NOVA - Earnings call transcript Q2 2020 | Sunnova Energy International Inc.

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Operator

Good morning, and welcome to Sunnova's Second Quarter 2020 Earnings Conference Call. Today's call is being recorded and we have allocated an hour for prepared remarks and question-and-answer. At this time, I would like to turn the call over to Rodney McMahan, Vice President, Investor Relations at Sunnova. Please go ahead.

Rodney McMahan

Thank you, operator and good morning, everyone. during earnings Investor and website Relations which be our presentation a at released will the to portion referenced we press posted release slide investors.sunnova.com, Yesterday, call. this of our

and are today and Chairman Executive Vice Berger, Joining Robert Officer. me Executive John Lane, Financial and Sunnova's Chief Officer; Chief President

of me remarks Private that constitute begin, other implied this statements. set our risks, future within statements Before Securities not forward-looking estimates, prospects. press and update differ or contain Reform by to meaning may such the results releases plans include and variety let uncertainties Such subject statements. such to the forth we the XXXX. forward-looking call expectations, in beliefs, filings remind statements and everyone of cause of and do about that to are We Litigation Act factors with Exchange that Such Commission. These actual certain factors and statements undertake a indicated materially from Securities duty those risks any could other are

turn a considered believe isolation call, additional Additionally, we measures, information A call which for of can most now non-GAAP evaluating be comparable release. over results not be The earnings reconciliation GAAP to useful discuss in should be found non-GAAP today's we our with prepared as this will or performance. during substitute the can presentation in in measures accordance will GAAP. I measure these John. of to the in our

John Berger

joining XXXX call. earnings you Good quarter morning and us for for second our thank

guidance. reaffirm quarter once our XXXX of year pleased strong another results again We are to to full report and

both growth and attachment battery customer characterized will detail, I our As base was quarter performance our by continued strong in second rate.

operating and operating to continue on to continue gain expense to we decline we operating a leverage. adjusted several in our down industry, see financial our And liquidity improvements result, specifically in customer per as and enhance drive a a continue basis, sharp of capital metrics, key our and favorable key cost As transactions the greatly we fastest terms. to all-in with evolving experiencing closing weighted growth financing was our on the average business by while

have on. technology, of demanded enabled industry embrace working model pandemic to such service that remote flexible head an accommodate challenge several on COVID-XX use virtual of meet communication required equipped the noted, we as the The and mega As our tools. is of Sunnova's increased acceleration trends that and the technology reliance marketing even well

energy time continue focused and the As remain these more reliable home to power and spending their is lives trends on ensuring mega they continue the in homeowners people use more electricity, using affordable. clean,

offerings, customers' our this to expanded storage you We our see dealer consumer we our appetite energy say an our proud rate. service are of another increased of and customer industry leading details the seeing attachment network quarter slide are increased growth. We focus will independence. which for helping boosted On manifest are our three, power base,

and was X,XXX added the This than continue in grow of XXXX, customers same what increase XXXX. XX% second in rates We at a quarter anyone in increase new category. higher our customer principal We approximately strong added in from in the quarter to demonstrate interest of macroeconomic and face growth nearly in XX% rate is year-over-year the from solar adjusted loans. operating increase These matched EBITDA, and received our in by leverage headwinds. execute the ability achievements to Sunnova's

business. low and each our which by who subdealers model, success geography in expert differentiated cost do a is comprise made was they the XXX dealers Our possible in because local

industry. Battery half established subdealers added of continued Their the model dealer attractiveness our to XX to successful increase. dealers in respond appropriately rates Our the to Sunnova first are of in challenges unique navigate able attachment resulting quickly also from COVID-XX. for and the their addition markets Sunnova's and XXXX. dealers specific demonstrates continue entrepreneurs in collectively

attachment XXXX to operations. recurring to is year XXXX anticipated profitability and be XX% on cash to QX, in adding growth, of in flow the our XXXX. origination our that rapid our We QX, storage XX% solar would contributing plus Our to rate the from increased battery and from

a As and remote services more plus sales our to aggregation. too grows, thus solar through of systems, customer number to does ability offer network storage even our so us and system energy operate allowing individually

in an opportunities, the For of which Sunnova, plus solutions an important of and charges, improving tariffs storage of time customer. a and customer, home of optimization charges, solar grid adoption management response constructive per flow and and EBITDA rapidly energy adjusted our per market wholesale all expansion demand economic use direction represents the accelerating of to connect revenue cash step is

four. XXXX provide are slide second summary Turning slide further We of quarter on expanded our which results, a five. to

and retains balance certificates total we're today, Sunnova renewable residual the on SRECs, cash on EBITDA, Like unpledged balance operating were cash adjusted flows which most service loans essential us flow gives customer able Our principal adjusted the By count, flow long-term assets from and energy interest at or and we and its solar utility securitizing build our and collect or companies, above other keeping to sheet. our our expectations. solar sheet operations. flows our contracted both sustainable our a in cash all cash value

transparency servicing payments growth business. flows, those which tax contracted recurring shows or cash customer customers, the of improve cash net strengthen provide gross on predictability incentive value, slide customers six financial table new on which The right represents originate GCCV, the customer and fees. layer of the and of equity we of our and As further another our flows

may believe standard from the energy the products existing out a blended and capital base we only capital also It metric asset liabilities of NCCV, excludes reflect reach existing also creation. GCCV renewals. cost It agreements, this and to increases this financings Again, historically analysts discount Both subtract assumes our cost renewals. and of markets, flow today's rate, all effectively complementary from many back other discounted our discount lower no We contract market rates inventory. translates would currently forward available PVX value, better a or Please flows. more the has growth. observers only Not future a values assumes in we value used properly future the PVX would total represent cash net capture others are and represents present directly adding X% accurately into level in sales, debt not equity our do flow To both to While zeros artificially today. further residual year-over-year customer industry corporate experiencing move it contract but our contracted note, services factor loan cash metrics cash that cash significant while sell no similar level PVX. and under use. contracted our that customers, it all and safe-harbored GCCV have are NCCV and and asset shareholder flows, value unlike our

the respectively. XX.X% customers' during changed behavior we customers previous our difficult to payables These June, results leads our and the number payment and of we materially provide to the onset us preceding to has call, further we collected which essential, demonstrates service paying continue economic the choose belief not COVID-XX. customer have XXX.X% excellent our May Since times During seen since and reinforce percentage XX of is collection of then, that XXXX months noted the of was months. in of April improve for XXX.X%

customers performance strong further by will capital, Sunnova's this reduces cash significant payment material a performance, our refinancing. flow financial of Additionally, have upside as on our impact cost it providing through

to continue. expect those economics, to stable returns see unit we continue currently and for As

unlevered For returns. over we instance, achieved the unlevered XX fully X.X% last approximately X.X% days, burdened have and

this guidance walk the energy time call to exciting our Rob a fast proud accelerating global financing world. turn of be our mega particularly and of created solar results, it I through to Prompted to that We industry, by the our challenges of XXXX in now In trends greater activities in clearer will storage ever spite renewable energy industry to noted space. momentum achieved of are cleaner the more residential earlier, over the the during think and the phased and and better is transition, detail. I of first a accomplishments you in is than cannot in rapidly. recent and the for major the pandemic than has transition the I sustainable COVID-XX half financial place

