NOVA - Earnings call transcript Q4 2021 | Sunnova Energy International Inc.

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Operator

Good morning, and welcome to Sunnova's Fourth Quarter and Full Year 2021 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 of Investor Relations at Sunnova. Thank you. ahead. go Please

Rodney McMahan

operator. Thank you,

earnings begin, additional of make well those please that risks call, we see may slide during uncertainties Please XXXX in we Form XX-K. the note, non-GAAP statements certain reference today's that release factors will Please presentation appropriate our forward-looking affect in various documents call. are we Also, release for as disclosure. are and regarding GAAP reconciliations that measures our to refer our for Before earnings press those described today's press appendix information to subject and the will as and these forward-looking presentation during the statements. to cautionary non-GAAP

Chairman Lane, I to and and Chief On call call turn the Executive Executive Financial Officer. President Sunnova's Robert and will Chief now over the today are John. Berger, Vice Officer John

William Berger

I'm recurring financial can Good us. end joining morning, report Today, the exceeded flow, on of of cash range solar our cash adjusted loans which to operating collect thank summary top the our achieved interest objectives strong EBITDA you and be X. for and positive We and guidance a for principal on pleased a adjusted flow. and Slide found for results, XXXX met we operating

despite financial the contracted X and flows. various our its ability operating our to hit strength increasing strong of the to derail the our challenges retaining ability model as these numbers that last focused is metrics on even deliver Not surges testament a a numerous our Our partnerships and over on pandemic the impacted of our whole the economy leverage, are business cash years. importance could long-term to

XXXX. plan, intermediate-term plan, major third also which of metric quarter are Triple growth We announced in we the Triple-Double reaffirming the our

Slide to X. Turning

$XX to with of customer XXX,XXX by increase see increase per year-end sold XXXX; this customer services adjusted X share net an headwinds, ability together to consists in increase collect macroeconomic confident an year-end even contracted plan. uncertainty. in now year-end increase EBITDA, full value approximately current approximately XXXX; and XXXX; we in by by will anticipated principal in of customer the interest is solar accomplish an record approximately the per plan of year approximately following: on Driving remain consistently loans count XXXX. the and an market executing Triple-Double the in our to $XXX Our we You confidence to Despite this following: through Triple track million and

storage includes, services we is Our ability not but to which limited generators homeowners, offer load to, vehicle the number chargers, of to grow and energy systems, managers. electric

need approach, and the limiting cost disciplined which more of reduce of also to spending high to further invest leverage. automation increase in reduce growth consists costs, more not operating our in just but and software Our periods headcount plans for

base. more Our not continued also strategic battery customers the ChargePoint, with by growth to from Generac, visibility XXXX. our we business finally, customers, able the network. fact interest Home locked Sunnova's of In our solar model recently and penetration added loans fourth midpoint XX% and revenue offer XX, dealer Depot being of customers. for principal in X to expansion summarizes key only customer the our quarter, new Slide These the strategic and XXXX of of partnerships, XX,XXX upsell targeted Brinks. And that are announced existing the such was partnerships services to of those existing but and to demonstrated over as the in as customers, January earnings

affected expectations variant fall utilities by as a negatively customer our down in their December Omicron the granting installation permission This in to to slowed short our was dealers' organic While and for operate. high quarter, ability impacted uptick of late uptick additions all-time crews the this did an QX adds our build customer it of were COVID.

customer the our December the As our XXX guidance additions XXXX, bottom XX, for approximately organic shy year end a range. XX,XXX, was ended of customers at result, which just is under

However, additions, have customers which since X,XXX customer approximately been this delayed equaled interconnected.

are guidance XX,XXX. customers by As increasing for such, our we additions of range XXXX XX,XXX a customer to to X,XXX

by Our mix battery quarter. fourth fourth quarter down from customer origination attachment rate of of originations the of prior XX% primarily XXXX, in for in the XX%, This but quarter decline fourth was was XX% from the of in on up the driven regional XXXX XXXX. the recent quarter

such Northeast, in penetration, high in Specifically, as markets lower levels penetration as the the battery in higher origination low in markets. origination such with had our with and fourth battery those Island we quarter, markets

XX, and unlevered XX% we've on lives double a to to we retrofit continues have XXXX. by as the expect our more way X business battery this growth, rate nearly focused of to of bounce reached our quarter seen through X,XXX our the it to Much tail. December all battery XXX,XXX of we a base performed far so Tier battery we has on X, from and up date, the normalized. rate returns long to and models When the Tier XXXX. as Also, dealers from regional attachment importantly, of mix are end grow customer penetration However, over dealer number the snout comes all sizes

dealers, past all to XX, count XX December add to and as XXX the brought sub-dealers total months, installers which we've peers, As XXX dealer XXXX. been of homes able new our over from such,

the remains dealer model, business This in lead platform, best-in-class expect growing with our offerings brand's growth, powered of With this the financing the target exceed by and industry, in types strong manufacturers dealers. surge of to our the to Sunnova's partnerships by a product our we all the to best X,XXX of dealers year. equipment broad recent ability deliver with of our technology attractiveness now growth end suite generation

Finally, Slide customer information on have we cash on X, expected and life inflows. our updated contract

inflows average XX provide level of next service increased unparalleled remaining is we've solar service our customers out lists months for service launched contract X Launching life and markets, Sunnova XX.X weighted that on a XXXX, over hours solar-only storage our expected the equaled key Adaptive and for to the has within plus the and million. contracts XX, Slide within the one to established goals, December will XX select of customers recently which customer the As in hours provide customers. our our cash our $XXX first a in goal Home. industry years for XX must

in energy this these their Sunnova base solar customer services, systems, addition to service need of service, demand repairs costs the to Responsive beyond technology service goals decreasing XX% bring expands hardware best-in-class a homeowners who XX-hour reliability aims and Sunnova In current and not the a power but have our supplies frustrated for and of we repair provider. week, and which gross new our about energy provider. with margins platform launched superior do both will are experience their increasing provide and grid earlier improving service desperate to energy for who to software homeowners managed

highly accomplish energy software the goal Home, of Adaptive suite X energy more Slide managed clean the reliable the of Adaptive services even and platform, illustrates our vision and will service will to of Sunnova this capability. the a affordable, team integrate logistics build make which future, the for large resilient. We Sunnova on improving our our to accelerating professionally Home continuing experienced by build-out

roll integrated a giving will eliminate cord, need continue regulatory are right invest monopolies. out Sunnova avoid bad comes our in interface, cut equipment for form policies, reality, With and have heavily key technologies power solar net when our the in increased not. in of to multiple from this metering and mix service It in centralized connected or the it additional To of can power to high the customers a freedom the our wake partnerships of into our little strategic to single or software staying manufacturers the make outages number is they centralized the very of power. from cost homeowners grid this use customers. platform By option taxes and utility customers option seeking fees the that even to the the and rising an centralized increasing will software to both power redefining we of

these Triple-Double in as while our forecast. can our are All plan achieving of be included which accomplished Triple investments

the I turning out briefly Slide X. to over call point want to Before Rob,

several weeks these concern. have Over and the months, among past been investor of the areas top

with responses these further detail over Rob. our and call would to challenges. discuss will to to positions the We happy these have of We now I hand be during summarized in any Q&A.

