Sunnova Energy International (NOVA) 1 Nov 202020 Q3 Earnings call transcript

Company Profile

Participants

Rodney McMahan	Investor Relation
John Berger	Chairman, President & CEO
Robert Lane	EVP & CFO
Ben Kallo	Robert W. Baird & Co.
Brian Lee	Goldman Sachs Group
Hilary Cauley	JMP Securities
Michael Weinstein	Crédit Suisse
Mark Strouse	JPMorgan Chase & Co.
Philip Shen	ROTH Capital Partners
Julien Dumoulin-Smith	Bank of America Merrill Lynch
Pavel Molchanov	Raymond James & Associates
Kashy Harrison	Simmons & Company International
Christopher Souther	B. Riley Securities, Inc.

Call transcript

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Operator

Good morning, and welcome to Sunnova's Third Quarter 2020 Earnings Conference Call. Today's call is being recorded. [Operator Instructions]. At this time, I would like to turn the conference over to Rodney McMahan, Vice President, Investor Relations at Sunnova. Thank you. sir. ahead, go Please

Rodney McMahan

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

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

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

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

John Berger

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

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

company's in was performance the of third quarter other customers than the third growth Our more quarter characterized in by in any history. we XXXX customer added as record-setting quarter

basis grow growth, the to exceptional optimize we being desirable will a fourth or of our record this quicker in will in preserve on operational flows either another unit economics company the cash for beyond. flows robust X, see and of network significantly invest customers recurring increased has shareholders. for base, On to quarter storage expanded Simply unique customer customer is growth the strong profitable yet coupled recurring quarter. cash customer stable While add our and cash put, with of we and the you costs will more placed to operating This rate. impressive, maintained and results. We flow our details Slide per XXXX us dealer attachment able declining we expect position a our

in adding a XXXX, growth XXX dealers in dealers We This power of by past low-cost quarter is continued doubled who added XX% the over the in XXX nearly subdealers. fueled rapid and XXXX. adding subdealers XX its was the our number our third new dealers same by selectively the differentiated increase growth by months exceptional has model. customers and quarter Sunnova what from X,XXX of over

solar that you, and storage has offers partners and and solar PPAs, and provider providers, X loans, leading partner not there and the technology you, capitalization to that storage a Sunnova. array with storage compete the with that other contractor, that strategy, only is you If energy and stable is that types, leases service service with seeking a available products are a financing the of provider all broadest does

of during we the a continue count and remainder to XXXX. see As rise expect dealer result, well year this into to our

our the QX appetite Hawaii Our storage past our to driver Saipan, as rate plus been XXXX to and see Puerto rate attachment Rico. of Guam, XXX% in storage in rate robust at XXXX attachment consumer continue XX% strong our has island large storage. attachment markets origination on QX increased solar over in for from The several we quarters XX%

increase markets, rates recently origination However, XXXX attach select of in have XX%, QX non-island storage rates respectively. such XX% as California, seen and attachment we on rapidly which Florida had and

to in 'XX have service states we sold fact, and In storage date, territories.

providing new customers. retroactively XX, been we through Sunnova In service, and battery we alike. customers, storage have addition storage performed battery offering customers XXX began September to also to storage non-Sunnova both for to XXXX, previously battery we've a adding solar-only retrofits busy Since as

next X We expect double this amount to quarters. the over

a which Turning further quarter summary to third financial XXXX provide expanded are of our Slide Slide X. results, on We X.

It XX, clearly base growth share creating value for is existing as our XX% is collect and assumes equity we It providers. year-over-year Please September contracted approximately customer renewals. shareholders. loans and our translates shows we and excludes or equates represent expectations. assumes at see services solar growth. NCCV and $X.X metrics increases Our principal X, This after no after interest discount future only which increased significant products service On value our our of and customers, GCCV NCCV we from contracted count, cash Using total our GCCV collect use into contracts experiencing contracted September existing value the cash were nearly customer net both contract $X.X operating to year-over-year. both are NCCV to you gross value increase. Slide our XX, payments it adjusted adjusted to on rapid the on energy no XXXX, flow a $XX.XX shareholder all This or customer and XXXX. note, and on which per EBITDA, rate directly above or a X%, and to flow all This sell tax of XX, to September XXXX billion creation. our fees, MSA complementary billion will increase

over them and impacts I'll call, do Sunnova and not as NCCV. have provide become additional time grow items they upon we what are of an to grows. the our contracted expand these how per will in While these opportunities customer to service on our will and services overview Later reflected expect number customer values, they in more the meaningful of have sold value

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

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

contract is make customers which to in of we going As the see improvement in offerings seen choice, overhead nominal returns, have burdened We larger our industry. percentage we our this customer you unlevered offer up in June At XX% seen portfolio over we why through Sunnova, our of Recently, slight by can of accomplished improved increasing service originations growth. our broadest through margins. believe in sales consumer per-quarter our from net October. single-customer loans the scaling have the in we fully mix a XX%

next results, this into set our guidance you We XXXX our call recent to activities year and now and detail. Rob our continue financial the will to have accordingly. in guidance greater through financing our walk trend over to I expect turn

Robert Lane

expense coming has to on on of customer Thank several million our important $XX include financing warehouse transactions you, funds, see million basis. Board, new John. The in increases business multiple adjusted improved you and our scale level Sunnova Across operating results tax Slide expansions the third-party it continue $XXX will completed capital to of facilities, over X, X On metrics. additional our market facility the a shows key performance equity date completed changes ensure into has million back securitizations, much weeks. securitization our in closing financing the $XXX funding fact If growth. count significant financial favorable, new in debt, the needs a loan during in year our converted to which already Slide continue continues high the its customer to operated in common per of XXXX an an be transactions convertible been summary of stock. of to anticipate $XXX the period-over-period million conditions we just that new the and

and confirm one introduced no upper have recall, we of received of investors, increased pandemic growth lower maintained spending which increased companies initiatives As handful the quarter's creation. interest guidance this efficiency interest accelerate from as cash throughout of we Slide renewable principal companies business to toward predictability, growth for bifurcation ROCF. of expect because year growth-related ranges, were our and expense to end. or of model. guidance this In of Again, for from and we one and still our is the XX, only again do value adjusted the toward as the we testament projects XXXX trend On AOCF increased a to our have solar guidance loans to flexibility the operating the call, that is to flow, doubt so. scalability as end well and and Unchanged EBITDA working a few we trend once who call, last marginally previous earnings and needs recurring guidance capital the

our revenues corporate principal interest is interest less and securitizations debt, permanent ROCF and including and pay we reminder, As a debt. loans solar on from the principal level