Robert Lane

to increased ended Starting million, June months XX, expenses received and eight. ended three to you, which in We for growth. a Thank with our recurring loans, ended XXXX, Also on year-over-year solar million principal $X.X on for service million interest the of XX, customers number slide recorded $XX.X the XX, served increase operations million and we run XX%, months and John. XXXX. the grow Adjusted June revenue thanks significant the which experiencing of increase respectively the of strong three also year-over-year $XX.X June customer was cash a was a full expense, our for $X.X months represents tandem three operating XXXX. to

While our of increased are our we in achieve base. and costs G&A declined connectivity total and is protocols relating to service change. and year customer able operating we to expense which operating leverage operating XX% on customer decline adjusted expense per by basis, adjusted demonstrates a clearly increased spite the as grow year-over-year, meter SREC of that are and cost replacement as associated expenses, program technology we wireless next with this sales incurring assure company rationalizing to This public

months EBITDA, an as on a lower trailing we XXXX last of compared million June XX% $XX.X expense Estimated interest three basis second XX, million our XX, operating NCCV full XX% adjusted XXXX. compared versus the year. XXXX. increase principal June using be of million the to of year up three XX, same XX% year as was adjusted together as X% project In in on much solar $XX rate, ended for XXXX quarter the from months million, XX, with months standard discount XXXX. full in million EBITDA we the XXXX. the loans, customer June total, June the increased period XX-month and the $XXX of XX, nearly Additionally, XXXX ended as received June second quarter $XXX per for the was XX% for from industry three Adjusted was approximately AOCF of XXXX will to ended $X.X XXXX

XXXX fluctuations interest by quarter. or to but hedge will from strong creation and value NCCV more three lines to Sunnova turmoil ensure along see COVID-XX, it a markets we TPO investors, project financing next on fees transactions to our will execute creation rate nine, completed will last $XXX in million timing Overall, expansions tax brought cause in $XXX.X continue the level in $XXX the million to breakage operated will we to funds, and by we has were its working related loan a million largely of again, value securitization, discussed volatility, equity several experience induced and Despite date needs two capital we multiple high on you growth. new time-to-time. the deployment transactions on $XXX.X expect some funding important quarters, over to debt, the new still our securitizations. to million what convertible of As in the capital equity The warehouse transactional financing reminder a to able slide still these NCCV and Changes include facilities, rules of XX% securitization. increase of third-party tax of seasonal financial that

and we XXXX and excellent June PPA rate on performance XXXX, securitizations lease the loan corporate transaction February finance was combination and able we X.XX% advanced securitization. financing an best-in-class proven resulted well transaction, pre-COVID demand on to balance current markets, closed achieve securitization loan providing our implied extremely Despite a recent received June XXXX. in still recent most structured most dislocation the rate our and of overall flows strong strong with a sheet, this prior of recurring and are XX, Our record our together loan pricing blended we and customer and our X.XX% favorably value services yield our in blended yield advance securitization. approximately basis. securitization to and on on cash XX.X% rate this This XX% X.XX% of advance yield track on approximately The on payment capitalized received the for XX% compares focus an to and

as cost their contracts. to and strong as contracts over of our grows, capital our decline, all-in market securitizations times, further of lower cost economic solar customers continue industry track performance service even to payment our in expect of to improve, as as continue continues the difficult as We time the are historically realizes move equity our markets record successful

As such, of company's flows service sheet the the quality of balance greatly. cash matter existence any recurring and

the Our country. of our decision further to the across into balance in was build right liquidity sheet resurgence this COVID call time

leadership allow factoring capitalization capabilities the efficiencies has us we leverage, cash generation infections inflows resulted it balance strategy increase As long-term aware, recently them much allows growth lead this are $X and in QX, value those in capabilities XXXX time, to we call. most end, more long-term flows and excessive for our our introduce business bring additional during sheet grow cash versus and announced the than more previously keeping assume market earnings to on industry same simultaneously. to million makes capitalizing products, faster an to enhanced the flow believe anticipated. off, year avoiding due spend We responsibly are the than of industry accelerate new us also opportunities as the uncertainty cash to sense technical we operational existed to At To all what seeing and further build consolidation. to COVID to intend economic our this

well-equipped navigate of equityholders. make bring to our challenging is times, closer to company long-term strategy common capital and to capitalization ultimate goal the to investors attractive us Our our more returning

XX. to slide Turning

You for XXXX. year will full find our guidance

As loans operating solar from million. $XX loans payments to XX,XXX; cash $XX again from John guidance unchanged additions reaffirm to of noted million; at principal XX,XXX million million EBITDA to $XX the received million; our they adjusted earlier in to received $XX pleased of of we're flow for as revenue million million; recorded to in $XX customer to XXXX $XX remain solar of net adjusted ranges once be call, of interest and to million customer of $XX able amounts $XX

from upper year, continue full we the principal our to loans we expect trend and towards adjusted the received the and EBITDA interest of solar the to For end guidance.

projects strong of a market and as the warehouses. in including of we guidance XXXX. to our believe will asset We an growth, improve our utilization borrowing during XXXX certain and in result growth capital interest, securitizations also and we investments guidance our next time, note efficiency to to structured into This expect cash the We second convertible range. as working increase we capacity the AOCF decision to expect have the finance our call. into due elected our well number in continues factors, marginally of of the our our impact accelerate At trend our and growth year give delay to increase end for spending higher growth, for half to that in same a operating is the flow adjusted lower of growth generate XXXX currently will our to earnings

to provides customers loans customers, model comfort future giving guidance. as XX, into visibility the our targeted Our principal business have excellent from XXXX. cash XXXX and flows, existing from of locked and our now revenue retaining us of interest solar of mid-point we By reaffirm June XX% in

cash five and customer at Any that years. we that continue expect $XXX assets will revenues, we next add of and perspective, solar XX% revenue turn, additional technology some inclusive approximately reflects our pre-COVID. customers regarding what growth target the We layer For SRECs customer principal of to in in million add annual existing XXXX. for our are provide growth over and and least inflows expectations target of interest XXXX was of inflows, cash adoption will, This customer loans excess from introducing new will and of anticipated another our

to operating model business and base customer expected continue leverage. industry leading produce is to Our

XX% to and decreases operating least Annually, XXXX expect reduce in between in at expect per XXXX, we costs, by to expense XX% approximately another we year-over-year customer XX% replacement meter with XXXX. XX% XXXX even see XXXX. result, of a As our and to adjusted and

provide ROCF want revenues debt, cash is around flow and less principal debt. and level some XXXX interest to guidance, securitizations and interest the in pay addition loans recurring color from solar quantitative permanent ROCF. including In previously released reaffirming or year on principal to we operating full we our corporate our