Robert Lane

Thank John. you,

you XX, XX% see improvement our the past Slide will in XXXX. Turning are up years. XXXX results revenues continued few the from to over

to continue our Thanks In Although and were solar interest produce over adjusted strong operating loans adjusted industry-leading financial principal able operating we we customer XX% increased and period, expense reduced same collect XXXX our on XX%. we by results, per alone, tripled. EBITDA to these the nearly leverage. to the

our combination both value customer NCCV. gross further decline cost XX customer. margins net and contracted Slide or contracted flow or and contains to per cash expect customer increase customer a We our value of GCCV through increased additional

customer As excludes significant contracted incentive or value flows these think renewals, upsell, the includes uptimes. appreciation life or slide reflects, off growth, XX.X a metrics. value NCCV or our years locked-in in only of on as state it contracts and We we as experiencing cash are increases of average for weighted any with blowdown roll national other

in locked conservatively debt could achieve NCCV over our of in next the cash Our flows the terms we XX we have represents course given years. what

tax by think discount estimate Another loss debt any default. $X and interest customer discounted $X for value of payment, a billion locked-in equity. costs estimate upside represents expense, way and to a it NCCV has a service This been absent conservative to in of about is less billion

We as to XXXX, and a new as customer, rate costs be our represents debt for discount approximately which with NCCV XXX% conservative for average each continue equal weighted our of in GCCV X% our fully cost of burdened X.X%. to

of of over $X.X interest the XXXX, existing up new securitizations, liquidity million of as sheet, in in approximately Slide $XXX are for per share XXXX, a our as customer billion, $XXX and in XX make up the restructured time, loan thus our $XXX $XXX $XX,XXX equity million bond, first new a the by the XXXX. highlighted tax Sunnova December NCCV million from green In of $XX.XX long-term of impacted inflows The XX, million, Additionally, locked rising not per amount per December and that raised equates million to just the million amount. activity refinanced went recent and industry. debt financing by to calculation our and with billion XX, summarizes balance at rates. cash In warehouse funds, in share, position. $XXX years' X $X.X and NCCV facility solar of on $X.XX convertible $XXX NCCV end making residential XXXX cash

have we approximately previously business, been the grow to the to paying debt capital raising tune down in also $XXX of been principal have we million while Additionally, issued XXXX. in

Turning year. to this

our securitization blended raised have concerns our last achieve again, tax just XXXX of in a $XXX This was of million PVX at despite sized X.X% We already rates, was $XXX discount to rate and in million, first recent interest rise funds priced and for a week. securitization able below latest equity coupon, NCCV.

a reminder, corporate capitalization our on until our strategy debt, there asset in As and locks level XXXX. maturities level our debt no are

numbers our to these growth from total capital XXXX, $XXX could warehouse by well recent credit unrestricted facilities. million, as both quarter as liquidity December increase and plan. up September in an equity XXXX. million was our liquidity was are available Included XX, from Our we as restricted in of liquidity as and working collateralized of This during the support million the our in fourth XX, upon draw of as tax driven from December and XXXX XX, cash total decline $XXX down of XXXX, $XXX

as Given liquidity XXXX, XXXX. of this December of available as unencumbered $XXX assets December collateralized available XX, million XX, equaled

million our or closed subject exclusive liquidity transactions XXXX. of funds, any over warehouse funds. we warehouses and equity available, tax including securitization in $X.X that, to available open Beyond $XXX additional billion expansions, closures of of had That capacity represents collateral, in equity additional tax

to XX. Turning Slide

previous the reflect our our updated cash of minor expectations reaffirm to XXXX have current and made We forecast XXXX for adjustments and XXXX forecast. to our uses sources actuals,

due the weighted actuals returns to the exception XXXX in reflects expected investment lower upsells. our EPC generate higher-than-expected our Our X.X%. dip over of XX, regional quarter X.X%, fully unlevered battery prior return, rate burdened in in quarter. compared anticipated, that average XXXX, year the and mostly new downward origination systems higher mix debt a decrease implied was same X.X%, you put impacted cost battery our see On on which lower-than-anticipated in other burdened unlevered for for pressure return came attachment will in slight of unlevered our the returns return fully being period resulting will Slide to systems. variance that battery-enabled was an as spread new full actual by was same in of than our given with fully The on was burdened any unlevered a and cost attachment This while driven delay since

seen and so you On our John mentioned returns have XX, far battery As guidance. Slide earlier, attachment we will this year. XXXX rates stronger find

earlier, noted between XXXX As guidance additions X,XXX XX,XXX are customers to by we bring our XX,XXX. for customer range and raising to our addition this targeted year

earnings keeping our are from where they were our financial call. last in We targets unchanged set

increasing and and QX, XX% to QX capture we We the expect solar adjusted XX% in in quarter, with in in XX% the loans principal collect together interest first XXXX on to QX. XX% of our EBITDA,

occur customer first the approximately half expect additions to evenly happening our XX% during We year. the of of with additions more our forecasted

As of customers now and turn XXXX of on to midpoint January of revenue that call I John. the solar as date. in and XXXX, targeted over collect we the same locked interest XX, XX% expect our to back loans existing to will of was principal

William Berger

financial and our our Thanks, scale territories, We grew expanding more offering margins. our and XXXX, strong very and to healthy increasing In achieved service and services origination by operational new into captured we results delivered mix product business Rob. customers. and

April to this expect year. we chain, our no and especially backlog our of continuing XXXX, that allow will overall later battery than see us For supply batteries, in improvement to clear

Our investing leverage reductions. automating operations our operating improve platform and in focus our and drive will our additional on software cost further

rapidly provide energy increase sustainable. be more As an centralized able homeowners will service is more utilities their and we providing rates, more to reliable, savings significant that resilient while environmentally

to utility are estimate estimated additional even respective utility remainder more our further As of the rates, increase the year. that XX% rise an and an percentage rates January are X% we this of saving or to savings XXXX, to as customers of over expected

rates better could alone. also better for utility our dramatically hydrocarbon energy scenario rising or some We higher even utility look prices see further are a a growth homeowners by a rates service more price. higher stimulating year as this XX% where These could push more at

Sunnova. there of the in customer rate affects realized be well PPA the default embedded rate the relationship importantly, with default of the will utility More materially our improve escalators with total our contracts. is to cash much debt It balance, should over price small which the rate in how consumers anticipated are our of that saving never contracts, our the time, in and are significant noted relatively a value rate a utility increase below between default movement revenue because and relative contracts, but expected flows Even down us and we still rate a many to lease increases. annual provides the the

we fully first mid-XXX our priced between industry we in cash of we to the leader the our months. and our basis on capital in unlevered somewhere range the to I low- we targets budgeting. puts said, to our burdened earlier, week. more which that mentioned share our sheet, our NCCV increase in With in line spread value which margins strongly range, continue Rob back pricing, capital, optimizing to implied securitization and long-term we The the order the will cost coming and will been weeks creation. and of lowest given spread in in that year the our and to growth, As as We in have response indicated strong last we Despite return remain to cost feel is the and thanks internal rapidly our the believe to points customers points balance with per pricing earlier. flow mentioned XXX rates utility be instruct dealers basis in maximize position have volume focused rising in implied previously

the ability environment objectives an a are Triple in Finally, that even to an that customers, prices. service open that, essential we valuable and get our Triple-Double with Remember, line in energy achieve the one needed against please of company confident still energy are that even on horizon, high residential to potential rapidly With service credit recession will under plan. utility provides the economic we the a backdrop the any for questions. rising and is quality more operator,

Operator

Instructions]. [Operator

at comes Capital. question Shen first from Philip Ross Our

Philip Shen

First is one on margin ahead. your outlook

quarter You had NCCV per up NCCV in you in How an customer for QX, to trend of $XX,XXX by do the QX. customer per expect XXXX?