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

accurately cash including required of or mentioned, financial insight reducing way, We operating gives our and created all to after cost of and our is we at the cash interest after are previously loans utility. are account related breakeven, basis ROCF our NCCV assets debt taking and fully the account. PVX, operating value directly at is balance to a creation increasing into how looks versus consumption and on leverage taken expenses. cash into ROCF generate into on capital working new captures expenditures another we a of costs service paid ROCF leases and able for investors capital. As XX% of of then more which by or and debt flows overhead working growth Together after gives debt a our measures securitized the believe high our our at, with and new service utility risk PVX, measure generate holders. permanent the equity ROCF the our approximately and investors business. consumed at our more were an the services flow greater customers of existing The of roughly neutral sales-related flow important clear into all our while less, expenses, our performance assets view for we capital cash from Put of

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

XX. Slide to Turning

XX,XXX; loans, of to guidance $XX to to customer positive of flow in to $X to negative year loans of cash flow full $XX million, $XX recorded XX,XXX million; $XX $XX operating net principal of from operating cash million payments million of million received XXXX recurring from introducing $XX million of million $XX million; interest and to received adjusted solar additions million. $XX EBITDA customer are revenue million of of adjusted We amounts $XX solar

targets solar XXXX locked the of in XX% revenue growth our business target visibility our We the have in In introduced reflected is XXXX for XXXX nature to midpoint our the interest hitting as additions, as high of earnings fact a a exceed visibility. customer that level now we through loans of principal our This Using received customer upcoming December XX, that growth we comfort from target in the of be we provides of and target for XXXX will excellent of XX% anticipating of midpoint approximately and year. XXXX. existing call, XXXX. the customers previous are XX% our

continue XX%. rate will conservative of customer XXXX, to we growth estimate For a

dive are and deeper that Our we Later be to component ability industry success. to of rate in will our lead thinking a continues about growth. major and call, the into driving how growth John the

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

a as expense we $XX XXXX, operating in per to in replacement and XXXX reduce expect adjusted media by and costs much $X XXXX million result, with as even between XX% million As customer of our XXXX.

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

if company high-growth would order higher investments as positive in to decision our and increase efficiency, This low to meters ROCF is our and cash XG measures XXXX, to of XG In ahead expected balancing forward tension schedule growth loss next fact, leverage, rates than continued to to faster year, to delinquency uptime capital we limited front-end replace increase and Overall, further our have driven for further in in invest reach rate to to our power not pace, flows in is already showing much investments if decrease manages, normal that, schedules. our growth our lowered in previously larger between and we generating production every be the ability growth. growth operating and of would quicker growing all-in our cost rate. due capital reduction the growth ROCF our the equity. and our is reduction our This our same tension customer cost and of increase natural decline per-customer our discussed, deleveraging loaded to in amortization by

flips refinancings. be John I soon, closing the further to by ROCF turn will and equity propelled provide tax to now back And our will over call debt remarks.

John Berger

solar offering better evolved a homeowners better reliant Sunnova, centralized to Thanks, energy the reinventing and energy over energy goal freedom you source energy storage. plus affordable model, so independence, the be with to consumed upon the our mission homeowners how traditional simple Slide options Rob. for paradigm of entirely a life goal, homeowners of a to best that by way the clean, generated achieve live and and At are uninterrupted. power To grids new the at service is will on price. service we have energy see is Beginning time have to solar energy XX, this from reliable energy distributed electric

the in fully secondary customers our into partially to by solar, storage, longer will homes true are and latest have demand centralized no endeavoring our forward, nano grids. rely gained turn generation, energy or even on utilizing power technologies independence. to need we customers' Looking Whereby control, self-sufficient completely

We the network. offerings include a services. call create Sunnova array of Slide we nano even the grids centralized already Sunnova's value stakeholders the into and core grids. wide current will consumers, what network provides of Sunnova's for variety are aggregating XX of listing which these This

service Sunnova monitoring. For maintenance example, our all both benefit of which Protect system from provides customers our comprehensive and plan,

solar of service from Additionally, plus offering. Sunnova customers penetration benefiting resiliency as and our storage more reliability SunSafe rate our battery increases, are the

next several offer includes, This services core management new electric our vehicle to we quarters, grow our to, expect is the limited charging, continue even as and and not to more offerings secondary energy Over energy we and to existing generation. solutions customers. but

is at impact some service to or the exploring duration of performed Furthermore, a as that expanding Sunnova's long the or least quickly of effect. as such Sunnova active plan further so service in customer this offerings, is define and the fee by a presence agreement, similar as the our defined from customer offering. relationship is transaction energy customer in exchange Sunnova we Before relationship defines the terminology. for still at a designee, counted service want of X a for a

contracted to on Slide noted which an X.X generated $XX,XXX of XX, customer customer. average currently value As we customer, approximately provide per equates of services net per

holistic number only will provide the customer of continue As energy services more we is to begin per to offerings, increase. it natural,

additional increase As services NCCV anywhere result, be generate by XXXX, $XX,XXX we and $XX,XXX amount with a This, customers estimate will $XX,XXX customers to $XX,XXX X we of services to we turn, per customer. per with providing for between amount services X from of customers between X X will X customer in the for by to to anywhere services. an for to $XX,XXX $XX,XXX

or nearly services Our goal is of XXXX customer. current services per X sell by to end double per the customer our

as closing, to recent durable, as qualification our further product our and other at in by Internet. found A service England XXX% to integrated a service decarbonized has Capacity going become the Auction. single to allows of are of customer technology assets system, sale. more the customers. markets in quickly will to software This growth, margins. more be both consumers. with will participate residential technologies per further of to grid and useful our more result, heading power will are success Forward the integration large-scale for our industry, intelligence a even cost make like us lower a to the ability drive service look industry-leading centralized rapidly be U.S. achieve as value capacity Instead being the control hardware There command help the and energy net our ISO industry dramatically offerings that power Sunnova, the New improve transitioning endpoints and customer, is number improve, of energy key continue to and reliable, scale centralized Sunnova In with having is and its participate this grid, example decentralized and been is and and necessary of no more can toward solar providers, being expanded hybrid that to our to sale growing such to continues which services a from a Another in more

as for vision shareholders. and our our growth For Sunnova, further creating opened this it energy value and is further create to realized, sell us has customers, more opportunities to for customers existing services

system a homes, we creating With and control for our of facilitates to that just from plus line has power a customers' long-term would solar a Our go questions. vision charging, to wireless company. open becoming putting panels of storage, to grid nano essentially please vision EV been on which roof, adding low the integrating that, all operator, on our global

Operator

[Operator Instructions].

Ben Your first of question from Baird. Kallo comes

John Berger

you there? are Ben,

Ben Kallo

Can you hear me now?

