U.S.-based residential solar firm Sunnova Energy reported a 21% narrower net loss for the second quarter of 2024 at $79.7 million, an improvement from the $100.8 million loss reported last year, primarily due to higher revenue and investment tax credit sales resulting in an income tax benefit.

The Houston, Texas-based company’s quarterly revenue surged 32% to $219.6 million, up from $166.4 million last year, driven by a $55.9 million increase in revenue from core adaptive energy customers.

Despite the revenue increase, Sunnova’s operating expenses also rose, climbing 23% to $278.5 million from $226.1 million in the prior year. This increase was attributed to growth in the number of solar energy systems in service and increased general and administrative expenses.

Meanwhile, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) surged to $216.7 million compared to $28.1 million in the same quarter last year. This rise was due to investment tax credit sales, which began in the third quarter of 2023, and increased adjusted EBITDA from lease and power purchase agreement customers.

During the quarter, Sunnova added 161 MW of solar power generation and 284 MWh of energy storage, further expanding its operational capacity.

“The fundamentals of our business continue to be backed by macroeconomic tailwinds like steadily rising utility rates, increasing grid instability, and declining equipment costs. When coupled with a rapid increase in customers favoring leases and power purchase agreements over loans, these dynamics result in an even greater value proposition for customers and a ‘value wedge’ for Sunnova,” said William Berger, Sunnova’s founder and CEO.

First Half 2024

Revenue for the six-month period grew 16% to $380.5 million from $328.1 million in the first half of 2023. The company’s net loss decreased by 20% to $169.8 million, down from $211.1 million in the same period last year.

Operating expenses for the first half increased 20% to $523.7 million, up from $436.6 million. Notably, adjusted EBITDA for the first six months of 2024 rose to $263.2 million from $42.6 million in the prior year period.

Sunnova reported a narrower net loss for the previous quarter as well, helped by income tax benefits and a bigger customer base. However, its fourth quarter net loss had ballooned by about 800% to $187.6 million from $20.9 million last year, hurt by higher interest and operating expenses.