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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_______________________________________________________________________________

FORM 8-K
_______________________________________________________________________________

CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): February 21, 2024

_______________________________________________________________________________
Sunnova Energy International Inc.
(Exact name of registrant as specified in its charter)
_______________________________________________________________________________
Delaware
001-38995
30-1192746
(State or other jurisdiction of
incorporation or organization)
(Commission
File Number)
(I.R.S. Employer
Identification Number)

20 East Greenway Plaza, Suite 540
Houston, Texas 77046
(Address, including zip code, of principal executive offices)

(281) 892-1588
(Registrant's telephone number, including area code)
_______________________________________________________________________________

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule14a-12under the Exchange Act (17 CFR240.14a-12)
Pre-commencement communications pursuant to Rule14d-2(b)under the Exchange Act (17 CFR240.14d-2(b))
Pre-commencement communications pursuant to Rule13e-4(c)under the Exchange Act (17 CFR240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of Each Exchange on Which Registered
Common Stock, $0.0001 par value per shareNOVANew York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




Item 2.02. Results of Operations and Financial Condition

On February 21, 2024, Sunnova Energy International, Inc. (the "Company" or "Sunnova") issued a press release announcing its financial results for the quarter and year ended December 31, 2023. In the press release, the Company also announced it would be holding a conference call on February 22, 2024 to discuss its financial results for the quarter and year ended December 31, 2023. The full text of the press release is furnished herewith as Exhibit 99.1 and is incorporated herein by reference.

Item 7.01 Regulation FD Disclosure

On February 21, 2024, Sunnova posted an updated investor presentation on its website. The presentation, dated February 21, 2024, may be found at investors.sunnova.com under "Events and Presentations".

The information in this current report on Form 8-K and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

Item 9.01. Financial Statements and Exhibits

(d) Exhibits

The following materials are filed as exhibits to this Current Report on Form 8-K.

Exhibit No.
Description
99.1
104
Cover Page Interactive Data File (embedded within the inline XBRL document)



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

SUNNOVA ENERGY INTERNATIONAL INC.
Date: February 21, 2024By:/s/ David Searle
David Searle
Executive Vice President, General Counsel


Exhibit 99.1

Sunnova Reports Fourth Quarter and Full Year 2023 Financial Results

Fourth Quarter 2023 and Recent Highlights

Deployed over 34,000 customers in the fourth quarter; bringing total customer count to 419,200 as of December 31, 2023;
Increased single customer economics as expressed through fully burdened unlevered return;
Continued to execute a cost reduction plan for 2024 enhancing cash generation; and
Initiated 2025 cash generation guidance between $200 million and $500 million.

HOUSTON, February 21, 2024 (BUSINESS WIRE) - Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), a leading adaptive energy services company, today announced financial results for the fourth quarter and full year ended December 31, 2023.

"In 2023, Sunnova demonstrated good performance across its operations. For the year, we expanded our customer base to 419,200 and hit our 2023 targets for Adjusted EBITDA, interest income, and principal proceeds. Additionally, we increased our single customer economics and unveiled our Global Command Center to enhance customer service, solidifying our position as a leading adaptive energy services company," said William J. (John) Berger, Sunnova's founder and CEO.

"Looking ahead to the remainder of 2024, our focus will be on cash generation driven by cost reductions, asset sales, and expanding margins. By year end, we anticipate the combination of our revised cost structure and increased operating leverage will result in a decrease of over 20% in total Adjusted Operating Expense per customer. Through a combination of securitizations and sales, in 2024 we expect to generate enough cash to provide the working capital needed to hit our growth target, net of operating costs, and exit the year with an annual cash generation run rate between $200 million and $500 million."

Fourth Quarter and Full Year 2023 Results

Revenue was relatively unchanged at $194.2 million for the three months ended December 31, 2023 compared to $195.6 million for the three months ended December 31, 2022.

Revenue increased to $720.7 million, or by $163.0 million, for the year ended December 31, 2023 compared to the year ended December 31, 2022. This increase was primarily the result of an increased number of solar energy systems in service, an increase in direct sales revenue primarily due to an increased focus on direct sales of additional services to existing customers, and an increase in service revenue primarily due to an increase in repair service revenue. This was partially offset by lower inventory sales revenue from the sale of inventory to our dealers or other parties.