John Berger

Yes, we can.

Ben Kallo

Okay.

My trending? per value that. the look how about question probably to Sorry as next talk you the give you takes have gave know I us we into a net And And where and puts you net customer then to guidance, and as kind tough that is about But of can can year, customer about just value is and I follow-up. it's going you us think forecast. forward? that's

John Berger

Okay. is Ben, John. this

NCCV, referring You're I the assume? to

Ben Kallo

Yes.

John Berger

this see rate, and large at as think quarter, do will is to right jump and would closings QX and way also cautioned do growing forecasted. And the basis. fairly given the X so variability a pick we first to the up were quarters look past, this tax I QX, Okay. that other from in be per big we was in it QX a fairly predicted and We've share did. Obviously, on flat. we the it it said financings, equity a

forth. any takes any so account equity issuance in right, it and dilution, So

the increasing very lot I growth gain scale. moving we overhead quarter, can rapid obviously about per and the And trend have even at as that growth into an and a cost. our we throughput is you you'll this up see the I increasing a you drops customer more goes amount our nominal of to and so see rate, Scales cost amount then better the that point per is -- rate. that know will. that quarter, And that decidedly And is having year per the think visibility more

a creates has so counted metric. way in conservatively a the And we've that that -- customer lag

or about approximately, think it X and you becomes that X when spend a customer If months service later for then originate later, customer us you then it, a so, and on customer you months goes that customer. in

So a the lag, year growth. minus, to there's about plus from or spending generating

upwards so an you will in And therefore, NCCV. see to trend continue

Ben Kallo

Great. financing about tax guys we transactions of year. or be other talk for should potential asset-backed the And either equity mentioned corporate this aware any at you security you Could that level?

Robert Lane

we're No, and securitizations. -- have we that is on to equity Ben. it, cadence to think going tax I I speaking, the Rob. on in get regular appreciate our a continue to No, yes. back Generally focus concentrating This the pipeline

at high-yield the securitization from is point snapped much to year. bit think when on before things we some we The a We have disruptions COVID, of expecting to X ABS slowed It caused COVID seem recovered, market were to X the I but major where the our the side. lagging a have goals back about talked it investment-grade for was beginning year to that in still this a down. market. good first side on the securitizations year. little

think, on you close that do got We've follow expect to still closing on but very though, our closed this it and visibility and with we 'XX going us some We're securitizations to -- feel tax X transactions there. 'XX until to good equity. continue got to expect cadence X to year a based other not closed, commitments. position we of comfortable on into try it's and very should call quarter, I to expected we've

John Berger

at outlook that that's because been for put guidance for seeing -- XXXX the the several And the last in growing easy the we've months. that we trend and been been rate And add, us massive. is been I Ben, for would we've where has pretty growth that we've growth

then more, we look year, Get next else happens corporate on happens as And well, basis. their XXXX first involved more majority see Tuesday. we're like macro and debt see And vast goes the capital and a everybody information, to few think growth that we -- I just I capital. think growth and our So when at of debt. capital be want did a everybody does, just we'll with seeing. There issues is this significant year And to what some we'll the for working and can early revisit I weeks over or guidance. the next guidance next what equity fund tax probably That equity. on given working guidance also little when year you

a updates through take going do we'll at just to So sure not us Tuesday, I lot and next later certain I'm next next CEO. in know everything weeks. as for as know or call I'm quarterly early are the any earnings in few more the that again, will, after back look year. We'll a go year alone the of we hopefully, come we'll as, it's election. this And They all after give over. in then

Operator

question Your Lee Brian Goldman of from next Sachs. comes

Brian Lee

high your It business off model have sounds construct. the first per like degree a maybe you guys visibility John, of on guidance.

I I into you figure trying more? or or a out how to had you a customers dive think so XX,XXX get better think you about target customer that here been number. talked prior is understanding about guidance. Can for Just bit a new the XXXX? derisked this talking an of growth to low official XX% target

here. like seems has materialized So some upside it

you about gain XX% follow-up. targets? you're a backlog one, what's visibility then new on And driving talked to And two, I with had the the So comfort how then wondering that? or exactly defining that

John Berger

cash a in, the interest terms spoke our very Certainly. year, XX% in goes our metrics then principal adjusted similar, of about And adjusted and recurring well. to I we and by operating plus loans operational Brian, if then of revenue first is, P&I. exact same flow, locked flow number last we as this of EBITDA the year, recall. you That made from end cash think, time when the

will. So it's metrics, our all major you in the if financial aspect of

that's what refers XX% that So to.

So expenses us hit long we'll as very and that into of because up referenced, we've growth we good, revenue, balance doing as solid as we our just quarter gives manage in, out. targets XX% we so that the XXXX like very, visibility have been the against quarter

we'll that So we and confidence 'XX to more early we part we give 'XX, look go that into to start have can even -- as more of start in far out.

In terms his of about we customer growth, at and this at been in of the and, answer in what the I we a progress work last we've level. feel therefore, couple said the booked -- pace for several questions just or in because have months in that, this referenced his is running to backlog this comfortable Ben, guidance

on anticipate bit laid the year little this next out. contracts we we So than for midpoint roughly half a less needed taking maybe of in that hit target to

picking quite of of and we're growing our through existing and additional customer or which to XXXX. the subdealers, again, services the into selling to and and laid been end bit the our year a out, strong grow by the see three adding we If we going have that ways: we and to to dealers growth of selling grow as up-selling which expect up, We doing grow things. new we side continues through additional base; storage accelerate, traction particularly we've on services customers, in by adding we

just growth, out terms last how and everybody services. of about we in in that modeling beyond. to the we're in see company for help and looks you more visibility model but gives margin two more adding that more those you regards that's and and We've that XXXX what out especially can some like with or how out a And into So and laid not growing, NCCV. hopefully, additional XXXX,

Brian Lee

the guide, helpful. my looks X lower it customers, the that's buckets in follow-up than higher. from And those year. next is had people the payments But across actually adjusted looks like for we just in EBITDA then question most specifically. It on factor when P&I No, aggregate Yes. moving penciled

bit it's you It you're is So right why into baked the but the And provide sounds assumptions in and versus mix think to P&I? then just what's loans a that that? assumption/math? like XXXX And what XXXX? driving you shift, your mix for as of specific more what's can some seeing higher seeing you're more

John Berger

referenced, board I loan, Yes, mean, been we've the we sure. surge in Yes, in past rate market have contract-type faster this pretty it we're but terms PPA a across been at of has significant a share. loan much seeing, seeing lease, as our growing quarter.

