Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2024 | |
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, $0.0001 par value per share | |
Trading Symbol | NOVA | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 124,864,454 | |
Entity Central Index Key | 0001772695 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
UNAUDITED CONDENSED CONSOLIDATE
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Current assets: | |||
Cash and cash equivalents | $ 253,222 | $ 212,832 | |
Accounts receivable—trade, net | 44,199 | 40,767 | |
Accounts receivable—other | 293,220 | 253,350 | |
Other current assets, net of allowance of $4,449 and $4,659 as of June 30, 2024 and December 31, 2023, respectively | 462,576 | 429,299 | |
Total current assets | 1,053,217 | 936,248 | |
Property and equipment, net | 6,479,395 | 5,638,794 | |
Customer notes receivable, net of allowance of $106,769 and $111,818 as of June 30, 2024 and December 31, 2023, respectively | 3,884,853 | 3,735,986 | |
Intangible assets, net | 119,430 | 134,058 | |
Other assets | 1,023,850 | 895,885 | |
Total assets | [1] | 12,560,745 | 11,340,971 |
Current liabilities: | |||
Accounts payable | 504,098 | 355,791 | |
Accrued expenses | 103,616 | 122,355 | |
Current portion of long-term debt | 333,191 | 483,497 | |
Other current liabilities | 146,693 | 133,649 | |
Total current liabilities | 1,087,598 | 1,095,292 | |
Long-term debt, net | 7,644,678 | 7,030,756 | |
Other long-term liabilities | 1,153,735 | 1,086,011 | |
Total liabilities | [1] | 9,886,011 | 9,212,059 |
Commitments and contingencies | |||
Redeemable noncontrolling interests | 217,310 | 165,872 | |
Stockholders' equity: | |||
Common stock, 124,735,252 and 122,466,515 shares issued as of June 30, 2024 and December 31, 2023, respectively, at $0.0001 par value | 12 | 12 | |
Additional paid-in capital—common stock | 1,775,492 | 1,755,461 | |
Accumulated deficit | (32,393) | (228,583) | |
Total stockholders' equity | 1,743,111 | 1,526,890 | |
Noncontrolling interests | 714,313 | 436,150 | |
Total equity | 2,457,424 | 1,963,040 | |
Total liabilities, redeemable noncontrolling interests and equity | $ 12,560,745 | $ 11,340,971 | |
[1]The consolidated assets as of June 30, 2024 and December 31, 2023 include $6,244,875 and $5,297,816, respectively, of assets of variable interest entities ("VIEs") that can only be used to settle obligations of the VIEs. These assets include cash of $106,559 and $54,674 as of June 30, 2024 and December 31, 2023, respectively; accounts receivable—trade, net of $18,437 and $13,860 as of June 30, 2024 and December 31, 2023, respectively; accounts receivable—other of $270,293 and $187,607 as of June 30, 2024 and December 31, 2023, respectively; other current assets of $719,389 and $693,772 as of June 30, 2024 and December 31, 2023, respectively; property and equipment, net of $5,027,731 and $4,273,478 as of June 30, 2024 and December 31, 2023, respectively; and other assets of $102,466 and $74,425 as of June 30, 2024 and December 31, 2023, respectively. The consolidated liabilities as of June 30, 2024 and December 31, 2023 include $381,874 and $278,016, respectively, of liabilities of VIEs whose creditors have no recourse to Sunnova Energy International Inc. These liabilities include accounts payable of $282,837 and $197,072 as of June 30, 2024 and December 31, 2023, respectively; accrued expenses of $804 and $157 as of June 30, 2024 and December 31, 2023, respectively; other current liabilities of $6,412 and $7,269 as of June 30, 2024 and December 31, 2023, respectively; and other long-term liabilities of $91,821 and $73,518 as of June 30, 2024 and December 31, 2023, respectively. |
UNAUDITED CONDENSED CONSOLIDA_2
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | |
Other current asset, allowance | $ 4,449 | $ 4,659 | |
Customer notes receivable, allowance | $ 106,769 | $ 111,818 | |
Common stock, issued (in shares) | 124,735,252 | 122,466,515 | |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 | |
Assets | [1] | $ 12,560,745 | $ 11,340,971 |
Cash | 253,222 | 212,832 | |
Accounts receivable—trade, net | 44,199 | 40,767 | |
Accounts receivable—other | 293,220 | 253,350 | |
Other current assets | 462,576 | 429,299 | |
Property and equipment, net | 6,479,395 | 5,638,794 | |
Other assets | 1,023,850 | 895,885 | |
Liabilities | [1] | 9,886,011 | 9,212,059 |
Accounts payable | 504,098 | 355,791 | |
Accrued expenses | 103,616 | 122,355 | |
Other current liabilities | 146,693 | 133,649 | |
Other long-term liabilities | 1,153,735 | 1,086,011 | |
Primary beneficiary | |||
Assets | 6,244,875 | 5,297,816 | |
Cash | 106,559 | 54,674 | |
Accounts receivable—trade, net | 18,437 | 13,860 | |
Accounts receivable—other | 270,293 | 187,607 | |
Other current assets | 719,389 | 693,772 | |
Property and equipment, net | 5,027,731 | 4,273,478 | |
Other assets | 102,466 | 74,425 | |
Liabilities | 381,874 | 278,016 | |
Accounts payable | 282,837 | 197,072 | |
Accrued expenses | 804 | 157 | |
Other current liabilities | 6,412 | 7,269 | |
Other long-term liabilities | $ 91,821 | $ 73,518 | |
[1]The consolidated assets as of June 30, 2024 and December 31, 2023 include $6,244,875 and $5,297,816, respectively, of assets of variable interest entities ("VIEs") that can only be used to settle obligations of the VIEs. These assets include cash of $106,559 and $54,674 as of June 30, 2024 and December 31, 2023, respectively; accounts receivable—trade, net of $18,437 and $13,860 as of June 30, 2024 and December 31, 2023, respectively; accounts receivable—other of $270,293 and $187,607 as of June 30, 2024 and December 31, 2023, respectively; other current assets of $719,389 and $693,772 as of June 30, 2024 and December 31, 2023, respectively; property and equipment, net of $5,027,731 and $4,273,478 as of June 30, 2024 and December 31, 2023, respectively; and other assets of $102,466 and $74,425 as of June 30, 2024 and December 31, 2023, respectively. The consolidated liabilities as of June 30, 2024 and December 31, 2023 include $381,874 and $278,016, respectively, of liabilities of VIEs whose creditors have no recourse to Sunnova Energy International Inc. These liabilities include accounts payable of $282,837 and $197,072 as of June 30, 2024 and December 31, 2023, respectively; accrued expenses of $804 and $157 as of June 30, 2024 and December 31, 2023, respectively; other current liabilities of $6,412 and $7,269 as of June 30, 2024 and December 31, 2023, respectively; and other long-term liabilities of $91,821 and $73,518 as of June 30, 2024 and December 31, 2023, respectively. |
UNAUDITED CONDENSED CONSOLIDA_3
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||||
Revenue | $ 219,597 | $ 166,377 | $ 380,501 | $ 328,073 |
Operating expense: | ||||
Cost of revenue—depreciation | 46,444 | 30,322 | 88,600 | 58,519 |
Cost of revenue—inventory sales | 29,831 | 26,543 | 51,723 | 78,322 |
Cost of revenue—other | 37,103 | 31,394 | 76,451 | 50,618 |
Operations and maintenance | 16,998 | 29,865 | 53,943 | 40,604 |
General and administrative | 110,995 | 101,384 | 228,106 | 202,645 |
Other operating expense | 37,154 | 6,640 | 24,828 | 5,917 |
Total operating expense, net | 278,525 | 226,148 | 523,651 | 436,625 |
Operating loss | (58,928) | (59,771) | (143,150) | (108,552) |
Interest expense, net | 121,513 | 56,947 | 206,114 | 142,554 |
Interest income | (35,395) | (26,292) | (71,091) | (51,080) |
Other expense | 4,906 | 3,172 | 4,882 | 3,408 |
Loss before income tax | (149,952) | (93,598) | (283,055) | (203,434) |
Income tax (benefit) expense | (70,259) | 7,183 | (113,287) | 7,693 |
Net loss | (79,693) | (100,781) | (169,768) | (211,127) |
Net loss attributable to redeemable noncontrolling interests and noncontrolling interests | (46,640) | (14,690) | (66,755) | (43,953) |
Net loss attributable to stockholders | $ (33,053) | $ (86,091) | $ (103,013) | $ (167,174) |
Net loss per share attributable to stockholders - basic (in USD per share) | $ (0.27) | $ (0.74) | $ (0.83) | $ (1.45) |
Net loss per share attributable to stockholders - diluted (in USD per share) | $ (0.27) | $ (0.74) | $ (0.83) | $ (1.45) |
Weighted average common shares outstanding - basic (in shares) | 124,239,618 | 116,236,741 | 123,567,083 | 115,658,570 |
Weighted average common shares outstanding - diluted (in shares) | 124,239,618 | 116,236,741 | 123,567,083 | 115,658,570 |
UNAUDITED CONDENSED CONSOLIDA_4
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (169,768) | $ (211,127) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation | 106,548 | 67,875 |
Impairment and loss on disposals, net | 29,279 | 17,344 |
Amortization of intangible assets | 14,216 | 14,216 |
Amortization of deferred financing costs | 17,767 | 10,734 |
Amortization of debt discount | 13,803 | 7,909 |
Non-cash effect of equity-based compensation plans | 18,411 | 14,318 |
Non-cash direct sales revenue | (24,635) | (28,468) |
Provision for current expected credit (gains) losses and other bad debt expense | (908) | 23,882 |
Unrealized (gain) loss on derivatives | (4,837) | 8,011 |
Unrealized (gain) loss on fair value instruments and equity securities | (13,123) | 9,328 |
Loss on sales of customer notes receivable | 42,823 | 0 |
Other non-cash items | (18,127) | 7,027 |
Changes in components of operating assets and liabilities: | ||
Accounts receivable | 44,483 | 89,158 |
Other current assets | (49,429) | (90,896) |
Other assets | (88,651) | (98,175) |
Accounts payable | 16,677 | (38) |
Accrued expenses | (35,347) | (29,876) |
Other current liabilities | (31,844) | 13,599 |
Other long-term liabilities | (13,090) | (7,363) |
Net cash used in operating activities | (145,752) | (182,542) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (864,419) | (748,152) |
Payments for investments and customer notes receivable | (205,720) | (517,099) |
Proceeds from customer notes receivable | 114,275 | 80,931 |
Proceeds from sales of customer notes receivable | 63,884 | 0 |
Proceeds from investments in solar receivables | 5,554 | 4,929 |
Other, net | 2,943 | 5,468 |
Net cash used in investing activities | (883,483) | (1,173,923) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 1,363,956 | 1,760,680 |
Payments of long-term debt | (902,500) | (808,564) |
Payments on notes payable | (3,913) | (1,915) |
Payments of deferred financing costs | (28,144) | (21,684) |
Proceeds from issuance of common stock, net | (1,718) | (1,049) |
Contributions from redeemable noncontrolling interests and noncontrolling interests | 768,821 | 319,356 |
Distributions to redeemable noncontrolling interests and noncontrolling interests | (163,419) | (18,372) |
Payments of costs related to redeemable noncontrolling interests and noncontrolling interests | (16,192) | (5,312) |
Proceeds from sales of investment tax credits for redeemable noncontrolling interests and noncontrolling interests | 149,116 | 0 |
Other, net | (803) | (6,375) |
Net cash provided by financing activities | 1,165,204 | 1,216,765 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 135,969 | (139,700) |
Cash, cash equivalents and restricted cash at beginning of period | 494,402 | 545,574 |
Cash, cash equivalents and restricted cash at end of period | 630,371 | 405,874 |
Restricted cash included in other current assets | (88,458) | (37,825) |
Restricted cash included in other assets | (288,691) | (180,718) |
Cash and cash equivalents at end of period | 253,222 | 187,331 |
Non-cash investing and financing activities: | ||
Change in accounts payable and accrued expenses related to purchases of property and equipment | 39,769 | 4,315 |
Distributions payable to redeemable noncontrolling interests and noncontrolling interests | 85,778 | 1,635 |
Supplemental cash flow information: | ||
Cash paid for interest | 212,040 | 123,966 |
Cash paid for income taxes | $ 5,502 | $ 9,193 |
UNAUDITED CONDENSED CONSOLIDA_5
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTERESTS AND EQUITY - USD ($) $ in Thousands | Total | Total Stockholders' Equity | Common Stock | Additional Paid-in Capital - Common Stock | Accumulated Deficit | Noncontrolling Interests |
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2022 | $ 165,737 | |||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||
Net income (loss) | (20,404) | |||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | 60,203 | |||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (1,448) | |||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (2,605) | |||||
Equity in subsidiaries attributable to parent | (21,528) | |||||
Other, net | (453) | |||||
Redeemable noncontrolling interest, ending balance at Mar. 31, 2023 | 179,502 | |||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2022 | 114,939,079 | |||||
Stockholders' equity, beginning balance at Dec. 31, 2022 | 1,721,713 | $ 1,273,076 | $ 11 | $ 1,637,847 | $ (364,782) | $ 448,637 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (89,942) | (81,083) | (81,083) | (8,859) | ||
Issuance of common stock, net (in shares) | 645,580 | |||||
Issuance of common stock, net | (1,624) | (1,624) | $ 1 | (1,625) | ||
Contributions from redeemable noncontrolling interests and noncontrolling interests | 114,748 | 114,748 | ||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (7,106) | (7,106) | ||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (1,460) | (1,460) | ||||
Equity in subsidiaries attributable to parent | 21,528 | 78,893 | 78,893 | (57,365) | ||
Equity-based compensation expense | 9,515 | 9,515 | 9,515 | |||
Other, net | (110) | (110) | ||||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2023 | 115,584,659 | |||||
Stockholders' equity, ending balance at Mar. 31, 2023 | 1,767,262 | 1,278,777 | $ 12 | 1,645,737 | (366,972) | 488,485 |
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||
Net income (loss) | 860 | |||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | 40,201 | |||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (2,498) | |||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (719) | |||||
Equity in subsidiaries attributable to parent | (111,121) | |||||
Other, net | (6,144) | |||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2023 | 100,081 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (101,641) | (86,091) | (86,091) | (15,550) | ||
Issuance of common stock, net (in shares) | 809,283 | |||||
Issuance of common stock, net | 11,409 | 11,409 | 11,409 | |||
Contributions from redeemable noncontrolling interests and noncontrolling interests | 104,204 | 104,204 | ||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (7,320) | (7,320) | ||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (721) | (721) | ||||
Equity in subsidiaries attributable to parent | 111,121 | 180,877 | 180,877 | (69,756) | ||
Equity-based compensation expense | 4,803 | 4,803 | 4,803 | |||
Other, net | (1,073) | (1,073) | ||||
Stockholders' equity, ending balance (in shares) at Jun. 30, 2023 | 116,393,942 | |||||
Stockholders' equity, ending balance at Jun. 30, 2023 | 1,888,044 | 1,389,775 | $ 12 | 1,661,949 | (272,186) | 498,269 |
Redeemable noncontrolling interest, beginning balance at Dec. 31, 2023 | 165,872 | |||||
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||
Net income (loss) | (13,893) | |||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | 160,153 | |||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (92,115) | |||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (3,097) | |||||
Distributions payable to redeemable noncontrolling interests and noncontrolling interests | 42,463 | |||||
Investment tax credit sales related to redeemable noncontrolling interests and noncontrolling interests | 43,661 | |||||
Equity in subsidiaries attributable to parent | (115,732) | |||||
Redeemable noncontrolling interest, ending balance at Mar. 31, 2024 | 187,312 | |||||
Stockholders' equity, beginning balance (in shares) at Dec. 31, 2023 | 122,466,515 | |||||
Stockholders' equity, beginning balance at Dec. 31, 2023 | 1,963,040 | 1,526,890 | $ 12 | 1,755,461 | (228,583) | 436,150 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (76,182) | (69,960) | (69,960) | (6,222) | ||
Issuance of common stock, net (in shares) | 1,505,040 | |||||
Issuance of common stock, net | (1,878) | (1,878) | (1,878) | |||
Contributions from redeemable noncontrolling interests and noncontrolling interests | 141,575 | 141,575 | ||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (13,125) | (13,125) | ||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (7,599) | (7,599) | ||||
Distributions payable to redeemable noncontrolling interests and noncontrolling interests | (1,860) | (1,860) | ||||
Investment tax credit sales related to redeemable noncontrolling interests and noncontrolling interests | 1,390 | 1,390 | ||||
Equity in subsidiaries attributable to parent | 115,732 | 135,569 | 135,569 | (19,837) | ||
Equity-based compensation expense | 13,383 | 13,383 | 13,383 | |||
Other, net | 1 | 1 | 1 | |||
Stockholders' equity, ending balance (in shares) at Mar. 31, 2024 | 123,971,555 | |||||
Stockholders' equity, ending balance at Mar. 31, 2024 | 2,134,477 | 1,604,005 | $ 12 | 1,766,966 | (162,973) | 530,472 |
Increase (Decrease) in Redeemable Noncontrolling Interests [Roll Forward] | ||||||
Net income (loss) | (38,840) | |||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | 152,053 | |||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (8,667) | |||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (2,671) | |||||
Distributions payable to redeemable noncontrolling interests and noncontrolling interests | (124,970) | |||||
Investment tax credit sales related to redeemable noncontrolling interests and noncontrolling interests | 126,123 | |||||
Equity in subsidiaries attributable to parent | (73,029) | |||||
Other, net | (1) | |||||
Redeemable noncontrolling interest, ending balance at Jun. 30, 2024 | 217,310 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (40,853) | (33,053) | (33,053) | (7,800) | ||
Issuance of common stock, net (in shares) | 763,697 | |||||
Issuance of common stock, net | 4,290 | 4,290 | 4,290 | |||
Contributions from redeemable noncontrolling interests and noncontrolling interests | 315,040 | 315,040 | ||||
Distributions to redeemable noncontrolling interests and noncontrolling interests | (49,512) | (49,512) | ||||
Costs related to redeemable noncontrolling interests and noncontrolling interests | (2,422) | (2,422) | ||||
Distributions payable to redeemable noncontrolling interests and noncontrolling interests | (1,411) | (1,411) | ||||
Investment tax credit sales related to redeemable noncontrolling interests and noncontrolling interests | 20,550 | 20,550 | ||||
Equity in subsidiaries attributable to parent | 73,029 | 163,635 | 163,635 | (90,606) | ||
Equity-based compensation expense | 4,236 | 4,236 | 4,236 | |||
Other, net | 0 | (2) | (2) | 2 | ||
Stockholders' equity, ending balance (in shares) at Jun. 30, 2024 | 124,735,252 | |||||
Stockholders' equity, ending balance at Jun. 30, 2024 | $ 2,457,424 | $ 1,743,111 | $ 12 | $ 1,775,492 | $ (32,393) | $ 714,313 |
Description of Business and Bas
