,427 | |
As Previously Reported | Noncontrolling Interests | ||
Noncontrolling Interests | ||
Stockholders' equity, beginning balance | 0 | |
Net income (loss) | 0 | |
Contributions from redeemable noncontrolling interests and noncontrolling interests | 0 | |
Distributions to redeemable noncontrolling interests and noncontrolling interests | 0 | |
Costs related to redeemable noncontrolling interests and noncontrolling interests | 0 | |
Equity in subsidiaries attributable to parent | 0 | |
Other, net | 0 | |
Stockholders' equity, ending balance | 0 | |
Revisions | ||
Redeemable Noncontrolling Interests | ||
Redeemable noncontrolling interest, beginning balance | (45,176) | |
Net income (loss) | 7,505 | |
Contributions from redeemable noncontrolling interests and noncontrolling interests | (99,172) | |
Distributions to redeemable noncontrolling interests and noncontrolling interests | 0 | |
Costs related to redeemable noncontrolling interests and noncontrolling interests | 894 | |
Equity in subsidiaries attributable to parent | 24,309 | |
Other, net | 3 | |
Redeemable noncontrolling interest, ending balance | (111,637) | |
Revisions | Noncontrolling Interests | ||
Noncontrolling Interests | ||
Stockholders' equity, beginning balance | 45,176 | |
Net income (loss) | (7,505) | |
Contributions from redeemable noncontrolling interests and noncontrolling interests | 99,172 | |
Distributions to redeemable noncontrolling interests and noncontrolling interests | 0 | |
Costs related to redeemable noncontrolling interests and noncontrolling interests | (894) | |
Equity in subsidiaries attributable to parent | (24,309) | |
Other, net | (3) | |
Stockholders' equity, ending balance | $ 111,637 |
Significant Accounting Polici_4
Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 912 | $ 960 |
Provision for current expected credit losses | 396 | 402 |
Write off of uncollectible accounts | (496) | (385) |
Recoveries | 36 | 9 |
Other, net | 0 | 1 |
Balance at end of period | $ 848 | 747 |
Impact of ASC 326 adoption | ||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ (240) |
Significant Accounting Polici_5
Significant Accounting Policies - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Inventory [Line Items] | ||
Inventory | $ 107,684 | $ 102,589 |
Energy storage systems and components | ||
Inventory [Line Items] | ||
Inventory | 29,769 | 18,122 |
Modules and inverters | ||
Inventory [Line Items] | ||
Inventory | 77,277 | 83,904 |
Meters | ||
Inventory [Line Items] | ||
Inventory | $ 638 | $ 563 |
Significant Accounting Polici_6
Significant Accounting Policies - Narrative (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2021USD ($)kWhFICO_scorerenewal_option | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | ||||
Accrued expenses for inventory purchases | $ 13,500 | $ 8,900 | ||
Contracted but not yet recognized revenue | $ 1,700,000 | |||
Average age of solar systems | 4 years | |||
SREC inventory | $ 107,684 | 102,589 | ||
Threshold period past due, writeoff | 180 days | |||
Deferred revenue | $ 136,472 | 106,809 | $ 58,900 | |
Revenue recognized | 2,500 | $ 997 | ||
Solar Renewable Energy Certificates | ||||
Disaggregation of Revenue [Line Items] | ||||
SREC inventory | $ 0 | 0 | ||
Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 10 years | |||
Median | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 15 years | |||
Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 25 years | |||
PPA revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 25 years | |||
Renewal term | 5 years | |||
Number of options to renew term | renewal_option | 2 | |||
PPA revenue | Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Renewal term | 10 years | |||
Lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 25 years | |||
Renewal term | 5 years | |||
Number of options to renew term | renewal_option | 2 | |||
Remittances of customer payments, period after placed in service date | 3 years | |||
Lease revenue | Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Renewal term | 10 years | |||
Solar renewable energy certificate revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Energy per certificate (in kWhs) | kWh | 1,000 | |||
Typical period for receiving payment | 1 month | |||
Other revenue | Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 5 years | |||
Other revenue | Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 10 years | |||
Loan revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Deferred revenue | $ 122,583 | $ 93,859 | ||