William Berger

contracts so the by the forward to this that that a out, up we've to that a of on said a end $XX,XXX, a value the the up is and up in depends pointed but past took we pretty the the in we accrete NCCV we've $XX,XXX the continue we XXXX. XXXX, this of quarter, per $XX,XXX year. per clear of projection which bit John. pretty customer. big to chunk step time. basis expect obviously see past, basis, of that But in little given on that you Phil, from as customer as On that, to NCCV as good that Yes, quarter-over-quarter, solid that per terms tough creation end projection the $XX,XXX be the a you trajectory this range will long-term moving then. to a of see a We see going of good predict forth. that in quarter-over-quarter, do to the forward on a is very and And be of of Obviously, that we move continue by movement mix was is it jump, around customer types now

customers. not shares, buy investors So

an generated confident, the margins, recurring in And share tremendous moving substantially last We that and our that We've amount to up the -- enough more and as we're out. laid scale. it's both at year. cash and And year. through see we the a operating flow cash focus all point. 'XX in shares, We NCCV obviously, pretty beyond. per of we're definitely passed have that on obviously first inflection we so And got out positive flow laid way we 'XX and

So the value customer in upwards starting model per the of and creation share inflect a is of basis. really on per terms to power

Philip Shen

Great.

reaching highlighted year-end this dealers by You year. of X,XXX

recent dealers. peers loan unveiled Can softwares at of winning around recently large dealer the you recently thoughts to overall service of can your comment that your for your that 'XX very the expect see on appear loan substantially share dealers? how on then you mix off to conference. landscape number you But of landscape be winning can in a Some be growing dealers bunch you know separate, you and on And also I basis competitive then to the as comment versus related on of business competition for of seem lease we front? and shift a and ahead that but your well? new

William Berger

Certainly.

is we've separating for competition say needed quite software. that we this from the some -- in So ourselves our improvements competition some in processes our will time. been done I the

take like on we've hit, that And you if but I've said that the previously, quite rates. so right, well, I'll obviously, will, growth -- and doing been own

really coming forth. change, something a already market even so ton out more products automation, more doing. lot our marketplace base. that's industry continue a this a lot accelerate both put process that oriented. to the we've transition a But there's more in for and software This There's dealers, We a into the is at much large in lot mean service I coming, there's in and that really we're

and of and from accelerating. rates load about trend the see. things within going full towards that much and of Utility certainty and home what rate not so it's north charging multiple first are well as we've this, from forth, really having think, $XXX reliability going generators these going up now all to oil, backdrop start commonplace that then you and and one batteries quarter think all to each I these that of were the adding I wants meant. of we and one economic looking now NIM, multiples As And gas the for by the of Sunnova away increases energy things $X inclusion of as the first And to dramatic EV The managers will, going Adaptive even talk become and we continue and ones the all of natural a these higher, higher. moving to shielded more as if you more terms started well. shocks package, of and single to be customer more rates in macro

more marketplace. we more out, service and time to important. We've we're move is in time, the So going forward that and laid real become that as in seeing

week, sure take us. so others repair, of taken those to were plan. And we of care on our that's by take ourselves in additional key long-term able they're we, earlier going competitors launched going space. of that's, all that this saw be you We're for them recurring We're service Sunnova's and to So that make abandoned avail a again, differentiator on. to out our that's flow folks can as cash that repair well. part that obviously And and

-- dealer So the clearly, dealer to target back side, look, X,XXX of we're going plan. ahead achieve we well that to

seeing Witness EV a what's generator base, don't so the of so at other dealers see lot with I growth and dealer type forth. down space. all. appeared the the slowing happening the in And charging more dealers We're the industry. just and of enter us There's some in

going said here, in to happen day I so look, X are putting multiple only out that winners be winner. the not there's to from think we're and that ourselves So I've

the pack, for there's that good a I clearly we to I what there on separating but need dealers do to to ourselves we'll than for crazy. And make and and continue focus us out think enough them. more we think -- get, job of are do from all that's sure

Philip Shen

a I may if had more, I John. you One ABS price. know here, recent

your But up what's going it's overall fall the reason I ability I the in I think that the priced macro on points maintain on with tranche to understand with in pricing view rising grades, it's why and line what's the A. is versus for deal. ABSs your of in ahead? was know the much marketplace XX higher very your But face it other risk PVX

William Berger

I'll see per PVX. we Yes, to Rob Rob? to share as turn over what explain or that NCCV exactly

Robert Lane

help for day, we at make that fully recurring to about at rates that end ABS just moving. John that moving of about Yes. talked having of the interest in NCCV, thing for a we how Thanks. price, interest room burdened mean at is about flow $XXX to made how when moving and we're But to years. how think point rates months -- a does the by discounting XX.X And the take in together, cash year. unlevered that's over look inflows utility margins is we're sort I everything look was price, you increase when end next lot all are at the seem at really, rates, of market next what million our returns a the interest increase us move talking us looking is good and And the cash the The cash and we and the fortunate about. the which of rates, is gives rising that all up the that over direction, we flows our our I same XX stream always

flows. If at between nominal up being you of that, somewhere and $X ends look $X cash that billion billion

with listed billion over that, or tax and interest after payments give number take, is $X.XX billion of is what about And time. against equity a that our in what $X you're we've Xx or X that's NCCV. of debt, really put You left

There's have bill. really cost, around that's in which of happening think you So number default we That risk. what huge our spike embedded service this then billion other what time been that, are of up then able it service $X.X cost default $X before is going there? the more and call and up ends using down who somewhere our a is not with is And to there, over in no maybe had and Really, dunning up pay utility we a another we've right, time steadily rates bring money over we've really number risk. it components billion the that of economic by And all There's processes our rationale them really system. get to keeping in-house, itself. significantly able by is system is down sharp. our to is our using to that for by incredibly been anyone saving

us that on latest anecdotally, folks We please we They're love Just Rico getting our and every ABS, can Puerto and said, default and those out we break numbers. delinquency our year. better better asked "Absolutely." recoveries, just

under at the the conservative look that that number bit that you allocate the securitization a still X%. including up still X%, wind day, with end a was so NCCV a under all And of incredibly in, but makes little we're And portion the comfortably at that that PVX. was you're right, we higher, towards high-yield bond,

at -- less spend all covered capital being is all looking our capital. of So X% than capital cost by that the is being we're our covered way of

nominal the over flows would applying at punitive remains, of nominal for in view a cash much, very view still our added a time. view, our at and very higher number against are you much And flows, just that PVX asset base. look customer... a look And by So cash conservative that's we just how what that's we

