Sunnova Energy Reports $367.9 Million Net Loss and 17% Revenue Growth for 2024

Sunnova Energy International Inc. reported a net loss of $367.9 million for the year ended December 31, 2024, compared to a net loss of $417.9 million in 2023. Total revenue increased 17% to $839.9 million in 2024, driven by a 43% increase in customer agreements and incentives revenue to $541.5 million. However, solar energy system and product sales revenue decreased by 13% to $298.4 million, primarily due to a strategic shift away from reselling inventory.

Significant changes compared to the previous year include a 43% increase in cost of revenue for customer agreements and incentives, reaching $213.4 million, largely due to increased depreciation on solar energy systems. General and administrative expenses rose 19% to $458.9 million, reflecting increased employee-related costs and software development expenses. Interest expense increased by 32% to $491.2 million, while interest income rose 29% to $149.9 million. The company also reported a loss on the extinguishment of long-term debt of $4.5 million.

During 2024, Sunnova entered into several financing transactions, including new tax equity investments totaling $695 million and amendments to existing revolving credit facilities. The company also issued $295.2 million in Series 2024-3 Class A solar asset-backed notes and $12.9 million in Class B notes, and $197.6 million in Series 2024-PR1 Class A notes, $17.9 million in Class B notes, and $12.7 million in Class C notes. Additionally, Sunnova ceased originating home security and monitoring loans with Brinks Home, selling approximately 58,000 loans and 65,000 accessory loans, resulting in a $43.4 million loss.

Sunnova's customer count increased by 22,000 to 441,200 by December 31, 2024. The weighted average number of systems (excluding loan agreements and cash sales) increased by 62,100 to 230,600. The company's average customer FICO score was 742 at the time of agreement signing, with approximately 0.6% of customer receivables in default. Sunnova also expanded its direct-to-market sales team and established a division to serve commercial and industrial customers. The company's employee headcount decreased to 1,796 by year-end.

The company's 10-K filing highlights several risk factors, including the need for substantial future capital, significant debt levels, historical operating losses, dependence on its dealer network, competition in the solar industry, and the impact of government regulations and incentives. Sunnova acknowledges substantial doubt about its ability to continue as a going concern, citing insufficient cash flow and reliance on external financing. The company's outlook includes plans to address liquidity concerns through various financing strategies and liability management transactions, but acknowledges uncertainties related to these efforts.