We approximately costs. and annual expenses account out SG&A for which related also of allocated together subtract cash service XX% overhead, service and our

of insight taken ROCF debt to holders. related created mentioned, flow into a how view operating creation gives by risk believe clear fully all of cash on the greater expenses. which measure generate our investors equity leases previously increasing and at of cash and sales taking debt had debt versus or is value looks our expenditures then a Together for consumed with and ROCF are we assets into NCCV reducing of are operating important after captures or ROCF gives more and at PVX, are after performance loans expenses. PVX, leverage We able into and securitized service accurately service our assets permanent basis, capital account. after costs neutral financial the existing at our flow we John As and less investors new cost more our an account

growing of trend and but right. the will to a to up As working a be consumer net expect to the we ROCF company, continues in capital, continue be to

For million. $XX full negative negative year between be XXXX, we estimate ROCF million will and $X

As we long-term historical can see, focus is scale. near of a industry you positive recurring approaching as critical milestone cash ROCF flow our on

be to positive Looking forward, ROCF beyond. in we expect close in XXXX and our to and XXXX neutral

costs, except for in positive would expected replacement fact, we In XXXX. have to meter reach ROCF

this be moving industry our structure growth John through of to in cost of macroeconomic Our and cash at withstand more suddenly turn capitalization utility cost back driven the infrastructure storage refinance are to drop, our important believe ability now terms milestone much future I thereby residential our provide call to signifies and will hit unique over towards solar we largely the that is favorable this increasing ability Thanks investors. to remarks. to structure Utilizing equity. closing which a the flows utility political continues assets light to we challenges. service stable in this this a industry capitalization familiar strategy, to more as can model, industry capital, global contracted our is phase should and by of

John Berger

Thanks, Rob.

have experience business We necessary the growth into liquidity growth model and the continue fastest to ourselves to the next industry and and with its beyond. exceptional year in armed continue

the see only a Sunnova, are We keeping on momentum operating expense of tremendous recurring our not is innovation residential and on opportunities point social to and achieving achievements critical service consumers driving the From commitment storage long-term cash energy to and we economics solar a serve, to at our business responsibility generation. a Thanks a is demonstrated focus scale solar wireless to our service have communities within we the we social advance our in within technology enabled ROCF company, focus, while by in are At sustainable priority. able growth, for way now our Sunnova, top consumed. achieve at and well-positioned as customer unit value this reducing stable, Sustainability positive to and ourselves reinventing practices core projections. and corporate been these industry. the change inspiring basis per as a tipping generated but united company, power maintaining we

a are the people change and the deliver world throughout company energize We way to lives. their they that opportunities will

change will With We dramatic a for global will reliable customers, line we better. that operator, our focus our create for that, a and our a transform local this to the vision, serving open the on world future through please stockholders. the to focus questions. relentless energy aim lead endeavor a With and dealers,

Operator

Ben the Your Kallo [Operator of from comes Baird. from first question line Instructions]

open. line is Your

Ben Kallo

you an so for congratulations guys. morning, year. and this Thank have three far I Good update questions. Hi,

rate do maybe XXXX, flows. this of can said about you think I John we kind good through you for you cash Rob, contracted done you heading we disruption have should help about any look talk and looks you us you're could And seeing and How as think and we So, year But from me your set kind -- just And question. growth this lately just what it up the out. there? for -- XXXX? First have to us next is of what -- into year?

John Berger

take I'll it off. turn then question the finish first stab at This Rob that and to is Thanks, Ben. to it John. to over try

last continues seeing If to are, even customer now remind you we already for us able we strong growth that. the comfortable growth. we're days count at even -- starting you're paying say I customers. and we what running And we're forecast in term count amounts equipment would be quite rate conservative as that origination that at that growth weeks, referring accelerate. would service everybody, we I at, few installed, business, we overall of growth just would I we're to a few to hope raise are has than that the very felt which achieve originate that that more customer And rate a and to rather of the XX%. therefore, XXXX. means over the think being to right to And there and just nature given And the to longer

for Some next that of XXXX. goes it really this into month, certain month,

So, the the and way really enabling visibility years. conservative our given again, we've counted is the customer, a visibility forward lot quarters particular metrics, model of and our the in have to into us forward

to in that, all And things excited at talked I'm growth phenomenal going really recent growth industry. about those on. We're our see the got here, opportunities. opportunity lot enhance that's -- We the take a further and see the in other really, of given we consolidation. going especially time, point very this industry going to we an across. We've way about so,

I that had growth there talked growth. up … our our a about we Rob, that you to lot see the can if dealer offer not dealer somewhat you can in higher be than would out should continue see past. You in And if higher,

Ben Kallo

that being consolidation. the that good this reported, is gas you? especially you a versus storage we've then just storage. just And is did -- of maybe for get competitors? job think have cash you How than higher question have since for should why uptake you deploy. on and you getting M&A? but We And your lot, raising we growth cash On uptake Great. guys impact third organic been Thanks. to -- that a about How then does

John Berger

Sure.

sure growth look rate things, of we for States. -- visibility United and in growth already on -- would shockingly, any rate. is we're there's to at M&A growth we're we the very starting do But because numbers, additional GDP I keep industry, next raising have kind obviously economy. of anybody account a again, those We to has basis our And the always looking look products, continue a would cloud all rapid else We'll look there for we we can have cleared just the think comfortable number such of as significantly storm growth. in do can of on we and so be talk years as growth of the as growth see dealer tell coming couple which customer at in opportunities. of largest our earnings think into grow rate, services the this the the I far kind had why in we're look, we look make put confidence our could I we that M&A opportunity base, guidance we and which overall the lot cash on, to say very the acquisitions And I don't you able growth at later sure side at feel in higher continue forward got for XXXX I'm agree, going of with macro if certainly execution, on actually higher grid at not than our rate. what clearly, way to that terms nominal as to is, the in model, technologies, cash, we're again, to it at storage, are growth to The is, reason lot call so. be about is that achieve not that to instance, we you that the and and look else position, with forth. to we don't any need continue a On

And so, we're conservative to maintaining position. cash going be

that making was our we that at accretive position. anything sure that we that, So, making certainly would and drop would certainly sure didn't do, cash look

will to position. to say grab I'd cash going do So, great M&A use And that continue cash our position. growth. side we'd a that We're the we anything of respectful organic on to be

storage terms come continues me and We're to bit the In We're demand. it to of out. great new a that zoom yes higher. that's seeing Generac is there frankly, attachment We've in doing aggressive surprising is technologies technology. seeing lot we're rate, of dealers a improving new a there of network a lot got the seeing developing rapidly the turning, a fantastic interest. lot out technologies, out and Generac job, of consumer -- very And family.

I season, very obviously, has already. storm active been think the

worse my lot look, can my is folks of we're And we're power I COVID, of very basically in imagine of say, in house being the my unfortunately power. in a gets call, that reliability. terms without come particularly seeing house and lot stuck You interested with the only as in in folks being said in stuck previous a thing stuck -- being

and continue the Northeast, is in we very Rico, in demand. avoid hurricanes reliability of lot a interest seeing even to in whether so, hurricanes California, in strong And Puerto hurricanes in there East up Texas on to the in Coast see on Carolinas Hawaii, wildfires we're it's Florida,

are about better I good and -- smart I'd think, very dealers I moves think others -- our doing is selection there, our Tesla, why as what out it on, we upon and and of technology and really entered. others, execution years Generac highlight early also than I geographies say company. way would the on partnerships. we very

dealers and the out give is pleased attachment -- to my enabling those there storage. achieve that team accolades and to really I'm superior rate us to So, as as far

Ben Kallo

Thanks, John.