Total operating expense, net increased to $290.8 million, or by $78.4 million for the three months ended December 31, 2023 compared to the three months ended December 31, 2022. Total operating expense, net increased to $964.1 million, or by $324.9 million for the year ended December 31, 2023 compared to the year ended December 31, 2022. These increases were primarily the result of an increased number of solar energy systems in service, higher general and administrative expense, higher cost of revenue - other primarily due to an increased focus on direct sales of additional services to existing customers, a write off of goodwill in 2023 as the carrying amount exceeded the fair value, and a decrease in other operating income primarily due to changes in the fair value of certain financial instruments and contingent consideration. This was partially offset by lower cost of revenue - inventory sales from the sale of inventory to our dealers and other parties.

Adjusted Operating Expense increased to $114.9 million, or by $50.3 million, for the three months ended December 31, 2023 compared to the three months ended December 31, 2022. Adjusted Operating Expense increased to $376.5 million, or by $161.3 million, for the year ended December 31, 2023 compared to the year ended December 31, 2022. These increases were primarily the result of an increased number of solar energy systems in service and higher general and administrative expense.

Sunnova incurred a net loss of $234.8 million for the three months ended December 31, 2023 compared to a net loss of $62.0 million for the three months ended December 31, 2022. Sunnova incurred a net loss of $502.4 million for the year ended December 31, 2023 compared to a net loss of $130.3 million for the year ended December 31, 2022. These higher net losses were primarily the result of an increase in interest expense, higher general and administrative expense, a write off of goodwill in 2023 as the carrying amount exceeded the fair value, and a decrease in other operating income primarily due to changes in the fair value of certain financial instruments and contingent consideration. This was partially offset by an increase in interest income primarily due to our larger customer loan portfolio.

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Adjusted EBITDA was $191.5 million for the three months ended December 31, 2023 compared to $25.6 million for the three months ended December 31, 2022. Adjusted EBITDA was $274.5 million for the year ended December 31, 2023 compared to $119.1 million for the year ended December 31, 2022. These increases were primarily the result of investment tax credit sales, which began in 2023.

Principal proceeds from customer notes receivable (net of amounts recorded in revenue) and proceeds from investments in solar receivables was $46.7 million for the three months ended December 31, 2023 compared to $27.0 million for the three months ended December 31, 2022. Principal proceeds from customer notes receivable (net of amounts recorded in revenue) and proceeds from investments in solar receivables was $158.3 million for the year ended December 31, 2023 compared to $103.8 million for the year ended December 31, 2022. These increases were primarily due to our larger customer loan portfolio.

Interest income was $34.2 million for the three months ended December 31, 2023 compared to $19.4 million for the three months ended December 31, 2022. Interest income was $115.9 million for the year ended December 31, 2023 compared to $59.8 million for the year ended December 31, 2022. These increases were primarily due to our larger customer loan portfolio.

Liquidity & Capital Resources

As of December 31, 2023, Sunnova had total cash of $494.4 million, including restricted and unrestricted cash.

2024 Full Year Guidance

Sunnova management reaffirms its 2024 full year guidance:

Customer additions between 185,000 and 195,000;
Adjusted EBITDA between $350 million and $450 million;
Interest income between $150 million and $190 million; and
Principal proceeds from customer notes receivable, net of amounts recorded in revenue, and proceeds from investments in solar receivables between $210 million and $250 million.