Description of Business and Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Basis of Presentation | Description of Business and Basis of Presentation We are an industry-leading energy services company focused on making clean energy more accessible, reliable and affordable for homeowners and businesses, serving over 403,000 customers in more than 50 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 partner with local dealers and contractors who originate, design and install our customers' solar energy systems, energy storage systems and related products and services on our behalf, as well as other sustainable home solutions, such as smart home devices, modern heating, ventilation and air conditioning, generators, upgraded roofing, water systems, water heaters, main panel upgrades and electric vehicle chargers. Our focus on our dealer and contractor model enables us to leverage our dealers' and contractors' specialized knowledge, connections and experience in local markets to drive customer origination while providing our dealers and contractors 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 true vertically integrated models. We offer customers products to power and improve the energy efficiency and sustainability of their homes and businesses with affordable solar energy and related products and services. We are able to offer energy generation savings compared to utility-based retail rates with little to no up-front expense to the customer in conjunction with solar and solar plus energy storage products, and, in the case of the latter, are able to also provide energy resiliency. Our customer agreements typically are structured as either a legal-form lease (a "lease") of a solar energy system and/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, energy storage system and/or accessory either with financing provided by us (a "loan") or paid in full by the customer (a "sale"). We also offer service plans and repair services for systems we did not originate. Complementary to our business, in some states we make it possible for a customer to obtain a new roof and/or other ancillary products. We also allow customers originated through our homebuilder channel the option of purchasing the system when the customer closes on the purchase of a new home. The initial term of our customer agreements is typically between 10 and 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 or one 10-year renewal options. Our ancillary products include both cash sales and loans with an initial term between one year and 20 years. Customer payments and rates can be fixed for the duration of the customer 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. 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 2023 annual audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024. 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. |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Included below are updates to significant accounting policies disclosed in our 2023 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 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. 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: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 2,939 $ 1,887 $ 2,559 $ 1,676 Provision for current expected credit losses 2,133 1,177 3,959 2,105 Write off of uncollectible accounts (1,987) (969) (3,465) (1,748) Recoveries 89 48 188 110 Other, net — — (67) — Balance at end of period $ 3,174 $ 2,143 $ 3,174 $ 2,143 Accounts Receivable—Other. Accounts receivable—other primarily represents receivables from ITC sales, receivables from sales of customer notes receivable and receivables from our dealers or other parties related to the sale of inventory and the use of inventory procured by us. The following table presents the changes in the allowance for credit losses recorded against accounts receivable—other in the unaudited condensed consolidated balance sheets: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 6,776 $ 671 $ 13,045 $ — Provision for current expected credit (gains) losses (6,094) — (5,513) 671 Write off of uncollectible accounts 7 — (6,843) — Other, net 1 — 1 — Balance at end of period $ 690 $ 671 $ 690 $ 671 Inventory Inventory is stated at the lower of cost and net realizable value using the first-in, first-out method. Inventory primarily represents (a) raw materials, such as energy storage systems, photovoltaic modules, inverters, meters and modems, (b) homebuilder construction in progress and (c) other associated equipment purchased. These materials are typically procured by us and used by our dealers, sold to our 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) recognize in accounts receivable—other when procured by us and used by our dealers, (c) expense to cost of revenue—inventory sales if sold directly to a dealer or other party, (d) capitalize to property and equipment when installed on an existing home or business, (e) expense to cost of revenue—other when installed on a new home or business as part of a cash sale or (f) capitalize to property and equipment when placed in service under the homebuilder program. 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 net realizable 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 $ 40,524 $ 83,178 Homebuilder construction in progress 59,116 36,461 Modules and inverters 31,479 27,143 Meters and modems 942 1,793 Total $ 132,061 $ 148,575 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 cash, cash equivalents, accounts receivable, customer notes receivable, investments in solar receivables, accounts payable, accrued expenses, long-term debt, interest rate swaps and caps and contingent consideration. 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 investments in solar receivables based on a discounted cash flows model that utilizes market data related to solar irradiance, production factors by region and projected electric utility rates in order to build up revenue projections (Level 3). In addition, lease-related revenue and maintenance and service costs were supported through the use of available market studies and data. We estimate the fair value of our fixed-rate long-term debt based on an analysis of debt with similar book values, maturities and required market yields based on current interest rates (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 and counterparty credit risk as key inputs. The floating interest rate is based on observable rates consistent with the frequency of the interest cash flows (Level 2). For contingent consideration, we estimate the fair value of the installation earnout using the Monte Carlo model based on the forecasted placements for the installations and the microgrid earnout using a scenario-based methodology based on the probabilities of the microgrid earnout, both using Level 3 inputs. See Note 6, Customer Notes Receivable, Note 7, Long-Term Debt and Note 8, Derivative Instruments. The following tables present our financial instruments measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023: As of June 30, 2024 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Investments in solar receivables $ 69,419 $ — $ — $ 69,419 Derivative assets 24,868 — 24,868 — Total $ 94,287 $ — $ 24,868 $ 69,419 Financial liabilities: Contingent consideration $ 3,738 $ — $ — $ 3,738 Total $ 3,738 $ — $ — $ 3,738 As of December 31, 2023 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Investments in solar receivables $ 69,334 $ — $ — $ 69,334 Derivative assets 55,471 — 55,471 — Total $ 124,805 $ — $ 55,471 $ 69,334 Financial liabilities: Contingent consideration $ 19,916 $ — $ — $ 19,916 Total $ 19,916 $ — $ — $ 19,916 Changes in the fair value of our investments in solar receivables are included in other operating income/expense in the consolidated statements of operations. The following table summarizes the change in the fair value of our financial assets accounted for at fair value on a recurring basis using Level 3 inputs as recorded in other current assets and other assets in the unaudited condensed consolidated balance sheets: Six Months Ended 2024 2023 (in thousands) Balance at beginning of period $ 69,334 $ 72,171 Additions — 969 Settlements (5,643) (5,145) Gain recognized in earnings 5,728 367 Balance at end of period $ 69,419 $ 68,362 Changes in the fair value of our contingent consideration are included in other operating expense/income Six Months Ended 2024 2023 (in thousands) Balance at beginning of period $ 19,916 $ 26,787 Settlements (3,902) (10,831) (Gain) loss recognized in earnings (12,276) 6,287 Balance at end of period $ 3,738 $ 22,243 The following table summarizes the significant unobservable inputs used in the valuation of our liabilities as of June 30, 2024 using Level 3 inputs: Unobservable Weighted Liabilities: Contingent consideration - installation earnout Volatility 35.00% Revenue risk premium 15.50% Risk-free discount rate 5.21% Contingent consideration - microgrid earnout Probability of success 5.00% Risk-free discount rate 5.21% Significant increases or decreases in the volatility, revenue risk premium, probability of success or risk-free discount rate in isolation could result in a significantly higher or lower fair value measurement. Revenue The following table presents the detail of revenue as recorded in the unaudited condensed consolidated statements of operations: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) PPA revenue $ 55,793 $ 39,155 $ 85,868 $ 60,901 Lease revenue 57,696 34,159 108,251 65,502 Inventory sales revenue 29,550 26,492 53,124 86,406 Service revenue 3,560 3,674 4,599 7,491 Direct sales revenue 10,885 16,307 24,635 28,468 Solar renewable energy certificate revenue 14,741 15,055 23,149 22,846 Cash sales revenue 33,978 21,724 55,932 38,543 Loan revenue 11,910 8,112 23,086 15,255 Other revenue 1,484 1,699 1,857 2,661 Total $ 219,597 $ 166,377 $ 380,501 $ 328,073 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, net of cash incentives. 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 and amounts we will invoice and recognize as revenue in future periods. Contracted but not yet recognized revenue related to our lease agreements was approximately $6.6 billion as of June 30, 2024, of which we expect to recognize approximately 5% over the next 12 months. Given the contracts in place at June 30, 2024, we do not expect the annual recognition to vary significantly over approximately the next 19 years as the majority of existing customer agreements have at least 19 years remaining, given the average age of the fleet of solar energy systems under contract is less than four years. Certain customers may receive cash incentives. We defer recognition of the payment of these cash incentives and recognize them over the life of the contract as a reduction to revenue. The deferred payment is recorded in other assets for customers who receive the cash incentives under our lease and PPA agreements, and as a contra-liability in other long-term liabilities for customers who receive the cash incentives under our loan agreements. PPA Revenue. 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 20 or 25 years with an opportunity for customers to renew for up to an additional 10 years, via two five-year or one 10-year renewal options. Lease Revenue . 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 20 or 25 years with an opportunity for customers to renew for up to an additional 10 years, via two five-year or one 10-year renewal options. In most cases, 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 solar energy system may not achieve the specified minimum solar energy production output 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 related 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 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 must 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 as early as the first anniversary of the solar energy system's placed in service date and then every annual period thereafter. See Note 14, Commitments and Contingencies. Inventory Sales Revenue . Inventory sales revenue represents revenue from the direct sale of inventory to our dealers or other parties. We recognize the related revenue under ASC 606 upon shipment or upon sale when a bill and hold agreement is in place. We include shipping and handling costs in cost of revenue—inventory sales in the consolidated statements of operations. Service Revenue. Service revenue includes sales of service plans and repair services. Service plans are available to customers whose solar energy system was not originally sold by Sunnova. We recognize revenue from service plan contracts on a straight-line basis over the life of the contract, which is typically 10 years. We recognize revenue from repair services in the period in which we perform the service. Direct Sales Revenue. Direct sales revenue includes revenue from the direct sale of solar energy systems and energy storage systems to customers when we provide the financing. We recognize revenue from the direct sale of solar energy systems and energy storage systems in the period we place the systems in service. Solar Renewable Energy Certificate Revenue. Each solar renewable energy certificate ("SREC") represents the environmental benefit of one megawatt hour (1,000 kWh) generated by a solar energy system. SRECs can be sold separate from the actual electricity generated by 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 June 30, 2024 and December 31, 2023. We enter into economic hedges related to expected production of SRECs through forward contracts. While these fixed price forward contracts serve as an economic hedge against spot price fluctuations for the SRECs, the contracts do not qualify for hedge accounting and are not designated as cash flow hedges or fair value hedges. 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. Upon a sale, the purchaser of the SREC typically pays within one month of receiving the SREC. 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. Cash Sales Revenue. Cash sales revenue represents revenue from a customer's purchase of a solar energy system from us typically when purchasing a new home. We recognize the related revenue under ASC 606 upon verification of the home closing. Loan Revenue. See discussion of loan revenue in the " Loans " section below. Other Revenue. Other revenue includes certain state and utility incentives. We recognize revenue from state and utility incentives in the periods in which they are earned. Loans We offer a loan program, under which the customer finances the purchase of a solar energy system, energy storage system and/or accessory through a customer 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; (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; 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 600 to 780 depending on certain circumstances, and we secure the loans with the solar energy systems, energy storage systems or accessories financed. We evaluate the customer's credit once for each customer at the time the customer enters into the customer agreement. Our investments in solar energy systems, energy storage systems and/or accessories 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 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 we determine them to be 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. Expected credit losses are recorded in general and administrative expense in the consolidated statements of operations. 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) payments for unfulfilled performance obligations that will be recognized on a straight-line basis over the remaining term of the respective customer agreements, net of any cash incentives earned by the customers, (b) down payments and partial or full prepayments from customers and (c) differences due to the timing of energy production versus billing for certain types of PPAs. Deferred revenue was $615.6 million as of December 31, 2022. 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 $ 994,546 $ 930,999 PPAs and leases 62,937 55,651 Solar receivables 4,208 4,339 SRECs 3,839 — Other — 14 Total (1) $ 1,065,530 $ 991,003 (1) Of this amount, $55.0 million and $50.8 million is recorded in other current liabilities as of June 30, 2024 and December 31, 2023, respectively. During the six months ended June 30, 2024 and 2023, we recognized revenue of $29.0 million and $12.0 million, respectively, from amounts recorded in deferred revenue at the beginning of the respective years. Contract Assets and Contract Liabilities Billing practices are governed by the contract terms of each project based upon costs incurred, production or predetermined schedules. Billings do not necessarily correlate with revenue recognized using the percentage-of-completion method to reflect the transfer of control over time. Contract assets include unbilled amounts typically resulting from revenue under contracts when the percentage-of-completion method of revenue recognition is utilized and revenue recognized exceeds the amount billed to the customer. Contract liabilities consist of advance payments and billings in excess of revenue recognized. Retainage, included in contract assets, represents the amounts withheld from billings by our customers pursuant to provisions in the contracts and may not be paid to us until the completion of specific tasks or the completion of the project and, in some instances, for even longer periods. Retainage may also be subject to restrictive conditions such as performance guarantees. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. The payment terms of our contracts from time to time require the customer to make advance payments as well as interim payments as work progresses. As of June 30, 2024 and December 31, 2023, contract assets were $68,000 and $279,000, respectively, and contract liabilities were $4.2 million and $3.8 million, respectively. The decrease in contract assets was primarily attributed to revenue recognized on certain contracts and the timing of billings. The increase in contract liabilities was due to the timing of advance payments partially offset by revenue recognized during the period. During the six months ended June 30, 2024 and 2023, we recognized revenue of an insignificant amount and $0, respectively, from amounts recorded in contract liabilities at the beginning of the respective years. Equity-Based Compensation We account for equity-based compensation, which requires the measurement and recognition of compensation expense related to the fair value of equity-based compensation awards. Equity-based compensation expense includes the compensation cost for all share-based awards granted to employees, consultants and members of our board of directors. We use the Black-Scholes option-pricing model to measure the fair value of stock options at the measurement date. For restricted stock units that will be settled in cash, we use the closing price of our common stock on the measurement date to measure the fair value at the measurement date and record in other current liabilities in the consolidated balance sheets. For restricted stock units that will be settled in common stock, we use the closing price of our common stock on the grant date to measure the fair value at the measurement date and record in additional paid-in capital—common stock in the consolidated balance sheets. We account for forfeitures as they occur. Equity-based compensation expense is recorded in general and administrative expense in the consolidated statements of operations. See Note 12, Equity-Based Compensation. Self-Insurance In January 2023, we changed our health insurance policy for qualifying employees in the U.S. from a fully-insured policy to a self-insured policy in order to administer insurance coverage to our employees at a lower cost to us. The change in insurance policy did not have a significant impact on our consolidated financial statements and related disclosures. Under the self-insured policy, we maintain stop-loss coverage from a third party that limits our exposure to large claims. We record a liability associated with these benefits that includes an estimate of both claims filed and losses incurred but not yet reported based on historical claims experience. In estimating this accrual, we utilize a third-party actuary to estimate a range of expected losses, which are based on an analysis of historical data. Assumptions are monitored and adjusted when warranted by changing circumstances. We record our liability for estimated losses under our self-insured policy in accrued liabilities in the consolidated balance sheets. As of June 30, 2024 and December 31, 2023, our liability for self-insured claims was $3.6 million and $3.5 million, respectively, which represents our best estimate of the future cost of claims incurred as of that date. We believe we have adequate reserves for these claims as of June 30, 2024. Sales of Investment Tax Credits ("ITCs") We enter into tax credit purchase and sale agreements with third-party purchasers to sell to such third-party purchasers, for cash, the Section 48(a) ITCs generated by certain solar energy systems that have or will be placed in service, subject to certain conditions set forth therein. We account for ITCs using the flow-through method, which states the tax benefit is to be recognized when the ITC is realizable. During the six months ended June 30, 2024 and 2023, we recognized income tax benefit of $79.2 million and $0, respectively, related to estimated future sales of ITCs for the remaining part of the year. For tax credit purchase and sale agreements entered into by certain of our consolidated tax equity partnerships, we record our share of the sale as income tax benefit in the consolidated statements of operations and the tax equity investor's share as an increase to redeemable noncontrolling interests or noncontrolling interests in the consolidated balance sheets. As of June 30, 2024 and December 31, 2023, accounts receivable from ITC sales of $269.0 million and $200.7 million, respectively, is recorded in accounts receivable—other in the unaudited condensed consolidated balance sheets. During the six months ended June 30, 2024 and 2023, we recognized ITC sales of $234.1 million and $0, respectively, of which $42.4 million of income tax benefit and $0, respectively, is recorded in income tax (benefit) expense and $191.7 million and $0, respectively, is recorded in redeemable noncontrolling interests and noncontrolling interests. 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 November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures, to refine and ensure a broader and more transparent representation of segment-related financial activities. This ASU is effective for annual periods beginning in January 2024 and interim periods beginning in January 2025. We are currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures, to improve the transparency and effectiveness of income tax disclosures, including rate reconciliation and income taxes paid. This ASU is effective for annual periods beginning in January 2025. We are currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures. |
Property and Equipment
Property and Equipment | 6 Months Ended |
Jun. 30, 2024 | |
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 and energy storage systems 35 $ 6,438,522 $ 5,443,796 Construction in progress 443,708 530,180 Asset retirement obligations 30 90,296 78,538 Software and business technology systems 3 155,070 130,300 Computers and equipment 3-5 7,739 7,503 Leasehold improvements 1-6 7,019 6,170 Furniture and fixtures 7 1,172 1,172 Vehicles 4-5 1,640 1,640 Other 5-6 419 419 Property and equipment, gross 7,145,585 6,199,718 Less: accumulated depreciation (666,190) (560,924) Property and equipment, net $ 6,479,395 $ 5,638,794 The amounts included in the above table for solar energy systems and energy storage systems and substantially all the construction in progress relate to our customer contracts (including PPAs and leases). These assets had accumulated depreciation of $577.1 million and $489.7 million as of June 30, 2024 and December 31, 2023, respectively. |
Detail of Certain Balance Sheet
Detail of Certain Balance Sheet Captions | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 132,061 $ 148,575 Current portion of customer notes receivable 186,755 176,562 Restricted cash 88,458 62,188 Prepaid assets 33,992 25,996 Deferred receivables 10,896 7,601 Current portion of investments in solar receivables 7,528 7,457 Other 2,886 920 Total $ 462,576 $ 429,299 The following table presents the detail of other assets as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Construction in progress - customer notes receivable $ 92,757 $ 159,066 Restricted cash 288,691 219,382 Exclusivity and other bonus arrangements with dealers, net 209,710 166,359 Investments in solar receivables 61,891 61,877 Straight-line revenue adjustment, net 70,957 62,941 Other 299,844 226,260 Total $ 1,023,850 $ 895,885 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 $ 69,680 $ 67,647 Deferred revenue 55,013 50,815 Current portion of operating and finance lease liability 4,553 4,231 Current portion of performance guarantee obligations 2,927 2,667 Other 14,520 8,289 Total $ 146,693 $ 133,649 |