John Berger

Thanks, Ben.

Operator

ROTH Philip of from Capital. the comes Shen question next The from line

is Your line open.

Philip Shen

dealer And your -- dealers your network? bigger folks your something than less K specifically shaped bigger just pattern everyone. the well. a this been so, pronounced was faster doing the growing are seeing if network? Or not with the Thanks I if Hi, much is guys suggest that of with maybe for dealer and similar smaller you're in in getting smaller the curious questions. all? does this seeing We've as the big solar, recovery at

John Berger

Hi, Phil. Thanks.

to run individuals we've seen well. that ones I some versa say, and bigger to we've those struggle. grow seen And regions as And it's and then, there smaller excel then, haven't out specific seen would certain more We of of companies frankly, much vice seen kind companies. We've that more dynamic. really certain couple and folks quickly. really a

don't folks was -- you size. of of across tell a lot we regardless through I our anything strong do installer don't a the so many April, days rebounds think how dealer point then would those the have how that. if Northeast And in forth. I right? locked were recent you're cumbersome forth? that whether can again, people again, dealing regardless go early big New and Where any big smaller. then than the the small handle to let bit I growth board go recovery the And So, bigger that if with maybe figuring is size. March, think to And did suffered better down the be big is, on so certainly that? So, basis, with such sharp What in this So, anything, to were area, as I in saying or places and lash, We the right? that demand And strong out you see the you even sales, so If on would have how you Massachusetts, pandemic, industry activity. see will. really that seen continue May, in going the of and you York, of is

Philip Shen

Thank, John. Great.

and are Jersey like for a it challenged in yeah, expected York -- QX. bit as little So sounds you New

for it You now. Puerto are like to In see recovery it was strong Rico, starting that you. very looked

could by region, what bit perhaps, comment expect ahead? So, little you a you more

John Berger

-- -- was southwest We've west. southeast the Florida. yeah, island markets, very particular, and in That's strong very the weaker and strong seeing in We've Pacific and growth the the We're in Caribbean. it's and in had in QX. again, Yeah. very growth growth we've reversed strong Texas had relatively enough, had itself. both Interestingly Northeast the

southwest So, specific, we're basically lot in growth would timeframe, be been say, widespread in here, northeast, the back, April, that west, time locked much right? -- of a seeing mid-Atlantic, prior pretty it's May to I period the the reverting we're growth southeast. So, down more but the the and particularly March, May was after, which

Philip Shen

Thanks, Great. one, One if John. may. I last

XXXX, expect no some as of may larger fully be of of your the are on Do the constraint be Or given constraint? there? do players thoughts see to allocated you you tax recently equity that had into potentially equity equity? we June. end do the or Looking picked tax a already you What -- up XXXX tax think through

John Berger

maybe profitable most tax doesn't is of should was equity for to concern Well, residential to way happen -- equity I this broad for a going that providers gets point service back terms Hopefully, that on tax though, Residential don't the refundability then first bill I hopefully is the big It's market. in a the banks. side. to that is, If go think anybody. basically we the the it. that the obviously bigger, -- gets providers of in congress right it. -- that comments two about now are some that my is ourselves, in are or addressed competitors need probably And the of anybody surprise passed. equity huddle to one We investment going prior in going credit. banks through mid-March and tax have scale the our like make have as country the and one tax those that's the with would

you're the be business think just further, crimp you relationships. be drop about the And is that and tax they folks that, very to up closing I've good more that, banks get are our I given relationships we're about do are with to a what And tax new and little And a assessment. still right? not. tax on your of ITC agree our able with equity. our going said loan going feel about I Probably we scale to providers, the in agree that much for is, picking to as don't equity? in want looking equity? still very instance, confident huge we But Then only for any. allowed far as for concern so, We the to really still if feel that's very beginning it, have it Rob, talk I

Robert Lane

Until equity a customer. closed, cash is tax in tax Phil, the not equity us. a flowing, say, equity fully a Until it's is fully our either. for closed, just for a service tax would that fund treat customer customer not I is like Yeah. and us that's fund we

maybe So, than more a on think of look of that are the we they slightly, to fruition. commitments inbound been XXXX some were And we've aren't forward equity that to have they on tax folks a we because coming bit lot have expected. of have XXXX great deal are starting already actually a a lot they we frankly, projects closing. realize And to than getting I a more of lot of who little counting going to

fortunate we've a been way. So, in very that sort in position of

tax very market about as to we're Sunnova. to feel deploy relates good going So, to equity least at and continue the

Philip Shen

Congrats Thanks, Rob. it John. the Thanks, I'll and pass execution. on on. growth

John Berger

Phil. Thanks,

Operator

comes Lee the Sachs. Brian question line from next Goldman of from The

open. Your line is

Brian Lee

morning. several doing taking the I everyone's for here. Thanks well. Good had guys. Hey, questions. hope I

one you confident to quick say now can on that Was that Did inferring so, have you And comment XX%? XX% mid-point right John, XXXX? XXXX, like year, are be new grow or XX,XXX I raise a to clarification, in would I you the XX,XXX one that to if are or the Did -- hit customers? you Just question. for that an growth read, you XX% earlier that misinterpret? did the rate this

Robert Lane

about as well. right No. That's then, And talked read. being that we XXXX the

our or you expecting you midpoint the about in currently that it those XX% X.X, for XXXX. either low I say, around is years XX%s. to for give -- whatever amount XX% the you would say, take multiply growth average The an if the do the on is yes. So, appropriate -- XX%, this or would guidance math, times and XX% that want year, XX%, to multiply we're the That of XX% the

So your right, math is about Brian.

Brian Lee

Great. Okay.

be that. to on clear wanted Just

mid-point and maybe if about so, XX% through think visibility mentioned current year, revenue we P&I targets. of you the the And

no target or these since either in I originated there. of so for with also growth and anything would EBITDA increase contribute just year-end presume, through why XXXX And guess, I customers am wondering QX I year? for missing seemingly this wondering the accelerating, tightening before now the XXXX, just So, ranges being will ranges if given visibility the

John Berger

and we that have we We range. range. point in probably at And is. could Rob the did fitting time, keep have are there No. it tightened forecasts we folks It's And various out just range. to as have that within by I, this and different already felt the that like discussion relatively tight

call. maybe next interest and in plus of But given math the P&I little your this from industry see is so, point up to is EBITDA to time, that Rob tighten more and spending, some obviously now at in opportunities just bit, will we the there as adjusted costs clearly And with converts of And we speak recent a earnings look trending did right. to consolidation such. out high-end our some the that

cash We out. will bit as spend little a we of laid

And so that trend it up. end towards But of may it. could probably we the AOCF tightened again, bottom have

call the bit I We about next also range give in think, tight tighter And in it just XXXX that. call. give we'll that's the earnings earnings fair we'll like little you next guidance then, was felt And enough. a out criticism.