Loan revenue | Minimum | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 10 years | |||
Minimum FICO score required for customer to qualify for program | FICO_score | 650 | |||
Loan revenue | Median | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 15 years | |||
Loan revenue | Maximum | ||||
Disaggregation of Revenue [Line Items] | ||||
Agreement term | 25 years | |||
Minimum FICO score required for customer to qualify for program | FICO_score | 720 |
Significant Accounting Polici_7
Significant Accounting Policies - Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 41,276 | $ 29,829 |
PPA revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 16,834 | 12,633 |
Lease revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 16,397 | 11,542 |
Solar renewable energy certificate revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 5,957 | 4,363 |
Loan revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,195 | 599 |
Other revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 893 | $ 692 |
Significant Accounting Polici_8
Significant Accounting Policies - Performance Obligations (Details) $ in Billions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Accounting Policies [Abstract] | |
Contracted but not yet recognized revenue | $ 1.7 |
Performance obligation, description of timing | We do not expect the annual recognition to vary significantly over approximately the next 20 years as the vast majority of existing solar service agreements have at least 20 years remaining |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Contracted but not yet recognized revenue, percentage | 4.00% |
Contracted but not yet recognized revenue, expected timing of satisfaction | 12 months |
Significant Accounting Polici_9
Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 136,472 | $ 106,809 | $ 58,900 |
Deferred revenue included in other current liabilities | 9,026 | 3,754 | |
Loans | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 122,583 | 93,859 | |
PPAs and leases | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | 13,599 | 11,787 | |
SRECs | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue | $ 290 | $ 1,163 |
Significant Accounting Polic_10
Significant Accounting Policies - New Accounting Guidance (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity | $ 1,223,785 | $ 1,144,557 | $ 703,657 | $ 691,111 |
Total Stockholders' Equity | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity | $ 1,022,875 | 951,731 | $ 592,020 | 645,935 |
Impact of ASC 326 adoption | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity | 2,254 | (9,908) | ||
Impact of ASC 326 adoption | Total Stockholders' Equity | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total equity | $ 2,254 | $ (9,908) |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,679,139 | $ 2,536,757 |
Less: accumulated depreciation | (233,036) | (213,588) |
Property and equipment, net | $ 2,446,103 | 2,323,169 |
Solar energy systems | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 35 years | |
Property and equipment, gross | $ 2,447,218 | 2,298,427 |
Less: accumulated depreciation | (206,100) | (188,800) |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 151,166 | 160,618 |
Asset retirement obligations | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 30 years | |
Property and equipment, gross | $ 37,811 | 35,532 |
Information technology systems | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Property and equipment, gross | $ 35,649 | 35,077 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,913 | 1,727 |
Computers and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Computers and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,776 | 2,770 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 6 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 7 years | |
Property and equipment, gross | $ 811 | 811 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,638 | 1,638 |
Vehicles | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 4 years | |
Vehicles | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 157 | $ 157 |
Other | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 5 years | |
Other | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 6 years |
Detail of Certain Balance She_3
Detail of Certain Balance Sheet Captions - Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Inventory | $ 107,684 | $ 102,589 | |
Restricted cash | 43,603 | 73,020 | $ 30,502 |
Current portion of customer notes receivable | 29,077 | 24,035 | |
Other prepaid assets | 9,318 | 8,645 | |