Non-GAAP Financial Measures

We present our operating results in accordance with accounting principles generally accepted in the U.S. ("GAAP"). We believe certain financial measures, such as Adjusted EBITDA and Adjusted Operating Expense, which are non-GAAP measures, provide users of our financial statements with supplemental information that may be useful in evaluating our business. We use Adjusted EBITDA and Adjusted Operating Expense as performance measures and believe investors and securities analysts also use Adjusted EBITDA and Adjusted Operating Expense in evaluating our performance. While Adjusted EBITDA effectively captures the operating performance of our leases and PPAs, it only reflects the service portion of the operating performance under our loan agreements. Therefore, we separately show customer P&I payments. Adjusted EBITDA is also used by our management for internal planning purposes, including our consolidated operating budget, and by our board of directors in setting performance-based compensation targets. We believe that such non-GAAP measures, when read in conjunction with our operating results presented under GAAP, can be used both to better assess our business from period to period and to better assess our business against other companies in our industry, without regard to financing methods, historical cost basis or capital structure. Our calculation of these non-GAAP financial measures may differ from similarly-titled non-GAAP measures, if any, reported by other companies. In addition, other companies may not publish these or similar measures. Such non-GAAP measures should be considered as a supplement to, and not as a substitute for, financial measures prepared in accordance with GAAP. Sunnova is unable to reconcile projected Adjusted EBITDA and Adjusted Operating Expense to the most comparable financial measures calculated in accordance with GAAP because of fluctuations in interest rates and their impact on our unrealized and realized interest rate hedge gains or losses. Sunnova provides a range for the forecasts of Adjusted EBITDA and Adjusted Operating Expense to allow for the variability in the timing of cash receipts and disbursements, customer utilization of our assets, and the impact on the related reconciling items, many of which interplay with each other. Therefore, the reconciliation of projected Adjusted EBITDA and Adjusted Operating Expense to projected net income (loss) and total operating expense, as the case may be, is not available without unreasonable effort.

Conference Call Information

Sunnova is hosting a conference call for analysts and investors to discuss its fourth quarter and full year 2023 results at 8:00 a.m. Eastern Time, on February 22, 2024. The conference call can be accessed live over the phone by dialing 833-470-1428, or for international callers, 929-526-1599. The access code for the live call is 227209.

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A replay will be available two hours after the call and can be accessed by dialing 866-813-9403, or for international callers, +44 204-525-0658. The access code for the replay is 276217. The replay will be available until February 29, 2024.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of Sunnova’s website.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates," "going to," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Sunnova’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to, statements regarding our level of growth, customer value propositions, technological developments, service levels, the ability to achieve our 2024 operational and financial targets, operating performance, including its outlook and guidance, demand for Sunnova’s products and services, future financing and
ability to raise capital therefrom, and references to Adjusted EBITDA and customer P&I payments from solar loans. Sunnova’s expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to forecast our business due to our limited operating history, the effects of the coronavirus pandemic on our business and operations, supply chain uncertainties, results of operations and financial position, our competition, changes in regulations applicable to our business, fluctuations in the solar and home-building markets, availability of capital, and our ability to attract and retain dealers and customers and manage our dealer and strategic partner relationships. The forward-looking statements contained in this release are also subject to other risks and uncertainties, including those more fully described in Sunnova’s filings with the Securities and Exchange Commission, including Sunnova’s annual report on Form 10-K for the year ended December 31, 2023. The forward-looking statements in this release are based on information available to Sunnova as of the date hereof, and Sunnova disclaims any obligation to update any forward-looking statements, except as required by law.

About Sunnova

Sunnova Energy International Inc. (NYSE: NOVA) is an industry-leading adaptive energy services company focused on making clean energy more accessible, reliable, and affordable for homeowners and businesses. Through its adaptive energy platform, Sunnova provides a better energy service at a better price to deliver its mission of powering energy independence. For more information, visit sunnova.com.
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SUNNOVA ENERGY INTERNATIONAL INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except share amounts and share par values)
As of December 31,
20232022
Assets
Current assets:
Cash and cash equivalents$212,832 $360,257 
Accounts receivable—trade, net40,767 24,435 
Accounts receivable—other253,350 212,397 
Other current assets, net of allowance of $4,659 and $3,250 as of December 31, 2023 and 2022, respectively429,299 351,300 
Total current assets936,248 948,389 
Property and equipment, net5,638,794 3,784,801 
Customer notes receivable, net of allowance of $111,818 and $77,998 as of December 31, 2023 and 2022, respectively3,735,986 2,466,149 
Intangible assets, net134,058 162,512 
Goodwill— 13,150 
Other assets895,885 961,891 
Total assets (1)$11,340,971 $8,336,892 
Liabilities, Redeemable Noncontrolling Interests and Equity
Current liabilities:
Accounts payable$355,791 $116,136 
Accrued expenses122,355 139,873 
Current portion of long-term debt483,497 214,431 
Other current liabilities133,649 71,506 
Total current liabilities1,095,292 541,946 
Long-term debt, net7,030,756 5,194,755 
Other long-term liabilities1,086,011 712,741 
Total liabilities (1)9,212,059 6,449,442 
Redeemable noncontrolling interests165,872 165,737 
Stockholders' equity:
Common stock, 122,466,515 and 114,939,079 shares issued as of December 31, 2023 and 2022, respectively, at $0.0001 par value12 11 
Additional paid-in capital—common stock1,755,461 1,637,847 
Accumulated deficit(228,583)(364,782)
Total stockholders' equity
1,526,890 1,273,076 
Noncontrolling interests436,150 448,637 
Total equity
1,963,040 1,721,713 
Total liabilities, redeemable noncontrolling interests and equity$11,340,971 $8,336,892 