were In fact, last hitting was number week, about origination of XX% our loans. updated we

significantly that's up. So

we loan with that? causing there the that, our is products. abating. What's Our the a don't majority as well the is see share just we're that so market of think So and it's is one, trend picking in view known, up. company and growing, I market loan, the out doing We're job better

come customers. long service, with and to that's really They want service, products to us. unique that that's our of attractive term loan and All

And lot net certainly that's that's doing products. We're products. very our so a on the those driving feel loan of driving I interest -- on in well margins

a So because, think but revenue from as drop includes therefore, have adjusted EBITDA, in I includes do to the everybody remember, did that out model continue. lease his reminded XXX% Rob only you the And the and we of PPAs, comments, cost.

you there's cost about the at associated when look X the P&I. with So P&I,

the is breakout P&I a about more this result also for that year-over-year spending driven in built therefore, adjusted selling, it. from general this just we little of out terms spending much, a not that have most of additional About And that PPA. do to jumps that we EBITDA, growth faster and as and we're services spending is is big customer rough because clear, XX% loan per add going lease what business roughly that we've increase mix the on of in to we call numbers. not it's increase. So growth, of EBITDA that. and of We'll we've is big jumps the XX% and in XXXX the added About in faster as the expect and this very that adjusted in beyond. But by be of so laid see very, change in we in XX% can our you the baked

so the that, XXXX. of forth. you'll that's see 'XX, and an services So additional late Most impact certainly, start in to

So And longer-dated we've the needed investment. couple it's out is of as replacement. last XX% quarters a little then bit laid

it Now EBITDA that spending that Rob that recurring said delay flexibility. flow faster, comments, is out. we is, push we drive if adjusted can what in choose to as this have cash up operating and his means We and certainly do

we chose if do if can standpoint. But chose salient standpoint to real sense from that, to point. what going just from growth shut we we off to growth, I out stop just point, market push we that we -- obviously; capital do in this, flow those wanted that to made So is cash. macroeconomic or think, a that, a and at can were we're We if but not which investments

Operator

of next Your Hilary comes Cauley question JMP. from

Hilary Cauley

to first on service touch wanted around the I your announcement. comments recent grid

how bit be strong to guys your speak are on monetize would could you If a storage little base, great. you more looking to your just strategy that

John Berger

Thanks, Hilary. Certainly.

until things, time will, the things, about have [indiscernible]. or margin money exact in won't the believe. a all is XX revenue of side of we which us if So pretty up February auction rather It's side much megawatts. for know you I large deal We in frame, after

board, partners we you a of all, a the money we of we're auction out so and amount for out we will numbers report Enphase. a to with solutions, will those Generac, recurring and fairly it -- but working years. will Tesla, be significant that connected across should be On our get whether done the when number go our that's And a with

product a coming networking the obviously out the going well. side customers in with regions. storage on even and SolarEdge And value we're the as with to up ESS be these is driving respective further

so And we increasingly, not do this, in see think industry. I in the we're and alone

stronger, in term. selling capacity, and broad having a resilient revenues seeing it system, competitors to can decentralized energy. be versus Grid services. customer obviously make more consumers. be centralized services to ability there is to services, as interest energy, capture more can and discussed, to are very grid also, Our hybrid as beneficial, a be But from and for it centralized It be amount cover increasing policymakers can it reliable of through can a ancillary well, to more more the more XXX% I of cover cover

distributing value we distributed at homes. anticipate endpoints the with batteries more associated on And of system, -- being so the specifically having seeing our customers'

Hilary Cauley

And growing on footprint when Great. perhaps thoughts you geographic you existing Okay. wondering terms that second, in think kind your just your if footprint? look growth, could versus how you customer within of at share expanding your about your of

John Berger

existing the prioritize we drives per because year always, which drop expect You bet. We, to to as drop and scale densification service beyond cost further and are this footprint growth our next down, continue the year customer continue we as plan, business. per

your expansion. gotten much, as geographies much labor that than continue the hopefully, our us. rates utilization our utilization deploy high a has We you in labor And So will, model said, densification grow at point for the basically, those it a for we faster the a in rate geographies service customers -- to big And field, of impactful therefore, utilization And really why in is it With is do time, new coming increasing we've some larger, increasing of previously. we faster, have we'll part increases everywhere. rate more expect in able that dealer technicians. be year. to in our geographic more have

have So we say year got in say. would in way, do this a shall expansion, to we good crisis would pandemic We terms the we spot done would have but geographic done ourselves the of expand find geographically. probably in that more I more.

look seeing And we'll incrementally than expansion. next more to even we've today. growth we'll more therefore, quite so when And see geographic been a year forward have bit I

Operator

of Our comes Weinstein Credit from next Suisse. question Michael

Michael Weinstein

the are it it On loans leases, issue? leases more market is more market want Or share pickup you mainly trend in a versus competition loans mix, rather in a of because that seeing people a than leases? general of where there's is loans, --

John Berger

competition. a seeing not are we no, -- Yes

that doing than can do we've all up can we I I it's growth everybody here. than to probably certainly keep got with everything is -- handle, more we enough respectively. what the growth know think

stable. think so-called market behaving and themselves, the is I is So everybody rather

unlevered economics, If returns, our our they're stable. at you look very unit

up scale business burdened the sales is fully we moving again, overhead. scaling Our and, our as

is you over stable. pressure and few pricing see capital the the PPA have think, couple I any lower last PPA I a And others the plummeting. you lease and industry's kept cost margins pricing And of the because -- to have of right, don't the still but Basically, months. expanded said have no, cost of when really So in capital, market. the I lease interesting see, we that's and this,

market in is when it's of very think big. reflect least the know, I very And that like simply we've become of that. you big, you XX% more or weighting flip not that, rather, market loan, XX% must the what PPA, just the reciprocal weighting XX% and it's become is at as you

So want. expect And we're share, taking picked growing to growing significant -- is up care up and to in pick having simply servicing we've significant our market and I of your they continue what size market think just being share. clearly, and it's we to into customers loans

I sense. to think that storage demand it, when makes they it. just start adding And you

a it to And service is on for sale home, This that to it's optimizing, sign panels want simple on is each want that a not service that so from And contract. going creating a provider. they're anymore, increasingly, up service customer's product putting goes a even loans, roof a a means nanogrid people a what sale. say to again, with

and picking marketplace. in coming in versus others they're product maybe some our So up the

Michael Weinstein

of next to And tax tax sensitivity sense. makes think in That there's extension? fall-off right. you year credit because How do -- All are extended. credits let's any demand there's a say

to could know, to get so that think I people higher you mix? don't affect rush have a the tax don't do And credit.