Prepaid inventory | 0 | 3,352 | |
Deferred receivables | 2,075 | 2,678 | |
Current portion of other notes receivable | 820 | 853 | |
Other | 3 | 3 | |
Total | $ 192,580 | $ 215,175 |
Detail of Certain Balance She_4
Detail of Certain Balance Sheet Captions - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Restricted cash | $ 68,968 | $ 95,014 | $ 65,298 |
Construction in progress - customer notes receivable | 102,242 | 85,604 | |
Exclusivity and other bonus arrangements with dealers, net | 62,600 | 55,709 | |
Straight-line revenue adjustment, net | 35,877 | 33,411 | |
Derivative assets | 14,291 | 0 | |
Other | 26,816 | 24,634 | |
Total | $ 310,794 | $ 294,372 |
Detail of Certain Balance She_5
Detail of Certain Balance Sheet Captions - Other Current Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest payable | $ 10,318 | $ 17,718 |
Deferred revenue | 9,026 | 3,754 |
Current portion of performance guarantee obligations | 2,349 | 3,308 |
Current portion of operating and finance lease liability | 1,217 | 1,206 |
Other | 22 | 27 |
Total | $ 22,932 | $ 26,013 |
Asset Retirement Obligations _3
Asset Retirement Obligations ("ARO") (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Asset retirement obligation, useful life | 30 years | |
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward] | ||
Balance at beginning of period | $ 41,788 | $ 31,053 |
Additional obligations incurred | 2,290 | 2,067 |
Accretion expense | 652 | 489 |
Other | (16) | (15) |
Balance at end of period | $ 44,714 | $ 33,594 |
Customer Notes Receivable - Nar
Customer Notes Receivable - Narrative (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan systems not yet placed in service | $ 102,200,000 | $ 85,600,000 | |
Interest income | 7,180,000 | $ 4,620,000 | |
Customer notes receivable not accruing interest | 0 | 0 | |
Interest income for nonaccrual loans | 0 | 0 | |
Amortized cost | 8,600,000 | 8,600,000 | |
Customer notes receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Interest income | 7,100,000 | 4,400,000 | |
Accrued investment income receivable | 1,800,000 | $ 1,200,000 | |
Accrued investment income receivable, written off | $ 0 | $ 0 | |
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Agreement term | 10 years | ||
Median | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Agreement term | 15 years | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Agreement term | 25 years | ||
Loan revenue | Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Agreement term | 10 years | ||
Loan revenue | Median | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Agreement term | 15 years | ||
Loan revenue | Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Agreement term | 25 years |
Customer Notes Receivable - Sch
Customer Notes Receivable - Schedule of Customer Notes Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer notes receivable | $ 672,897 | $ 555,089 | ||
Allowance for credit losses | (20,919) | (17,668) | $ (12,136) | $ (1,091) |
Current portion of customer notes receivable | 29,077 | 24,035 | ||
Customer Notes Receivable | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Current portion of customer notes receivable | 29,100 | 24,000 | ||
Carrying Value | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer notes receivable | 651,978 | 537,421 | ||
Estimated Fair Value | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Customer notes receivable | $ 664,534 | $ 548,238 |
Customer Notes Receivable - S_2
Customer Notes Receivable - Schedule of Changes in Allowances for Credit Losses Related to Customer Notes Receivable (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Balance at beginning of period | $ 17,668 | $ 1,091 |
Provision for current expected credit loss | 3,251 | 1,811 |
Other, net | 0 | (1) |
Balance at end of period | 20,919 | 12,136 |
Provision for expected credit losses | $ 62 | 53 |
Impact of ASC 326 adoption | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Balance at beginning of period | $ 9,235 |
Customer Notes Receivable - S_3
Customer Notes Receivable - Schedule of Aged Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, past due | $ 17,797 | $ 17,092 |
Financing receivable, not past due | 655,100 | 537,997 |
Total | 672,897 | 555,089 |
1-90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, past due | 9,202 | 8,504 |
91-180 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, past due | 1,815 | 1,733 |
Greater than 180 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Financing receivable, past due | $ 6,780 | $ 6,855 |