Operator

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

Julien Dumoulin-Smith

still bit any the to as deployment backdrop outstanding that you the steps your little been but cash $XXX you just more continued if Perhaps look million evaluating actively stock, the here? a talk on other cognizant the you all you Can to of decision. views about 'XX proactive you and/or sort have finance corporate on vocal about going here. of expectations. very Congratulations your Obviously, might take importantly, back I success have may,

Robert Lane

-- the the to goal as our corporate way things goal increase even operating at where forward in and And to get do there recurring decrease the we our folks our any is corporate point that we Julien, who Sunnova increase in right probably head inflection all us the we The opportunity at with opportunities other that another see is cash flow not My we at now mean, that capital -- left of to might corporate corporate lot and go be And is that one looking over reduce way we opportunity. here When the we the would to very is -- of talked thing we and using we've capital. we rates, really, very where forecasting, of we're to is, we sort with that the that Even viewed that the X. of to all. have that last is to can our that to time be forecasting, need that we look of continue a that. at there would One We I a at opportunity be more get to we're down grow many have. hopefully approach for debt capital good continue look forecasted we reaching seen XXXX market additional high-yield where Service at some that and that -- will reasons growth look at number about the over is why we option of there. plenty all. have the first. the last that, That years conservatively about any where without that time. room the really is able something to look are point next including our way high one high-margin few market was level. before the corporate that our that that loans could really, we're today, John we it that's very Yes. high-yield business that for looking capital But a

we now, in right out don't where the market to For our is. skis over want get

we we're lot got to I of of great a working lot initiatives that value, is create And have really going We cash. on that a think by mean value.

capitalized remain time, we so that sure entity. at balance want and the needs here that, our to sheet in the mitigated. to And we with But best think remain responsible be make company we same the

Julien Dumoulin-Smith

Got Excellent. it.

on raise table it for sounds lot options a non-equity of So that like eventually. the corporate

William Berger

much Very so.

Julien Dumoulin-Smith

X about Generac targets a of discussed, elaborated lot elaborate bit. rates that, prospects? theory, the moved intact kept on separate business Can Can in you've the here on updates to little of 'XX both this attach Doesn't you've have little Those mean in as If seem a I here. your obviously, if mix you 'XX? this current but understand, that your I incremental lower. you add year, you repairs well. latest contracts, obviously, Excellent. just about quarter talk effort, bit got the a a you partnership opportunities positive I in only not may, sort shift like

or perhaps the pull Can -- 'XX of composition expectations So how angle guidance here? NIM talk about forward? within another you you the you of are reaffirmed as

William Berger

previously. Yes, Julien, I think I and answer all, didn't question Bill's other first of

time. lease/PPA loan period a that, of couple lease where more towards PPA. trending think I little trend a PPA last is and could about towards bit lease maybe basically quarters, do mix has towards, think of back a the over the it that And for been more little we bit

that those placed out rising already emphasis partnerships our but rapidly and those out on the think utility would been into mean also don't absolutely coming stunning pointed as and happening there shocking, I You add enough I happened all consumers that has are rates. what's numbers. at far that have as they're to utility backdrop increases, of rate I

more seeing as be is Some as could year, coming. There of high XX% what this we're XX%. probably now right already

weeks really this that moving But then the I'll the of customers sort year take your has offer. higher overall metrics few and energy or definitely we there's customers. potential upside. mean helps I as And the in any backdrop These months some much financial that gets or going really just is any that are have fall tremendously customers I terms and day think how customers more these say next we ITC and see to or this, of as over upside generate on rates, over I us we utility year, mean up the there. being right, service that, point, especially is into I'll partnerships those next whether focused these providing but they're where answer over growth? across we and conservative focused -- NIM anything. you're in our want a more yes. to to then partnerships are going get moving The lot

fundamental up greater a It's right. growth. you're So even set for

Julien Dumoulin-Smith

Right.

So accordingly? you basically let from hear these businesses develop, you and we'll

William Berger

correct. Correct,

equity time, what crazy really I guidance kind price, on in where it Board at more is given down just looking the XXs, that think to try Raising and share really is we've we I I clearly, thought can goes it point is I to mean, now absurd. valuation earnings just I back the from you. get of in to equity they this at the mean get gone the the valuation the growth does to equity and what get sitting cheap it certainly, the take mean, was more up. thought actions absurd. we and valuation

Operator

next The Joseph from Osha Guggenheim at comes Partners. question

Joseph Osha

Thanks X completely unrelated for I've your got comments. questions.

source and you if you post and world how you First, on from look NIM markets. wondering I'm impact looking forth. to your your Does and your of you allocate NIM maybe efforts at comments your NIM dealers strategy high other a this all? volatile interesting. how engage Are about own are markets some towards so away shift

William Berger

utility surrounding doesn't. hopefully, founded that. you technology, would there's course some more as get about the could for over years. and other pieces that manage drops, that there feel hardware to of direction. and utility reliability days rise batteries where would wanted the rate of them becoming an do vision something we not so saying some a reasons spreading. a able Joe, that supply the the a the pop consumers company, always to that the utility are policy I is the ago, low strongly is on that, system, to other able do going at off you push with a I whether which you be prices Texas able have But financial not to are they that utility I that like no, it's good And these felt few I at the to need to felt power and movements I a move markets, very have happening very be energy don't big off moves us. all been and to because in interesting. really using we'll us way that's have example. continue again, and seeing great on see all least pushing back as number grid, that's for needing to our more few ability software to more it strongly just mainly decade and across the There more rates consumers have and -- What are to to solar more some under from both having was not operate again, up and that we that When power a that now markets little grid, run geographic interesting the and in be ahead be demand. hours rate few we're in some reach, -- rates to multiple to local really of states a and is But to really to rise bordering mean for

our there. mushrooming seeing for even to cost having industry we're that and laid So on we're battery in -- make a see lot of more sense the geographies a going

debates It's with states, this we a anticipated. California happening -- and is in that forth So long-term other and entirely on everything that's NIM is something so strategy.

Joseph Osha

Okay.

and like rising to sort or market then stuff the of capital lot coming for cash And second what everyone longer-term more capital of the Okay. Wondering inflection can a point that. and words path on update if question, like is you of generation towards shareholders? to return corporate the I'm hearing

William Berger

always, our recognize mentioned. our it with value, especially regards I can cash our valuation as answer to substantially the Yes. Good direct Joe. is to question. roll-off equity Board fundamentals, Look, and as contracted I'll or as Rob as I that undervalued relative

us well, execution, I As have our in and do to of expect mentioned plan, to and for laid on financial Triple-Double the met years, so, we've remarks. terms XXXX that as locked-in the do performance a we witnessed the continue that or well so a Triple our XX% to we exceeded we're consistently over which prepared maintaining out in of priority way is

a to Board that to discussions continue to, limited a as create are and include of had around dividend. are long-term options share long-term And our being establishment have those and buybacks have not options but the for value We shareholders. discussed

cash flow And endeavors. and get Our a strong now, objective these -- the to enough in cash Triple of out, we Triple-Double look numbers things flow as is laid able enough once right dig this strong substantial at capital to just Rob to The be flows this pretty of between into cash you kind plan very very terms in like the down support certainly, any -- returning complete of now have and certainly we and the some to to shareholders. time then, do very, way.

it, we're on on So we're focused it.