Asset Retirement Obligations ("
Asset Retirement Obligations ("ARO") | 6 Months Ended |
Jun. 30, 2024 | |
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: Six Months Ended 2024 2023 (in thousands) Balance at beginning of period $ 96,227 $ 69,869 Additional obligations incurred 11,791 7,604 Accretion expense 3,088 2,234 Other (50) (44) Balance at end of period $ 111,056 $ 79,663 |
Customer Notes Receivable
Customer Notes Receivable | 6 Months Ended |
Jun. 30, 2024 | |
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, energy storage system and/or accessory through a customer 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 $ 4,182,826 $ 4,029,025 Allowance for credit losses (111,218) (116,477) Customer notes receivable, net $ 4,071,608 $ 3,912,548 Estimated fair value, net $ 3,925,537 $ 3,800,754 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: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 116,225 $ 91,459 $ 116,477 $ 81,248 Provision for current expected credit (gains) losses (5,008) 10,878 (5,260) 21,089 Other, net 1 — 1 — Balance at end of period $ 111,218 $ 102,337 $ 111,218 $ 102,337 As of June 30, 2024 and December 31, 2023, we invested $92.8 million and $159.1 million, respectively, in loan solar energy systems, energy storage systems and/or accessories not yet placed in service. For the three months ended June 30, 2024 and 2023, interest income related to our customer notes receivable was $30.6 million and $23.1 million, respectively. For the six months ended June 30, 2024 and 2023, interest income related to our customer notes receivable was $61.6 million and $43.2 million, respectively. As of June 30, 2024 and December 31, 2023, accrued interest receivable related to our customer notes receivable was $6.2 million and $14.3 million, respectively. As of June 30, 2024 and December 31, 2023, there was $59.4 million and $34.2 million, respectively, of customer notes receivable not accruing interest and there was $1.3 million and $754,000, respectively, of allowance recorded for loans on nonaccrual status. For the three months ended June 30, 2024 and 2023, interest income of $0 was recognized for loans on nonaccrual status and accrued interest receivable of $39,000 and $4,000, respectively, was written off by reversing interest income. For the six months ended June 30, 2024 and 2023, interest income of $0 was recognized for loans on nonaccrual status and accrued interest receivable of $80,000 and $17,000, respectively, was written off by reversing interest income. In May 2024, we ceased originating home security and monitoring loans with Brinks Home. In connection therewith, we sold approximately 58,000 home security and monitoring loans to Brinks Home. In June 2024, we sold additional accessory loans to a third party. While we still have an obligation to service the accessory loans sold in June 2024, no such obligation exists for the home security and monitoring loans sold in May 2024. During the six months ended June 30, 2024, we sold approximately 62,000 accessory loans with a net customer notes receivable balance of $116.0 million for $76.0 million and recognized a loss of $42.8 million, which is recorded in other operating expense in the unaudited condensed consolidated statements of operations. As of June 30, 2024, $3.8 million is recorded in accounts receivable—other and $4.8 million is recorded in other assets for sales proceeds not yet received. 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 $ 169,908 $ 164,150 91-180 days past due 43,932 40,428 Greater than 180 days past due 117,875 77,110 Total past due 331,715 281,688 Not past due 3,851,111 3,747,337 Total $ 4,182,826 $ 4,029,025 As of June 30, 2024 and December 31, 2023, the amortized cost of our customer notes receivable more than 90 days past due but not on nonaccrual status was $102.4 million and $83.3 million, respectively. The following table presents the amortized cost by origination year of our customer notes receivable based on payment activity: Amortized Cost by Origination Year 2024 2023 2022 2021 2020 Prior Total (in thousands) Payment performance: Performing $ 330,057 $ 1,343,374 $ 1,293,081 $ 674,055 $ 205,486 $ 218,898 $ 4,064,951 Nonperforming (1) — 32,398 42,204 22,498 6,498 14,277 117,875 Total $ 330,057 $ 1,375,772 $ 1,335,285 $ 696,553 $ 211,984 $ 233,175 $ 4,182,826 (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 | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Our subsidiaries with long-term debt include Sunnova Energy Corporation, 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 Sol Issuer, LLC ("SOLI"), Sunnova Helios IV Issuer, LLC ("HELIV"), Sunnova Asset Portfolio 8, LLC ("AP8"), Sunnova Sol II Issuer, LLC ("SOLII"), Sunnova Helios V Issuer, LLC ("HELV"), Sunnova Sol III Issuer, LLC ("SOLIII"), Sunnova Helios VI Issuer, LLC ("HELVI"), Sunnova Helios VII Issuer, LLC ("HELVII"), Sunnova Helios VIII Issuer, LLC ("HELVIII"), Sunnova Sol IV Issuer, LLC ("SOLIV"), Sunnova Helios IX Issuer, LLC ("HELIX"), Sunnova Helios X Issuer, LLC ("HELX"), Sunnova Inventory Supply, LLC ("IS"), Sunnova Sol V Issuer, LLC ("SOLV"), Sunnova Helios XI Issuer, LLC ("HELXI"), Sunnova Helios XII Issuer, LLC ("HELXII"), Sunnova Asset Portfolio 9, LLC ("AP9"), Sunnova Hestia I Borrower, LLC ("HESI"), Sunnova Business Markets Borrower, LLC ("BMB"), Sunnova Sol VI Issuer, LLC ("SOLVI"), Sunnova Helios XIII Issuer, LLC ("HELXIII"), Sunnova Hestia II Borrower, LLC ("HESII") and Sunnova Helios XIV Issuer, LLC ("HELXIV"). The following table presents the detail of long-term debt, net as recorded in the unaudited condensed consolidated balance sheets: Six Months Ended June 30, 2024 Weighted Average Effective Interest Rates As of June 30, 2024 Year Ended As of December 31, 2023 Long-term Current Long-term Current (in thousands, except interest rates) SEI 0.25% convertible senior notes 0.71 % $ 575,000 $ — 0.71 % $ 575,000 $ — 2.625% convertible senior notes 3.05 % 600,000 — 3.03 % 600,000 — Debt discount, net (16,559) — (19,174) — Deferred financing costs, net (642) — (748) — Sunnova Energy Corporation Notes payable 23.85 % — 7,466 7.07 % — 3,084 5.875% senior notes 6.55 % 400,000 — 6.53 % 400,000 — 11.75% senior notes 12.30 % 400,000 — 12.02 % 400,000 — Debt discount, net (12,134) — (13,288) — Deferred financing costs, net (10,411) — (12,119) — EZOP Revolving credit facility 9.87 % 127,000 — 8.72 % 511,000 — Debt discount, net (219) — (302) — HELII Solar asset-backed notes 5.64 % 190,508 9,111 5.64 % 194,933 9,065 Debt discount, net (22) — (24) — Deferred financing costs, net (2,609) — (2,926) — RAYSI Solar asset-backed notes 5.56 % 102,230 6,510 5.55 % 105,096 6,349 Debt discount, net (643) — (753) — Deferred financing costs, net (2,772) — (3,004) — HELIII Solar loan-backed notes 4.48 % 82,264 9,764 4.43 % 86,232 9,983 Debt discount, net (1,109) — (1,250) — Deferred financing costs, net (1,064) — (1,200) — TEPH Revolving credit facility 9.99 % 1,196,900 — 10.03 % 1,036,600 — Debt discount, net (863) — (1,168) — SOLI Solar asset-backed notes 3.97 % 328,973 14,127 3.91 % 335,874 12,965 Debt discount, net (67) — (74) — Deferred financing costs, net (5,256) — (5,769) — HELIV Solar loan-backed notes 4.16 % 93,692 10,547 4.16 % 97,458 10,854 Debt discount, net (345) — (417) — Deferred financing costs, net (1,638) — (1,955) — AP8 Credit facility 9.09 % 210,362 2,379 9.42 % — 215,000 Deferred financing costs, net (1,654) — — — SOLII Solar asset-backed notes 2.41 % 218,189 6,486 3.90 % 221,955 7,195 Debt discount, net (52) — (56) — Deferred financing costs, net (3,634) — (3,948) — HELV Solar loan-backed notes 2.51 % 130,167 13,080 2.49 % 134,473 13,496 Debt discount, net (466) — (540) — Deferred financing costs, net (1,815) — (2,094) — SOLIII Solar asset-backed notes 2.84 % 249,421 13,970 2.81 % 257,545 15,762 Debt discount, net (94) — (102) — Deferred financing costs, net (4,490) — (4,871) — HELVI Solar loan-backed notes 2.13 % 155,896 13,107 2.10 % 159,901 13,521 Debt discount, net (28) — (32) — Deferred financing costs, net (2,067) — (2,345) — HELVII Solar loan-backed notes 2.55 % 120,372 9,902 2.53 % 123,494 10,221 Debt discount, net (28) — (31) — Deferred financing costs, net (1,596) — (1,797) — HELVIII Solar loan-backed notes 3.65 % 237,394 19,373 3.62 % 243,020 19,995 Debt discount, net (3,903) — (4,355) — Deferred financing costs, net (3,043) — (3,395) — SOLIV Solar asset-backed notes 5.94 % 320,292 8,630 5.90 % 325,612 8,464 Debt discount, net (8,569) — (9,440) — Deferred financing costs, net (6,136) — (6,759) — HELIX Solar loan-backed notes 5.69 % 192,679 13,405 5.64 % 196,174 15,246 Debt discount, net (2,743) — (3,027) — Deferred financing costs, net (2,535) — (2,798) — HELX Solar loan-backed notes 7.68 % 199,701 14,443 7.38 % 200,842 19,996 Debt discount, net (14,977) — (17,015) — Deferred financing costs, net (2,651) — (3,064) — IS Revolving credit facility 10.18 % 18,408 — 8.90 % 31,300 — SOLV Solar asset-backed notes 6.92 % 308,429 8,006 6.93 % 312,844 7,775 Debt discount, net (13,772) — (15,491) — Deferred financing costs, net (5,938) — (6,682) — HELXI Solar loan-backed notes 6.52 % 240,143 27,546 6.29 % 247,251 31,240 Debt discount, net (11,098) — (12,007) — Deferred financing costs, net (4,573) — (5,195) — HELXII Solar loan-backed notes 6.93 % 205,602 23,279 6.71 % 210,263 26,661 Debt discount, net (11,706) — (13,065) — Deferred financing costs, net (3,917) — (4,135) — AP9 Revolving credit facility 20.34 % — — 19.30 % 12,118 — Debt discount, net (416) — (572) — HESI Solar loan-backed notes 5.48 % 208,604 24,677 10.94 % 213,432 26,625 Debt discount, net (7,051) — (7,616) — Deferred financing costs, net (6,489) — (7,058) — BMB Revolving credit facility 886.99 % 832 — — — SOLVI Solar asset-backed notes 6.70 % 220,833 3,915 — — Debt discount, net (11,818) — — — Deferred financing costs, net (6,046) — — — HELXIII Solar loan-backed notes 6.26 % 190,909 24,918 — — Debt discount, net (7,136) — — — Deferred financing costs, net (4,894) — — — HESII Solar loan-backed notes 5.79 % 146,299 22,601 — — Debt discount, net (118) — — — Deferred financing costs, net (7,189) — — — HELXIV Solar loan-backed notes 4.36 % 204,951 25,949 — — Debt discount, net (7,550) — — — Deferred financing costs, net (4,827) — — — Total $ 7,644,678 $ 333,191 $ 7,030,756 $ 483,497 Availability. As of June 30, 2024, we had $1.0 billion of available borrowing capacity, subject to certain conditions, under our various financing arrangements, consisting of $748.0 million under the EZOP revolving credit facility, $164.1 million under the TEPH revolving credit facility, $31.6 million under the IS revolving credit facility, $65.0 million under the AP9 revolving credit facility and $4.6 million under the BMB revolving credit facility. As of June 30, 2024, 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. Sunnova Energy Corporation Debt . In June 2024, Sunnova Energy Corporation entered into an arrangement to finance $8.3 million of insurance premiums at an annual interest rate of 7.74% over ten months. EZOP Debt . In February 2024, we amended the EZOP revolving credit facility to, among other things, (a) reflect certain assignments of commitments occurring within the Atlas Lender Group (as defined by such revolving credit facility) without increasing the existing commitments, and the assignment of the role of the Atlas funding agent for the Atlas Lender Group, (b) amend the thresholds for certain "Amortization Events" (as defined by such revolving credit facility) and (c) modify the "Liquidity Reserve Account Required Balance" (as defined by such revolving credit facility). In March 2024, we amended the EZOP revolving credit facility to, among other things, (a) amend the Advance Rate, Excess Concentration Amount (in each case, as defined by such revolving credit facility) and certain related definitions and (b) amend the eligibility criteria for the Solar Loans (as defined by such revolving credit facility). In June 2024, we amended the EZOP revolving credit facility to, among other things, (a) reflect the exit of the RBC Committed Lender, RBC Conduit Lender and RBC Funding Agent (each as defined by such revolving credit facility) from the facility and (b) reflect the joinder of Royal Bank of Canada as a Committed Lender and Funding Agent (each as defined by such revolving credit facility) and the establishment of a new Royal Bank of Canada Lender Group (as defined by such revolving credit facility). We currently do not have the resources to repay this facility when it becomes due in November 2025, though we believe we will be able to satisfy this obligation through a refinancing of the facility as is customary for these types of revolving credit facilities. Although we believe it is probable we will refinance this facility, there can be no assurance about our ability to do so. TEPH Debt . In February 2024, we amended the TEPH revolving credit facility to, among other things, reflect an assignment of commitments occurring within the Atlas Lender Group (as defined by such revolving credit facility) without increasing the existing commitments and the appointment of a new Atlas funding agent for the Atlas Lender Group. In April 2024, additional lenders joined the TEPH revolving credit facility and the aggregate commitment amount was increased from $1.3 billion to $1.4 billion. We currently do not have the resources to repay this facility when it becomes due in November 2025, though we believe we will be able to satisfy this obligation through a refinancing of the facility as is customary for these types of revolving credit facilities. Although we believe it is probable we will refinance this facility, there can be no assurance about our ability to do so. AP8 Debt . In June 2024, we amended the AP8 credit facility to, among other things, extend the maturity date from September 2024 to October 2025. As a result of this amendment, (a) no further borrowings are permitted under the AP8 credit facility and (b) no distributions of cash are permitted without the consent of the agent thereunder. We currently do not have the resources to repay this facility when it becomes due in October 2025, though we believe we will be able to satisfy this obligation through a refinancing of the facility as is customary for these types of revolving credit facilities. Although we believe it is probable we will refinance this facility, there can be no assurance about our ability to do so. IS Debt . In April 2024, we amended the IS revolving credit facility to, among other things, (a) change the date on which payments are made to borrower from the collections account from monthly to weekly and (b) increase the applicable margin by 0.75% which results in a revised margin of (i) 3.25% for term SOFR loans and (ii) 2.25% for base rate loans. SOLVI Debt . In February 2024, we pooled and transferred eligible solar energy systems and the related asset receivables into wholly-owned subsidiaries of SOLVI, a special purpose entity, that issued $194.5 million in aggregate principal amount of Series 2024-1 Class A solar asset-backed notes, $16.5 million in aggregate principal amount of Series 2024-1 Class B solar asset-backed notes and $15.0 million in aggregate principal amount of Series 2024-1 Class C solar asset-backed notes (collectively, the "SOLVI Notes") with a maturity date of January 2059. The SOLVI Notes were issued at a discount of 4.66%, 7.08% and 13.98% for the Class A, Class B and Class C notes, respectively, and bear interest at an annual rate equal to 5.65%, 7.00% and 9.00% for the Class A, Class B and Class C notes, respectively. The cash flows generated by the solar energy systems and the related asset receivables of SOLVI's subsidiaries are used to service the quarterly principal and interest payments on the SOLVI Notes and satisfy SOLVI's expenses, and any remaining cash can be distributed to Sunnova SOL VI Depositor, LLC, SOLVI's sole member. In connection with the SOLVI Notes, certain of our affiliates receive a fee for managing the solar energy systems and servicing the related asset receivables pursuant to a transaction management agreement and management and servicing agreements. In addition, Sunnova Energy Corporation has guaranteed (a) the obligations of certain of our subsidiaries to manage the solar energy systems and service the related asset receivables pursuant to a transaction management agreement and management and servicing agreements, (b) the managing members' obligations, in such capacity, under the related financing fund's limited liability company agreement and (c) certain of our subsidiaries' obligations to repurchase or substitute certain ineligible solar energy systems eventually sold to SOLVI pursuant to the sale and contribution agreement. SOLVI is also required to maintain certain reserve accounts for the benefit of the holders of the SOLVI Notes, each of which must remain funded at all times to the levels specified in the SOLVI Notes. The indenture requires SOLVI to track the debt service coverage ratio (such ratio, the "DSCR") of (a) the amount of certain payments received from customers, certain performance based incentives, certain energy credits and any applicable insurance proceeds as of a specific date to (b) interest and scheduled principal due on the SOLVI Notes as of such date, with the potential to enter into an early amortization period if the DSCR drops below a certain threshold. The holders of the SOLVI Notes have no recourse to our other assets except as expressly set forth in the SOLVI Notes. HELXIII Debt. In February 2024, we pooled and transferred eligible solar loans and home improvement loans and the related receivables into HELXIII, a special purpose entity, that issued $166.0 million in aggregate principal amount of Series 2024-A Class A loan-backed notes, $33.9 million in aggregate principal amount of Series 2024-A Class B loan-backed notes and $27.1 million in aggregate principal amount of Series 2024-A Class C loan-backed notes (collectively, the "HELXIII Notes") with a maturity date of February 2051. The HELXIII Notes were issued at a discount of 2.77%, 2.83% and 7.18% for the Class A, Class B and Class C notes, respectively, and bear interest at an annual rate of 5.30%, 6.00% and 7.00% for the Class A, Class B and Class C notes, respectively. The cash flows generated by these solar loans and home improvement loans are used to service the monthly principal and interest payments on the HELXIII Notes and satisfy HELXIII's expenses, and any remaining cash can be distributed to Sunnova Helios XIII Depositor, LLC, HELXIII's sole member. In connection with the HELXIII Notes, certain of our affiliates receive a fee for managing the solar energy systems and servicing the loans pursuant to management and servicing agreements. In addition, Sunnova Energy Corporation has guaranteed, among other things, (a) the obligations of certain of our subsidiaries to manage the solar energy systems and service the loans pursuant to management and servicing agreements and (b) certain of our subsidiaries' obligations to repurchase or substitute certain ineligible loans eventually sold to HELXIII pursuant to the related sale and contribution agreement. HELXIII is also required to maintain certain reserve accounts for the benefit of the holders of the HELXIII Notes, each of which must be funded at all times to the levels specified in the HELXIII Notes. The holders of the HELXIII Notes have no recourse to our other assets except as expressly set forth in the HELXIII Notes. HESII Debt . In June 2024, we pooled and transferred eligible solar loans and home improvement loans and the related receivables into HESII, a special purpose entity, that issued $152.0 million in aggregate principal amount of Series 2024-GRID1 Class A solar loan-backed notes and $16.9 million in aggregate principal amount of Series 2024-GRID1 Class B solar loan-backed notes (collectively, the "HESII Notes") with a maturity date of July 2051. The HESII Notes indirectly benefit from a partial guarantee provided by the U.S. Department of Energy ("DOE") Loan Programs Office. The HESII Notes are not directly guaranteed by the DOE. The HESII Notes were issued at a discount of 0.0036% and 0.67% for the Class A and Class B notes, respectively, and bear interest at an annual rate of 5.63% and 9.50% for the Class A and Class B notes, respectively. HELXIV Debt. In June 2024, we pooled and transferred eligible solar loans and the related receivables into HELXIV, a special purpose entity, that issued $151.9 million in aggregate principal amount of Series 2024-B Class A solar loan-backed notes, $54.4 million in aggregate principal amount of Series 2024-B Class B solar loan-backed notes and $24.6 million in aggregate principal amount of Series 2024-B Class C solar loan-backed notes (collectively, the "HELXIV Notes") with a maturity date of May 2051. The HELXIV Notes were issued at a discount of 2.16%, 1.62% and 13.76% for the Class A, Class B and Class C notes, respectively, and bear interest at an annual rate of 6.15%, 7.00% and 8.00% for the Class A, Class B and Class C notes, respectively. The cash flows generated by these solar loans are used to service the monthly principal and interest payments on the HELXIV Notes and satisfy HELXIV's expenses, and any remaining cash can be distributed to Sunnova Helios XIV Depositor, LLC, HELXIV's sole member. In connection with the HELXIV 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 HELXIV pursuant to the related sale and contribution agreement. HELXIV is also required to maintain certain reserve accounts for the benefit of the holders of the HELXIV Notes, each of which must be funded at all times to the levels specified in the HELXIV Notes. The holders of the HELXIV Notes have no recourse to our other assets except as expressly set forth in the HELXIV Notes. Fair Values of Long-Term Debt . The fair values of our long-term debt and the corresponding carrying amounts are as follows: As of June 30, 2024 As of December 31, 2023 Carrying Estimated Carrying Estimated (in thousands) SEI 0.25% convertible senior notes $ 575,000 $ 525,510 $ 575,000 $ 528,927 SEI 2.625% convertible senior notes 600,000 572,611 600,000 582,463 Sunnova Energy Corporation notes payable 7,466 7,466 3,084 3,084 Sunnova Energy Corporation 5.875% senior notes 400,000 368,198 400,000 369,522 Sunnova Energy Corporation 11.75% senior notes 400,000 401,941 400,000 411,996 EZOP revolving credit facility 127,000 127,000 511,000 511,000 HELII solar asset-backed notes 199,619 190,338 203,998 198,590 RAYSI solar asset-backed notes 108,740 97,414 111,445 102,480 HELIII solar loan-backed notes 92,028 82,626 96,215 87,982 TEPH revolving credit facility 1,196,900 1,196,900 1,036,600 1,036,600 SOLI solar asset-backed notes 343,100 299,971 348,839 310,928 HELIV solar loan-backed notes 104,239 92,842 108,312 96,603 AP8 credit facility 212,741 212,741 215,000 215,000 SOLII solar asset-backed notes 224,675 184,893 229,150 192,589 HELV solar loan-backed notes 143,247 127,284 147,969 132,533 SOLIII solar asset-backed notes 263,391 221,354 273,307 235,318 HELVI solar loan-backed notes 169,003 147,941 173,422 153,836 HELVII solar loan-backed notes 130,274 115,357 133,715 120,413 HELVIII solar loan-backed notes 256,767 231,889 263,015 241,599 SOLIV solar asset-backed notes 328,922 312,851 334,076 325,816 HELIX solar loan-backed notes 206,084 193,507 211,420 203,375 HELX solar loan-backed notes 214,144 209,927 220,838 221,655 IS revolving credit facility 18,408 18,408 31,300 31,300 SOLV solar asset-backed notes 316,435 306,123 320,619 317,481 HELXI solar loan-backed notes 267,689 259,475 278,491 275,323 HELXII solar loan-backed notes 228,881 227,707 236,924 242,091 AP9 revolving credit facility — — 12,118 12,118 HESI solar loan-backed notes 233,281 234,488 240,057 249,318 BMB revolving credit facility 832 832 — — SOLVI solar asset-backed notes 224,748 224,376 — — HELXIII solar loan-backed notes 215,827 214,701 — — HESII solar loan-backed notes 168,900 168,900 — — HELXIV solar loan-backed notes 230,900 230,900 — — Total (1) $ 8,209,241 $ 7,806,471 $ 7,715,914 $ 7,409,940 (1) Amounts exclude the net deferred financing costs (classified as debt) and net debt discounts of $231.4 million and $201.7 million as of June 30, 2024 and December 31, 2023, respectively. For the notes payable, EZOP, TEPH, AP8, IS, AP9 and BMB debt, the estimated fair values approximate the carrying amounts primarily due to the variable nature of the interest rates of the underlying instruments. For the convertible senior notes, senior notes and the HELII, RAYSI, HELIII, SOLI, HELIV, SOLII, HELV, SOLIII, HELVI, HELVII, HELVIII, SOLIV, HELIX, HELX, SOLV, HELXI, HELXII, HESI, SOLVI, HELXIII, HESII and HELXIV debt, we determined the estimated fair values based on an analysis of debt with similar book values, maturities and required market yields based on current interest rates. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Interest Rate Swaps and Caps on EZOP Debt. During the six months ended June 30, 2024 and 2023, EZOP entered into interest rate swaps and caps for an aggregate notional amount of $240.9 million and $153.0 million, respectively, to economically hedge its exposure to the variable interest rates on a portion of the outstanding EZOP debt. No collateral was posted for the interest rate swaps and caps as they are secured under the EZOP revolving credit facility. In July 2024, the notional amount of the interest rate swaps and caps began decreasing to match EZOP's estimated monthly principal payments on the debt. During the six months ended June 30, 2024 and 2023, EZOP unwound interest rate swaps and caps with an aggregate notional amount of $699.7 million and $0, respectively, and recorded a realized gain of $26.3 million and $11.1 million, respectively. Interest Rate Swaps and Caps on TEPH Debt. During the six months ended June 30, 2024 and 2023, TEPH entered into interest rate swaps and caps for an aggregate notional amount of $458.5 million and $314.6 million, respectively, to economically hedge its exposure to the variable interest rates on a portion of the outstanding TEPH debt. No collateral was posted for the interest rate swaps and caps as they are secured under the TEPH revolving credit facility. In October 2025, the notional amount of the interest rate swaps and caps will begin decreasing to match TEPH's estimated quarterly principal payments on the debt. During the six months ended June 30, 2024 and 2023, TEPH unwound interest rate swaps and caps with an aggregate notional amount of $362.6 million and $241.1 million, respectively, and recorded a realized gain of $7.3 million and $4.5 million, respectively. Interest Rate Swaps and Caps on AP8 Debt. During the six months ended June 30, 2024 and 2023, AP8 entered into interest rate swaps and caps for an aggregate notional amount of $0 and $110.0 million, respectively, to economically hedge its exposure to the variable interest rates on a portion of the outstanding AP8 debt. No collateral was posted for the interest rate swaps and caps as they are secured under the AP8 revolving credit facility. The notional amount of the interest rate swaps and caps is locked for the life of the contract. During the six months ended June 30, 2024 and 2023, AP8 unwound interest rate swaps and caps with an aggregate notional amount of $0 and recorded a realized gain of $1.2 million and $116,000, respectively. Interest Rate Swaps and Caps on AP9 Debt. During the six months ended June 30, 2024 and 2023, AP9 entered into interest rate swaps and caps for an aggregate notional amount of $0 to economically hedge its exposure to the variable interest rates on a portion of the outstanding AP9 debt. No collateral was posted for the interest rate swaps and caps as they are secured under the AP9 revolving credit facility. In September 2025, the notional amount of the interest rate swaps and caps will begin decreasing to match AP9's estimated monthly principal payments on the debt. During the six months ended June 30, 2024 and 2023, AP9 unwound interest rate swaps and caps with an aggregate notional amount of $0 and recorded a realized gain of $159,000 and $0, respectively. The following table presents a summary of the outstanding derivative instruments: As of June 30, 2024 As of December 31, 2023 Effective Termination Fixed Aggregate Effective Termination Fixed Aggregate (in thousands, except interest rates) EZOP June 2024 - July 2024 October 2031 - December 2031 4.000% $ 135,400 July 2023 - December 2023 December 2028 - November 2035 2.000% $ 489,581 TEPH February 2023 - March 2024 October 2031 - October 2041 3.000% - 4.202% 1,211,600 July 2022 - December 2023 October 2031 - October 2041 2.620% - 4.202% 994,403 AP8 November 2022 - August 2023 October 2025 4.250% 215,000 November 2022 - August 2023 September 2025 4.250% 215,000 AP9 September 2023 September 2027 4.250% 25,000 September 2023 September 2027 4.250% 25,000 Total $ 1,587,000 $ 1,723,984 The following table presents the fair value of the interest rate swaps and caps as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Other assets $ 24,868 $ 55,471 We did not designate the interest rate swaps and caps 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 and caps as recorded in the unaudited condensed consolidated statements of operations: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Realized gain $ (31,864) $ (9,062) $ (34,914) $ (15,769) Unrealized (gain) loss 25,861 (15,605) (4,837) 8,011 Total $ (6,003) $ (24,667) $ (39,751) $ (7,758) |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our effective income tax benefit (expense) rate for the three months ended June 30, 2024 and 2023 is 47% and (8)%, respectively, and for the six months ended June 30, 2024 and 2023 is 40% and (4)%, respectively. 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 and income tax benefit from the sale of ITCs. For interim reporting, we apply a forecasted annualized effective tax rate to year-to-date loss before income tax. 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. 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 June 30, 2024 and December 31, 2023 and we do not expect a significant change in gross unrecognized tax benefits in the next twelve months. Our tax years after 2013 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 | 6 Months Ended |
Jun. 30, 2024 | |
Noncontrolling Interest [Abstract] | |
Redeemable Noncontrolling Interests and Noncontrolling Interests | Redeemable Noncontrolling Interests and Noncontrolling Interests Redeemable Noncontrolling Interests In February 2024, we admitted a tax equity investor as the Class A member of Sunnova TEP 8-D, LLC ("TEP8D"), a subsidiary of Sunnova TEP 8-D Manager, LLC, which is the Class B member of TEP8D. The Class A member of TEP8D made a total capital commitment of $195.0 million. In February 2024, the Class A member of Sunnova TEP 7-F, LLC increased its capital commitment from approximately $134.9 million to approximately $190.8 million. In March 2024, the Class A member of Sunnova TEP 7-E, LLC increased its capital commitment from $51.0 million to approximately $51.2 million. In May 2024, the Class A member of Sunnova TEP 7-B, LLC increased its capital commitment from $125.0 million to approximately $132.1 million. Noncontrolling Interests In February 2024, the Class A member of Sunnova TEP 7-A, LLC increased its capital commitment from approximately $59.0 million to approximately $61.4 million. In May 2024, we admitted a tax equity investor as the Class A member of Sunnova TEP 8-E, LLC ("TEP8E"), a subsidiary of Sunnova TEP 8-E Manager, LLC, which is the Class B member of TEP8E. The Class A member of TEP8E made a total capital commitment of approximately $250.0 million. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity During the six months ended June 30, 2024 and 2023, we issued 636,555 and 693,443 shares of our common stock to Len X, LLC pursuant to the terms of the earnout agreement, as amended, entered into in connection with the acquisition of SunStreet Energy Group, LLC. |
Equity-Based Compensation
Equity-Based Compensation | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Equity-Based Compensation | Equity-Based Compensation In February 2024, 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 2,960,908, an amount that, together with the shares remaining available for grant under the LTIP, is equal to 6,123,326 shares, or approximately 5% of the number of shares of common stock outstanding as of December 31, 2023. Stock Options The following table summarizes stock option activity: Number Weighted Weighted Weighted Aggregate (in thousands) Outstanding, December 31, 2023 4,018,149 $ 17.61 4.97 $ 5,542 Granted 1,989,147 $ 6.87 9.70 $ 4.25 Exercised (11,357) $ 1.85 $ 118 Forfeited (535,204) $ 13.38 $ 7.57 Outstanding, June 30, 2024 5,460,735 $ 14.14 5.97 $ 45 Exercisable, June 30, 2024 2,665,915 $ 17.21 2.53 $ — Vested and expected to vest, June 30, 2024 5,460,735 $ 14.14 5.97 $ 45 Non-vested, June 30, 2024 2,794,820 $ 6.49 The number of stock options that vested during the three months ended June 30, 2024 and 2023 was 0. The number of stock options that vested during the six months ended June 30, 2024 and 2023 was 148,859 and 16,816, respectively. The grant date fair value of stock options that vested during the three months ended June 30, 2024 and 2023 was $0. The grant date fair value of stock options that vested during the six months ended June 30, 2024 and 2023 was $2.2 million and $309,000, respectively. As of June 30, 2024, there was $12.0 million of total unrecognized compensation expense related to stock options, which is expected to be recognized over the remaining weighted average period of 2.25 years. Restricted Stock Units The following table summarizes restricted stock unit activity: Number of Weighted Outstanding, December 31, 2023 2,384,205 $ 16.60 Granted 6,091,573 $ 6.18 Vested (1,861,828) $ 10.60 Forfeited (881,139) $ 9.74 Outstanding, June 30, 2024 5,732,811 $ 8.33 The number of restricted stock units that vested during the three months ended June 30, 2024 and 2023 was 85,538 and 75,588, respectively. The number of restricted stock units that vested during the six months ended June 30, 2024 and 2023 was 1,861,828 and 816,567, respectively. The grant date fair value of restricted stock units that vested during the three months ended June 30, 2024 and 2023 was $1.6 million and $1.5 million, respectively. The grant date fair value of restricted stock units that vested during the six months ended June 30, 2024 and 2023 was $19.7 million and $15.0 million, respectively. As of June 30, 2024, there was $38.0 million of total unrecognized compensation expense related to restricted stock units, which is expected to be recognized over the remaining weighted average period of 1.69 years. Employee Stock Purchase Plan ("ESPP") As of June 30, 2024 and December 31, 2023, the number of shares of common stock issued under the ESPP was 82,316 and 35,160, respectively. |
Basic and Diluted Net Loss Per
Basic and Diluted Net Loss Per Share | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 (in thousands, except share and per share amounts) Net loss attributable to stockholders—basic and diluted $ (33,053) $ (86,091) $ (103,013) $ (167,174) Net loss per share attributable to stockholders—basic and diluted $ (0.27) $ (0.74) $ (0.83) $ (1.45) Weighted average common shares outstanding—basic and diluted 124,239,618 116,236,741 123,567,083 115,658,570 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 Six Months Ended 2024 2023 2024 2023 Equity-based compensation awards 11,521,700 6,460,556 9,728,540 5,753,120 Convertible senior notes 34,150,407 34,150,407 34,150,407 34,150,407 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
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 that 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 June 30, 2024, we recorded $6.2 million related to our guarantee of certain specified minimum solar energy production output under our leases and loans, of which $2.9 million is recorded in other current liabilities and $3.3 million is recorded in other long-term liabilities in the unaudited condensed consolidated balance sheet. As of December 31, 2023, we recorded $6.8 million related to these guarantees, of which $2.7 million is recorded in other current liabilities and $4.1 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: Six Months Ended 2024 2023 (in thousands) Balance at beginning of period $ 6,753 $ 4,845 Accruals 2,188 2,485 Settlements (2,728) (2,791) Balance at end of period $ 6,213 $ 4,539 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 as recorded in general and administrative expense in the unaudited condensed consolidated statements of operations: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Operating lease expense $ 755 $ 692 $ 1,508 $ 1,384 Finance lease expense: Amortization expense 473 249 891 479 Interest on lease liabilities 52 20 101 38 Short-term lease expense 119 39 202 66 Variable lease expense 288 235 593 468 Total $ 1,687 $ 1,235 $ 3,295 $ 2,435 The following table presents the detail of right-of-use assets and lease liabilities as recorded in other assets other current liabilities other long-term liabilities As of As of (in thousands) Right-of-use assets: Operating leases $ 12,148 $ 13,247 Finance leases 4,554 4,085 Total right-of-use assets $ 16,702 $ 17,332 Current lease liabilities: Operating leases $ 3,014 $ 2,883 Finance leases 1,539 1,348 Long-term leases liabilities: Operating leases 12,527 14,005 Finance leases 1,776 1,631 Total lease liabilities $ 18,856 $ 19,867 Other information related to leases was as follows: Six Months Ended 2024 2023 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 1,758 $ 1,319 Operating cash flows from finance leases $ 101 $ 38 Financing cash flows from finance leases $ 803 $ 439 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 90 $ — Finance leases $ 1,359 $ 901 (1) Includes reimbursements in the six months ended June 30, 2024 and 2023 of approximately $0 and $225,000, respectively, for leasehold improvements. As of As of Weighted average remaining lease term (years): Operating leases 5.04 5.51 Finance leases 3.03 3.12 Weighted average discount rate: Operating leases 4.05 % 4.06 % Finance leases 6.34 % 6.26 % Future minimum lease payments under our non-cancelable leases as of June 30, 2024 were as follows: Operating Finance (in thousands) Remaining 2024 $ 1,787 $ 941 2025 3,458 1,314 2026 3,240 825 2027 3,304 481 2028 3,372 51 2029 and thereafter 2,113 — Total 17,274 3,612 Amount representing interest (1,657) (297) Amount representing leasehold incentives (76) — Present value of future payments 15,541 3,315 Current portion of lease liability (3,014) (1,539) Long-term portion of lease liability $ 12,527 $ 1,776 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. Dealer Commitments. As of June 30, 2024 and December 31, 2023, the net unamortized balance of payments to dealers for exclusivity and other similar arrangements was $209.7 million and $166.4 million, respectively. Under these agreements, we paid $21.0 million and $31.1 million during the three months ended June 30, 2024 and 2023, respectively, and we paid $30.6 million and $55.7 million during the six months ended June 30, 2024 and 2023, 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 2024 $ 29,358 2025 56,064 2026 36,904 2027 30,000 2028 — 2029 and thereafter — Total $ 152,326 Purchase Commitments. In April 2024, we amended an agreement with a supplier in which we agreed to purchase approximately $255.0 million of solar energy systems from May 2024 through March 2025. As of June 30, 2024, we are committed to purchase (or have our dealers purchase) $89.3 million, $81.8 million and $52.1 million during the three months ended September 30, 2024, December 31, 2024 and March 31, 2025, respectively, for a total of $223.1 million. Based on historical experience, this supplier agreement could be modified from time to time. Software and Business Technology Commitments. We have certain long-term contractual commitments related to software and business technology services and licenses. Future commitments as of June 30, 2024 were as follows: Software and Business Technology Commitments (in thousands) Remaining 2024 $ 8,518 2025 8,310 2026 6,787 2027 7,405 2028 515 2029 and thereafter 515 Total $ 32,050 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events SOLVII Debt . In July 2024, we priced the sale of $308.5 million in aggregate principal amount of Series 2024-2 Class A solar asset-backed notes and $11.7 million in aggregate principal amount of Series 2024-2 Class B solar asset-backed notes (collectively, the "SOLVII Notes") with a maturity date of July 2059. The SOLVII Notes were sold at a discount of 2.54% and 9.99% for the Class A and Class B notes, respectively, and bear interest at an annual rate equal to 6.58% and 9.00% for the Class A and Class B notes, respectively. The sale is expected to close in August 2024, subject to customary closing conditions. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (33,053) | $ (86,091) | $ (103,013) | $ (167,174) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 2023 annual audited consolidated financial statements and accompanying notes included in our Annual Report on Form 10-K filed with the SEC on February 22, 2024. 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. |
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—Other. Accounts receivable—other primarily represents receivables from ITC sales, receivables from sales of customer notes receivable and receivables from our dealers or other parties related to the sale of inventory and the |
Inventory | 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 cash, cash equivalents, accounts receivable, customer notes receivable, investments in solar receivables, accounts payable, accrued expenses, long-term debt, interest rate swaps and caps and contingent consideration. 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 investments in solar receivables based on a discounted cash flows model that utilizes market data related to solar irradiance, production factors by region and projected electric utility rates in order to build up revenue projections (Level 3). In addition, lease-related revenue and maintenance and service costs were supported through the use of available market studies and data. We estimate the fair value of our fixed-rate long-term debt based on an analysis of debt with similar book values, maturities and required market yields based on current interest rates (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 and counterparty credit risk as key inputs. The floating interest rate is based on observable rates consistent with the frequency of the interest cash flows (Level 2). For contingent consideration, we estimate the fair value of the installation earnout using the Monte Carlo model based on the forecasted placements for the installations and the microgrid earnout using a scenario-based methodology based on the probabilities of the microgrid earnout, both using Level 3 inputs. See Note 6, Customer Notes Receivable, Note 7, Long-Term Debt and Note 8, Derivative Instruments. other operating expense/income |