John Berger

to ITC. to of what one wins no It's who to -- see another, matter and multiple see. fine. is for the -- possible. we happen things -- upon be I That's the mix ITC, over be depending business. going obvious many The the is we've think, the of have would business preference it that one the what knows therefore, want Do sure, on and scenario then everybody want scenarios Tuesday will what the outcomes I of reason things what on Tuesday, a I about got business the with and happens, It's Tuesday, come

at that. I'm I XX% we an is a that that X% of tell didn't more to you, PPA surprised So from therefore, impact advantaged. a lease XX%, Michael, see point, fair was will this I'm and and looking year with drop a

or X If competitors -- know. did, competitors other you are harbor, as three which you or could ourselves safe X other

it's loan not going a could bit next in have XX% to we'll have other you the just towards at little even truly more extension into back right? to as you that think have of update ITC time, to see be a swing rush possible And so if is to the I going hopefully, whatever, you're the I'll got too Tuesday. XXXX, X% move -- So you a this you're get unknowns. to to year. and But And there's have able many end versus the it an information at point for post thing balance

Michael Weinstein

general? moving than you value customer look customer? that the EBITDA, per on metric just think rather value on the an that down XX. metric do emphasis the overall most towards basis Given -- you Is adjusted to at? more on you're per company that in Is and Are . XX Slide important

John Berger

at is that value a have contracted a terms it. And at good I hybrid think and approach. cash look add of I in has just it personally, the indication look gives because you it option I think look I flow pretty values way -- Michael, you a is put at things, what I

you value You we can analysts do, others are as and renewal of to put many well in as and certainly like there supportive that.

think a long-term But that's I that's think I reasonable. value.

$XX.XX that quite at or bedrock look as a So I bedrock I higher look value. kind at I believe than that share, that. is is that Obviously, bit per of $XX

is is we about even it what growth, But I on company's compelling getting doesn't operating are about showing clearly the you to it been valuation. But stock I've always view are. pretty it the think, I personally very reflect terms it a capital is EBITDA, doesn't. lag in that, leverage? on year upfront is spending does of what that with you frankly, tell adjusted And structure.

the and view And lag so is operational than recurring cash adjusted that EBITDA business And which customer, flow, leverage even customer the which sure more company's P&I that is bedrock in business progress. -- really is P&I, creating plus at essentially is from growth, making cash I flow, the company even faster And by I that impact, make then I amount look equity. personal of or the how value point scaling plus run the That's the -- scaling for at I'm that that my compelling. per we're and EBITDA clearly the the doing. that the is telling I we're saying, NCCB adjusted scaling of look more with this you value that operating gaining than faster we're we're that we're

the value this these that the sure make far way the our is metrics shareholders. and for creating we answer as valuation here, -- So have doing I job act as here is balancing and a there's why all we're think look that to at

Michael Weinstein

maybe talking investments to you it the numbers, last think cash sense long there you're operating think of as -- One forward? question. meters? as for recurring going So make I exclude mean, flow about be that about the some instance, like I recurring talked and might I nonrecurring, would

John Berger

it already different lot have we clearly. on of to have but We to does for those. obviously, exclusions. some a them, sense do And them of just exclude want EBITDA didn't don't laid We be criticized them the We had believe out some lot make calculation. We adjusted very excluding things. a we've of

gains. exclude to play try want to didn't to it we So

It's I them. don't we Because want in yourself Yes. as in this right know saying very sense the have there's know. We're talk would about you all to every we the -- left that meters? see cash the left like to are better There's you give setting direct and When spending we flows, no to of think what better I I you look is sure out. out trend, make that to like onetime expenses do as in no there everybody get and -- who I But direct And to expense for information. the nature. here's it I a -- us. feel said, exclude out. culture they do at pretty But way is just what you just it's that single excluding is being it, a look like at the far get. trend

Operator

comes question next Your from of Mark JPMorgan. Strouse

Mark Strouse

wanted Sunnova Just is? get if your is how question targeted on increase how to opinion rooftop workable solar that mean just your comes how -- a one quickly plan election. a high deployments. a that you I the And has I that pretty to fruition? to react speaking, level follow-up think just might like of things generally Michael's Biden dramatic about the plan in

John Berger

Yes, certainly. Good morning, Mark.

workable. very it's think I

shale in us I time. want more way in at think and economy I of being this think to that shape expensive we the you was get moving this there. end if the overcapacity too obviously oil need to, Houston, And think economy That's what all of bit day. certainly, We of growth. CEOs, is the oil hemorrhaging in again. job being because is the marketplace. know, And the a more gas all gas at want all fact. need the and a out we we industry not point quite And is and great people do, at The in I

that do is so that wins got that policy addresses makes Tuesday. industry We do we have quickly. have so makes going very sense regardless need And to good track create record to jobs very on to we've policy to of the transition the that sense need in to who and this. a And happen

machinations equipment deal where on other money more things. the by paying all jobs, in and what the when make up, Then they're they're of by We President people at extend spending to and jobs, by the that it we pocket way, to can made is be the can interest don't so have the these you to good and these show And with and paying spending, great belongs. ITC. Congress harbor safe that and and you money jobs such put and banks the the and moves simple look Fed, all

a that's very, So take. very simple action to

such. accommodative companies, people sure is big There's business, hope for that choose the oil case. to having not and so lines to everybody But in sort our particularly we other and dealers any permitting, and make more they on no their right that impediments monopolies, instance, of not partners focuses energy start to more is We supplier We Focus must having business. the including policy on technology big the for The the and choice works consumers, Sunnova. at and for business. consumers that earn that Sunnova and earn And what's strive, our that sure that's -- feel choice. of here hard, everybody else point the energy like in not make the their there. we business, we power and

be the the out will creation here laid about we've immense. unleashed residential that give will up, services much job we're that creation, solar. talking so So and wealth through And jobs with be open consumers and the create more obviously, choice, things momentum

the forward next Congress it, of in we're to wins, to to who working put place. looking the So policies year President and these regardless with

get moving. Let's

to Let's get work. back

Operator

of Roth Philip line Shen Your Capital Partners. next question of comes the from

Philip Shen

originations. amount now? base your X represented time concentration do dealer of in substantial it dealer about think How will dealer to grow your much John? talk you the At latest the IPO, 'XX, be terms you in of a Can your of

talk it's think know then talk event, latest you to your in of like? So understand just and what payments, thinking And that you through where want how type kind could lose but could I of things to top what the now. and that dealer . can stand through a a risk you of through probability low exclusivity look that spite I us is?

John Berger

Thanks, Sure. Phil.