Brian Lee

you on. net slide just pass This if pretty then leases system and great. at in one decline around of in focused metrics growth, the one's XX customer seen provided. I'll just enough. last you a a deck, system consistent And -- and I question it value per have but the the PPAs. on value not look Fair That's Okay. had you

moving a And of Just of baseline reductions should seems Thanks. that in of Rob here you growth comments that, your is direction. line a going forward? value It different and wondering -- around we I thoughts to going OpEx trend? are all what's wanted expect making going that just get like in to the forward to that there off there. the kind able this some with was be trend make should driving be

John Berger

Yeah. a I see can give look, state that we think per But also anybody else on pretty number. a say does. would that breakout -- basis. you don't detailed I in

use as of last quite and of to basis. have drop years as we the a or some so couple overall over the is that. We That system so. You value. that fairly more more quarter-by-quarter was a But terms The point small, got on decline of would tax favorable needs, the went to more actually displayed quarter-over-quarter. I bit of up importantly the cash would net more variability reasons we I equity, say, one

And so, breakout. is just this a subset

smaller, smaller anything to going do smaller then to variability, get Rob, start add? that's you have more definition, some database. think, a I breaking are and So, when by you metrics out and you going on just to have create

Robert Lane

be on you mean hitting we're our going a timing But have to sure much to covered on in really there. some that we're variability I tax pretty with right to our has look have we are at lot of -- that has right attractive well. snapshots does point, there's to with we to I John mean, our getting pro forma equity. John's mean, seeing quarter-to-quarter. give affects that I And of And just from lot products unit And a timing to No. returns going certain loan you're as a deployment. things Internally, things. economics. of it metrics, to do variability think, do it make certain and I basis see

John Berger

And lastly, unit returns. seeing Brian, we I stable that incredibly is would add are is, economic

fully costs. then, capital that As I X.X% flat about working roughly on the with unlevered about an stated, and quarters. all unburdened, the interest last X.X% sales, direct two burdened cost a fully of and was return the And from the

have economics. in really honestly, So, change a of not, the seen much unit

Brian Lee

increasing Maybe to batteries have talked about you of some can know the over is care and great fair. near That's I as your and sell this investors a recently because medium and quick maybe follow-up, term, Okay. talk that about peers services. metric just more a about get

moves higher. the And value customer of each so,

able more given selling? well, some of terms that I not that a move that why with it the at you the you would would the about in respect as seeing should all be are are what extract basis and you industry you seeing So, unlevered broader up know to value guys? customer same an question it's per per simple be to true dollar tailwinds look from But customer is of not being on percentages. perspective, for returns

Robert Lane

Yeah.

full look at about XX% from We dropped it in that customer, expense We've that per would say we got XXXX a our talked good are. that. And And to adjusted XX% down you I moving pretty XXXX. if operating year-over-year. visibility

be reporting about, right? that in on the other basis. why a absolutely per and we're So, our absolutely which I needs we're overhead, right of talking the out expense seeing terms on that. you're So, that operating firms into -- customer of decline to competitors most the in taken burdening is that's are what And account adjusted think

John Berger

mean, a those consistent to system value. additional But And systems. not we're our including trying within whole a of to your keep we point, I lot value net a there's just in the are not very definition include our value, in strong given which accelerating. capitalize is on that And very does that battery we that. are position to strong very really certainly your option to point position,

Brian Lee

All right. on. Thanks guys. it I'll pass

John Berger

Thanks.

Operator

of America. question the comes from next Your Julien Smith of Bank from line

open. is line Your

Julien Smith

Hey, team. morning good Congratulations.

John Berger

Thanks, Julien.

Julien Smith

Hey.

a all on follow-up So, just I items to wanted here, around. of couple

over do let off, put How -- way. me cash Just guys you first either briefly see providing appreciate if flow that can can, time? So, the you this comment that. scaling you you new I metrics? on

two trend? got cash How show -- a if even preliminary here? I impact going that that of factors lot the can, expect The think here? shows to growth the either in lot And might of doesn't mean, cash transient that flows to a then you on. have you would recurring of I how do about growth. perhaps guidance years It related that, those guidance You inflection. you provided of

John Berger

Yeah. Certainly.

said flow, be opening the comments, take to terms about So, talked his And including we've a continue included about of asset flows. as the this corporate amortization because debt about of those of cash the in at all bit have all whatnot, we little clear those operational to continued or the cash expenses, gives be a and recurring cash very ROCF. Maybe picture, level out, that then leaves Rob the And is in really level other growth neutral. that but in and neutral.

go conservative ROCF the positioning spending converts to not metrics. cash So, you to has it's right? us picture. basis, all point. this to we're I'd going to what what so picture And is, equity. that There's complete going the if we taken the and of complete Today, I included is what say at penny view. to expense the that's included the liquidity of on matter, metric. flow a company. the on that more at the on two no a look Everybody that's look It we've really a have gets fairly those is forth the And common is you goes And we've ROCF would it of interest in

of out. -- So, and full replacement some from meter we a cost year XXXX. footnotes, called of XXXX you right, that XXXX because And The that's on just to may versus tripled, slightly more we've account. a burden meter then XXXX, down replacement cost the look if on have that why --

we which moving messy, -- upside -- included I picture for say earlier, took footnote and fairly do so cost nonrecurring an more than didn't just the pulling in them flows expenses XXXX. can think replacement trajectory. to and the the the of cash is get trajectory ROCF the those What it out you as obviously, I accurate, the playing we're accurate achieve, they're of of you a gives gets laid can would seeing, So, and there, we want clear because company. potential just is, picture in of growth What and I you is out, additional a into if more we already a out, games meter of I think start that

flows growth So, base therefore and is cash conservative. the of customer estimate the the

X%. Second has, traded twos refinance and sooner the response flows drop we're A ago can forth of costs interest days We these that is given few now that those think, with point an in have one secondary expect this growth on cash our -- entire all seeing, at in due all base a the of with so out. than do certainly can down terms stock just then converts our no especially and execution, else that time. we're securitization, our I we And those to we refinancing. in in that, seeing the price converting the see maturity our road We

it was X.X%, like think, X.X% interest. I

we're in refinance to looking probably we debt forward this starting So, what to cash our further year, add lot end is there. of and of the next certainly flows year a to the

we So, that strongly trajectory that trajectory pull of XXXX leave going that did out? -- see even I Rob, positive there's into faster. think slope or up leverage pull pull to anything in already that be to to and ROCF. able We up

Robert Lane

No.

is But replacement by that that in highlights. of the I think be are the that XXXX remember that hit those should and biggest the XXXX. costs thing completed are You end there meter to

more -- expect out for that gives mean, and don't runway. And then we which adjusted the -- XG expense in XG it also trajectory with the our operating us tightening with swaps lot helps up of So, a I per meters, customer.