(1) The consolidated assets as of December 31, 2023 and 2022 include $5,297,816 and $3,201,271, respectively, of assets of variable interest entities ("VIEs") that can only be used to settle obligations of the VIEs. These assets include cash of $54,674 and $40,382 as of December 31, 2023 and 2022, respectively; accounts receivable—trade, net of $13,860 and $8,542 as of December 31, 2023 and 2022, respectively; accounts receivable—other of $187,607 and $810 as of December 31, 2023 and 2022, respectively; other current assets of $693,772 and $422,364 as of December 31, 2023 and 2022, respectively; property and equipment, net of $4,273,478 and $2,680,587 as of December 31, 2023 and 2022, respectively; and other assets of $74,425 and $48,586 as of December 31, 2023 and 2022, respectively. The consolidated liabilities as of December 31, 2023 and 2022 include $278,016 and $66,441, respectively, of liabilities of VIEs whose creditors have no recourse to Sunnova Energy International Inc. These liabilities include accounts payable of $197,072 and $9,015 as of December 31, 2023 and 2022, respectively; accrued expenses of $157 and $287 as of December 31, 2023 and 2022, respectively; other current liabilities of $7,269 and $4,420 as of December 31, 2023 and 2022, respectively; and other long-term liabilities of $73,518 and $52,719 as of December 31, 2023 and 2022, respectively.
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SUNNOVA ENERGY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share amounts)

Three Months Ended 
 December 31,
Year Ended 
 December 31,
2023202220232022
Revenue$194,182 $195,592 $720,653 $557,690 
Operating expense:
Cost of revenue—depreciation37,999 26,345 130,261 96,280 
Cost of revenue—inventory sales47,355 88,426 176,371 178,310 
Cost of revenue—other39,266 19,513 120,865 52,487 
Operations and maintenance37,691 12,892 96,997 36,679 
General and administrative116,232 87,642 430,422 302,004 
Goodwill impairment
13,150 — 13,150 — 
Other operating income
(844)(22,380)(3,978)(26,566)
Total operating expense, net290,849 212,438 964,088 639,194 
Operating loss
(96,667)(16,846)(243,435)(81,504)
Interest expense, net171,782 63,395 371,937 107,775 
Interest income(34,202)(19,371)(115,872)(59,799)
Other (income) expense
(20)(2,763)3,949 (3,090)
Loss before income tax
(234,227)(58,107)(503,449)(126,390)
Income tax (benefit) expense
609 3,886 (1,023)3,886 
Net loss
(234,836)(61,993)(502,426)(130,276)
Net income (loss) attributable to redeemable noncontrolling interests and noncontrolling interests
(47,196)(41,089)(84,465)31,366 
Net loss attributable to stockholders
$(187,640)$(20,904)$(417,961)$(161,642)
Net loss per share attributable to stockholders—basic and diluted
$(1.53)$(0.18)$(3.53)$(1.41)
Weighted average common shares outstanding—basic and diluted122,420,173 114,919,237 118,344,728 114,451,034 