I than see laid expected Why higher call. in we and at them. even compete So year my abatement As earnings obviously lot subdealer an a last any and we lot anything, the we that growth expected if out it. in We don't escalation with trend, that? comments, in is of dealer a than see what higher frankly, the beginning is we the don't

there. We broadest array have out product the

a the to types can financing of create and with awesome; we loans, powerful -- and for new interesting platform are come to in and want segments very instance, contract a battery You lease that solar partners. leases, mixing And we all various awesome. customers. Generac, very Having upsell we're is SolarEdge, creating of I only together, have a one-stop we then products awesome; one the And mean, different that best we do have in technology loan. helpful. PPAs, of Tesla, Enphase shop to the engine marketplace

you things to this, different about that the you're come all we're this. the contractor, get if place table only to So these go think a and to all

technology to want very somebody have you to you available rate, to then And have a you last want product to if the come Sunnova. you, with stable you want If you, best can is capitalization strategy. compete the we not broadest

measured a regardless dealer on We have coming long-term now lot the and contracted are are that attractive cash flows of of in billions, the extremely that discount rate, to side. contractors that's

the mentioned do the continue say the just to the to would And not seasonality accelerate, point where the low trend. make a this So and as in first dealers, most trend given origination, fourth I expect switch. past, are the and times of we quarter, -- I a current

bring months the we're what so few next And excited to see us.

been every dealer of way, us and long concentration, very those way, I And way of have with let clear. for terms especially value different, each me different. years. In highly way who be number a

I for. do their greatly business contribution so do friendship, mine and for years we'll Some relationship personal their and value are anything and come. I value greatly would of friends to

that in will the need won't bad And fruits so forever happen place. of earth and happen, hopefully, and happen, life enjoy labor. forever take sickness People life which forth. events to events but do and certainly never on So can't no stay with hopefully, work their

we people at to pretty right opportunities X for being it's do on many of And of -- able we're XX% our of you significantly at it. see below at is day. other take dealer. one any end optimized the the any and on So falling when potential terms about number and coming in dealers And XX%. now, that It's the to loss of board. dealer, look large for closer It's concentration

So I see over quarters X that significantly. quite further dropping next the

But that and risk our dealers, I very applicable and want to friendship. again, being appreciative don't every time. we their to So much see at this stress us work hard personally in all, one of each at of point really their

Philip Shen

to over storage. Shifting Great.

You've had rates. attach strong

the you attach as a You're storage metrics certain as new on with states. give well split us for in even retrofit? between very customers and clear of rates target terms for well as basis on Can in blended maybe it up as a 'XX

John Berger

We that. to guide have this don't And to time, think that at we Phil. Yes. want I in point don't

I what than laid we and origination much some to happen the can generate as geographies, certain say think as know giving not today, attachment, more obviously, markets anybody you at is that would geographies, of attachment have out you XXX% if So quite more have some terms right? in else that rates to quarter are, in markets, we've least I when out, you I storage information those expect if wildly. And that origination you fluctuate in quarter, than or way

other traction not of continue we and Northeast that seeing seeing of only. on up. other only markets, are with Texas really surprised nominally just Mid-Atlantic, in that lot traction the even markets and to attachment very I'm move Texas. but pleased see We we're solar having a lot out. such how focused rate also a fast finally. in in very laid And interestingly California we're Florida is enough, growing, We're to storage

XX%, I So step least But at at you what unfortunately, here give us hopefully, look, and it are say, markets I than few breakout harder Phil. to wouldn't for attachment or a to I you It's XX%. double a do I'm right, lot the took rate. storage expect going a terms not numbers against the working want, here in and -- gave of top forward you math. is XX%

and in very move, quarter-to-quarter rate. that. expect lot we're overall, a We gearing do in so in a that more that, we're our to expect continuing new kind been the existing on sell selling interest and more origination wouldn't I see in and existing simply fluctuations base. base. and up clear But more customer to lot you I've But batteries of and in to of both attachment our see and will So

Philip Shen

edges. But a try -- it in helpful That's the different way. around maybe Great. I'll

nicely. have In terms Rico, of guys you grown really that Puerto GO

as you 'XX, you? so specific think Puerto through of that growth could region And about Rico what give kind

John Berger

for that for markets think to us stay strong other I market strong but as going us, is stay well.

and we've region. that got we think me, I've right, given and want to that pressure guys start for ladies. you enough don't guidance, continue by breaking our I to on already I out make out growth to it sure hit

great So why And stop. say a -- I you're better all in don't expect better -- a service, at both sitting I across important price, and And people that really it's see pretty up Rico deliver market, It's everybody price. for why in full compelling energy a the Rico it. why Puerto you I sign least, the founded don't if for to at better a I and for can know a energy you don't service was is the world. Puerto Puerto -- qualify that's service company Rico better deserves the to

Operator

Dumoulin-Smith next of comes question America. Julien of from Your Bank

Julien Dumoulin-Smith

adds that wanted backdrop, 'XX, but as confidence your to can't economy labor you out customer numbers seen just execute say, I that the And next trajectory commentary It for more, the to economic does the ability the you Can for play in even I How this have say given ads with about about pressing higher dynamics again, know that on right, in would customer the if of times the point? there? seem here. seems you does on year? at And certainly we I'm of here what thereafter challenged we've with light this. to the try. into availability, talk terms about improved backdrop. Obviously, labor follow-up

John Berger

area make more That's that. through more haven't labor out that I've woman you up enough base, for there doesn't disperse any grow and that a Yes. us. there than can that easier commentary I it's sense. seen dealer that that okay. large you That's dealers/contractors. in with a a think seen they to some force if will, know and entrepreneur smaller smaller, okay. this that very it's have fleet-footed I sense Look, go with become Hopefully, It a contractor. or out build makes man people That otherwise

market, awesome when us, to and will. you was the remind last our were an I really job, And if upon think folks are everybody really big. year fell are dealers going, labor back doing of blown And those and so tight, and before and labor part we pandemic more year optimize and crisis this I able little, early the medium

you look, got job management hiring you've lot a got skill a fantastic they we're we making sure to because being I've way. And seeing And here On job. rate. hard United were we -- some diversity of get in the off at the dealers of the of And this is pool of crazy. hiring increasing what expect at fantastic -- labor available advantaged which match most the point big effective growth by before. get people. running talent And done the my to things, us It's that the rates in we're a the and you're in in you've if and a labor door States, to to time. Houston, are What by doing the dealer, side hat's is in the very our is our like

of legal, service lot hiring we're care, mean, IT country people, well. you everybody, we're customer name it, hiring as Here, the field accounting, I techs across finance, a and