Customer Notes Receivable - S_4
Customer Notes Receivable - Schedule of Amortized cost of Customer Notes Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | $ 129,799 | |
2020 | 261,450 | |
2019 | 132,412 | |
2018 | 86,868 | |
2017 | 32,357 | |
Prior | 30,011 | |
Total | 672,897 | $ 555,089 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 129,799 | |
2020 | 261,183 | |
2019 | 131,093 | |
2018 | 84,994 | |
2017 | 30,426 | |
Prior | 28,622 | |
Total | 666,117 | |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 0 | |
2020 | 267 | |
2019 | 1,319 | |
2018 | 1,874 | |
2017 | 1,931 | |
Prior | 1,389 | |
Total | $ 6,780 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||
Long-term debt, non-current | $ 1,994,734 | $ 1,924,653 |
Long-term debt, current | $ 116,205 | $ 110,883 |
SEI | Convertible senior notes | 9.75% convertible senior notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 9.75% | |
Weighted average effective interest rates | 21.70% | 14.53% |
Long-term debt, gross, non-current | $ 0 | $ 95,648 |
Debt discount, net, non-current | 0 | (37,394) |
Deferred financing costs, net, non-current | 0 | (239) |
Long-term debt, gross, current | 0 | 0 |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
Sunnova Energy Corporation | Notes payable | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 8.39% | 7.14% |
Long-term debt, gross, non-current | $ 0 | $ 0 |
Long-term debt, gross, current | 0 | 2,254 |
HELI | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (2,020) | (2,241) |
Deferred financing costs, net, non-current | (3,607) | (4,004) |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
HELI | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 6.65% | 6.55% |
Long-term debt, gross, non-current | $ 201,759 | $ 205,395 |
Long-term debt, gross, current | 6,538 | 6,329 |
EZOP | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (1,266) | (1,431) |
Debt discount, net, current | $ 0 | $ 0 |
EZOP | Line of Credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 3.65% | 4.39% |
Long-term debt, gross, non-current | $ 109,400 | $ 171,600 |
Long-term debt, gross, current | 0 | 0 |
HELII | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (40) | (42) |
Deferred financing costs, net, non-current | (4,896) | (5,085) |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
HELII | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 5.80% | 5.71% |
Long-term debt, gross, non-current | $ 221,668 | $ 227,574 |
Long-term debt, gross, current | 10,606 | 11,707 |
RAYSI | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (1,334) | (1,376) |
Deferred financing costs, net, non-current | (4,229) | (4,334) |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
RAYSI | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 5.57% | 5.49% |
Long-term debt, gross, non-current | $ 119,281 | $ 120,391 |
Long-term debt, gross, current | 5,744 | 5,836 |
HELIII | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (2,395) | (2,423) |
Deferred financing costs, net, non-current | (2,298) | (2,326) |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
HELIII | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 4.06% | 4.01% |
Long-term debt, gross, non-current | $ 119,044 | $ 122,047 |
Long-term debt, gross, current | 12,295 | 13,065 |
TEPH | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (3,332) | (3,815) |
Debt discount, net, current | $ 0 | $ 0 |
TEPH | Line of Credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 5.73% | 5.81% |
Long-term debt, gross, non-current | $ 304,570 | $ 239,570 |
Long-term debt, gross, current | 0 | 0 |
TEPINV | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (997) | (1,322) |
Deferred financing costs, net, non-current | (1,442) | (1,758) |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
TEPINV | Line of Credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 12.19% | 10.80% |
Long-term debt, gross, non-current | $ 27,434 | $ 25,240 |
Long-term debt, gross, current | 22,302 | 29,464 |
SOLI | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (110) | (113) |
Deferred financing costs, net, non-current | (8,660) | (8,915) |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
SOLI | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 3.94% | 3.91% |
Long-term debt, gross, non-current | $ 379,771 | $ 384,258 |
Long-term debt, gross, current | 15,383 | 15,416 |
HELIV | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (849) | (885) |