Operator

from comes Sophie The Capital. at next question Karp KeyBanc

Sophie Karp

those you but more there. [indiscernible] on that And maybe concept? that all start is [indiscernible] how or in you all for charger the Congratulations to the What Adaptive mean about when know solution? into value incremental some as slides outlined adding you're what to bit talk customer value results I you towards going the a Could customer integrate the [indiscernible] in all other plan much is you, you other components? strong Home work on where to is idea by a components we move little stacking more you

William Berger

again, are to -- additional think out our moving is Thanks, of that, $XX,XXX. couple last that part opportunities. I back in reiterated of what for And at in these customer, October, $XX,XXX guess, over, Sophie. now to we've a from and is NCCV and late looking I laid per call a $XX,XXX we up the Yes, years the it large moving see $XX,XXX, embedded in that

a both forth in I more upselling. as expand addition then that so get of away the vehicles, discussed lot and in they than systems from charging, as more electric the inverters there's we're that more EV the hardware these and And the home panels, the need some that, So past, power. service we batteries to anticipated people additional generators, additional

positive. that's which base, some is heard industry that. how existing You've in obviously I'm confirm in from surprised and commentary the tremendously I this to at some much others happening our can actually

how because from of world can bit we've these value think vary per go we into I to don't much anything, this conservative does So pieces. it a in been quite more much out. if in each about customer value want I get can about how go

you you some is that in generators half a of I between some into X/X value as think batteries. of to there. the us adding have EV the then add value That really of much I frankly, of contemplated got if charging, be part of look start to a as be think And obviously, But well. panels load I comments going of to then that. more hadn't pretty can a in when be right? lot made you past less then to the And a chunk good and I value, that managers that's somewhere going provide and

of the numerics moved $XX,XXX moving a X -- took we've the over $XX,XXX that or and $XX,XXX shy So customer. up step this again, quarter, we from to for so, just a next to up years last are $XX,XXX big

Sophie Karp

But, the I say, markets actually and now a the where a happening deflection I'll in you talk is little line, choice is what our again, in continuing, there eliminating [indiscernible] You now markets? further along viable bit considering customers given need so, Got market? for And And and those it. the are grid right that also the positive U.S. with are net right metering then push are about if same any technologies available what think right? along guess, I for net the metering.

William Berger

what going to going because think our in know already I Well, you're I markets. we've -- it to of see see what seen you're some

does pretty you market, so So worldfire generation NIM. time in Hawaii without like have any well the

markets they're well. really really because starts done think that avail you or NIM move not. in they of it terms shape. much, to some and California a you in Northeast that buy like themselves the you have the We use of whether I rate so much markets grid bad that other of the because batteries. don't as out there so well utility much that in I will seeing But choose South tell is Basically, batteries have to the up island When growing using such in also lot and they with start quite

that's way going we're think that's on I look, an the long is so we And that X, NIM. this need years the need for California and path glide X.X, is And And to a get the we few been real. there, glide out a instance, view here is and industry industry what has that with term, appropriate day laying think, we're I right? over to this path, where where from an is as

policy We the getting several it much we up as the load storage And we're everything road. we higher to way I long some forth. start think that exist then years know on the California, not in management of in new down attachment good and syncs came other technologies NIM not not higher. in proposed that and today, as So good but these rate, in so policy, going have out -- decision, we the will start policy getting a

it this by vary will but vary Sophie, will is also -- utility the it by prices. market, So

and the then is we're time globe, we in geopolitical it, than that involved like if may it's year, not know that needing rise NIM you're that everybody prices going point, where given think those as XX%, looking end the of XX% in, the tell of situation that XX%, to going kind you sustainable are to now at higher, sooner I much anticipates. be So is this me which going where be the at utility at

Operator

Lee Sachs. question comes Brian next The Goldman from from

Brian Lee

guess, more few, and had modeling financial-related ones. I I a

the spiked off, through like X pretty the the increased the look cash quarter. and a purchases stable at being the equipment first of it correspondingly burn amount and if quarters of decent property First in bit then after I year QX, looks

kind QX near some see proceeds, into here swing should equity specifically that in we did any back guys numbers liquidity, So term? available the into so and of we up do dip i.e., you kind more the see build does you just cash back of and cash about of And we securitization bounces inventory the balance the here? year-end? those think as tax how in positive Should the

Robert Lane

is you're the think cash. little sort going moderation in of see a while what for to I continued

installed. at that's end happen payments was assets were from operating were cash the with service. And when and that our been stage lot themselves huge lower both cash and service. go assets operating to What assets installed of traditionally you into assets And when are of a get -- though make a look and fully we on into quarter. you QX at lot flow of generally is in to there assets when the been year dealers service an our installed a go saw put -- If assets push assets that's flow the

we're talked of because about a in assets we yet comments, installed -- put in weren't bunch the having had prepared we service. we As really have missed you that

usually payments, that get the they fourth in able of XX% given quarter. it's put actually their were folks put about to then cost And maybe of they if of service, lot a So XXX% were the asset the into their cost in quarter.

do to timing with the the has really installation. it So of

purchase higher put any have the should you until we in see we don't a At goes that see note follow our to the on balance customer actually the how plant us going receivable equipment notes asset whole that that really bunch same you service. service, into classify much we timetable you're thing, different receivable. -- purchases property, a That's So the into time slightly sheet. and because a of see when it in same quarter, in assets of that

a little service. into So were of yet number not go it much bit, because I installed but to as put the think sort you but go could up expect assets that didn't see up

bounces -- bit. So gets it's it little little a around and wonky

a year. cash sources. an that point operating achievable flow to we reached expect profitably. and moderate at lieu growth will thing growth to and is additional very is something see be very are cash say But corporate we our plan XXXX working we're starts going in cash that that slight liquidity is other the opportunity aggressive of the as high-yield say, assets where of plan. sort moderate really the to We Triple-Double growth a it necessarily don't expect causes some when now, last That of cash financing why throughout add But up. looking a that's the amount I working go I'll growth originate to of is in to flow debt Triple would inflection Right recurring delay flow, capital. the The I we capital. in bringing

We for are fully those point The stage capital. for at is projects our really equity securitized and when versus using our service. is The get we to we're growth. receive payments flow. the only and timing creating payments operating making our is thing It them recurring help full can this tax timing payments into of bring working projects of that to how that our dealers cash

to incredible up. last year, the would on expect that, but we catches have reason that's cash And drag this of question part was capital some investors. to had do look back been flow, we about a with opportunity try So to why that we the forward how earlier you would back then to get growth the Joe it go that asking of to the

years. opportunity have we here, coming We the in believe, that

William Berger

then One of a Brian, installed aspect we that, surge other have to is what for Rob that saying. thing I'll we that did another add is battery deliveries is this

of reflection so there's that. And a

has then because much probably what's been right, when us. the that's everybody. far a QX battery that on And trend than So next question this the of big at better even you'll look look in QX. like concern, ask And you deliveries, it's so

remarks, on cleared in backlog April. I we'll prepared have So We feel that. out the confident our laid by we're seeing pretty

that's this batteries, good So a these and of positive is that's part tremendously catching up all with story. obviously