some folks we come great a lot type have Julien, those And done others, point but competitors seeing with of for pulling as and we other job good not than people industry. model where cases, tighter far of as to And only to work labor others oil but are is that's industries, company, do, as our located, to continue training availability -- being out as get in industry. we're of are ourselves yes, a we're markets is dealers, through my into increase Some in to gas, to the the a our industry. this programs that's really to in people what being and folks, need our

these a asked, opportunity we're and another the lot to to encourage and and it's IT we work see feel feel really the that about software. many to continue for services, of and I components, and money integrating XXXX, so question gen takes all software board. was of going lot similar the let that wins answering of this panels, people I pretty So software. to we're job can In all software And there's lot do again, a whoever momentum. something There's ESS, do like much encourage more putting of complex, into and grid in we optimizing back do. services. than same unique, have to putting extremely on in they've a really developing competitors together cells, -- creation of going amount and a we're to spending the the the enormous see States are sell. job for back fuel of lot it's put both management, -- That work creation that complex that's mean, Tuesday us with made I more advantage, in software customer I We're all Think previously this across together development, to additional remarks is past, on the different replicate. money ways, is solar hard do our smart for an United see take adding It's advantage potential a way, it company. -- I'm these development, it assuming sets, inverters, storage, and load

XXXX, I we'll quarterly you that read just more only, more momentum not adding I out, subdealers So can as on lot -- growth, growth continuing And dealers And then a cases, cost which the next per has laid seeing. you see through that. -- per think is in and and in customer update. going more the growth, more we per up into we're the We growing growth. we'll we XX% revisit upsell we're what capital why, been services, on of customer which customer. the the we're in amount And see growth, some deploy see customer, that service existing That's selling I base.

And fantastic. should be pretty so XXXX

Julien Dumoulin-Smith

clear, know I million a have be right? $XX number, in the I about we're kind onetime right? item, that is late going next it, little EBITDA runs quick of So To into The here. that running and through if year. flow a you meters, can. that think that's EBITDA I if a cash included your technicality, metrics,

John Berger

Correct.

Operator

from next Molchanov Pavel James. Raymond comes of Your question

Pavel Molchanov

questions about ITC. Two both the quick

ITC 'XX. no extension Let's suppose the for residential beyond December there of is that

Why pull-in 'XX presumably, So there a a be in demand under would in not there in back end events? similar pattern be in in which for XXXX will we've this scenario, of example, by installations case, given the what 'XX. decline kind of of seen,

John Berger

you, Pavel. Thank Yes.

you providers, solar them, we're inventory safe some which why we of we reason through we're wouldn't we our that. XX% the And but buy were as the that So ITC. -- are think lease And residential questions it have service of really Because growing and see is that's the blowing about did obviously and X is that the it. Sunnova harbor a lot -- a major lot? growth at of we service Why fast, lot. we providers, I why there PPAs, a accelerating, major need obviously bought done the rates

at And is then can what further you obviously, I and I Tuesday on we we for even would do about out an so safe timeline, around want Rob Board, on And the will. sit things look happens look one on at. if see what so think this the XX% further do we that need of that to harbor to the make is with, that along the and assessment

nothing if was then XXXX, the all the in can think safe with loans, lot the to a of way out see PPA, year. go on lease continue first I to can you next tax So actually nice pretty you else so pull-in foremost, currently, a harbor, that's, you And and done. credit

to going because in for counter loans, it's So the to XX% you is ending right, be what said XXXX.

was to bit because there a end the call I nothing make ITC. you done, a the it something action, sense? I will will, if done year not of think on as actually see as by itself much you So done. Does that sale If think the nothing's if actually on year levels next out next the is there's little year is huge if

Pavel Molchanov

right, to March, enacted, do Yes. get recall, be that would been we've specifically? is you're for My business, ITC to And not to your have pushing question other next as integrated wait since the SEIA to such park. an in renewable that ITC anything until the trade to cover the the directly. the enhancement and with obviously, other is solar storage I got were Tuesday groups If

John Berger

because to storage. of people then in think wanting this time we're move panels put fact, in positive. efficiency in their we're home. huge people sure fact, panels the huge we're is put storage, this, a also they seeing incrementally see I higher right? the this And more it's want seen solar that's fuel terms alone homes we've battery, people And we seeing, in they all year. our that -- want I'm on on customers' a jump Most wattage And what because when not obviously, get point at will in for and they of

guess, that doing X.X, to solar ago one anticipate, this, was that put years with X the another to didn't when another blend or that's out And something is years so panels on. issue contract how a we offering, and couple service figure ago, but we more I of we started

cover are positive -- So having storage ITC without incrementally, Well that I be I regardless solar. guess, going to take to for solar. think people -- vast predominantly majority obviously, that the place. it were the that us will or, if of it's want Most but extension

Operator

question next comes Energy. Harrison Your Simmons Kashy from of

Kashy Harrison

hitting this XXX,XXX on Congratulations customers earlier month.

just John, So question follow-up a mix. on

and traverse loans. terms about You trends PPAs or of market in convergence leases, between mix talked

to your were so we sources are XX% where project of maybe to move loan that expectation as start getting Is there? implications you eventually And expecting today? that to XXXX, . should financing then we for something be maybe any XXXX closer XX-ish is or beyond development? from And the beyond there business

John Berger

Maybe, would the one. first the second take Rob, I'll question. Yes. take

sell and Tuesday again, the on what the providers, what So did X% proposition we way. for going next give of market large from -- I out a finding this doing to XX% great. happens better or question way value in or happens eventually and again, extended, of what definitely XX% we bit mix, that's versus stepping Tuesday. give impacted then going service can't permanent the think, ourselves to forecast, that be political we've like on maybe needed done when I If we're leases but we in everything, depending ITC the XX% quarter XX% we'll past great. But to I us Chris, difference said, providers, huge have service customer, we're a in really valuation ITC hard stays like be with a without will lease doing -- like XXXX, we to loans see environment PPA more fine If here the quarter, answer the But right? and more the you this little not and past, the past be that's loan is to past understanding to like we're than have PPAs, do we for it assume is. sell past the having the either same. to a the mix need better right, XX% on ITC for -- trend year I'm we do guidance But a the for about current the trend if

and customer all We're the a awesome; customer agnostic, to we're wants service lease, If a providers. for agnostic. So unique that loan, a wants awesome. is position

want You equipment. Sunnova, finance you get service of to how from same the great the regardless

Robert Lane

accommodated the to We've banks. with just banks, that be our with been side, financing multiple are funds got by out. larger And as well we've on with providers, equity great coming our tax able relationships

lot a second our opened We've fantastic just could facility leases facility As loan had of a our and we expanded back for the for past and well this as cooperation leverage you over loans. quarter. see, also PPAs

that we I And capital, got that times the then this -- getting cost financing need. made capacity. facilities those into is and cadence And that and once couple again, give definitely still it's delinquency shrink the us default and asset to widest risk the us if still at class even other within that regular reloading not we again the of the allows the our are myself, John's we've securitization we look spread our So out return and -- be versus it securitization have just where we an the for continue pricing, of of you best But absolute to industries, made to there. rates we premium point continue a back continue best industry at it.