Deferred financing costs, net, non-current | (3,754) | (3,905) |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
HELIV | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 4.10% | 3.97% |
Long-term debt, gross, non-current | $ 125,659 | $ 129,648 |
Long-term debt, gross, current | $ 16,127 | $ 16,515 |
AP8 | Line of Credit | Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 5.56% | 5.31% |
Long-term debt, gross, non-current | $ 21,205 | $ 42,047 |
Long-term debt, gross, current | 4,395 | 4,386 |
SOLII | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (79) | (80) |
Deferred financing costs, net, non-current | (5,825) | (5,866) |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
SOLII | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 3.28% | 3.18% |
Long-term debt, gross, non-current | $ 246,872 | $ 248,789 |
Long-term debt, gross, current | 5,853 | 5,911 |
HELV | ||
Debt Instrument [Line Items] | ||
Debt discount, net, non-current | (949) | 0 |
Deferred financing costs, net, non-current | (3,607) | 0 |
Debt discount, net, current | 0 | 0 |
Deferred financing costs, net, current | $ 0 | $ 0 |
HELV | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Weighted average effective interest rates | 2.31% | |
Long-term debt, gross, non-current | $ 169,760 | $ 0 |
Long-term debt, gross, current | $ 16,962 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Feb. 28, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Mar. 30, 2021 | |
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 281,100,000 | |||
Debt conversion | 95,648,000 | $ 0 | ||
EZOP | Line of Credit | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | 90,600,000 | |||
Repayments of debt | $ 107,300,000 | |||
Maximum borrowing capacity | 350,000,000 | $ 200,000,000 | ||
TEPH | Line of Credit | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | 156,100,000 | |||
AP8 | Line of Credit | Revolving credit facility | ||||
Debt Instrument [Line Items] | ||||
Borrowing capacity | $ 34,400,000 | |||
Repayments of debt | $ 29,500,000 | |||
SEI | Convertible senior notes | 9.75% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 9.75% | |||
Debt conversion | $ 97,100,000 | |||
HELV | Solar loan-backed notes | HELV Series 2021-A Class A | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 1.80% | |||
Principal amount of debt issued | $ 150,100,000 | |||
Discount percent | 0.001% | |||
HELV | Solar loan-backed notes | HELV Series 2021-A Class B | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate | 3.15% | |||
Principal amount of debt issued | $ 38,600,000 | |||
Discount percent | 2.487% |
Long-Term Debt - Schedule of Fa
Long-Term Debt - Schedule of Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||
Net deferred financing costs and debt discounts | $ 51,700 | $ 87,600 |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | 2,162,628 | 2,123,090 |
Estimated Fair Value | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 2,214,286 | 2,246,176 |
SEI | Convertible senior notes | 9.75% convertible senior notes | ||
Debt Instrument [Line Items] | ||
Stated interest rate | 9.75% | |
SEI | Carrying Value | Convertible senior notes | 9.75% convertible senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 0 | 95,648 |
SEI | Estimated Fair Value | Convertible senior notes | 9.75% convertible senior notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 100,482 |
Sunnova Energy Corporation | Carrying Value | Notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 2,254 |
Sunnova Energy Corporation | Estimated Fair Value | Notes payable | ||
Debt Instrument [Line Items] | ||
Long-term debt | 0 | 2,254 |
HELI | Carrying Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 208,297 | 211,724 |
HELI | Estimated Fair Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 216,578 | 220,941 |
HELII | Carrying Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 232,274 | 239,281 |
HELII | Estimated Fair Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 266,817 | 286,579 |
RAYSI | Carrying Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 125,025 | 126,227 |
RAYSI | Estimated Fair Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 138,191 | 146,506 |
HELIII | Carrying Value | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 131,339 | 135,112 |
HELIII | Estimated Fair Value | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 139,181 | 149,489 |
SOLI | Carrying Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 395,154 | 399,674 |
SOLI | Estimated Fair Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 404,116 | 427,511 |