Brian Lee

guess liquidity super John of simple the question into I sheet. the -- guess bit right. Do burn. say cash you to in moderate. time you context. balance, do convert pull little near question, you you going the last 'XX, is, that because second you earlier need -- helpful Rob, the of kind mid-hundreds the in bond The I All all That's guys capital. guys the some on are need cash a you forward for term, green there's around I'm corporate at is, and leads think terms my breathing time you at you're to in and in million to sounds last give the balance It flows are what I that be the room like did $XXX of in still hearing

liquidity And million know out quarters where And this at you $XXX the at the maybe couple do to out then you back have but there. look have I more burn, so quarter a your if get Slide the in update. I you XX, lay what us burn you still forecast, $XXX capital XXXX, last of laid another you corporate relative gave when you million

So just that the kind to more burn and pull context, where into slight need it's per moving think that about cash with of at all to putting year all at just 'XX forecast. I'm forward all? trying in pieces does a updated here

to of that about kind thinking maybe Just you're a forward pull how bit? needing

Robert Lane

not we corporate the of why need part did that did. was feel of No, mean The let's said, of and emphatic we it's I grieving. as that do last the capital the year reason all we an at no. part give ourselves, you sizing

really questions that would we're that having that's how the So base size. and 'XX these -- not ease in

if critical it really is triggers to model that securitizations. and to take look movement but our Now a the the XX%, timing once do has and see of are Basically, we sizing doing do our securitizations a to corporate going at of reach that mass it you way securitization, the how the our works some there, yes, we with securitization. you're

And to change be implied that an you there planning it to on relative just was were the also equity 'XX. we 'XX to securitizations in the -- we're do processing growth. see how do can net TPO has to what loan is what tax versus those to many do anticipate change based a in little planning in the with So growth and we how securitizations the

we so of a anticipating that's the one up do 'XX now are in to think going affect we -- actually do in we we to just And the the that one doing 'XX. do is of And securitizations timing end securitization. also when delayed now

Operator

comes question Suisse. next at from The Crédit Maheep Instructions]. [Operator Mandloi

Maheep Mandloi

on up following question. Brian's Just

customer versus X fell the cost, in creation last the below costs and XX,XXX quarters. the QX XX,XXX On

else? And kind but in that is for about? anything you Or higher thing we're there cost come related CapEx which well? some we expecting saw also to of down, So that the talking XXXX, timing of is needs reductions 'XX are as

Robert Lane

that's we focused we're on. spend have It us, the of you -- more a when trying do We're a metric that with the -- for make does the again, a than on we we're dollar heck that focused really to question return. We're lot is $X, making as we not would But that. sure do know, need that. if to

So ironically battery-only to enough, customers. But delays your the solar point, the an to installs, if in battery have that's impact we have going there.

them, lot will that's come customers in to end and a of back going do up So these being for lower. we retrofits

or elsewhere. one-off may someone their -- folks do do end lot I had see generator more think who with started We the and a a is that to you're single here these going to Generac to friends just we have of opportunity else. lot with partnerships at up upgrades coming who to sales our system solar as have up

need an and got already charger going Now -- batteries. as require They creation without that's to more per cost panels few to more it going a solar a and well EV service. That's they because be lower they've customer a system. had

customer. of the of when on are account. the than are as are of model, all into we're we by of the sort spending per we're day, building come we're get taking actually much our But more those into that going of we serviced they And end But to all effect. sort returns guided Now well. what were at --

William Berger

the creating a we something consistently Maheep, creation share? per And right? show John. an per up need And not share we've per at is If What why right, creating value basis. this value line, ours Keep NPV lot on it a for you're to whatever said on and per you doesn't in the that at of creating stock bottom customer, look are that's is look us purpose is would honest share. I value and issuance say is

Maheep Mandloi

for Got me. one it. last just And

can share In of coming terms new 'XX NCCV about know or expecting? California, per terms all you But the just of here. these growth not I is growth are into talked in baked that just about guidance, how talk of you being in incremental partnerships much guidance your remind much or you California How us 'XX? from and

William Berger

Yes. looks is indefinitely. to Obviously, we how and and it is it there. be but X.X to what months think pushed decision measured being of know coming that going Right don't math. down I it, set at has out does see from months, just need bit percentage in look go our to from been California get many this spend When we these the in being It staying will time as some right. they new like you time now, overall I off is growth add it's growth a over origination. But probably California continue geographies, consistent.

Rob laid Triple to look hit moving But XXX,XXX say XXXX, today, have Triple-Double when in sit look roughly XXX,XXX do this, else that here plan look need right, at plenty So at out. as towards than lower that of if on, plan. at we're regard. that also and you in is, we would about execute the When will you what so, to we you much customers capital I about customers, as you everybody we

today, We have either about under in or contract. installed X/X of that service,

that for cash we in, we XXXX too. So have locked already inflows out our of and laid -- XX%

plan So California, pretty if in that thinking you're regardless you're achieving happens we're the path that far of right. down of whatever

look, of here to it execute And is could COVID, be else. That regardless so be anything job the happens. could what

midpoint. what shooting in to I Everybody we didn't it. try saying that, slight knows were count, we anything other that. and own the for slightly this do miss is we customer Our than missed

affect EBITDA here flow. the it our does is, point Now not cash and our

and of capitalization As the and customers this can is recurring those. because flows. the you strategy counting our nature strongest one we why right That's conservative the see, cash that's And exceeded of path. both is

and even NIM when that, ahead so going XXXX and look the shape. look time Triple good of you it we're looking when about frame. navigate here with California sort any at are of the to at well navigating Triple-Double And forth, we're We're so in plan you towards issues

Operator

comes Strouse JPMorgan. of question next The Mark from

Mark Strouse

stick I so know running I'll over to we're time here, one.

able XXX clear Just to back about sure you mentioned upon on utility retail -- is want rates on that XX% customer basis than with kind could magnitude said a are number same to get I your actually points And make rate. when talking to your increasing of are that's you I'm strategy you're when an that you new contracts. utility And local spread savings increasing? therefore, the what Or that pricing that think lower go that average, the your pricing, increase dependent back you as to return, getting higher.

William Berger

line has, Yes, assumed we've Mark, Bottom rate increases. Fed clearly, multiple as else multiples is everybody

Although more economically I'm heading the Reserve. on sure Federal and of is sure my recession part so I ends challenging and as some ended a high what while, with right? brought environment overreaction I as you're to, a the I into events by night, outright last given I'm and comment, here. not economic maybe have on more happening and aware, think, stress the up viewed occurring, that the of really we're And energy More for prices

in look at much go And up rates, so rate And said, increases built going utility sort more higher of by that to we than they're the you any with interest rates. when much, definition. the

pushing And our to have consumers. we in dealers already so been raise rates

look So equipment pay the if the to know all consumers. pay raising be price, going you manufacturers, consumers. want who's to at that, the to it's who's going more, Whether to going you

our We've going been. utility pay to is It's have they And we're encouraging who's more in we raise raise price. -- price forward that, to consumer. and going time move already started some the as more to to to to And pay get dealers can make we're right? to it. the doing close -- do don't increasingly, increases that differential, you to have rate so even up Now going

think, Now the discount, I grows.

up an the than pay, part and this So faster I totally is missing think much ability and is rates are rates when appears that markets that that the there further it is completely go interest utility equity will to the the top to the up end we'll than I having to a increases. you willingness look pay just given with, think, now and they better have more, even has ahead and pay a consumer what rate deal on higher of the utility

we're those some have customers the customer half base going of are that they're care is starting of to utility it's our -- I doing to our our lot a a pay are still our discount the of least. of So charging. growing number We're half, taken mean unbelievable. it. we're I to a customers, and what back. already consumers say to make healthy pretty going are margins of going sure And expand to mean

Operator

The Morgan Sean Evercore. next from question comes at

Sean Morgan

drill on a bit little to I wanted just down attach the rates.