tighter. continue tighter it and We to get

we'll so the on to we that and do securitizing, side. we're continue the well And making believe, financing side. there cost pricing, to continue, that then And on reloading out capital set just sure of us allows

Kashy Harrison

share That's follow-up. growth customers market long-term a a target under terms quick Is towards you transitioning or just very before then eventually my there in are helpful. market contract of specific rate. start And

year, have transitioning XX%, do like growth rate? you you another long-term robust So target probably specific before XX% customer you're towards a for next year, a XXXX, example, XX% something growing start

John Berger

don't. focus business expenses is going just our and to and on do quickly scale to built grow Kashy, to very We and -- market don't We we focus scale We operating on flow, model no, to we're continue share. faster. cash that.

the And relatively I side frankly. still numbers of instance. in things, I right? that is, the for extremely, look referenced as in differential don't marketplace. there We continues there. equity occur in there I the is a Absolutely. solar of to terms compelling some model", have a have low out We know opinion, that Obviously, extremely very I So the time, market where past It's And I number providers marketplace. storage dealer between it's consolidation valuation of companies small "don't players. relatively don't marketplace in to said, law attachment the this that grow my continues gotten this Do on to always terms say, "fragmented". at With takes more happen. think you most expect this. storage space? number. of value in faster point I investors I actually say and the in concentrated. in should share quarter, -- the are will just than But the find think us obviously It's that consolidation of certainly fairly do over residential out at that concentrated rate think It's not. others in service the obviously, out

it's So of players. be to a going relatively number small

a near share. think don't you nor just will, would we point, to before start not out It's that XXXX. if the math on on near we've So market I based XXXX, certainly top

Operator

Your next Souther B. Christopher of question comes Riley. from

Christopher Souther

what folded On look can small the better folks from regional are competitors? dealer growth, network expected, been large has kind they some coming than these of players into you that of that next or any the teams on independent which color mix provide it getting you year? Is like? Are

John Berger

this Chris, there's that is a is say John. mixture. Yes, What I'll

Some are subdealers large, smaller, for are are are go teams large into some some -- some that wholesale some dealers. rather medium, our

being it And them competitors? So pull yes. and there's formed Do Primarily, also a is teams from more out there. other mixture. but -- we more

selling a team and out start and may with a or colleagues to installing with and forth, our our and got happily invite all become dealer time. we're you're the all a dealers of I certainly dealership customers, of lot want If more us but think your track doing person, own stakeholders, And so job a at been But board. Sunnova, protocols. we've get you more you've independent and strict of an record. and It's hard to a great formed and job seeing necessary especially We'll doing pretty up comfort. gives some to that's go you on your great

that's our own the our in industry and and dealers. have -- it's enabling model. and the than that and we better there's folks operate no mean American And run why so I our people entrepreneur,

keep looking we're here. to forward and as them the And proud forward welcoming have move so quite to and more weeks more

Christopher Souther

expanding to then are regions these talked how about of is as you That's to helpful. where key that's you you start flip switch Connecticut, Pennsylvania, Island. about doubling? And a retrofit few markets, we And to Rhode for should you're going as storage allow stores start What these it in announced well? opportunity would recently kind regions that? as that think Or selling far the the

John Berger

we licensed, Yes. I there at heavy sure we We've got for and a X we mentioned, the sold things. battery make sure pretty now you just mentioned, any dealers states is actually sure in have as -- is broad, a been all that of out sell storage mean, primary out you're properly XX there's you reason and have your in territories. lift company properly to equipment. it don't time roll We'll make out, go for licensed, fairly to broaden some as continue U.S. that The you the Chris. are make side shortages supply everything

it's around think year, July this that starting I well known, fairly continues.

dealers Generac your how to to sell than then which in relationship and with how to very train, Tesla, So on line different We're install. And area. the up sell, a to of is that help got you've completely train got partners proud others. you your

processes the been industry's norm, there because their system do heavy your go and there so sure actually software your is on It's consumers lift. to is all not shut that you've this want overhead becomes your lights that And means do that, unacceptable, put you That's right? to a that make you been start if make accounting to to you all got that's be months, the on you up for that's whatever, and buckled And a want power in service increasingly, there because are working. update, off fairly technicians it. to trivial you've there. then sure idea all So you all raging out you're working, due when as hurricane and your a few fix doorstep, have got battery can off or the the wildfires the your batteries, you

can't roll one there get of service technicians and our it it got And wrong awesome we so remotely, if something fixed. goes out we fix and go to

filling out. geographically, grow it's not but obviously it definitely so trivial to to we're And anyways, continue

all offering have territories within to few the storage months. We our service in of expect next our

Operator

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

John Berger

everyone. you, Thank

given you of say, much the all very We especially we thank And I the to of are put, very the out proud quarter at all there. just to want for again, challenges people Sunnova, to with It's this our us. all and who you happen. working very you Thank been have that joined to dealers, make impressive. of have years hard so of us those for just those

You're awesome.

reason is should service. the Sunnova. without. that sure energy out be and rule We at the and successful, that whole that of be we a better better And we're our price customers residential get choice, key partners. part making just industry DNA in literally feel a ought and at a heart. space you company to to don't and better partnership storage collaborative, A here take we it solar indeed, more You're that why couldn't the technology there X we do service believe to Thank the

drive massively. into perfect, is great We're out to additional And We for customers and faster next that that. and a seeing subdealers. bring our how more and by And operational very our and margins We're cost, reducing ways We services clearly scaling we're into And the out next generation. feeling growing. costs. we more laid we're for Thank there's out and serve customer flow dealers -- selling We're year and we've endeavor by equity. X a we're new to recurring but that very We're got our are much. issuing and a coming and look to our on all opportunity increasing refinancings this earnings flow therefore, in we're We're existing down a bear beyond are customers, doing quarter, value. move to you the by We're I that in the the the to a -- We're more forward quarters. to if more the partner fantastic into growing partner. on cash. more and better. not even cash company's next XXXX, our basis the we and per a adding to about there, look very of call. We're road more lot we through quarter, as year services would Expect growing more say, cash growing great And good growing. we've bond very, fixed our more I quarter potentially job view we and we're doing the next to and flowing highlights forward partnerships even customers. growing see more selling as a

Operator

concludes today's participating. you call. this conference for Thank And

You may now disconnect.

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