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, net of cash incentives. 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 and amounts we will invoice and recognize as revenue in future periods. Contracted but not yet recognized revenue related to our lease agreements was approximately $6.6 billion as of June 30, 2024, of which we expect to recognize approximately 5% over the next 12 months. Given the contracts in place at June 30, 2024, we do not expect the annual recognition to vary significantly over approximately the next 19 years as the majority of existing customer agreements have at least 19 years remaining, given the average age of the fleet of solar energy systems under contract is less than four years. Certain customers may receive cash incentives. We defer recognition of the payment of these cash incentives and recognize them over the life of the contract as a reduction to revenue. The deferred payment is recorded in other assets for customers who receive the cash incentives under our lease and PPA agreements, and as a contra-liability in other long-term liabilities for customers who receive the cash incentives under our loan agreements. PPA Revenue. 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 20 or 25 years with an opportunity for customers to renew for up to an additional 10 years, via two five-year or one 10-year renewal options. Lease Revenue . 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 20 or 25 years with an opportunity for customers to renew for up to an additional 10 years, via two five-year or one 10-year renewal options. In most cases, 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 solar energy system may not achieve the specified minimum solar energy production output 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 related 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 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 must 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 as early as the first anniversary of the solar energy system's placed in service date and then every annual period thereafter. See Note 14, Commitments and Contingencies. Inventory Sales Revenue . Inventory sales revenue represents revenue from the direct sale of inventory to our dealers or other parties. We recognize the related revenue under ASC 606 upon shipment or upon sale when a bill and hold agreement is in place. We include shipping and handling costs in cost of revenue—inventory sales in the consolidated statements of operations. Service Revenue. Service revenue includes sales of service plans and repair services. Service plans are available to customers whose solar energy system was not originally sold by Sunnova. We recognize revenue from service plan contracts on a straight-line basis over the life of the contract, which is typically 10 years. We recognize revenue from repair services in the period in which we perform the service. Direct Sales Revenue. Direct sales revenue includes revenue from the direct sale of solar energy systems and energy storage systems to customers when we provide the financing. We recognize revenue from the direct sale of solar energy systems and energy storage systems in the period we place the systems in service. Solar Renewable Energy Certificate Revenue. Each solar renewable energy certificate ("SREC") represents the environmental benefit of one megawatt hour (1,000 kWh) generated by a solar energy system. SRECs can be sold separate from the actual electricity generated by 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 June 30, 2024 and December 31, 2023. We enter into economic hedges related to expected production of SRECs through forward contracts. While these fixed price forward contracts serve as an economic hedge against spot price fluctuations for the SRECs, the contracts do not qualify for hedge accounting and are not designated as cash flow hedges or fair value hedges. 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. Upon a sale, the purchaser of the SREC typically pays within one month of receiving the SREC. 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. Cash Sales Revenue. Cash sales revenue represents revenue from a customer's purchase of a solar energy system from us typically when purchasing a new home. We recognize the related revenue under ASC 606 upon verification of the home closing. Loan Revenue. See discussion of loan revenue in the " Loans " section below. Other Revenue. Other revenue includes certain state and utility incentives. We recognize revenue from state and utility incentives in the periods in which they are earned. Loans We offer a loan program, under which the customer finances the purchase of a solar energy system, energy storage system and/or accessory through a customer 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; (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; 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 600 to 780 depending on certain circumstances, and we secure the loans with the solar energy systems, energy storage systems or accessories financed. We evaluate the customer's credit once for each customer at the time the customer enters into the customer agreement. Our investments in solar energy systems, energy storage systems and/or accessories 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 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 we determine them to be 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. Expected credit losses are recorded in general and administrative expense in the consolidated statements of operations. See Note 6, Customer Notes Receivable. Deferred Revenue |
Equity-Based Compensation | Equity-Based Compensation |
Self-Insurance | Self-Insurance In January 2023, we changed our health insurance policy for qualifying employees in the U.S. from a fully-insured policy to a self-insured policy in order to administer insurance coverage to our employees at a lower cost to us. The change in insurance policy did not have a significant impact on our consolidated financial statements and related disclosures. Under the self-insured policy, we maintain stop-loss coverage from a third party that limits our exposure to large claims. We record a liability associated with these benefits that includes an estimate of both claims filed and losses incurred but not yet reported based on historical claims experience. In estimating this accrual, we utilize a third-party actuary to estimate a range of expected losses, which are based on an analysis of historical data. Assumptions are monitored and adjusted when warranted by changing circumstances. We record our liability for estimated losses under our self-insured policy in accrued liabilities in the consolidated balance sheets. As of June 30, 2024 and December 31, 2023, our liability for self-insured claims was $3.6 million and $3.5 million, respectively, which represents our best estimate of the future cost of claims incurred as of that date. We believe we have adequate reserves for these claims as of June 30, 2024. |
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 November 2023, the FASB issued ASU No. 2023-07, Segment Reporting: Improvements to Reportable Segment Disclosures, to refine and ensure a broader and more transparent representation of segment-related financial activities. This ASU is effective for annual periods beginning in January 2024 and interim periods beginning in January 2025. We are currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes: Improvements to Income Tax Disclosures, to improve the transparency and effectiveness of income tax disclosures, including rate reconciliation and income taxes paid. This ASU is effective for annual periods beginning in January 2025. We are currently evaluating the impact of this ASU on our consolidated financial statements and related disclosures. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of 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: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 2,939 $ 1,887 $ 2,559 $ 1,676 Provision for current expected credit losses 2,133 1,177 3,959 2,105 Write off of uncollectible accounts (1,987) (969) (3,465) (1,748) Recoveries 89 48 188 110 Other, net — — (67) — Balance at end of period $ 3,174 $ 2,143 $ 3,174 $ 2,143 Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 6,776 $ 671 $ 13,045 $ — Provision for current expected credit (gains) losses (6,094) — (5,513) 671 Write off of uncollectible accounts 7 — (6,843) — Other, net 1 — 1 — Balance at end of period $ 690 $ 671 $ 690 $ 671 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: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 116,225 $ 91,459 $ 116,477 $ 81,248 Provision for current expected credit (gains) losses (5,008) 10,878 (5,260) 21,089 Other, net 1 — 1 — Balance at end of period $ 111,218 $ 102,337 $ 111,218 $ 102,337 |
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 $ 40,524 $ 83,178 Homebuilder construction in progress 59,116 36,461 Modules and inverters 31,479 27,143 Meters and modems 942 1,793 Total $ 132,061 $ 148,575 |
Schedule of Financial Instruments Measured at Fair Value on a Recurring Basis | The following tables present our financial instruments measured at fair value on a recurring basis as of June 30, 2024 and December 31, 2023: As of June 30, 2024 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Investments in solar receivables $ 69,419 $ — $ — $ 69,419 Derivative assets 24,868 — 24,868 — Total $ 94,287 $ — $ 24,868 $ 69,419 Financial liabilities: Contingent consideration $ 3,738 $ — $ — $ 3,738 Total $ 3,738 $ — $ — $ 3,738 As of December 31, 2023 Total Level 1 Level 2 Level 3 (in thousands) Financial assets: Investments in solar receivables $ 69,334 $ — $ — $ 69,334 Derivative assets 55,471 — 55,471 — Total $ 124,805 $ — $ 55,471 $ 69,334 Financial liabilities: Contingent consideration $ 19,916 $ — $ — $ 19,916 Total $ 19,916 $ — $ — $ 19,916 |
Schedule of Changes in Fair Value of Financial Assets on a Recurring Basis | The following table summarizes the change in the fair value of our financial assets accounted for at fair value on a recurring basis using Level 3 inputs as recorded in other current assets and other assets in the unaudited condensed consolidated balance sheets: Six Months Ended 2024 2023 (in thousands) Balance at beginning of period $ 69,334 $ 72,171 Additions — 969 Settlements (5,643) (5,145) Gain recognized in earnings 5,728 367 Balance at end of period $ 69,419 $ 68,362 |
Schedule of Changes In Fair Value of Liabilities Accounted For an Recurring Basis | The following table summarizes the change in the fair value of our financial liabilities accounted for at fair value on a recurring basis using Level 3 inputs as recorded in other long-term liabilities in the unaudited condensed consolidated balance sheets: Six Months Ended 2024 2023 (in thousands) Balance at beginning of period $ 19,916 $ 26,787 Settlements (3,902) (10,831) (Gain) loss recognized in earnings (12,276) 6,287 Balance at end of period $ 3,738 $ 22,243 The following table summarizes the significant unobservable inputs used in the valuation of our liabilities as of June 30, 2024 using Level 3 inputs: Unobservable Weighted Liabilities: Contingent consideration - installation earnout Volatility 35.00% Revenue risk premium 15.50% Risk-free discount rate 5.21% Contingent consideration - microgrid earnout Probability of success 5.00% Risk-free discount rate 5.21% Significant increases or decreases in the volatility, revenue risk premium, probability of success or risk-free discount rate in isolation could result in a significantly higher or lower fair value measurement. |
Schedule of Disaggregation of Revenue | The following table presents the detail of revenue as recorded in the unaudited condensed consolidated statements of operations: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) PPA revenue $ 55,793 $ 39,155 $ 85,868 $ 60,901 Lease revenue 57,696 34,159 108,251 65,502 Inventory sales revenue 29,550 26,492 53,124 86,406 Service revenue 3,560 3,674 4,599 7,491 Direct sales revenue 10,885 16,307 24,635 28,468 Solar renewable energy certificate revenue 14,741 15,055 23,149 22,846 Cash sales revenue 33,978 21,724 55,932 38,543 Loan revenue 11,910 8,112 23,086 15,255 Other revenue 1,484 1,699 1,857 2,661 Total $ 219,597 $ 166,377 $ 380,501 $ 328,073 |
Schedule of 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 $ 994,546 $ 930,999 PPAs and leases 62,937 55,651 Solar receivables 4,208 4,339 SRECs 3,839 — Other — 14 Total (1) $ 1,065,530 $ 991,003 (1) Of this amount, $55.0 million and $50.8 million is recorded in other current liabilities as of June 30, 2024 and December 31, 2023, respectively. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of 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 and energy storage systems 35 $ 6,438,522 $ 5,443,796 Construction in progress 443,708 530,180 Asset retirement obligations 30 90,296 78,538 Software and business technology systems 3 155,070 130,300 Computers and equipment 3-5 7,739 7,503 Leasehold improvements 1-6 7,019 6,170 Furniture and fixtures 7 1,172 1,172 Vehicles 4-5 1,640 1,640 Other 5-6 419 419 Property and equipment, gross 7,145,585 6,199,718 Less: accumulated depreciation (666,190) (560,924) Property and equipment, net $ 6,479,395 $ 5,638,794 |
Detail of Certain Balance She_2
Detail of Certain Balance Sheet Captions (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 $ 132,061 $ 148,575 Current portion of customer notes receivable 186,755 176,562 Restricted cash 88,458 62,188 Prepaid assets 33,992 25,996 Deferred receivables 10,896 7,601 Current portion of investments in solar receivables 7,528 7,457 Other 2,886 920 Total $ 462,576 $ 429,299 |
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) Construction in progress - customer notes receivable $ 92,757 $ 159,066 Restricted cash 288,691 219,382 Exclusivity and other bonus arrangements with dealers, net 209,710 166,359 Investments in solar receivables 61,891 61,877 Straight-line revenue adjustment, net 70,957 62,941 Other 299,844 226,260 Total $ 1,023,850 $ 895,885 |
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 $ 69,680 $ 67,647 Deferred revenue 55,013 50,815 Current portion of operating and finance lease liability 4,553 4,231 Current portion of performance guarantee obligations 2,927 2,667 Other 14,520 8,289 Total $ 146,693 $ 133,649 |
Asset Retirement Obligations _2
Asset Retirement Obligations ("ARO") (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of changes in Asset Retirement Obligations ("ARO") | The following table presents the changes in AROs as recorded in other long-term liabilities in the unaudited condensed consolidated balance sheets: Six Months Ended 2024 2023 (in thousands) Balance at beginning of period $ 96,227 $ 69,869 Additional obligations incurred 11,791 7,604 Accretion expense 3,088 2,234 Other (50) (44) Balance at end of period $ 111,056 $ 79,663 |
Customer Notes Receivable (Tabl
Customer Notes Receivable (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Receivables [Abstract] | |
Schedule of 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 $ 4,182,826 $ 4,029,025 Allowance for credit losses (111,218) (116,477) Customer notes receivable, net $ 4,071,608 $ 3,912,548 Estimated fair value, net $ 3,925,537 $ 3,800,754 |
Schedule of 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: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 2,939 $ 1,887 $ 2,559 $ 1,676 Provision for current expected credit losses 2,133 1,177 3,959 2,105 Write off of uncollectible accounts (1,987) (969) (3,465) (1,748) Recoveries 89 48 188 110 Other, net — — (67) — Balance at end of period $ 3,174 $ 2,143 $ 3,174 $ 2,143 Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 6,776 $ 671 $ 13,045 $ — Provision for current expected credit (gains) losses (6,094) — (5,513) 671 Write off of uncollectible accounts 7 — (6,843) — Other, net 1 — 1 — Balance at end of period $ 690 $ 671 $ 690 $ 671 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: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Balance at beginning of period $ 116,225 $ 91,459 $ 116,477 $ 81,248 Provision for current expected credit (gains) losses (5,008) 10,878 (5,260) 21,089 Other, net 1 — 1 — Balance at end of period $ 111,218 $ 102,337 $ 111,218 $ 102,337 |
Schedule of 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 $ 169,908 $ 164,150 91-180 days past due 43,932 40,428 Greater than 180 days past due 117,875 77,110 Total past due 331,715 281,688 Not past due 3,851,111 3,747,337 Total $ 4,182,826 $ 4,029,025 |
Schedule of 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 2024 2023 2022 2021 2020 Prior Total (in thousands) Payment performance: Performing $ 330,057 $ 1,343,374 $ 1,293,081 $ 674,055 $ 205,486 $ 218,898 $ 4,064,951 Nonperforming (1) — 32,398 42,204 22,498 6,498 14,277 117,875 Total $ 330,057 $ 1,375,772 $ 1,335,285 $ 696,553 $ 211,984 $ 233,175 $ 4,182,826 (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) | 6 Months Ended |
Jun. 30, 2024 | |
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: Six Months Ended June 30, 2024 Weighted Average Effective Interest Rates As of June 30, 2024 Year Ended As of December 31, 2023 Long-term Current Long-term Current (in thousands, except interest rates) SEI 0.25% convertible senior notes 0.71 % $ 575,000 $ — 0.71 % $ 575,000 $ — 2.625% convertible senior notes 3.05 % 600,000 — 3.03 % 600,000 — Debt discount, net (16,559) — (19,174) — Deferred financing costs, net (642) — (748) — Sunnova Energy Corporation Notes payable 23.85 % — 7,466 7.07 % — 3,084 5.875% senior notes 6.55 % 400,000 — 6.53 % 400,000 — 11.75% senior notes 12.30 % 400,000 — 12.02 % 400,000 — Debt discount, net (12,134) — (13,288) — Deferred financing costs, net (10,411) — (12,119) — EZOP Revolving credit facility 9.87 % 127,000 — 8.72 % 511,000 — Debt discount, net (219) — (302) — HELII Solar asset-backed notes 5.64 % 190,508 9,111 5.64 % 194,933 9,065 Debt discount, net (22) — (24) — Deferred financing costs, net (2,609) — (2,926) — RAYSI Solar asset-backed notes 5.56 % 102,230 6,510 5.55 % 105,096 6,349 Debt discount, net (643) — (753) — Deferred financing costs, net (2,772) — (3,004) — HELIII Solar loan-backed notes 4.48 % 82,264 9,764 4.43 % 86,232 9,983 Debt discount, net (1,109) — (1,250) — Deferred financing costs, net (1,064) — (1,200) — TEPH Revolving credit facility 9.99 % 1,196,900 — 10.03 % 1,036,600 — Debt discount, net (863) — (1,168) — SOLI Solar asset-backed notes 3.97 % 328,973 14,127 3.91 % 335,874 12,965 Debt discount, net (67) — (74) — Deferred financing costs, net (5,256) — (5,769) — HELIV Solar loan-backed notes 4.16 % 93,692 10,547 4.16 % 97,458 10,854 Debt discount, net (345) — (417) — Deferred financing costs, net (1,638) — (1,955) — AP8 Credit facility 9.09 % 210,362 2,379 9.42 % — 215,000 Deferred financing costs, net (1,654) — — — SOLII Solar asset-backed notes 2.41 % 218,189 6,486 3.90 % 221,955 7,195 Debt discount, net (52) — (56) — Deferred financing costs, net (3,634) — (3,948) — HELV Solar loan-backed notes 2.51 % 130,167 13,080 2.49 % 134,473 13,496 Debt discount, net (466) — (540) — Deferred financing costs, net (1,815) — (2,094) — SOLIII Solar asset-backed notes 2.84 % 249,421 13,970 2.81 % 257,545 15,762 Debt discount, net (94) — (102) — Deferred financing costs, net (4,490) — (4,871) — HELVI Solar loan-backed notes 2.13 % 155,896 13,107 2.10 % 159,901 13,521 Debt discount, net (28) — (32) — Deferred financing costs, net (2,067) — (2,345) — HELVII Solar loan-backed notes 2.55 % 120,372 9,902 2.53 % 123,494 10,221 Debt discount, net (28) — (31) — Deferred financing costs, net (1,596) — (1,797) — HELVIII Solar loan-backed notes 3.65 % 237,394 19,373 3.62 % 243,020 19,995 Debt discount, net (3,903) — (4,355) — Deferred financing costs, net (3,043) — (3,395) — SOLIV Solar asset-backed notes 5.94 % 320,292 8,630 5.90 % 325,612 8,464 Debt discount, net (8,569) — (9,440) — Deferred financing costs, net (6,136) — (6,759) — HELIX Solar loan-backed notes 5.69 % 192,679 13,405 5.64 % 196,174 15,246 Debt discount, net (2,743) — (3,027) — Deferred financing costs, net (2,535) — (2,798) — HELX Solar loan-backed notes 7.68 % 199,701 14,443 7.38 % 200,842 19,996 Debt discount, net (14,977) — (17,015) — Deferred financing costs, net (2,651) — (3,064) — IS Revolving credit facility 10.18 % 18,408 — 8.90 % 31,300 — SOLV Solar asset-backed notes 6.92 % 308,429 8,006 6.93 % 312,844 7,775 Debt discount, net (13,772) — (15,491) — Deferred financing costs, net (5,938) — (6,682) — HELXI Solar loan-backed notes 6.52 % 240,143 27,546 6.29 % 247,251 31,240 Debt discount, net (11,098) — (12,007) — Deferred financing costs, net (4,573) — (5,195) — HELXII Solar loan-backed notes 6.93 % 205,602 23,279 6.71 % 210,263 26,661 Debt discount, net (11,706) — (13,065) — Deferred financing costs, net (3,917) — (4,135) — AP9 Revolving credit facility 20.34 % — — 19.30 % 12,118 — Debt discount, net (416) — (572) — HESI Solar loan-backed notes 5.48 % 208,604 24,677 10.94 % 213,432 26,625 Debt discount, net (7,051) — (7,616) — Deferred financing costs, net (6,489) — (7,058) — BMB Revolving credit facility 886.99 % 832 — — — SOLVI Solar asset-backed notes 6.70 % 220,833 3,915 — — Debt discount, net (11,818) — — — Deferred financing costs, net (6,046) — — — HELXIII Solar loan-backed notes 6.26 % 190,909 24,918 — — Debt discount, net (7,136) — — — Deferred financing costs, net (4,894) — — — HESII Solar loan-backed notes 5.79 % 146,299 22,601 — — Debt discount, net (118) — — — Deferred financing costs, net (7,189) — — — HELXIV Solar loan-backed notes 4.36 % 204,951 25,949 — — Debt discount, net (7,550) — — — Deferred financing costs, net (4,827) — — — Total $ 7,644,678 $ 333,191 $ 7,030,756 $ 483,497 |