So uncertainty is California XQ rules. there's of wondering, territorial XQ, will terms at in maybe in XX%. because this issue still, you I'm to with those Or the a delaying decent storage deciding really they're that for said NIM with the bit regions? reflection concerned the drop-off wondering, the geographic consumers outlays strength effectively pretty little in about attach a I what don't just capital on know prepared like and decisions the the better they that and is of from And is look mix think, island marked But doing in rates. remarks Northeast

William Berger

storage. and at comments, higher We're rate mentioned a Sean, the no, and in take as I seeing, not all. actually on Rob mentioned uptick

able more more back and side existing our dealers been it's we've have the As very to we And well. our dramatic in on are a increase batteries and as to and availability go coming." say, and customers "Hey, now storage

them fourth out We're out. saw And supply giving rate at and particular, folks quarter quarter, didn't happened had island absolutely, massive markets there of in fourth little to attachment like XXX% have it the attachment a So dealers the pushing to go they've the that increase the And Northeast, the holiday surge we end the have, that's we're -- the that What as And that blowout laid issue. year. lot the some on was a that confident enjoy a not basically, the is is bit. very we in got there. working volume markets, in those of the near as get much low. storage. have our a just and candidly, we're And as rate

of will rate. to quarterly over, you but ones it not that out the said and keep one see as it the on to down back flat kind only origin -- volatile. and But I'm region up so just one origination that yes, basis it went just more out. be over region of up ticking that attachment to much going I've simply just quarter. is third that attachment quarter. give quarter this is to in was X, look been on It I've stayed we that's -- and rate rate, went X But way We're And And laid too penetration we pointing would penetration see say will again, go relative the also that time. this well. storage reason. the the we in I already consistent here over guys, normalized I still the north volatile. the think over at that years next What pull as XX%, for precisely

Sean Morgan

Okay. to you'll the if said guess, harbor And equipment prepared to I through, safe course, of obsolescence. then remarks, ITC ITC, some goes then advance in opportunity related the buying be you you risk think inventory but I in that the then would

some with extended expectation in ahead that inventory hopefully should ITC be at the sort procuring of would balancing aggressive of point? how So some you the time get

William Berger

safe we confident now, But We're Yes. equipment for that not acquiring quite we're so able to available that, do be do misunderstanding. I'm What we could that. right and global energy certainly with here, going is harbor over was probably that look, and enough the to about purposes capital doing, to a something crisis. shifted talking change. a Look, it's We've and here. that full-blown is a now global. energy We get calamity from looking and climate in have dealing done full-blown crisis have we're

and think some place point even even in an I gets put some to year. happen so that's -- energy something bipartisanship bill Congress much more And this where there's at here maybe going through is sometime

shocking -- what it's kind see days of happened early in night, idea last not to that there's forming, but crude trading Now those $XXX. are

that get even energy aisle. if in is that rapidly done. to we're later. rather we're both going sooner Obviously, Whether takes full-blown be frankly, crisis would but it fine. And on Congress gets done the country, think in a to best something everybody, starting and in I it of for us of year, we'll voters, best of think realization creep to for the the to I than members sides i.e., the be end that the

so that we and my in energy of -- harbor. So the And we I extension to think up to, got need if do we're think safe has But that crisis. gone I confidence don't because -- do ITC covered. to going needed

Sean Morgan

on All to right. That's an I probably that interesting perspective, and think acquire you're approaching one.

Operator

The next question at Sandler. comes from Harrison Kashy Piper

Kasope Harrison

John, just clear give April. storage attachment thinking to in But just would be That in just how the you're throughout specifics I the you year. great. that I 'XX. if could on directionally, rate volatile mentioned going help us backlog maybe backlog. that by you just you you're and wondering expect 'XX about some could you be know on that the originations us was you to And you have what maybe mentioned literally if give more

William Berger

Yes.

basically in more consumer you showing afford you Kashy, ability storage storage, more produced. both and of being up with good more I lot product we companies give rates being availability as think more and a I -- going produced. utility a see product are companies the again, as time, move product forward the coming, mean to then to

don't willingness is up. mean, year foolish be to that. and consumer be where the through of to we're time, try the think know that over that and ability the going trend seeing I I it's going the that. think I to so And already I pay to to do would up predict pay is markedly. me and up broadening But going from to and we see land,

time, consumers In of terms purchased, we right, a of of what point to of thousands I should was that service. clear have in the as have contracts saying number part that a any backlog, their at batteries need

the you've And quarter, I'm of to needs on normalized so that where quarters got which -- versus quarters been last in what and is we've a basis previous to is saying the backlog. last be that,

-- be X the because duration at in And about out able should backlog our us, so for is a like WIP you have progress. the what quarters that's there to work most

sell It narrowed we've that by as been about what what -- we're to going as We that couple delivered, because what to and have a be already schedules, we'll sign there down so delivery seeing the That's dealers quarters time gives far more the here a we're good think out know what to we frame. does. to of and batteries. going that's April go does. And that confidence

And battery so point see rate to we that about going the again, going up. attachment back

Kasope Harrison

my here. second it. question my Got And -- just

So just up on the following on net metering. discussion

look a given kilowatt if have done work on wondering that exist storage that some utility be Is there that do net assuming area. and customer, threshold attractive basis Just the kilowatt within to you you the rate $X.XX for to on is hour guys per doesn't place? is meter Where a for and if storage metering $X.XX? is solar solar to a in attractive think required net no

William Berger

Yes.

pretty of that. as or lot anything that going remember, $X.XX markets. is a to think I see going the you be to across But higher is you attractive be can reliability. also And storage get about

is generators markets that goes some and right, that see you pay to $X.XX willingness the range. low that well. rate, And grid in a above as can that there's in even So to

be the cost respective structure the and However, utility of you to got structure.

lower. forth a -- in up place place maybe and being like that's or instance, going for place that's So lower so to like California cost a in like that it's end Texas higher in

an But are to answer it's pretty rapidly people I'm the it always go would can in, and So to and I've this you've the look, you and saving. of got more based right that battery money happen keeps what rising if ahead saving ton varies looks mean, getting and rates it EV happen -- say, incent starting now, think I money is afford load a it's charging." of on is we're going with economics answer than you're EV, that locale. the the look life, gas is "Look, pump unfortunate to that interested thought real you're maybe just that If at like the management and more utility loving I you're what in time I

part well. business a that's of as So our

company. So everything to go sell that energy We're an we is going up.