HELIV | Carrying Value | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 141,786 | 146,163 |
HELIV | Estimated Fair Value | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 136,672 | 145,433 |
SOLII | Carrying Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 252,725 | 254,700 |
SOLII | Estimated Fair Value | Solar asset-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 241,066 | 254,674 |
HELV | Carrying Value | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 186,722 | 0 |
HELV | Estimated Fair Value | Solar loan-backed notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | 182,359 | 0 |
Revolving credit facility | EZOP | Carrying Value | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 109,400 | 171,600 |
Revolving credit facility | EZOP | Estimated Fair Value | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 109,400 | 171,600 |
Revolving credit facility | TEPH | Carrying Value | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 304,570 | 239,570 |
Revolving credit facility | TEPH | Estimated Fair Value | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 304,570 | 239,570 |
Revolving credit facility | TEPINV | Carrying Value | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 49,736 | 54,704 |
Revolving credit facility | TEPINV | Estimated Fair Value | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 49,736 | 54,704 |
Revolving credit facility | AP8 | Carrying Value | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | 25,600 | 46,433 |
Revolving credit facility | AP8 | Estimated Fair Value | Line of Credit | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 25,600 | $ 46,433 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - EZOP - Interest Rate Swap - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative [Line Items] | ||
Aggregate notional amount of unwound derivative | $ 131,700 | $ 0 |
Realized loss | $ 68 | $ 59 |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Interest rate swap | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | $ 490,483 | $ 383,670 |
EZOP | Interest Rate Swap One | ||
Derivative [Line Items] | ||
Fixed Interest Rate | 1.00% | |
Aggregate Notional Amount | $ 180,181 | $ 130,373 |
EZOP | Interest Rate Swap One | Minimum | ||
Derivative [Line Items] | ||
Fixed Interest Rate | 0.483% | |
EZOP | Interest Rate Swap One | Maximum | ||
Derivative [Line Items] | ||
Fixed Interest Rate | 2.62% | |
TEPH | Interest Rate Swap Two | ||
Derivative [Line Items] | ||
Aggregate Notional Amount | $ 270,170 | $ 202,272 |
TEPH | Interest Rate Swap Two | Minimum | ||
Derivative [Line Items] | ||
Fixed Interest Rate | 0.121% | 0.528% |
TEPH | Interest Rate Swap Two | Maximum | ||
Derivative [Line Items] | ||
Fixed Interest Rate | 2.534% | 2.114% |
TEPINV | Interest Rate Swap Three | ||
Derivative [Line Items] | ||
Fixed Interest Rate | 2.50% | 2.50% |
Aggregate Notional Amount | $ 40,132 | $ 51,025 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - Not designated as hedging instrument - Interest rate swap - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Total, net | $ 14,291 | $ (13,407) |
Other assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative asset, fair value | 14,291 | 0 |
Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability, fair value | $ 0 | $ (13,407) |
Derivative Instruments - Intere
Derivative Instruments - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Unrealized (gain) loss | $ (18,705) | $ 7,596 |
Interest Rate Swap | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Realized loss | 591 | 31,898 |
Unrealized (gain) loss | (18,705) | 7,596 |
Total | $ (18,114) | $ 39,494 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Effective income tax rate | 0.00% | 0.00% | |
Income tax penalties and interest accrued | $ 0 | $ 0 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Repayments of Debt [Line Items] | ||
Non-cash conversion of convertible senior notes for common stock | $ 95,648 | $ 0 |
9.75% convertible senior notes | Convertible senior notes | SEI | ||
Repayments of Debt [Line Items] | ||
Stated interest rate | 9.75% | |
Non-cash conversion of convertible senior notes for common stock | $ 97,100 | |
Debt conversion, shares issued (in shares) | 7,196,035 |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Number of Stock Options | ||
Outstanding, beginning balance (in shares) | 3,266,348 | |
Granted (in shares) | 75,031 | |
Exercised (in shares) | (491,125) | |
Outstanding, ending balance (in shares) | 2,850,254 | |
Number of options, exercisable (in shares) | 2,775,223 | |