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 June 30, 2024 As of December 31, 2023 Carrying Estimated Carrying Estimated (in thousands) SEI 0.25% convertible senior notes $ 575,000 $ 525,510 $ 575,000 $ 528,927 SEI 2.625% convertible senior notes 600,000 572,611 600,000 582,463 Sunnova Energy Corporation notes payable 7,466 7,466 3,084 3,084 Sunnova Energy Corporation 5.875% senior notes 400,000 368,198 400,000 369,522 Sunnova Energy Corporation 11.75% senior notes 400,000 401,941 400,000 411,996 EZOP revolving credit facility 127,000 127,000 511,000 511,000 HELII solar asset-backed notes 199,619 190,338 203,998 198,590 RAYSI solar asset-backed notes 108,740 97,414 111,445 102,480 HELIII solar loan-backed notes 92,028 82,626 96,215 87,982 TEPH revolving credit facility 1,196,900 1,196,900 1,036,600 1,036,600 SOLI solar asset-backed notes 343,100 299,971 348,839 310,928 HELIV solar loan-backed notes 104,239 92,842 108,312 96,603 AP8 credit facility 212,741 212,741 215,000 215,000 SOLII solar asset-backed notes 224,675 184,893 229,150 192,589 HELV solar loan-backed notes 143,247 127,284 147,969 132,533 SOLIII solar asset-backed notes 263,391 221,354 273,307 235,318 HELVI solar loan-backed notes 169,003 147,941 173,422 153,836 HELVII solar loan-backed notes 130,274 115,357 133,715 120,413 HELVIII solar loan-backed notes 256,767 231,889 263,015 241,599 SOLIV solar asset-backed notes 328,922 312,851 334,076 325,816 HELIX solar loan-backed notes 206,084 193,507 211,420 203,375 HELX solar loan-backed notes 214,144 209,927 220,838 221,655 IS revolving credit facility 18,408 18,408 31,300 31,300 SOLV solar asset-backed notes 316,435 306,123 320,619 317,481 HELXI solar loan-backed notes 267,689 259,475 278,491 275,323 HELXII solar loan-backed notes 228,881 227,707 236,924 242,091 AP9 revolving credit facility — — 12,118 12,118 HESI solar loan-backed notes 233,281 234,488 240,057 249,318 BMB revolving credit facility 832 832 — — SOLVI solar asset-backed notes 224,748 224,376 — — HELXIII solar loan-backed notes 215,827 214,701 — — HESII solar loan-backed notes 168,900 168,900 — — HELXIV solar loan-backed notes 230,900 230,900 — — Total (1) $ 8,209,241 $ 7,806,471 $ 7,715,914 $ 7,409,940 (1) Amounts exclude the net deferred financing costs (classified as debt) and net debt discounts of $231.4 million and $201.7 million as of June 30, 2024 and December 31, 2023, respectively. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Outstanding Derivative Instruments | The following table presents a summary of the outstanding derivative instruments: As of June 30, 2024 As of December 31, 2023 Effective Termination Fixed Aggregate Effective Termination Fixed Aggregate (in thousands, except interest rates) EZOP June 2024 - July 2024 October 2031 - December 2031 4.000% $ 135,400 July 2023 - December 2023 December 2028 - November 2035 2.000% $ 489,581 TEPH February 2023 - March 2024 October 2031 - October 2041 3.000% - 4.202% 1,211,600 July 2022 - December 2023 October 2031 - October 2041 2.620% - 4.202% 994,403 AP8 November 2022 - August 2023 October 2025 4.250% 215,000 November 2022 - August 2023 September 2025 4.250% 215,000 AP9 September 2023 September 2027 4.250% 25,000 September 2023 September 2027 4.250% 25,000 Total $ 1,587,000 $ 1,723,984 |
Schedule of Fair Value of Interest Rate Swaps | The following table presents the fair value of the interest rate swaps and caps as recorded in the unaudited condensed consolidated balance sheets: As of As of (in thousands) Other assets $ 24,868 $ 55,471 Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Realized gain $ (31,864) $ (9,062) $ (34,914) $ (15,769) Unrealized (gain) loss 25,861 (15,605) (4,837) 8,011 Total $ (6,003) $ (24,667) $ (39,751) $ (7,758) |
Equity-Based Compensation (Tabl
Equity-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | The following table summarizes stock option activity: Number Weighted Weighted Weighted Aggregate (in thousands) Outstanding, December 31, 2023 4,018,149 $ 17.61 4.97 $ 5,542 Granted 1,989,147 $ 6.87 9.70 $ 4.25 Exercised (11,357) $ 1.85 $ 118 Forfeited (535,204) $ 13.38 $ 7.57 Outstanding, June 30, 2024 5,460,735 $ 14.14 5.97 $ 45 Exercisable, June 30, 2024 2,665,915 $ 17.21 2.53 $ — Vested and expected to vest, June 30, 2024 5,460,735 $ 14.14 5.97 $ 45 Non-vested, June 30, 2024 2,794,820 $ 6.49 |
Schedule of Restricted Stock Unit Activity | The following table summarizes restricted stock unit activity: Number of Weighted Outstanding, December 31, 2023 2,384,205 $ 16.60 Granted 6,091,573 $ 6.18 Vested (1,861,828) $ 10.60 Forfeited (881,139) $ 9.74 Outstanding, June 30, 2024 5,732,811 $ 8.33 |
Basic and Diluted Net Loss Pe_2
Basic and Diluted Net Loss Per Share (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 Six Months Ended 2024 2023 2024 2023 (in thousands, except share and per share amounts) Net loss attributable to stockholders—basic and diluted $ (33,053) $ (86,091) $ (103,013) $ (167,174) Net loss per share attributable to stockholders—basic and diluted $ (0.27) $ (0.74) $ (0.83) $ (1.45) Weighted average common shares outstanding—basic and diluted 124,239,618 116,236,741 123,567,083 115,658,570 |
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 Six Months Ended 2024 2023 2024 2023 Equity-based compensation awards 11,521,700 6,460,556 9,728,540 5,753,120 Convertible senior notes 34,150,407 34,150,407 34,150,407 34,150,407 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Performance Guarantee Obligations | The changes in our aggregate performance guarantee obligations are as follows: Six Months Ended 2024 2023 (in thousands) Balance at beginning of period $ 6,753 $ 4,845 Accruals 2,188 2,485 Settlements (2,728) (2,791) Balance at end of period $ 6,213 $ 4,539 |
Schedule of Lease Assets and liabilities | The following table presents the detail of right-of-use assets and lease liabilities as recorded in other assets other current liabilities other long-term liabilities As of As of (in thousands) Right-of-use assets: Operating leases $ 12,148 $ 13,247 Finance leases 4,554 4,085 Total right-of-use assets $ 16,702 $ 17,332 Current lease liabilities: Operating leases $ 3,014 $ 2,883 Finance leases 1,539 1,348 Long-term leases liabilities: Operating leases 12,527 14,005 Finance leases 1,776 1,631 Total lease liabilities $ 18,856 $ 19,867 |
Schedule of Lease expense | The following table presents the detail of lease expense as recorded in general and administrative expense in the unaudited condensed consolidated statements of operations: Three Months Ended Six Months Ended 2024 2023 2024 2023 (in thousands) Operating lease expense $ 755 $ 692 $ 1,508 $ 1,384 Finance lease expense: Amortization expense 473 249 891 479 Interest on lease liabilities 52 20 101 38 Short-term lease expense 119 39 202 66 Variable lease expense 288 235 593 468 Total $ 1,687 $ 1,235 $ 3,295 $ 2,435 Other information related to leases was as follows: Six Months Ended 2024 2023 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases (1) $ 1,758 $ 1,319 Operating cash flows from finance leases $ 101 $ 38 Financing cash flows from finance leases $ 803 $ 439 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 90 $ — Finance leases $ 1,359 $ 901 (1) Includes reimbursements in the six months ended June 30, 2024 and 2023 of approximately $0 and $225,000, respectively, for leasehold improvements. As of As of Weighted average remaining lease term (years): Operating leases 5.04 5.51 Finance leases 3.03 3.12 Weighted average discount rate: Operating leases 4.05 % 4.06 % Finance leases 6.34 % 6.26 % |
Schedule of Operating Lease, Future Minimum Lease Payments | Future minimum lease payments under our non-cancelable leases as of June 30, 2024 were as follows: Operating Finance (in thousands) Remaining 2024 $ 1,787 $ 941 2025 3,458 1,314 2026 3,240 825 2027 3,304 481 2028 3,372 51 2029 and thereafter 2,113 — Total 17,274 3,612 Amount representing interest (1,657) (297) Amount representing leasehold incentives (76) — Present value of future payments 15,541 3,315 Current portion of lease liability (3,014) (1,539) Long-term portion of lease liability $ 12,527 $ 1,776 |
Schedule of Other Commitments | Dealer Commitments. As of June 30, 2024 and December 31, 2023, the net unamortized balance of payments to dealers for exclusivity and other similar arrangements was $209.7 million and $166.4 million, respectively. Under these agreements, we paid $21.0 million and $31.1 million during the three months ended June 30, 2024 and 2023, respectively, and we paid $30.6 million and $55.7 million during the six months ended June 30, 2024 and 2023, 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 2024 $ 29,358 2025 56,064 2026 36,904 2027 30,000 2028 — 2029 and thereafter — Total $ 152,326 |
Schedule of Future Commitments | Future commitments as of June 30, 2024 were as follows: Software and Business Technology Commitments (in thousands) Remaining 2024 $ 8,518 2025 8,310 2026 6,787 2027 7,405 2028 515 2029 and thereafter 515 Total $ 32,050 |
Description of Business and B_2
Description of Business and Basis of Presentation - (Details) customer in Thousands | 6 Months Ended |
Jun. 30, 2024 customer renewalOption state | |
Subsidiary, Sale of Stock [Line Items] | |
Number of customers | customer | 403 |
Number of states in which entity operates (more than) | state | 50 |
Maximum renewal term | 10 years |
Solar Service Agreement | Minimum | |
Subsidiary, Sale of Stock [Line Items] | |
Agreement term | 10 years |
Solar Service Agreement | Maximum | |
Subsidiary, Sale of Stock [Line Items] | |
Agreement term | 25 years |
Lease and Power Purchase Agreement (PPA) | Lease Agreement, Option One | |
Subsidiary, Sale of Stock [Line Items] | |
Number of options to renew term | 2 |
Renewal term | 5 years |
Lease and Power Purchase Agreement (PPA) | Lease Agreement, Option Two | |
Subsidiary, Sale of Stock [Line Items] | |
Number of options to renew term | 1 |
Renewal term | 10 years |
Ancillary Products | Minimum | |
Subsidiary, Sale of Stock [Line Items] | |
Agreement term | 1 year |
Ancillary Products | Maximum | |
Subsidiary, Sale of Stock [Line Items] | |
Agreement term | 20 years |
Significant Accounting Polici_4
Significant Accounting Policies - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 2,939 | $ 1,887 | $ 2,559 | $ 1,676 |
Provision for current expected credit losses | 2,133 | 1,177 | 3,959 | 2,105 |
Write off of uncollectible accounts | (1,987) | (969) | (3,465) | (1,748) |
Recoveries | 89 | 48 | 188 | 110 |
Other, net | 0 | 0 | (67) | 0 |
Balance at end of period | $ 3,174 | $ 2,143 | $ 3,174 | $ 2,143 |
Significant Accounting Polici_5
Significant Accounting Policies - Allowance for Credit Losses - Other (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Accounting Policies [Abstract] | ||||
Balance at beginning of period | $ 6,776 | $ 671 | $ 13,045 | $ 0 |
Provision for current expected credit losses | (6,094) | 0 | (5,513) | 671 |
Write off of uncollectible accounts | 7 | 0 | (6,843) | 0 |
Other, net | 1 | 0 | 1 | 0 |
Balance at end of period | $ 690 | $ 671 | $ 690 | $ 671 |
Significant Accounting Polici_6
Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Inventory [Line Items] | ||
Inventory | $ 132,061 | $ 148,575 |
Energy storage systems and components | ||
Inventory [Line Items] | ||
Inventory | 40,524 | 83,178 |
Homebuilder construction in progress | ||
Inventory [Line Items] | ||
Inventory | 59,116 | 36,461 |
Modules and inverters | ||
Inventory [Line Items] | ||
Inventory | 31,479 | 27,143 |
Meters and modems | ||
Inventory [Line Items] | ||
Inventory | $ 942 | $ 1,793 |
Significant Accounting Polici_7
Significant Accounting Policies - Schedule of Fair Value of Recurring Financial Instruments (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financial assets: | ||
Investments in solar receivables | $ 69,419 | $ 69,334 |
Derivative assets | 24,868 | 55,471 |
Total assets | 94,287 | 124,805 |
Financial liabilities: | ||
Contingent consideration | 3,738 | 19,916 |
Total liabilities | 3,738 | 19,916 |
Fair Value, Inputs, Level 1 | ||
Financial assets: | ||
Investments in solar receivables | 0 | 0 |
Derivative assets | 0 | 0 |
Total assets | 0 | 0 |
Financial liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Financial assets: | ||
Investments in solar receivables | 0 | 0 |
Derivative assets | 24,868 | 55,471 |
Total assets | 24,868 | 55,471 |
Financial liabilities: | ||
Contingent consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Financial assets: | ||
Investments in solar receivables | 69,419 | 69,334 |
Derivative assets | 0 | 0 |
Total assets | 69,419 | 69,334 |
Financial liabilities: | ||
Contingent consideration | 3,738 | 19,916 |
Total liabilities | $ 3,738 | $ 19,916 |
Significant Accounting Polici_8
Significant Accounting Policies - Schedule of Investment in Solar Receivables Fair Value (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at beginning of period | $ 69,334 | $ 72,171 |
Additions | 0 | 969 |
Settlements | (5,643) | (5,145) |
Gain recognized in earnings | 5,728 | 367 |
Balance at end of period | $ 69,419 | $ 68,362 |
Significant Accounting Polici_9
Significant Accounting Policies - Schedule of changes in fair value of liabilities accounted for an a recurring basis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Fair Value, Asset, Recurring Basis, Unobservable Input Reconciliation, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net |
Contingent Consideration Liability | ||
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | ||
Balance at beginning of period | $ 19,916 | $ 26,787 |
Settlements | (3,902) | (10,831) |
(Gain) loss recognized in earnings | (12,276) | 6,287 |
Balance at end of period | $ 3,738 | $ 22,243 |
Significant Accounting Polic_10
Significant Accounting Policies - Schedule of Fair Value Unobservable Inputs (Details) - Fair Value, Inputs, Level 3 - Weighted Average | Jun. 30, 2024 |
Volatility | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Contingent consideration - installation earnout | 35% |
Revenue risk premium | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Contingent consideration - installation earnout | 15.50% |
Risk-free discount rate | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Contingent consideration - installation earnout | 5.21% |
Contingent consideration - microgrid earnout | 5.21% |
Probability of success | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Contingent consideration - microgrid earnout | 5% |
Significant Accounting Polic_11
Significant Accounting Policies - Schedule of Detailed Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 219,597 | $ 166,377 | $ 380,501 | $ 328,073 |
PPA revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 55,793 | 39,155 | 85,868 | 60,901 |
Lease revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 57,696 | 34,159 | 108,251 | 65,502 |
Inventory sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,550 | 26,492 | 53,124 | 86,406 |
Service revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,560 | 3,674 | 4,599 | 7,491 |
Direct sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 10,885 | 16,307 | 24,635 | 28,468 |
Solar renewable energy certificate revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,741 | 15,055 | 23,149 | 22,846 |
Cash sales revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 33,978 | 21,724 | 55,932 | 38,543 |
Loan revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 11,910 | 8,112 | 23,086 | 15,255 |
Other revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1,484 | $ 1,699 | $ 1,857 | $ 2,661 |
Significant Accounting Polic_12
Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) kWh renewalOption FICO_score | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Disaggregation of Revenue [Line Items] | ||||||
Contracted but not yet recognized revenue | $ 6,600,000,000 | $ 6,600,000,000 | ||||
Performance obligation, description of timing | we do not expect the annual recognition to vary significantly over approximately the next 19 years as the majority of existing customer agreements have at least 19 years remaining | |||||
Average age of solar systems (in years) | 4 years | |||||
Inventory | 132,061,000 | $ 132,061,000 | $ 148,575,000 | |||
Deferred revenue / Contract liabilities | 1,065,530,000 | 1,065,530,000 | 991,003,000 | $ 615,600,000 | ||
Revenue recognized | 29,000,000 | $ 12,000,000 | ||||
Self-insured claims liability | 3,600,000 | 3,600,000 | 3,500,000 | |||
Income tax benefit, investment tax credits | 79,200,000 | 0 | ||||
Investment tax credits | 269,000,000 | 269,000,000 | 200,700,000 | |||
Revenue | 219,597,000 | $ 166,377,000 | 380,501,000 | 328,073,000 | ||
Income tax (benefit) expense | 70,259,000 | (7,183,000) | 113,287,000 | (7,693,000) | ||
Noncontrolling interests | $ 714,313,000 | $ 714,313,000 | 436,150,000 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Contracted but not yet recognized revenue (as a percent) | 5% | 5% | ||||
Contracted but not yet recognized revenue, expected timing of satisfaction (in months) | 12 months | 12 months | ||||
Transferred over Time | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Deferred revenue / Contract liabilities | $ 4,200,000 | $ 4,200,000 | 3,800,000 | |||
Revenue recognized | 0 | 0 | ||||
Contract assets | 68,000 | 279,000 | ||||
Solar Renewable Energy Certificates | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Inventory | 0 | 0 | 0 | |||
PPA revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 55,793,000 | 39,155,000 | $ 85,868,000 | 60,901,000 | ||
PPA revenue | Lease Agreement, Option One | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Renewal term | 5 years | |||||
Number of options to renew term | renewalOption | 2 | |||||
PPA revenue | Lease Agreement, Option Two | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Renewal term | 10 years | |||||
Number of options to renew term | renewalOption | 1 | |||||
PPA revenue | Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Agreement term | 20 years | |||||
PPA revenue | Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Agreement term | 25 years | |||||
Renewal term | 10 years | |||||
Lease revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | 57,696,000 | 34,159,000 | $ 108,251,000 | 65,502,000 | ||
Lease revenue | Lease Agreement, Option One | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Renewal term | 5 years | |||||
Number of options to renew term | renewalOption | 2 | |||||
Lease revenue | Lease Agreement, Option Two | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Renewal term | 10 years | |||||
Number of options to renew term | renewalOption | 1 | |||||
Lease revenue | Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Agreement term | 20 years | |||||
Lease revenue | Maximum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Agreement term | 25 years | |||||
Renewal term | 10 years | |||||
Service revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Agreement term | 10 years | |||||
Revenue | 3,560,000 | 3,674,000 | $ 4,599,000 | 7,491,000 | ||
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 | |||||
Revenue | 14,741,000 | 15,055,000 | $ 23,149,000 | 22,846,000 | ||
Loan revenue | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Deferred revenue / Contract liabilities | 994,546,000 | 994,546,000 | $ 930,999,000 | |||
Revenue | 11,910,000 | 8,112,000 | $ 23,086,000 | 15,255,000 | ||
Loan revenue | Minimum | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Agreement term | 10 years | |||||
Minimum FICO score required for customer to qualify for program | FICO_score | 600 | |||||
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 | 780 | |||||
Investment Tax Credits | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Revenue | $ 234,100,000 | 0 | ||||
Income tax (benefit) expense | 42,400,000 | 0 | ||||
Noncontrolling interests | $ 191,700,000 | $ 0 | $ 191,700,000 | $ 0 |
Significant Accounting Polic_13
Significant Accounting Policies - Deferred Revenue (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 |
Disaggregation of Revenue [Line Items] | |||
Deferred revenue / Contract liabilities | $ 1,065,530 | $ 991,003 | $ 615,600 |
Deferred revenue included in other current liabilities | 55,013 | 50,815 | |
Loans | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue / Contract liabilities | 994,546 | 930,999 | |
PPAs and leases | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue / Contract liabilities | 62,937 | 55,651 | |
Solar receivables | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue / Contract liabilities | 4,208 | 4,339 | |
SRECs | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue / Contract liabilities | 3,839 | 0 | |
Other | |||
Disaggregation of Revenue [Line Items] | |||
Deferred revenue / Contract liabilities | $ 0 | $ 14 |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,145,585 | $ 6,199,718 |
Less: accumulated depreciation | (666,190) | (560,924) |
Property and equipment, net | $ 6,479,395 | 5,638,794 |
Solar energy systems and energy storage systems | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 35 years | |
Property and equipment, gross | $ 6,438,522 | 5,443,796 |
Less: accumulated depreciation | (577,100) | (489,700) |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 443,708 | 530,180 |
Asset retirement obligations | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 30 years | |
Property and equipment, gross | $ 90,296 | 78,538 |
Software and business technology systems | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 3 years | |
Property and equipment, gross | $ 155,070 | 130,300 |
Computers and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 7,739 | 7,503 |
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 | $ 7,019 | 6,170 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful Lives | 1 year | |
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 | $ 1,172 | 1,172 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,640 | 1,640 |
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 | $ 419 | $ 419 |
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 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Inventory | $ 132,061 | $ 148,575 | |
Current portion of customer notes receivable | 186,755 | 176,562 | |
Restricted cash | 88,458 | 62,188 | $ 37,825 |
Prepaid assets | 33,992 | 25,996 | |
Deferred receivables | 10,896 | 7,601 | |
Current portion of investments in solar receivables | 7,528 | 7,457 | |
Other | 2,886 | 920 | |
Total | $ 462,576 | $ 429,299 |
Detail of Certain Balance She_4
Detail of Certain Balance Sheet Captions - Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Construction in progress - customer notes receivable | $ 92,757 | $ 159,066 | |
Restricted cash | 288,691 | 219,382 | $ 180,718 |
Exclusivity and other bonus arrangements with dealers, net | 209,710 | 166,359 | |
Investments in solar receivables | 61,891 | 61,877 | |
Straight-line revenue adjustment, net | 70,957 | 62,941 | |
Other | 299,844 | 226,260 | |