strong operating correlation So, continue assets. expand to a you're between going base of see expense metric adjusted to that per the we and our customer ROCF as

Julien Smith

might how impact know also if such talk that drive the an timeframe? the real expectations, the talk guys, liquidity here too? driving the incredible What is difficulty] XXXX, about expect The if this Hey, to I is merger you [technical driving dynamics come Excellent. into quickly. front. -- Okay. had the it dealer -- latest to acceleration are your this about to space an company back there. I'll -- pandemic But XXXX you? it What's Can here? necessarily you I with? backdrop. deal obviously dynamics them geographies you and can Is related. And have related you -- Just in can in pivot don't seen that that that to continue I maybe dealer to does Is on acceleration type their And adds? to guys leave

John Berger

What We're is industry, financing about portfolio seeing the Julien. -- broadest and right? it, we're the product Thanks, agnostic. we've talked Yeah. we in have

lease unique then our the ones our have great We technology that And that balance we're sheet. in only right? or program, So, got it loan our PPA, ourselves. regard, in we've partners. -- only all all do We're

is cetera. to join lot partnerships, continue the these and so is a product a contractors speak. of really we add built dealer want to sets, family, Sunnova and of where in very together really that terms et of all effect as to to become well All having -- all effect, an this for So, obviously, positive

so, And rate. the growth strategy that's been our that's the dealer having just of continuation

think, I was right around public, it when XXX. we went

see pretty So, increase. that -- a significant we've continuing. trend that done we And

executing So is We're that strategy working. that on strategy.

it, think really think, I going you I we the when into that you have drill significant industry, amount continues. on overall, a consolidation of and think

leased having being have. loan position problematic For instance, that's I to PPA, provider and I think only a a really not think

of And -- our that, answer one terms whatnot. a or attached yeah. would say our your To battery in or directly of question some a merger PPA or the about competitors, of It's to positive. whether competitors I access that lot so, plug process, have products see a dealers again, loan one into lease will, and these want if we operations it's all, system, a all a you

terms to resounding terms we're you. for period lot have of their how of a a say, out balance going partner we're hits of interest having compete And a on would folks there It's speak, that's sheet. contractors of to focused they been lot stay dealers. that for with compete to in I on it level the be of us, a say coming and I long think is been to that's dealers. not -- onboard pretty and a of that in-house, us so to going has Here with in installation the I attributes mean, time. origination, problem

the sure seeing wanting array, that consolidation it's product as a really successful of achieving a find interest of in them with lot the the the time, over broadest making all has we're dealers that and about the lot success. industry really are So, a and doesn't of that's and period a home compete of to more result long more

Julien Smith

Thanks.

John Berger

Julien. Thanks,

Operator

comes Your of Suisse. next line from Michael question from Weinstein Credit the

line open. Your is

Michael Weinstein

morning, good John. Hey,

John Berger

Good morning.

Michael Weinstein

Just a follow-up question. on Julien's

-- that sort dealers their of on also they're get their in be have platform, you up that a saying versus against accelerating guys the to dealer wind result trying are that own as -- you competes think favor Sunnova guys a that competitors of that people your you So, against competing other platform of that might against might you adoption them? that of

John Berger

it a had that's think space, dynamic, out on is going the difference. made of been new that's the that's out and have is opportunity. to Well, a a I'm a of not period some think, the consolidation know real so, it's then those both out not new that I simply And pointing And something We're -- that I of right, us compete sheet for because model, not our dealers. there. labor that's in pledge. go both we're long there sheet. Michael. been focused. a right? to mean, the on not competitors great going for We've commitment I balance labor time, that We're to dealer and have with balance I

out growing And of dealers so, number very attractive that's to a there.

to going will. lead consolidation is it us? greater to Yes, So, for growth

Michael Weinstein

the for said that opportunity in of one space would Is M&A the talked You that create Is the you that opportunities the key that Sunnova. opportunities? about?

John Berger

part yes. it's think, I of it,

having attachment it the and other rate rate the of in I growth witnessed as the attachment highest technology industry. by is storage think, part our

point whole. inflection another as a that's think, I for industry the

therefore, it really us And we growth that's that's in our on and it so, well, helpful on to as others terms of don't maybe as execute execute -- rate.

a growth be would is far as I as for change, understandable, definitely us rate. as technological So, think positive

Michael Weinstein

does inorganic market Just into at dealers to dealers? growth organic is dig compare the the that that within to acquiring XX% coming And the growth point? overall this much and growth how from growth target, more how the of XX% of

John Berger

Yeah.

out target that's to industry is is of rest talk industry already optimistic. going feeling now tell again, we only I it seeing. the The next growth not we're that My too But I'm to on experts type can terms maybe we're again, compares and as by positive about in our rate And me overall of thing what's much. do experiencing it sure. laid growth really but there more for what that far going like level a is currently. growth the as And to think, overall, growth, on of not the maybe of out you I'm year. rate. I entirely in

able being is is So, the new to growing. still why still large A very is about that's versus XX%. have of -- much How good that part coming I -- dealer existing base that the base feel XX% off say existing dealers? we

much get growth difficult very to it's law of rates so, really And more can the you're It's to of Although, you as out if it not big, going appreciate grow, becomes the the right? and as of of dealers will. your numbers you the some see bigger just beast, high nature dealers.

we're products more our dealers is ago, product so, for what a seeing the innovative dealers to of more And -- that opening and of more sell more verticals, new that more and terms into. driving more opportunities, minutes is our and just I us couple in about more you spoke issuance and again, up to will, if

And yes, again, is expected we're portion attraction of higher expected see good products. continue portion growth will, dealers. our for say rate, new that And a if And good then you to I growth, higher a new and than dealers. another of would so, is a additional seeing

as upside dealer to is get of if and the So, faster of dealers. we base that's expected a the where you more and another third rate, will, new from new verticals maybe new product, some Maybe a a the a new to we another see, growth again, third existing consumer addressing understated growth traction could than growth. dealers third XX% that is that as therefore, is and continue

Michael Weinstein

expect needs Do don't capital you equity things? Your period. to from Can mind. And point to help last fund you forecast question, XXXX? through need about some if one at talk -- you

John Berger

Yeah.

out like which collections laid I alone where with storms. our think withstand and comfortable -- rate, don't Obviously, XXX%, in raised equity are capital in the needed we're look we year-over-year. at you improved We means And to stunning. -- that. We actually call last over are. we've we the markets the That's right,

of the of rate. impressive is really rest industry kind the that seeing collections think, some I of

further all capital. in And our of that's very much faster than that's had down expected, positive. cost we driving so, And

capital means, that's end So, anything flow, less up there's this take needs cost this previous we less. through With that way very the add comfortable look it. I our the that? all our point -- stated said, if in coming feel something earnings focus and think, next drops a point this at attractive in quarters to where at time, need equity as very at going comfortable to which we the do, as we're and in of time, are. to we'll want in refinancing we Rob, debt year obviously you to call. free cash of to We're more on we going more that's and But