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SUNNOVA ENERGY INTERNATIONAL INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
Year Ended 
 December 31,
20232022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss
$(502,426)$(130,276)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation153,387 108,167 
Impairment and loss on disposals, net
56,592 8,459 
Amortization of intangible assets28,432 28,441 
Amortization of deferred financing costs25,226 13,640 
Amortization of debt discount19,174 9,342 
Non-cash effect of equity-based compensation plans25,535 24,218 
Non-cash direct sales revenue(60,590)(8,484)
Provision for current expected credit losses and other bad debt expense
46,199 43,018 
Unrealized (gain) loss on derivatives
67,318 (19,451)
Unrealized (gain) loss on fair value instruments and equity securities
188 (29,279)
Other non-cash items7,332 (34,962)
Changes in components of operating assets and liabilities:
Accounts receivable101,125 (159,295)
Other current assets(105,743)(119,794)
Other assets(115,488)(124,981)
Accounts payable(5,493)4,486 
Accrued expenses(11,213)48,385 
Other current liabilities43,665 11,772 
Other long-term liabilities(10,782)(6,832)
Net cash used in operating activities
(237,562)(333,426)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property and equipment(1,832,714)(868,208)
Payments for investments and customer notes receivable(909,488)(1,236,228)
Proceeds from customer notes receivable180,721 109,760 
Proceeds from investments in solar receivables11,582 12,394 
Other, net5,238 680 
Net cash used in investing activities
(2,544,661)(1,981,602)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from long-term debt3,507,828 2,903,727 
Payments of long-term debt(1,406,022)(758,355)
Payments on notes payable(7,151)— 
Payments of deferred financing costs(75,920)(30,791)
Purchase of capped call transactions— (48,420)
Proceeds from issuance of common stock, net81,316 (3,190)
Contributions from redeemable noncontrolling interests and noncontrolling interests692,894 449,398 
Distributions to redeemable noncontrolling interests and noncontrolling interests(48,986)(29,771)
Payments of costs related to redeemable noncontrolling interests and noncontrolling interests(11,881)(13,091)
Proceeds from sales of investment tax credits for redeemable noncontrolling interests and noncontrolling interests
5,971 — 
Other, net(6,998)(802)
Net cash provided by financing activities
2,731,051 2,468,705 
Net increase (decrease) in cash, cash equivalents and restricted cash
(51,172)153,677 
Cash, cash equivalents and restricted cash at beginning of period545,574 391,897 
Cash, cash equivalents and restricted cash at end of period494,402 545,574 
Restricted cash included in other current assets(62,188)(51,733)
Restricted cash included in other assets(219,382)(133,584)
Cash and cash equivalents at end of period$212,832 $360,257 
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Key Financial and Operational Metrics
Three Months Ended 
 December 31,
Year Ended 
 December 31,
2023202220232022
(in thousands)
Reconciliation of Net Loss to Adjusted EBITDA:
Net loss
$(234,836)$(61,993)$(502,426)$(130,276)
Interest expense, net171,782 63,395 371,937 107,775 
Interest income(34,202)(19,371)(115,872)(59,799)
Income tax (benefit) expense
609 3,886 (1,023)3,886 
Depreciation expense45,430 29,766 153,387 108,167 
Amortization expense7,471 7,330 29,583 29,224 
EBITDA(43,746)23,013 (64,414)58,977 
Non-cash compensation expense5,723 4,159 25,535 24,218 
ARO accretion expense1,414 1,014 4,905 3,701 
Financing deal costs441 348 1,723 930 
Natural disaster losses and related charges, net443 2,831 1,164 
Acquisition costs87 2,179 1,224 7,801 
Unrealized (gain) loss on fair value instruments and equity securities
(658)(25,143)188 (29,279)
Amortization of payments to dealers for exclusivity and other bonus arrangements1,987 1,217 6,944 4,327 
Legal settlements930 — 1,680 (1,001)
Provision for current expected credit losses6,048 13,279 35,515 40,160 
Non-cash inventory and other impairments28,889 4,511 50,995 5,375 
Indemnification payments to tax equity investors(3,075)1,010 (22)2,737 
ITC sales
193,003 — 207,425 — 
Adjusted EBITDA$191,486 $25,590 $274,529 $119,110 

Three Months Ended 
 December 31,
Year Ended 
 December 31,
2023202220232022
(in thousands)
Interest income
$34,201 $19,371 $115,872 $59,799 
Principal proceeds from customer notes receivable, net of related revenue$43,787 $23,977 $146,701 $91,455 
Proceeds from investments in solar receivables$2,874 $3,006 $11,582 $12,394 