Total | $ 1,023,850 | $ 895,885 |
Detail of Certain Balance She_5
Detail of Certain Balance Sheet Captions - Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Interest payable | $ 69,680 | $ 67,647 |
Deferred revenue | 55,013 | 50,815 |
Current portion of operating and finance lease liability | 4,553 | 4,231 |
Current portion of performance guarantee obligations | 2,927 | 2,667 |
Other | 14,520 | 8,289 |
Total | $ 146,693 | $ 133,649 |
Asset Retirement Obligations _3
Asset Retirement Obligations ("ARO") (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
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 | $ 96,227 | $ 69,869 |
Additional obligations incurred | 11,791 | 7,604 |
Accretion expense | 3,088 | 2,234 |
Other | (50) | (44) |
Balance at end of period | $ 111,056 | $ 79,663 |
Customer Notes Receivable - Nar
Customer Notes Receivable - Narrative (Details) loan in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
May 31, 2024 loan | Jun. 30, 2024 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2024 USD ($) loan | Jun. 30, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan systems not yet placed in service | $ 92,800,000 | $ 92,800,000 | $ 159,100,000 | |||
Interest income | 35,395,000 | $ 26,292,000 | 71,091,000 | $ 51,080,000 | ||
Customer notes receivable not accruing interest | 59,400,000 | 59,400,000 | 34,200,000 | |||
Customer notes receivable not accruing interest, allowance | 1,300,000 | 1,300,000 | 754,000 | |||
Interest income for nonaccrual loans | 0 | 0 | $ 0 | 0 | ||
Number of loans sold | loan | 58 | 62 | ||||
Proceeds from sale of customer notes receivable | $ 76,000,000 | |||||
Loss on sales of customer notes receivable | 42,823,000 | 0 | ||||
Amortized cost | 102,400,000 | 102,400,000 | 83,300,000 | |||
Accounts Receivable Other | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable other, loans sold, not yet received | 3,800,000 | 3,800,000 | ||||
Other assets | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Accounts receivable other, loans sold, not yet received | 4,800,000 | 4,800,000 | ||||
Financing Receivables, Loans Sold | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Notes receivable balance | 116,000,000 | 116,000,000 | ||||
Customer notes receivable | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest income | 30,600,000 | 23,100,000 | 61,600,000 | 43,200,000 | ||
Accrued investment income receivable | 6,200,000 | 6,200,000 | $ 14,300,000 | |||
Accrued investment income receivable, written off | $ 39,000 | $ 4,000 | $ 80,000 | $ 17,000 | ||
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 | Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer notes receivable | $ 4,182,826 | $ 4,029,025 | ||||
Allowance for credit losses | (111,218) | $ (116,225) | (116,477) | $ (102,337) | $ (91,459) | $ (81,248) |
Carrying Value | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer notes receivable | 4,071,608 | 3,912,548 | ||||
Estimated Fair Value | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Customer notes receivable | $ 3,925,537 | $ 3,800,754 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance at beginning of period | $ 116,225 | $ 91,459 | $ 116,477 | $ 81,248 |
Provision for current expected credit (gains) losses | (5,008) | 10,878 | (5,260) | 21,089 |
Other, net | 1 | 0 | 1 | 0 |
Balance at end of period | $ 111,218 | $ 102,337 | $ 111,218 | $ 102,337 |
Customer Notes Receivable - S_3
Customer Notes Receivable - Schedule of Aged Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Customer notes receivable | $ 4,182,826 | $ 4,029,025 |
Total past due | ||
Financing Receivable, Past Due [Line Items] | ||
Customer notes receivable | 331,715 | 281,688 |
1-90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Customer notes receivable | 169,908 | 164,150 |
91-180 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Customer notes receivable | 43,932 | 40,428 |
Greater than 180 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Customer notes receivable | 117,875 | 77,110 |
Not past due | ||
Financing Receivable, Past Due [Line Items] | ||
Customer notes receivable | $ 3,851,111 | $ 3,747,337 |
Customer Notes Receivable - S_4
Customer Notes Receivable - Schedule of Amortized cost of Customer Notes Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | $ 330,057 | |
2023 | 1,375,772 | |
2022 | 1,335,285 | |
2021 | 696,553 | |
2020 | 211,984 | |
Prior | 233,175 | |
Total | 4,182,826 | $ 4,029,025 |
Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 330,057 | |
2023 | 1,343,374 | |
2022 | 1,293,081 | |
2021 | 674,055 | |
2020 | 205,486 | |
Prior | 218,898 | |
Total | 4,064,951 | |
Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 0 | |
2023 | 32,398 | |
2022 | 42,204 | |
2021 | 22,498 | |
2020 | 6,498 | |
Prior | 14,277 | |
Total | $ 117,875 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Aug. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Long-term debt, non-current | $ 7,644,678 | $ 7,030,756 | ||
Long-term debt, current | 333,191 | 483,497 | ||
SEI | Convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (16,559) | (19,174) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (642) | (748) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
SEI | Convertible senior notes | 0.25% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 0.25% | |||
Weighted average effective interest rate | 0.71% | 0.71% | ||
Long-term debt, gross, non-current | $ 575,000 | $ 575,000 | ||
Long-term debt, gross, current | $ 0 | $ 0 | ||
SEI | Convertible senior notes | 2.625% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 2.625% | |||
Weighted average effective interest rate | 3.05% | 3.03% | ||
Long-term debt, gross, non-current | $ 600,000 | $ 600,000 | ||
Long-term debt, gross, current | 0 | 0 | ||
Sunnova Energy Corporation | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (12,134) | (13,288) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (10,411) | (12,119) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
Sunnova Energy Corporation | Notes payable | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 7.74% | |||
Weighted average effective interest rate | 23.85% | 7.07% | ||
Long-term debt, gross, non-current | $ 0 | $ 0 | ||
Long-term debt, gross, current | $ 7,466 | $ 3,084 | ||
Sunnova Energy Corporation | Senior notes | 5.875% senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 5.875% | 5.875% | ||
Weighted average effective interest rate | 6.55% | 6.53% | ||
Long-term debt, gross, non-current | $ 400,000 | $ 400,000 | ||
Long-term debt, gross, current | $ 0 | $ 0 | ||
Sunnova Energy Corporation | Senior notes | 11.75% senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 11.75% | 11.75% | ||
Weighted average effective interest rate | 12.30% | 12.02% | ||
Long-term debt, gross, non-current | $ 400,000 | $ 400,000 | ||
Long-term debt, gross, current | 0 | 0 | ||
EZOP | Credit facility | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (219) | (302) | ||
Debt discount, net, current | $ 0 | $ 0 | ||
EZOP | Line of credit | Credit facility | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 9.87% | 8.72% | ||
Long-term debt, gross, non-current | $ 127,000 | $ 511,000 | ||
Long-term debt, gross, current | 0 | 0 | ||
HELII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (22) | (24) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (2,609) | (2,926) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELII | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 5.64% | 5.64% | ||
Long-term debt, gross, non-current | $ 190,508 | $ 194,933 | ||
Long-term debt, gross, current | 9,111 | 9,065 | ||
RAYSI | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (643) | (753) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (2,772) | (3,004) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
RAYSI | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 5.56% | 5.55% | ||
Long-term debt, gross, non-current | $ 102,230 | $ 105,096 | ||
Long-term debt, gross, current | 6,510 | 6,349 | ||
HELIII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (1,109) | (1,250) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (1,064) | (1,200) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELIII | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 4.48% | 4.43% | ||
Long-term debt, gross, non-current | $ 82,264 | $ 86,232 | ||
Long-term debt, gross, current | 9,764 | 9,983 | ||
TEPH | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (863) | (1,168) | ||
Debt discount, net, current | $ 0 | $ 0 | ||
TEPH | Line of credit | Credit facility | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 9.99% | 10.03% | ||
Long-term debt, gross, non-current | $ 1,196,900 | $ 1,036,600 | ||
Long-term debt, gross, current | 0 | 0 | ||
SOLI | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (67) | (74) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (5,256) | (5,769) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
SOLI | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 3.97% | 3.91% | ||
Long-term debt, gross, non-current | $ 328,973 | $ 335,874 | ||
Long-term debt, gross, current | 14,127 | 12,965 | ||
HELIV | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (345) | (417) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (1,638) | (1,955) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELIV | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 4.16% | 4.16% | ||
Long-term debt, gross, non-current | $ 93,692 | $ 97,458 | ||
Long-term debt, gross, current | 10,547 | 10,854 | ||
AP8 | ||||
Debt Instrument [Line Items] | ||||
Deferred financing costs, net, non-current | (1,654) | 0 | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
AP8 | Line of credit | Credit facility | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 9.09% | 9.42% | ||
Long-term debt, gross, non-current | $ 210,362 | $ 0 | ||
Long-term debt, gross, current | 2,379 | 215,000 | ||
SOLII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (52) | (56) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (3,634) | (3,948) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
SOLII | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 2.41% | 3.90% | ||
Long-term debt, gross, non-current | $ 218,189 | $ 221,955 | ||
Long-term debt, gross, current | 6,486 | 7,195 | ||
HELV | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (466) | (540) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (1,815) | (2,094) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELV | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 2.51% | 2.49% | ||
Long-term debt, gross, non-current | $ 130,167 | $ 134,473 | ||
Long-term debt, gross, current | 13,080 | 13,496 | ||
SOLIII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (94) | (102) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (4,490) | (4,871) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
SOLIII | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 2.84% | 2.81% | ||
Long-term debt, gross, non-current | $ 249,421 | $ 257,545 | ||
Long-term debt, gross, current | 13,970 | 15,762 | ||
HELVI | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (28) | (32) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (2,067) | (2,345) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELVI | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 2.13% | 2.10% | ||
Long-term debt, gross, non-current | $ 155,896 | $ 159,901 | ||
Long-term debt, gross, current | 13,107 | 13,521 | ||
HELVII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (28) | (31) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (1,596) | (1,797) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELVII | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 2.55% | 2.53% | ||
Long-term debt, gross, non-current | $ 120,372 | $ 123,494 | ||
Long-term debt, gross, current | 9,902 | 10,221 | ||
HELVIII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (3,903) | (4,355) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (3,043) | (3,395) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELVIII | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 3.65% | 3.62% | ||
Long-term debt, gross, non-current | $ 237,394 | $ 243,020 | ||
Long-term debt, gross, current | 19,373 | 19,995 | ||
SOLIV | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (8,569) | (9,440) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (6,136) | (6,759) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
SOLIV | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 5.94% | 5.90% | ||
Long-term debt, gross, non-current | $ 320,292 | $ 325,612 | ||
Long-term debt, gross, current | 8,630 | 8,464 | ||
HELIX | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (2,743) | (3,027) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (2,535) | (2,798) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELIX | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 5.69% | 5.64% | ||
Long-term debt, gross, non-current | $ 192,679 | $ 196,174 | ||
Long-term debt, gross, current | 13,405 | 15,246 | ||
HELX | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (14,977) | (17,015) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (2,651) | (3,064) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELX | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 7.68% | 7.38% | ||
Long-term debt, gross, non-current | $ 199,701 | $ 200,842 | ||
Long-term debt, gross, current | $ 14,443 | $ 19,996 | ||
IS | Line of credit | Credit facility | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 10.18% | 8.90% | ||
Long-term debt, gross, non-current | $ 18,408 | $ 31,300 | ||
Long-term debt, gross, current | 0 | 0 | ||
SOLV | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (13,772) | (15,491) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (5,938) | (6,682) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
SOLV | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 6.92% | 6.93% | ||
Long-term debt, gross, non-current | $ 308,429 | $ 312,844 | ||
Long-term debt, gross, current | 8,006 | 7,775 | ||
HELXI | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (11,098) | (12,007) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (4,573) | (5,195) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELXI | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 6.52% | 6.29% | ||
Long-term debt, gross, non-current | $ 240,143 | $ 247,251 | ||
Long-term debt, gross, current | 27,546 | 31,240 | ||
HELXII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (11,706) | (13,065) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (3,917) | (4,135) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HELXII | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 6.93% | 6.71% | ||
Long-term debt, gross, non-current | $ 205,602 | $ 210,263 | ||
Long-term debt, gross, current | 23,279 | 26,661 | ||
AP9 | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (416) | (572) | ||
Debt discount, net, current | $ 0 | $ 0 | ||
AP9 | Line of credit | Credit facility | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 20.34% | 19.30% | ||
Long-term debt, gross, non-current | $ 0 | $ 12,118 | ||
Long-term debt, gross, current | 0 | 0 | ||
HESI | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (7,051) | (7,616) | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (6,489) | (7,058) | ||
Deferred financing costs, net, current | $ 0 | $ 0 | ||
HESI | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 5.48% | 10.94% | ||
Long-term debt, gross, non-current | $ 208,604 | $ 213,432 | ||
Long-term debt, gross, current | $ 24,677 | 26,625 | ||
BMB | Line of credit | Credit facility | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 886.99% | |||
Long-term debt, gross, non-current | $ 832 | 0 | ||
Long-term debt, gross, current | 0 | 0 | ||
SOLVI | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (11,818) | 0 | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (6,046) | 0 | ||
Deferred financing costs, net, current | $ 0 | 0 | ||
SOLVI | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 6.70% | |||
Long-term debt, gross, non-current | $ 220,833 | 0 | ||
Long-term debt, gross, current | 3,915 | 0 | ||
HELXIII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (7,136) | 0 | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (4,894) | 0 | ||
Deferred financing costs, net, current | $ 0 | 0 | ||
HELXIII | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 6.26% | |||
Long-term debt, gross, non-current | $ 190,909 | 0 | ||
Long-term debt, gross, current | 24,918 | 0 | ||
HESII | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (118) | 0 | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (7,189) | 0 | ||
Deferred financing costs, net, current | $ 0 | 0 | ||
HESII | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 5.79% | |||
Long-term debt, gross, non-current | $ 146,299 | 0 | ||
Long-term debt, gross, current | 22,601 | 0 | ||
HELXIV | ||||
Debt Instrument [Line Items] | ||||
Debt discount, net, non-current | (7,550) | 0 | ||
Debt discount, net, current | 0 | 0 | ||
Deferred financing costs, net, non-current | (4,827) | 0 | ||
Deferred financing costs, net, current | $ 0 | 0 | ||
HELXIV | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Weighted average effective interest rate | 4.36% | |||
Long-term debt, gross, non-current | $ 204,951 | 0 | ||
Long-term debt, gross, current | $ 25,949 | $ 0 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | ||||
Jun. 30, 2024 | Apr. 30, 2024 | Feb. 29, 2024 | Feb. 22, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | |||||
Borrowing capacity | $ 1,000 | ||||
EZOP | Line of credit | Credit facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | 748 | ||||
TEPH | Line of credit | Credit facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | 164.1 | ||||
Aggregate committed amount | $ 1,400 | $ 1,300 | |||
IS | Line of credit | Credit facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | 31.6 | ||||
Increase in margin (as a percent) | 0.75% | ||||
IS | Line of credit | Credit facility | Secured Overnight Financing Rate (SOFR) | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.25% | ||||
IS | Line of credit | Credit facility | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
AP9 | Line of credit | Credit facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | 65 | ||||
BMB | Line of credit | Credit facility | |||||
Debt Instrument [Line Items] | |||||
Borrowing capacity | 4.6 | ||||
Sunnova Energy Corporation | Notes payable | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 8.3 | ||||
Stated interest rate (as a percent) | 7.74% | ||||
Debt instrument term | 10 months | ||||
SOLVI | Solar asset-backed notes | SOLVI Series 2024-1 Class A | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 194.5 | ||||
Stated interest rate (as a percent) | 5.65% | ||||
Discount (as a percent) | 4.66% | ||||
SOLVI | Solar asset-backed notes | SOLVI Series 2024-1 Class B | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 16.5 | ||||
Stated interest rate (as a percent) | 7% | ||||
Discount (as a percent) | 7.08% | ||||
SOLVI | Solar asset-backed notes | SOLVI Series 2024-1 Class C | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 15 | ||||
Stated interest rate (as a percent) | 9% | ||||
Discount (as a percent) | 13.98% | ||||
HELXIII | Solar loan-backed notes | HELXIII Series 2024-A, Class A | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 166 | ||||
Stated interest rate (as a percent) | 5.30% | ||||
Discount (as a percent) | 2.77% | ||||
HELXIII | Solar loan-backed notes | HELXIII Series 2024-A, Class B | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 33.9 | ||||
Stated interest rate (as a percent) | 6% | ||||
Discount (as a percent) | 2.83% | ||||
HELXIII | Solar loan-backed notes | HELXIII Series 2024-A, Class C | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 27.1 | ||||
Stated interest rate (as a percent) | 7% | ||||
Discount (as a percent) | 7.18% | ||||
HESII | Solar loan-backed notes | HESII Series, 2024-GRID1 Class A | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 152 | ||||
Stated interest rate (as a percent) | 5.63% | ||||
Discount (as a percent) | 0.0036% | ||||
HESII | Solar loan-backed notes | HESII Series, 2024-GRID1 Class B | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 16.9 | ||||
Stated interest rate (as a percent) | 9.50% | ||||
Discount (as a percent) | 0.67% | ||||
HELXIV | Solar loan-backed notes | HELXIV Series 2024-B, Class A | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 151.9 | ||||
Stated interest rate (as a percent) | 6.15% | ||||
Discount (as a percent) | 2.16% | ||||
HELXIV | Solar loan-backed notes | HELXIV Series 2024 -B, Class B | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 54.4 | ||||
Stated interest rate (as a percent) | 7% | ||||
Discount (as a percent) | 1.62% | ||||
HELXIV | Solar loan-backed notes | HELXIV Series 2024-B, Class C | |||||
Debt Instrument [Line Items] | |||||
Principal amount of debt issued | $ 24.6 | ||||
Stated interest rate (as a percent) | 8% | ||||
Discount (as a percent) | 13.76% |
Long-Term Debt - Schedule of Fa
Long-Term Debt - Schedule of Fair Value of Long-term Debt (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Aug. 31, 2021 |
Debt Instrument [Line Items] | ||||
Net deferred financing costs and debt discounts | $ 231,400 | $ 201,700 | ||
Carrying Value | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 8,209,241 | 7,715,914 | ||
Estimated Fair Value | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 7,806,471 | 7,409,940 | ||
SEI | Convertible senior notes | 0.25% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 0.25% | |||
SEI | Convertible senior notes | 2.625% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 2.625% | |||
SEI | Carrying Value | Convertible senior notes | 0.25% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 575,000 | 575,000 | ||
SEI | Carrying Value | Convertible senior notes | 2.625% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 600,000 | 600,000 | ||