Robert Lane

No. point. to John's I'll just say

the on rate we average that market, it on yield we from been weighted sub three just But capital our have continue dislocation cost at in of the yield call. mean, not the our the advance with about off meaning to talked just X% even of face. I see little actual on our rates which all especially financed the securitizations, even basis, of yield the fluctuations the little with we falling the a transactions, falling. to bit see that high last in in, of the You a continue bit debt we're the receiving, took a side

lower And on a relative the as trade then what's recent can we even actually in expect John you was our open that see usually, to to So, And transaction to continue. trend continue it's price yield, we said, that these most you the -- priced most -- market. that. things see -- recent at to the

a perspective. our with So, that timing market proper fortunate approach working securitizations. to to we're we're want few help be very excited about banks the next from us And

and of feel secure warehouse comfortable on our lending could with So, think we've I that have And that we had plenty capacity. very the are that's we we also thing a conversations based big partners. more

do day be expect able opportune had at for runway the plenty flow So, been first at them our in times pull able really last the that of of advance us. most those we've to And a got the couple structure transactions rates markets see couple we're of transactions there And to one of we to strong attack to cash continue. on to out things waterfall. so

continue as approach forward. we'll take to move So, we that

Michael Weinstein

a Thanks guys. lot,

John Berger

Thanks, Michael.

Operator

of next question Paul Coster the line Your JPMorgan. from comes from

open. is line Your

Paul Coster

question. my Yeah. Thanks for taking

I think pretty been growth has widely here. addressed

democratic However, XX% that Do coming upon to. any reference that could in haven't of initiative context that through. should new John, efficiency of in this that CAGR plan something you like congress of the expansion. and part being benefit of to then Biden rooftop there's possibility the perhaps made see in sweep the the Looks geographic energy also regions? XXXX/XXXX you comment And you as

today possible for some instance, not from to will let's are really it perspective, make appealing rooftop expand that which solar So, say, to a Florida? regions,

John Berger

Sure. the Paul. for Yeah. Hi, Thanks questions.

that of I health COVID in crisis, markets enter interest year. growth. very we're partner, We're real some we in terms a of First that in thoughtful country. kind say terms given of of all, economic, growth. successful where So, in are that that think time frankly, in something do it point with at obviously, need been for some to both our going outside business do types those of right? I the the the makes past very on not an don't we and interesting that. with -- would built Certainly this those expand have adding But additional that And we've We're and model, we don't can to real sense.

very those So, But be to our the do not will and continue industry we small. see amount, Maybe now, probably we we that growth certainly then, Paul. but a But by it's expand a industry some in growth, heady U.S., someday talk terms nature. right, more need about obviously, wise small geography leading growth. the don't And not will just to smaller when be inside geographies that down leading be few. the say thoughtful. take international road. step. year enter of next we'll that. I'd It'll in we'll first It'll And

states, kind will. see goose to down, any which until to I really So, in going don't just I try growth the of into rate, that clearly, rush time see I'm to you -- not a be different the go some soon, slowing up if to

it the know obviously, And company the of look, the we'll election, go of think is be shape. good way us, having well. In harboring to outcome forth, on why, that regardless wise would the be as could in because say and safe loan where that more slightly -- a as be policy, side, but so beneficial is I positioned, competitive it versus is terms can are the cases enviable the some to only other of extended, very the that November I there I into of position ability details ITC competitors

issue, numbers it, we're if that saw to something numbers the we economic clearly about very crisis, need the about we're And just republicans to we GDP creation. need a in I do especially you that of republicans think there's understand we understanding understand be creation be change. you saw of given And blue this unemployment given few the lot state we that to growing that that energy pushing given seeing climate and -- that democratic extended. of ago, a a that. not a ITC but will. that And lot minutes job a -- job That lot here hard -- is a So necessarily changing, that would a or is business the clear tell I solar

an that seeing White you And and economic so recovery when you're get senate and package. I you in this? and and you House, as existential a not can can to sense think the back pandemic. do for jobs and the next solve Why lot both overall can republicans, of what recovery in house maybe say, And part work this global people makes in This the crisis create of from humanity,

either obviously, what way, shape it in like, So, so And I election can us getting we will. the good looking if industry. think to, an behind as we'll you we're forward be see looks

Paul Coster

very Thanks John. much, right. All

John Berger

Paul. Thanks,

Operator

line comes Joseph Your JMP next question the Osha Securities. of from from

open. is line Your

Joseph Osha

it. made Good morning. I Hey.

John Berger

morning. Joe. Hey, Good

Joseph Osha

for A questions couple of you.

give thoughts First, insight there. one I'm might or Thank services little on grid you growing of alluded just storage more I and assets. have a us have earlier some two plans others. to base you rapidly then that wondering you your if you. into the could of And monetizing

John Berger

Okay. Sure.

or while. about earnings you on working to is more in next the things some if that services And I'd what will. backlog, a been talk have for do grid call. pipeline have We the do We in like detail on

better -- are the is think follow. as included I which, certain customer I I informative the not cash in about is forth. having I terms number the as We're of a that's going more more a And a operating and been lead to and up going big sometimes and to technologies number there. we'd we're flows It's those technology our clear by And -- in up-selling only about We're matters customers a But being out sales, be yet now and grid and in the think, customers right it terms of it. one company way batteries, of certainly we working the have doing. count. way, I to others our something quietly, And think and commercializing. although, that more to of we're to more actually so do with is supporting of we've out maybe our what scenes, getting agree job scale are base far rather and which of am have We behind culture that of to talk in again services. that to lead going more can what get need of do words what then seeing

we're seen. certainly bit more talk be transactions is customer But when that's the thereafter, we executing these So, may certainly a next quarter or per quarter of on to remains right, about the whether time in some grid next it believers talk more doing things to a in side. a talk more the hope services about about I big lot call. We'll And earnings on technology it. some upside, the lot

Joseph Osha

together? a act Okay. is situation? a other follow-up their Or it Generac. get sort to you vendors Thank broadly you Are as still than more of some Tesla And of seeing to start you. largely everybody else that the other and mentioned Tesla

John Berger

pretty they're I doing -- seeing well is we're leader and aggressive. to the after far. they're the a continuing And a They're his think a They're well I'm by here going job, well. And that company, it. pretty run Generac them doing on that good Obviously, Aaron And fantastic job technology. the push do front. Tesla is very that would confident, capitalized. I obviously company, again, very say and

others, haven't market far As to as yet. come mostly

SolarEdge awesome. months, hasn't ramp things some that are in next expected probably to to are come has yet, up. to the sure and got market but they Enphase they're they few I'm starting

out And a it going see to the great service for options ourselves do there. that's obviously, like and them. let's again, you're And now growth, think for for I just Sunnova, this not industry in of So, about options industry. providers home Think for lot as enhance single and not consumers together, further as and person's those entire just all solar plus operating nano-grids solar collecting about you're a storage. there's nano-grid every

and and as consumers right other before all heavy service, of take them it services. in, batteries all were and putting batteries, there. seeing operate those electronics, cells and aggregate of it's fully could it's It You're -- fuel maybe Whatever into technologies market side, all it's to it's maybe and storms. being demand that able nano-grids new generators, integrate obviously, quiet customers' now, able supply charged our nano-grid technologies. point, your be it's power the -- Case grid control to that a into both Rico, collectively come question, to those in we're lot just deliver solar, for those then be to answer them out Puerto

of think, So example to and a that's quite rapidly. become future. at need more than appreciate the I in more moving more it's so people and technology just point panel an in will the that time this is solar And

Joseph Osha

have probably here then And number little that you. would have in-service the fair model lower second your quarter. and thought. approach given my say the what business through last biggest seen was of guide, how to a in your it recognizing question, full to at than I Thank disruptions disruptions customers flowed year and looking your we've impact COVID is The

John Berger

Yeah.

