Sunnova Energy to Acquire Lennar’s Residential Solar Platform

Sunnova Energy International, a U.S.-based residential solar and storage service provider, has signed an agreement with Len X, a technology-focused subsidiary of Lennar Corporation, to acquire Lennar’s residential solar platform SunStreet.

With this acquisition, Sunnova Energy will also become Lennar’s sole residential solar and storage service provider. The acquisition of SunStreet will be completed during the second quarter of 2021.

Lennar and Sunnova also agreed to a multi-year strategic partnership to develop and roll out innovative energy technologies like home storage and community microgrids. With this partnership, Len X will hold an equity ownership interest in Sunnova and provide tax equity investments to support Sunnova’s homebuilder consumer pipeline.

As per the agreement, Len X will receive a consideration of up to 7.22 million shares of Sunnova common stocks.

Stuart Miller, Executive Chairman of Lennar, said, “This transaction, in exchange for Sunnova’s stock, represents a long-term investment by Lennar in the company that we believe is suited to innovate and evolve in the dynamic and rapidly growing field of sustainable energy.”

William Berger, Chief Executive Officer of Sunnova, said, “This agreement will allow Sunnova to increase consumer growth, further scale the business, and develop smart microgrids for communities across the U.S.”

Recently, Sunnova launched a 0% annual percentage rate financing program for home solar and battery storage services with 25-year system protection. The company also closed $254.7 million in securitizations of leases and power purchase agreements. Kroll Bond Rating Agency assigned ratings to two classes of notes issued by Sunnova Sol II. The securitization includes two notes – A- (sf) rated Class A notes, with an interest rate of 2.73% for $209.1 million, and BB- (sf) rated Class B notes, at an interest of 5.47% with $45.6 million.

According to Mercom’s 2020 Q4 and Annual Solar Funding and M&A Report, globally residential and commercial solar funds raised $1,749 million in 12 deals in 2020 compared to $327 million raised in 5 deals in 2019. Since 2009, nearly $28 billion has gone into 178 residential and commercial solar funds to finance installations.