Number of options, vested and expected to vest (in shares) | 2,850,254 | |
Number of options, non-vested (in shares) | 75,031 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in USD per share) | $ 16.06 | |
Granted (in USD per share) | 40.50 | |
Exercised (in USD per share) | 16.30 | |
Outstanding, ending balance (in USD per share) | 16.66 | |
Weighted average exercise price, exercisable (in USD per share) | 16.01 | |
Weighted average exercise price, vested and expected to vest (in USD per share) | $ 16.66 | |
Weighted Average Remaining Contractual Term (Years) | ||
Outstanding | 5 years 8 months 8 days | 5 years 9 months 25 days |
Granted | 9 years 11 months 19 days | |
Exercisable | 5 years 6 months 25 days | |
Vested and expected to vest | 5 years 8 months 8 days | |
Weighted Average Grant Date Fair Value | ||
Granted (in USD per share) | $ 18.35 | |
Non-vested (in USD per share) | $ 18.35 | |
Aggregate Intrinsic Value | ||
Outstanding, beginning balance | $ 94,962 | |
Exercised | 15,549 | |
Outstanding, ending balance | 68,865 | |
Exercisable | 68,841 | |
Vested and expected to vest | $ 68,865 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vested (in shares) | 0 | 265,207 | |
Stock options vested | $ 0 | $ 791,000 | |
Total unrecognized compensation expense | $ 1,400,000 | $ 1,400,000 | |
Long-Term Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized during period (in shares) | 2,214,561 | ||
Shares authorized (in shares) | 5,020,602 | 5,020,602 | |
Number of shares available for grant | 5.00% | 5.00% | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period | 2 years 2 months 23 days | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period | 1 year 11 months 26 days | ||
Stock units vested (in shares) | 657,484 | 27,083 | |
Restricted stock units, vested | $ 12,200,000 | $ 325,000 | |
Unrecognized compensation expense | $ 26,400,000 | $ 26,400,000 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock Activity (Details) - $ / shares | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Number of Restricted Stock Units | |||
Forfeited (in shares) | (11,294) | ||
Weighted Average Grant Date Fair Value | |||
Forfeited (in USD per share) | $ 16.22 | ||
Restricted Stock Units | |||
Number of Restricted Stock Units | |||
Outstanding, beginning balance (in shares) | 2,059,184 | ||
Granted (in shares) | 426,243 | ||
Vested (in shares) | (657,484) | (27,083) | |
Outstanding, ending balance (in shares) | 1,816,649 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding (in USD per share) | $ 15.89 | $ 11.95 | |
Granted (in USD per share) | 38.95 | ||
Vested (in USD per share) | $ 18.50 |
Basic and Diluted Net Loss Pe_3
Basic and Diluted Net Loss Per Share - Schedule of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net loss attributable to common stockholders—basic | $ (32,983) | $ (71,075) |
Net loss attributable to common stockholders - diluted | $ (32,983) | $ (71,075) |
Net loss per share attributable to common stockholders—basic and diluted (in USD per share) | $ (0.31) | $ (0.85) |
Weighted average common shares outstanding—basic and diluted (in shares) | 106,359,220 | 84,001,151 |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share - Anti-Dilutive Weighted Average Shares (Details) - shares | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Equity-based compensation awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 4,902,790 | 5,872,563 |
Convertible senior notes | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,682,132 | 4,230,768 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Dec. 31, 2020 | Aug. 31, 2019 | Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2019 | |
Loss Contingencies [Line Items] | |||||
Current portion of performance guarantee obligations | $ 3,308 | $ 2,349 | |||
Letter of credit outstanding | 375 | ||||
Other commitment | $ 55,700 | 62,600 | |||
Payments for dealer commitments | 3,700 | $ 5,300 | |||
Purchase term | 1 year | 5 years | |||
Performance Guarantee Obligations | |||||
Loss Contingencies [Line Items] | |||||
Performance guarantee obligations | $ 5,718 | 2,905 | $ 3,307 | $ 6,468 | |
Current portion of performance guarantee obligations | 3,300 | 2,300 | |||
Long-term portion of performance guarantee obligations | $ 2,400 | $ 556 |
Commitments and Contingencies_2
Commitments and Contingencies - Performance Guarantee Obligations (Details) - Performance Guarantee Obligations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Performance Guarantee Obligations [Roll Forward] | ||
