Residential Solar Firm Sunnova’s Revenue Surges 121% YoY to $147 Million in Q2 2022

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Sunnova, a U.S.-based residential solar company, recorded revenue of $147 million in the second quarter (Q2), a year-over-year (YoY) leap of 121% from ~$67 million last year.

The company attributed the revenue surge to an increase in the number of solar energy systems in service and revenue from the sale of inventory since April.

Sunnova incurred a net loss of $9.7 million during the quarter, compared to a net loss of $66.3 million in the same period last year.

The company posted an Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA) of $39.7 million, a YoY spike of 32% compared to $30.1 million in the same period last year. Sunnova stated that the surge was mainly due to the customer growth rate increasing faster than the expenses.

Sunnova’s operating expenses for Q2 totaled $149.7 million, a YoY rise of 85% from $81 million in the same period last year.

The company said it had 225,000 customers by the end of Q2, an increase of 40%, with 17,300 new customer additions in the quarter. Sunnova’s battery storage penetration rate was 14.2%, up from 8.9% in the previous year’s Q2.

1H financial results

Sunnova posted revenue of $212.7 million for the first half (1H) ending June 30, a YoY increase of 97% from $107.8 million last year.

Sunnova incurred a net loss of $30.3 million in 1H, compared to a net loss of $90.3 million in the same period in 2021.

Adjusted EBITDA was $52.2 million for the initial six months, a YoY leap of 22% from $42.9 million in the last year’s first half. The company said the increase was due to a faster increase in its customer base.

The total operating expenses for 1H amounted to $249.6 million, a YoY spike of 72% from $145 million in 1H 2021. By 1H 2022, Sunnova had total cash of $364 million.

The company has set a target of 85,000-89,000 customer additions for the current financial year and an EBITDA target of $117 million-$137 million.

Sunnova had posted a 59% YoY increase in revenue for Q1 totaling $65.7 million, compared to $41.3 million in Q1 2021. The company added 89,700 customers last year, thrice the number of customer additions in the previous fiscal.

Last October, Sunnova partnered with electric vehicle charging operator ChargePoint to offer its customers EV charging solutions. By bundling a solar system and an EV charger in a single purchase, the company allows consumers to appropriately size and install the right energy solutions.