SEI | Estimated Fair Value | Convertible senior notes | 0.25% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 525,510 | 528,927 | ||
SEI | Estimated Fair Value | Convertible senior notes | 2.625% convertible senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 572,611 | 582,463 | ||
Sunnova Energy Corporation | Notes payable | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 7.74% | |||
Sunnova Energy Corporation | Senior notes | 5.875% senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 5.875% | 5.875% | ||
Sunnova Energy Corporation | Senior notes | 11.75% senior notes | ||||
Debt Instrument [Line Items] | ||||
Stated interest rate (as a percent) | 11.75% | 11.75% | ||
Sunnova Energy Corporation | Carrying Value | Notes payable | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 7,466 | 3,084 | ||
Sunnova Energy Corporation | Carrying Value | Senior notes | 5.875% senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 400,000 | 400,000 | ||
Sunnova Energy Corporation | Carrying Value | Senior notes | 11.75% senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 400,000 | 400,000 | ||
Sunnova Energy Corporation | Estimated Fair Value | Notes payable | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 7,466 | 3,084 | ||
Sunnova Energy Corporation | Estimated Fair Value | Senior notes | 5.875% senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 368,198 | 369,522 | ||
Sunnova Energy Corporation | Estimated Fair Value | Senior notes | 11.75% senior notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 401,941 | 411,996 | ||
HELII | Carrying Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 199,619 | 203,998 | ||
HELII | Estimated Fair Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 190,338 | 198,590 | ||
RAYSI | Carrying Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 108,740 | 111,445 | ||
RAYSI | Estimated Fair Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 97,414 | 102,480 | ||
HELIII | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 92,028 | 96,215 | ||
HELIII | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 82,626 | 87,982 | ||
SOLI | Carrying Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 343,100 | 348,839 | ||
SOLI | Estimated Fair Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 299,971 | 310,928 | ||
HELIV | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 104,239 | 108,312 | ||
HELIV | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 92,842 | 96,603 | ||
SOLII | Carrying Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 224,675 | 229,150 | ||
SOLII | Estimated Fair Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 184,893 | 192,589 | ||
HELV | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 143,247 | 147,969 | ||
HELV | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 127,284 | 132,533 | ||
SOLIII | Carrying Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 263,391 | 273,307 | ||
SOLIII | Estimated Fair Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 221,354 | 235,318 | ||
HELVI | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 169,003 | 173,422 | ||
HELVI | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 147,941 | 153,836 | ||
HELVII | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 130,274 | 133,715 | ||
HELVII | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 115,357 | 120,413 | ||
HELVIII | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 256,767 | 263,015 | ||
HELVIII | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 231,889 | 241,599 | ||
SOLIV | Carrying Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 328,922 | 334,076 | ||
SOLIV | Estimated Fair Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 312,851 | 325,816 | ||
HELIX | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 206,084 | 211,420 | ||
HELIX | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 193,507 | 203,375 | ||
HELX | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 214,144 | 220,838 | ||
HELX | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 209,927 | 221,655 | ||
SOLV | Carrying Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 316,435 | 320,619 | ||
SOLV | Estimated Fair Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 306,123 | 317,481 | ||
HELXI | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 267,689 | 278,491 | ||
HELXI | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 259,475 | 275,323 | ||
HELXII | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 228,881 | 236,924 | ||
HELXII | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 227,707 | 242,091 | ||
SOLVI | Carrying Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 224,748 | 0 | ||
SOLVI | Estimated Fair Value | Solar asset-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 224,376 | 0 | ||
HELXIII | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 215,827 | 0 | ||
HELXIII | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 214,701 | 0 | ||
HESII | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 168,900 | 0 | ||
HESII | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 168,900 | 0 | ||
HELXIV | Carrying Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 230,900 | 0 | ||
HELXIV | Estimated Fair Value | Solar loan-backed notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 230,900 | 0 | ||
Credit facility | EZOP | Carrying Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 127,000 | 511,000 | ||
Credit facility | EZOP | Estimated Fair Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 127,000 | 511,000 | ||
Credit facility | TEPH | Carrying Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,196,900 | 1,036,600 | ||
Credit facility | TEPH | Estimated Fair Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,196,900 | 1,036,600 | ||
Credit facility | AP8 | Carrying Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 212,741 | 215,000 | ||
Credit facility | AP8 | Estimated Fair Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 212,741 | 215,000 | ||
Credit facility | IS | Carrying Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 18,408 | 31,300 | ||
Credit facility | IS | Estimated Fair Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 18,408 | 31,300 | ||
Credit facility | AP9 | Carrying Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | 12,118 | ||
Credit facility | AP9 | Estimated Fair Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 0 | 12,118 | ||
Credit facility | HESI | Carrying Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 233,281 | 240,057 | ||
Credit facility | HESI | Estimated Fair Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 234,488 | 249,318 | ||
Credit facility | BMB | Carrying Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 832 | 0 | ||
Credit facility | BMB | Estimated Fair Value | Line of credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 832 | $ 0 |
Derivative Instruments - Narrat
Derivative Instruments - Narrative (Details) - Interest Rate Swap - USD ($) | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Derivative [Line Items] | |||
Aggregate notional amount of derivative | $ 1,587,000,000 | $ 1,723,984,000 | |
EZOP | |||
Derivative [Line Items] | |||
Aggregate notional amount of derivative | 240,900,000 | $ 153,000,000 | |
Aggregate notional amount of unwound derivative | 699,700,000 | 0 | |
Realized gain | 26,300,000 | 11,100,000 | |
TEPH | |||
Derivative [Line Items] | |||
Aggregate notional amount of derivative | 458,500,000 | 314,600,000 | |
Aggregate notional amount of unwound derivative | 362,600,000 | 241,100,000 | |
Realized gain | 7,300,000 | 4,500,000 | |
AP8 | |||
Derivative [Line Items] | |||
Aggregate notional amount of derivative | 0 | 110,000,000 | |
Aggregate notional amount of unwound derivative | 0 | 0 | |
Realized gain | 1,200,000 | 116,000 | |
AP9 | |||
Derivative [Line Items] | |||
Aggregate notional amount of derivative | 0 | 0 | |
Aggregate notional amount of unwound derivative | 0 | 0 | |
Realized gain | $ 159,000 | $ 0 |
Derivative Instruments - Outsta
Derivative Instruments - Outstanding Derivative Instruments (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 |
Interest rate swap | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | $ 1,587,000,000 | $ 1,723,984,000 | |
EZOP | Interest rate swap | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | $ 240,900,000 | $ 153,000,000 | |
EZOP | Interest Rate Swap One | |||
Derivative [Line Items] | |||
Fixed Interest Rate | 4% | 2% | |
Aggregate Notional Amount | $ 135,400,000 | $ 489,581,000 | |
TEPH | Interest rate swap | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | 458,500,000 | 314,600,000 | |
TEPH | Interest Rate Swap Two | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | $ 1,211,600,000 | $ 994,403,000 | |
TEPH | Interest Rate Swap Two | Minimum | |||
Derivative [Line Items] | |||
Fixed Interest Rate | 3% | 2.62% | |
TEPH | Interest Rate Swap Two | Maximum | |||
Derivative [Line Items] | |||
Fixed Interest Rate | 4.202% | 4.202% | |
AP8 | Interest rate swap | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | $ 0 | 110,000,000 | |
AP8 | Interest Rate Swap Three | |||
Derivative [Line Items] | |||
Fixed Interest Rate | 4.25% | 4.25% | |
Aggregate Notional Amount | $ 215,000,000 | $ 215,000,000 | |
AP9 | Interest rate swap | |||
Derivative [Line Items] | |||
Aggregate Notional Amount | $ 0 | $ 0 | |
AP9 | Interest Rate Swap Four | |||
Derivative [Line Items] | |||
Fixed Interest Rate | 4.25% | 4.25% | |
Aggregate Notional Amount | $ 25,000,000 | $ 25,000,000 |
Derivative Instruments - Balanc
Derivative Instruments - Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Not designated as hedging instrument | Interest rate swap | ||
Derivatives, Fair Value [Line Items] | ||
Other assets | $ 24,868 | $ 55,471 |
Derivative Instruments - Intere
Derivative Instruments - Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Unrealized (gain) loss | $ (4,837) | $ 8,011 | ||
Interest Rate Swap | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Realized gain | $ (31,864) | $ (9,062) | (34,914) | (15,769) |
Unrealized (gain) loss | 25,861 | (15,605) | (4,837) | 8,011 |
Total | $ (6,003) | $ (24,667) | $ (39,751) | $ (7,758) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 47% | (8.00%) | 40% | (4.00%) | |
Income tax penalties and interest accrued | $ 0 | $ 0 | $ 0 |
Redeemable Noncontrolling Int_2
Redeemable Noncontrolling Interests and Noncontrolling Interests - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||||||||
May 31, 2024 | Mar. 31, 2024 | Feb. 29, 2024 | Sep. 30, 2023 | May 31, 2023 | Dec. 31, 2022 | Jun. 30, 2024 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | |
Noncontrolling Interest [Line Items] | ||||||||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | $ 152,053 | $ 160,153 | $ 40,201 | $ 60,203 | ||||||
Class A members | TEP8D | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | $ 195,000 | |||||||||
Class A members | TEP7F | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | 190,800 | $ 134,900 | ||||||||
Class A members | TEP7E | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | $ 51,200 | $ 51,000 | ||||||||
Class A members | TEP7B | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | $ 132,100 | $ 125,000 | ||||||||
Class A members | TEP7A | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | $ 61,400 | $ 59,000 | ||||||||
Class A members | TEP8E | ||||||||||
Noncontrolling Interest [Line Items] | ||||||||||
Noncontrolling Interest, Increase From Contributions From Noncontrolling Interest Holders | $ 250,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
SunStreet Energy Group, LLC | ||
Repayments of Debt [Line Items] | ||
Shares issued (in shares) | 636,555 | 693,443 |
Equity-Based Compensation - Nar
Equity-Based Compensation - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Feb. 29, 2024 | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options vested (in shares) | 0 | 0 | 148,859 | 16,816 | ||
Stock options vested, value | $ 0 | $ 0 | $ 2,200,000 | $ 309,000 | ||
Total unrecognized compensation expense | $ 12,000,000 | $ 12,000,000 | ||||
Stock Options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average period | 2 years 3 months | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted average period | 1 year 8 months 8 days | |||||
Vested (in shares) | 85,538 | 75,588 | 1,861,828 | 816,567 | ||
Restricted stock units, vested | $ 1,600,000 | $ 1,500,000 | $ 19,700,000 | $ 15,000,000 | ||
Unrecognized compensation expense | $ 38,000,000 | $ 38,000,000 | ||||
Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares issued in period (in shares) | 82,316 | 35,160 | ||||
Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Additional shares authorized during period (in shares) | 2,960,908 | |||||
Shares authorized (in shares) | 6,123,326 | |||||
Common stock outstanding (as a percent) | 5% |
Equity-Based Compensation - Sto
Equity-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Number of Stock Options | ||
Outstanding, beginning balance (in shares) | 4,018,149 | |
Granted (in shares) | 1,989,147 | |
Exercised (in shares) | (11,357) | |
Forfeited (in shares) | (535,204) | |
Outstanding, ending balance (in shares) | 5,460,735 | 4,018,149 |
Number of stock options, exercisable (in shares) | 2,665,915 | |
Number of stock options, vested and expected to vest (in shares) | 5,460,735 | |
Number of stock options, non-vested (in shares) | 2,794,820 | |
Weighted Average Exercise Price | ||
Outstanding, beginning balance (in USD per share) | $ 17.61 | |
Granted (in USD per share) | 6.87 | |
Exercised (in USD per share) | 1.85 | |
Forfeited (in USD per share) | 13.38 | |
Outstanding, ending balance (in USD per share) | 14.14 | $ 17.61 |
Weighted average exercise price, exercisable (in USD per share) | 17.21 | |
Weighted average exercise price, vested and expected to vest (in USD per share) | $ 14.14 | |
Weighted Average Remaining Contractual Term (Years) | ||
Outstanding, balance | 5 years 11 months 19 days | 4 years 11 months 19 days |
Granted | 9 years 8 months 12 days | |
Weighted average remaining contractual term, exercisable | 2 years 6 months 10 days | |
Weighted average remaining contractual term, vested and expected to vest | 5 years 11 months 19 days | |
Weighted Average Grant Date Fair Value | ||
Granted (in USD per share) | $ 4.25 | |
Forfeited (in USD per share) | 7.57 | |
Weighted average grant date fair value, non-vested (in USD per share) | $ 6.49 | |
Aggregate Intrinsic Value | ||
Outstanding, beginning balance | $ 5,542 | |
Exercised | 118 | |
Outstanding, ending balance | 45 | $ 5,542 |
Aggregate intrinsic value, exercisable | 0 | |
Aggregate intrinsic value, vested and expected to vest | $ 45 |
Equity-Based Compensation - Res
Equity-Based Compensation - Restricted Stock Activity (Details) - Restricted Stock Units - $ / shares | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Number of Restricted Stock Units | |||||
Outstanding, beginning balance (in shares) | 2,384,205 | ||||
Granted (in shares) | 6,091,573 | ||||
Vested (in shares) | (85,538) | (75,588) | (1,861,828) | (816,567) | |
Forfeited (in shares) | (881,139) | ||||
Outstanding, ending balance (in shares) | 5,732,811 | 5,732,811 | |||
Weighted Average Grant Date Fair Value | |||||
Outstanding. beginning balance (in USD per share) | $ 8.33 | $ 8.33 | $ 16.60 | ||
Granted (in USD per share) | 6.18 | ||||
Vested (in USD per share) | 10.60 | ||||
Forfeited (in USD per share) | 9.74 | ||||
Outstanding, ending balance (in USD per share) | $ 8.33 | $ 8.33 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||||
Net loss attributable to stockholders—basic | $ (33,053) | $ (86,091) | $ (103,013) | $ (167,174) |
Net loss attributable to stockholders - diluted | $ (33,053) | $ (86,091) | $ (103,013) | $ (167,174) |
Net loss per share attributable to stockholders - basic (in USD per share) | $ (0.27) | $ (0.74) | $ (0.83) | $ (1.45) |
Net loss per share attributable to stockholders - diluted (in USD per share) | $ (0.27) | $ (0.74) | $ (0.83) | $ (1.45) |
Weighted average common shares outstanding - basic (in shares) | 124,239,618 | 116,236,741 | 123,567,083 | 115,658,570 |
Weighted average common shares outstanding - diluted (in shares) | 124,239,618 | 116,236,741 | 123,567,083 | 115,658,570 |
Basic and Diluted Net Loss Pe_4
Basic and Diluted Net Loss Per Share - Anti-Dilutive Weighted Average Shares (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
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) | 11,521,700 | 6,460,556 | 9,728,540 | 5,753,120 |
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) | 34,150,407 | 34,150,407 | 34,150,407 | 34,150,407 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Apr. 30, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Loss Contingencies [Line Items] | |||||||
Current portion of performance guarantee obligations | $ 2,927 | $ 2,927 | $ 2,667 | ||||
Other commitment | 209,700 | 209,700 | 166,400 | ||||
Payments for dealer commitments | 21,000 | $ 31,100 | 30,600 | $ 55,700 | |||
Purchase commitment | 223,100 | 223,100 | $ 255,000 | ||||
Purchase obligation future minimum payments third quarter of fiscal year | 89,300 | 89,300 | |||||
Purchase obligation future minimum payments fourth quarter of fiscal year | 81,800 | 81,800 | |||||
Purchase obligation due in first quarter of next twelve months | 52,100 | 52,100 | |||||
Performance Guarantee Obligations | |||||||
Loss Contingencies [Line Items] | |||||||
Performance guarantee obligations | 6,213 | $ 4,539 | 6,213 | $ 4,539 | 6,753 | $ 4,845 | |
Current portion of performance guarantee obligations | 2,900 | 2,900 | 2,700 | ||||
Long-term portion of performance guarantee obligations | $ 3,300 | $ 3,300 | $ 4,100 |
Commitments and Contingencies_2
Commitments and Contingencies - Performance Guarantee Obligations (Details) - Performance Guarantee Obligations - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Performance Guarantee Obligations [Roll Forward] | ||
Balance at beginning of period | $ 6,753 | $ 4,845 |
Accruals | 2,188 | 2,485 |
Settlements | (2,728) | (2,791) |
Balance at end of period | $ 6,213 | $ 4,539 |
Commitments and Contingencies_3
Commitments and Contingencies - Lease Expenses and Other Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease expense | $ 755 | $ 692 | $ 1,508 | $ 1,384 |
Finance lease expense: | ||||
Amortization expense | 473 | 249 | 891 | 479 |
Interest on lease liabilities | 52 | 20 | 101 | 38 |
Short-term lease expense | 119 | 39 | 202 | 66 |
Variable lease expense | 288 | 235 | 593 | 468 |
Total | $ 1,687 | $ 1,235 | $ 3,295 | $ 2,435 |
Commitments and Contingencies_4
Commitments and Contingencies - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Right-of-use assets: | ||
Operating leases | $ 12,148 | $ 13,247 |
Finance leases | 4,554 | 4,085 |
Total right-of-use assets | 16,702 | 17,332 |
Current lease liabilities: | ||
Operating leases | 3,014 | 2,883 |
Finance leases | 1,539 | 1,348 |
Long-term leases liabilities: | ||
Operating leases | 12,527 | 14,005 |
Finance leases | 1,776 | 1,631 |
Total lease liabilities | $ 18,856 | $ 19,867 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Commitments and Contingencies_5
Commitments and Contingencies - Other Lease Information (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flow from operating leases | $ 1,758 | $ 1,319 | |
Operating cash flows from finance leases | 101 | 38 | |
Financing cash flows from finance leases | 803 | 439 | |
Right-of-use assets obtained in exchange for lease obligations: | |||
Operating leases | 90 | 0 | |
Finance leases | 1,359 | 901 | |
Leasehold improvements reimbursements | $ 0 | $ 225 | |
Weighted average remaining lease term (years): | |||
Operating leases | 5 years 14 days | 5 years 6 months 3 days | |
Finance leases | 3 years 10 days | 3 years 1 month 13 days | |
Weighted average discount rate (percent) | |||
Operating leases | 4.05% | 4.06% | |
Finance leases | 6.34% | 6.26% |
Commitments and Contingencies_6
Commitments and Contingencies - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Operating Leases | ||
Remaining 2024 | $ 1,787 | |
2025 | 3,458 | |
2026 | 3,240 | |
2027 | 3,304 | |
2028 | 3,372 | |
2029 and thereafter | 2,113 | |
Total | 17,274 | |
Amount representing interest | (1,657) | |
Amount representing leasehold incentives | (76) | |
Present value of future payments | 15,541 | |
Current portion of lease liability | (3,014) | $ (2,883) |
Long-term portion of lease liability | 12,527 | 14,005 |
Finance Leases | ||
Remaining 2024 | 941 | |
2025 | 1,314 | |
2026 | 825 | |
2027 | 481 | |
2028 | 51 | |
2029 and thereafter | 0 | |
Total | 3,612 | |
Amount representing interest | (297) | |
Amount representing leasehold incentives | 0 | |
Present value of future payments | 3,315 | |
Current portion of lease liability | (1,539) | (1,348) |
Long-term portion of lease liability | $ 1,776 | $ 1,631 |
Commitments and Contingencies_7
Commitments and Contingencies - Dealer Commitments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Other Commitments [Line Items] | ||
Total | $ 209,700 | $ 166,400 |
Long-Term Dealer Commitments | ||
Other Commitments [Line Items] | ||
Remaining 2024 | 29,358 | |
2025 | 56,064 | |
2026 | 36,904 | |
2027 | 30,000 | |
2028 | 0 | |
2029 and thereafter | 0 | |
Total | $ 152,326 |
Commitments and Contingencies_8
Commitments and Contingencies - Information Technology Commitments (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remaining 2024 | $ 8,518 |
2025 | 8,310 |
2026 | 6,787 |
2027 | 7,405 |
2028 | 515 |
2029 and thereafter | 515 |
Total | $ 32,050 |
Subsequent Events (Details)
Subsequent Events (Details) - Solar asset-backed notes - Subsequent Event - SOLVII $ in Millions | 1 Months Ended |
Jul. 31, 2024 USD ($) | |
SOLVII Series 2024-2, Class A | |
Subsequent Event [Line Items] | |
Principal amount of debt issued | $ 308.5 |
Discount (as a percent) | 2.54% |
Stated interest rate (as a percent) | 6.58% |
SOLVII Series 2024-2, Class B | |
Subsequent Event [Line Items] | |
Principal amount of debt issued | $ 11.7 |
Discount (as a percent) | 9.99% |
Stated interest rate (as a percent) | 9% |