Balance at beginning of period | $ 5,718 | $ 6,468 |
Accruals for obligations issued | 433 | 683 |
Settlements made in cash | (3,246) | (3,844) |
Balance at end of period | $ 2,905 | $ 3,307 |
Commitments and Contingencies_3
Commitments and Contingencies - Lease Expenses and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease expense | $ 336 | $ 336 |
Finance lease expense: | ||
Finance lease amortization expense | 25 | 2 |
Interest on lease liabilities | 3 | 0 |
Short-term lease expense | 10 | 16 |
Variable lease expense | 261 | 7 |
Total | $ 635 | $ 361 |
Commitments and Contingencies_4
Commitments and Contingencies - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Right-of-use assets: | ||
Operating leases | $ 8,558 | $ 8,779 |
Finance leases | 367 | 391 |
Total right-of-use assets | 8,925 | 9,170 |
Current lease liabilities: | ||
Operating leases | 1,108 | 1,094 |
Finance leases | 110 | 112 |
Long-term leases liabilities: | ||
Operating leases | 9,885 | 9,742 |
Long-term portion of lease liability | 178 | 203 |
Total lease liabilities | $ 11,281 | $ 11,151 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LiabilitiesOtherThanLongtermDebtNoncurren | us-gaap:LiabilitiesOtherThanLongtermDebtNoncurren |
Commitments and Contingencies_5
Commitments and Contingencies - Other Lease Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash paid (received) for amounts included in the measurement of lease liabilities: | ||
Operating cash flow from operating leases | $ (42) | $ 11 |
Operating cash flows from finance leases | 3 | 0 |
Financing cash flows from finance leases | 28 | 1 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 0 | 0 |
Finance leases | 0 | $ 0 |
Leasehold improvements reimbursements | $ 423 | |
Weighted average remaining lease term (years): | ||
Operating leases | 8 years 2 months 23 days | 8 years 5 months 19 days |
Finance leases | 3 years 8 months 26 days | 3 years 11 months 26 days |
Weighted average discount rate: | ||
Operating leases | 3.93% | 3.93% |
Finance leases | 3.38% | 3.39% |
Commitments and Contingencies_6
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Remaining 2021 | $ 1,155 | |
2022 | 1,559 | |
2023 | 1,594 | |
2024 | 1,616 | |
2025 | 1,633 | |
2026 and thereafter | 5,984 | |
Total | 13,541 | |
Amount representing interest | (2,021) | |
Amount representing leasehold incentives | (527) | |
Present value of future payments | 10,993 | |
Current portion of lease liability | (1,108) | $ (1,094) |
Long-term portion of lease liability | 9,885 | 9,742 |
Finance Leases | ||
Remaining 2021 | 91 | |
2022 | 88 | |
2023 | 69 | |
2024 | 55 | |
2025 | 0 | |
2026 and thereafter | 0 | |
Total | 303 | |
Amount representing interest | (15) | |
Amount representing leasehold incentives | 0 | |
Present value of future payments | 288 | |
Current portion of lease liability | (110) | (112) |
Long-term portion of lease liability | $ 178 | $ 203 |
Commitments and Contingencies_7
Commitments and Contingencies - Dealer Commitments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other Commitments [Line Items] | ||
Total | $ 62,600 | $ 55,700 |
Long-Term Dealer Commitments | ||
Other Commitments [Line Items] | ||
Remaining 2021 | 31,530 | |
2022 | 40,118 | |
2023 | 18,110 | |
2024 | 7,970 | |
2025 | 938 | |
2026 and thereafter | 0 | |
Total | $ 98,666 |
Commitments and Contingencies_8
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2021 | $ 15,642 |
2022 | 26,810 |
2023 | 26,605 |
2024 | 19,807 |
2025 | 0 |
2026 and thereafter | 0 |
Total | $ 88,864 |
Commitments and Contingencies_9
Commitments and Contingencies - Future Commitments (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2021 | $ 8,026 |
2022 | 2,216 |
2023 | 26 |
2024 | 26 |
2025 | 7 |
2026 and thereafter | 0 |
Total | $ 10,301 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |
Apr. 29, 2021 | Feb. 28, 2021 | Mar. 31, 2020 | |
Subsequent Event [Line Items] | |||
Contributions from redeemable noncontrolling interests and noncontrolling interests | $ 3,170 | ||
Class A members | Sunnova TEP V-D | Subsequent Event | |||
Subsequent Event [Line Items] | |||
Contributions from redeemable noncontrolling interests and noncontrolling interests | $ 50,000 | ||
SunStreet Energy Group, LLC | |||
Subsequent Event [Line Items] | |||
Business acquisition, shares issued in exchange (in shares) | 6,984,225 | ||
Business acquisition, shares issued at closing (in shares) | 3,095,329 | ||
Business acquisition, shares issuable as earnout (in shares) | 3,888,896 |