U.S.-based residential solar firm Sunnova’s net loss widened to $110.3 million in the first quarter (Q1) of the financial year (FY) 2023 compared to the loss of $22 million year-on-year (YoY), primarily due to higher expenses.

The company said that increased general and administrative expenses, along with interest expenses of $86 million, were the main reasons for higher losses in the first quarter.

The company’s total operating expenses grew by 111% YoY to $210.5 million during the quarter.

This was partially offset by an increase in interest income of $13.9 million due to the firm’s larger customer loan portfolio.

For the January-March quarter, the company posted a 146% YoY growth in revenue at $161.7 million, driven by higher solar energy systems in service and the sale of inventory to the company’s dealers and other parties.

The adjusted Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) rose by 17% YoY to $16.8 million significantly due to customer growth, which is growing at a faster pace than expenses, the company said.

Sunnova added 30,000 new customers in Q1, up by 97% YoY, taking the company’s customer base to 309,300 as on March 2023.

Source: Sunnova

Founder and CEO of Sunnova William J. Berger said, “Sunnova’s impressive customer growth at the start of the year has been powered by the unwavering consumer demand for our diverse range of energy services. Just last week, we announced a conditional commitment with the U.S. Department of Energy Loan Programs Office to expand access to Sunnova’s Energy as a Service Offering, potentially adding to our growth by making our energy services accessible to homeowners who may not have qualified without this commitment.”

Sunnova posted a net loss of $61.9 million for the fourth quarter of 2022 compared to $31.2 million YoY. Higher operating costs, including general and administrative expenses, and an increase in interest expense of $31.9 million resulted in a loss during the quarter.

Earlier this month, Sunnova received conditional approval for a partial loan guarantee of up to $3 billion from the U.S. Department of Energy’s Loan Programs Office. The loan will provide a 90% guarantee for up to $3.3 billion of financing to support the company’s solar loan program, which aims to increase access for disadvantaged individuals and communities to its services by indirectly guaranteeing a portion of their loans’ cash flows.