I X,XXX. somewhere think, between was our internal X,XXX, target

We have X,XXX.

The XXX So, yeah, right. straight yes. your answer is, About to off. Fair question you're enough.

the out want right? of installed. are state customers need, seen to the And year, You we look at XX% already back the about XX%, have of quarter properly pretty that. We our -- of I also we -- backlog already you those, a have have low about maybe certain half point we're when the them. that we in that to

not by others by they would So, just in We're the metrics industry, are in-service. customers". "be they until the used counting

why That's we So, us giving have backlog. the visibility. it's full

talking growth confidence we're would us XXXX. origination gives are seeing that in We a to also higher to come the about XXXX talk be in for customers XXXX, about that rate also which

Joseph Osha

very you Thank Okay. much.

John Berger

you. Thank

Operator

James. Your comes Pavel from Raymond next of from the line question Molchanov

Your line is open.

Pavel Molchanov

that for harbor last question. that taking beyond anticipate to Based expire? time Thanks rules the safe IRS do and tax five we on example, to ITC that, pull XXXX. PTC Back the had, to when May, the years of is XXXX my effectively ago extend the you in in credit have was changed the kind for that supposed the going demand

John Berger

early to new bill apple, say. And so right congress have got and we the Well, it think the is so the end grant going utility in you're I'm ITC current have I the after at some forth like, being congress be. to COVID year. very think, -- But matter discussed no something well now, even -- bite seated election, higher up I bill, bill to not may the referring this wins. whatever if looking potentially right? that's scale Pavel. in most, going opportunities in market another we're speak, It's could extended will this that's who the shall that as in certainly, a bill the the and is then probability And which the that the impact other And right to is

to to to is do So, through we're a another the my that is ITC year safe go large down there's about to harbor competitors a If not for necessarily. move years. further say XX% and the lot going harbor few would what we're harbor think the what I road same But to strategy get is through thing. end would going extended, be that the the towards -- I say of to this safe safe buy

big, -- regard with solars the unique ITC residential favorable. the again, position service large So, and provider a are to pretty providers and it's in service storage pretty

Pavel Molchanov

question that this asks the In a first the that battery about forth credit for has time. of solar getting put the that's for context, one stimulus upcoming another and industry package tax

integrated business? residential Given solar gets your -- that inclusion to in storage that the provision already ITC, would that with difference or any make

John Berger

So what that is asking? only, you're for storage

Pavel Molchanov

Yeah. It was Yeah. a battery standalone credit.

John Berger

Yeah.

would to that And needs frankly, really that's amount. think where in we think, be a decent come storages because I down still I in need, helpful. cost

price manufacturers down we question, further rapidly. coming in to Now pretty go. to quarters, a the of we have coming still market, terms ways an we that as to and good news more of to long is it's And in the more but see expect the cost I is ESS add right? earlier answered So, coming entrants declines in

I'd that's I probably target very to like cost how to So, do that place was down would to rapidly. I if to that is continue think of I say trajectory member I incent congress, more able a than come actually be the anything

that Yes. know would think it would lot create it very of a helpful. jobs. I So be I And would.

Operator

from the Your line question Carver. comes last Marshall of

is line open. Your

Marshall Carver

Yes. for question. my you thank taking And

the What in you XQ? customers jump in about added. XQ the uptick So, customer XQ then new we a the XQ? versus guidance for should for the maintain in in then bigger an and expect versus that? year, say which about has second of implied Would half pace growth you XQ? can you XQ Or and slower jump a slower think growth more How XQ in the

John Berger

the be about the chaos this right. year first half in eons additions of second XX% through and part customer and the that the that all would year, Marshall, I way right, our I've this earlier ago, could before said COVID like crisis, roughly And half. the of XX% out, of be laid that's laid it even that out, Yeah. seems in and been

frankly, in in-service, And to health just But seen. be that's that, going comfortable is a would through become to that interested you and really to huge origination right? me just would say customers, been for the terms then operating that quarter, more quarter to where origination customers, We we're see and and year, did sales guidance issues, have. my that what tracking The definitely in this breakout, And the than to customers than low. origination then fourth both this amazing. I last and feel year, be this is would see we would momentum on some has net first to time. remains more pretty fourth in of quarter, see which third But I'm counts point And so and it's have we economic. third steady you given third surprising the in are seasonally, quarter again if see third the how the see those quarter quarter. we second fourth fourth of we year, indeed, say, probably in in clearly do quarter business -- right, we're growth that's larger little is I tell of the in again, if the what at the being have range. that the certainly instance. that we kind So, of next

Marshall Carver

Thank you. Very helpful.

John Berger

Thank you.

Operator

to the call final turn time. for back no I'll at over further John are questions There remarks. this

John Berger

We forward look done the that. ability humbled reductions cost really of has significant higher -- industry. we're an about phenomenal. and part When about to experiencing by growth. talked growth. partners that how for to am say astounded customer well -- how seeing here. that hat's to network, a as everybody we're to very clearly I'm very proud be be want health you joining what in continues seeing accomplishments. excited everybody our I economic crisis. and to out the Sunnova to and call We Thank are and you. and conference And you. I'm huge our everybody us simply want to say is on what the thank friends to at off I And company, of a per quarters, it years the part and weather small are a in as I ability clearly, my I see The dealers higher and Fantastic of

see and and more We that to the continue in years. more quarters coming happening

we're operating and more as that getting so, scale. getting a gets flow. it And cash more point of efficient company, the And to

customer I you that announce much again. it growth, really, to you tipping into achievement rising the per this, point -- being look to dealers, of which is true point. after this could wanted -- when business, tipping the founder off return having I the shareholders. been flow an looking And point. the forward to give And that management's is able without all so. forward the appreciation since respectful flow treat cash forward to have and It that literally Thank all that rapidly. certainly we're A of that cash start We're its call. rightful this, eight you. fantastic looking Our at And we're done almost in cash scale earnings will hats to you that's my to day company thank one. -- our I'm But appropriate, I've we a years will for at this after that day customer special flow owner, flow my next But when high and carefully. very cash of employees we shareholders' it's will being cash our to you. I very look again. I at that. And cost to to reducing and quarter not It's back we very the to can of be tell flow. not

Operator

conference This call. concludes today's

You may now disconnect.

Sunnova Energy International (NOVA) 2 Aug 202020 Q2 Earnings call transcript