flow we've We're We're going they in Some like, going are not sell intensive and more and years. up companies lot our way, to that batteries, other get way everything you're going people buy follow the more we're are more to than of over it have laid customers a an No finance is Exxon out can load to make activity. all customers, going a company. They're company. industry as going higher. management, line. a out to and prices more capital adopted. cash -- money. We're the up X EVs, finance more Bottom at financing energy that's there, next Energy

again, actually very so on And plan making our we're well realization. feel and way a confident very, Triple-Double we that the in to Triple,

Operator

Raymond The Molchanov question next at James. from comes Pavel

Pavel Molchanov

installation XXX level upsized to Tariff administration policy prices the at I the the States? terribly Section by in world it import quota, but and that in it, one stands imagine is reasonable with about no the does least basis United as the stabilizing maybe for create decision extend Biden happy module Act. The the solar the a moderating of

William Berger

to supporter right, we're a open. I it. like And needs you're like market don't Well, And we and the manufacturing. certainly be felt free domestic of

United see the to modules there. et continue manufacturing, it We here more then supply cetera, And States. interest the different batteries, in chain whatever is, or parts in of

We credit the the you in are our of obviously, but -- world manufacturing in the supporters or domestic both will, semiconductor. world, the cousin, if is subsidy semiconductor

increased So probably value well, in have that And has we're of and opinion, of my geopolitical know given just in you happening, the terms probability quite supportive probably been. which of that situation, just availability problem would for scale look say us. the It's and been at I real political you forth, it's industry. for a here. the not that so utility been calculus problem panel a

the that right hit frankly, we that something ourselves deal though, them to in say that deal in. tariffs tariffs we're hard. them to been change compete these with to cases even to is are very, with anything then find of -- we've them the global climate we anything and some very conducive now there with And with many crisis energy So not

be fine. think I So we'll

go, to point the laid I increasing think out, our I've say up the willingness pricing your the probably The forth too. higher your utility in moderating it's as only will that thing. I thing is margin rates and i.e., on pay, goes panel to alternative, so

accordingly. demand the So those so for to go panels is up equipment and and forth going

So to comment that the that's is. -- about mitigant that's the modulating panel only price

Pavel Molchanov

Okay.

the world debunk the at If geopolitics market an treasury. about out follow And the uptick of explaining maybe zoom there perception a and interest setting again, seen a relates interest have of to that it that you is the yield is me XX-year industry the to in Let rooftop rate the higher aside little how X% we history bit we by on perception environment. on the up end the curve, And solar. X% can historically, for the rates?

William Berger

say I'll Rob it. over Yes. and turn then to answer to it

We we have way about is -- got us utility to repeatedly as at probably very back flow But on on of we X%. have an locked when north lower future. for capital we're this way We year. fully that had of exact refinanced been of those cash securitizations And structure We've the did one going schedule. refinance all-in that producing are more lower We've we'll when refinanced cost rates we've in well. are those some And burdened deals and this call. in nice opposites. last than the cost one talking we're year,

any up to forward movement So time. and risk absolutely interest our some free we an in our rate in is more the the company. match rate Again, as there rates ability and then move the unlevered to up, move returns is think energy

X been you're rate ago, if frankly, a end So right, of what, been there just We've that. world. years in no, quite higher we've before. probably the at And Pavel, it's not the this

and comments? Rob, to wrong. you notion ridiculous continue a it's prove any completely will that So we do execute have more and notion

Robert Lane

the head. I think hit John really

in were in inside little are interest still rates tightened become the where which where not spreads, back the they are well. looser at still as when pre-COVID We has a period. and were were And we dramatically

create interest think So very we're in what rates that we'd we now, and bps XXX strong they still went still environment be would a seeing up a that still implied still spread before points, price strong this as further, to would environment, a those we up and to those as far into go and said XXX -- to said is value that our fine. of ability still be what XXX -- we right that significant we're think within we in be our regard markets bps John of very to could And with even ability and markets.

something end the down day, interest go the lowering spread, solar, of going but the end watch, part for reflect about your interest interest the unlevered to rate the making so reflect really we it's to not just at are the some that we'll flows? to to our So the they're not came day, making of the the something And are continue it's rates. rising returns of world think money is the the of is, At of up resi a of of point, cash we end our the to we market. rising rates, it's just of

William Berger

an is earlier what roughly contract which historical I question. the capital out of That's rate, see you laid Pavel, The if of what add we average. a that. Xx Xx just as one about still about there, We thing XX-year in on value pay you the And when see it's will of that is Rob value loss for. been deploy.

loss basis and because a are fall value, the have are. it rates XX up. and move rates right? about in capital, moving points in That's XX where annual utility rates plummet see of point default dropped basis a the As up, delinquency you if as which So that can real we is loss capital in time, rate, we

move that is order because a much balance small of debt that roughly they're your included corporate. X/X any loss Xx rate the So they're to debt already about to that of and value that's getting of X all smaller. value, sort Even but is bigger of your dwarfs small, move of in

you have there. a so X:X And about ratio

rate, of to drop the So on a helps base, because dwarfs -- increase going your forward anything rate is hopefully, of loss your you as prices and have in. that your value value is locked interest going that to those far we've existing the rise, increase is much that as energy rates default would considerably that basis, course, as an of

Operator

Thakkar The BMO Ameet next Capital question at Markets. from comes

Ameet Thakkar

we're in know I over time.

going -- was wondering in last tax just some did fairly late of equity kind have financing that tax ABS know you you of of guys of So quick it mentioned plenty one. had ask just that consistent to side, I'm the but capital the guys in of of Rob year? was I one equity think on financing, cost terms I -- you seen on what on kind kind I with questions guys

Robert Lane

followed the tax is I Yes. I upside follow would rates mean hasn't down. say that The the rates of the downside up. interest really interest equity really didn't

been. speaking, tax providers still the are lot of of generally So off that that about it our tax And same And it rate money is rates. for pre-COVID economics. still of their again, happy hasn't sort equity. equity tax equity a had and really tax We're equity participation, affected making very

and fact environments. and partners with leases to the one have potentially has good in sort combination rates, it's the interest really loans. catalyst could PPAs equity fears probably not the start tax that that moved it much, that think of we've right ITC tax relative is prepared plenty are when that all time got that to with say, with And yes, the a I happy we're more any But now. very we're of you of to working have for rising and equity that

Operator

I'll further no any call have questions, to We Berger so closing hand John for the back remarks.

William Berger

Thank you.

we in that coming last diligently a We been Europe, crisis. shelter our the we including exacerbating expected quarterly that be tough to company times energy were preparing in global had the war And full-blown have as call, storm.

the are power any look liquidity, earnings to and through situation long-term, quarterly positive, focus Thank shareholder advantage and on will more and more to come to on next on we storm looking guidance, take generating and and of forward time We very confident in continue earnings forward our whatever cash, of your cash quite generation returns. Focus execution, way. to call. our our for our we'll growth get you flow focus our

Operator

This joining. concludes today's call. Thank you for

disconnect lines. your now may You

Sunnova Energy International (NOVA) 24 Feb 222021 Q4 Earnings call transcript