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Three Months Ended 
 December 31,
Year Ended 
 December 31,
2023202220232022
(in thousands, except per system data)
Reconciliation of Total Operating Expense, Net to Adjusted Operating Expense:
Total operating expense, net$290,849 $212,438 $964,088 $639,194 
Depreciation expense(45,430)(29,766)(153,387)(108,167)
Amortization expense(7,471)(7,330)(29,583)(29,224)
Non-cash compensation expense(5,723)(4,159)(25,535)(24,218)
ARO accretion expense(1,414)(1,014)(4,905)(3,701)
Financing deal costs(441)(348)(1,723)(930)
Natural disaster losses and related charges, net(443)(3)(2,831)(1,164)
Acquisition costs(87)(2,179)(1,224)(7,801)
Amortization of payments to dealers for exclusivity and other bonus arrangements(1,987)(1,217)(6,944)(4,327)
Legal settlements(930)— (1,680)1,001 
Provision for current expected credit losses(6,048)(13,279)(35,515)(40,160)
Non-cash inventory and other impairments(28,889)(4,511)(50,995)(5,375)
Direct sales costs(14,850)(2,152)(48,049)(6,262)
Cost of revenue related to cash sales(18,643)(14,820)(52,644)(38,766)
Cost of revenue related to inventory sales(47,355)(88,426)(176,371)(178,310)
Unrealized gain on fair value instruments
638 22,380 3,761 26,189 
Indemnification payments to tax equity investors3,075 (1,010)22 (2,737)
Gain on held-for-sale loans
— 19 — 
Adjusted Operating Expense$114,859 $64,604 $376,504 $215,242 
Adjusted Operating Expense per weighted average system$283 $247 $1,079 $940 

As of December 31,
20232022
Number of customers419,200 279,400 

Three Months Ended 
 December 31,
Year Ended 
 December 31,
2023202220232022
Weighted average number of systems (excluding loan agreements and cash sales)243,800 182,700 219,100 168,400 
Weighted average number of systems with loan agreements150,000 73,200 120,400 56,500 
Weighted average number of systems with cash sales11,500 5,800 9,300 4,000 
Weighted average number of systems405,300 261,700 348,800 228,900 

As of December 31,
20232022
(in millions)
Estimated gross contracted customer value - PV6$9,097 $5,875 

Key Terms for Our Key Metrics and Non-GAAP Financial Measures

Estimated Gross Contracted Customer Value. Estimated gross contracted customer value as of a specific measurement date represents the sum of the present value of the remaining estimated future net cash flows we expect to receive from existing
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customers during the initial contract term of our customer agreements, which are typically 25 years in length, plus the present value of future net cash flows we expect to receive from the sale of related solar renewable energy certificates ("SRECs"), either under existing contracts or in future sales, plus the cash flows we expect to receive from energy services programs such as grid services, plus the carrying value of outstanding customer loans on our balance sheet. From these aggregate estimated initial cash flows, we subtract the present value of estimated net cash distributions to redeemable noncontrolling interests and noncontrolling interests and estimated operating, maintenance and administrative expenses associated with the customer agreements. These estimated future cash flows reflect the projected monthly customer payments over the life of our customer agreements and depend on various factors including but not limited to agreement type, contracted rates, expected sun hours and the projected production capacity of the solar equipment installed. For the purpose of calculating this metric, we discount all future cash flows at 6%.

Number of Customers. We define number of customers to include every unique premises on which a Sunnova product or Sunnova-financed product is installed or on which Sunnova is obligated to perform services for a counterparty. We track the total number of customers as an indicator of our historical growth and our rate of growth from period to period.

Weighted Average Number of Systems. We calculate the weighted average number of systems based on the number of months a customer and any additional service obligation related to a solar energy system is in-service during a given measurement period. The weighted average number of systems reflects the number of systems at the beginning of a period, plus the total number of new systems added in the period adjusted by a factor that accounts for the partial period nature of those new systems. For purposes of this calculation, we assume all new systems added during a month were added in the middle of that month. The number of systems for any end of period will exceed the number of customers, as defined above, for that same end of period as we are also including any additional services and/or contracts a customer or third party executed for the additional work for the same residence or business. We track the weighted average system count in order to accurately reflect the contribution of the appropriate number of systems to key financial metrics over the measurement period.

Definitions of Non-GAAP Measures

Adjusted EBITDA. We define Adjusted EBITDA as net income (loss) excluding the impacts of interest expense, income tax (benefit) expense, depreciation and amortization expense, non-cash compensation expense, asset retirement obligation ("ARO") accretion expense, financing deal costs, natural disaster losses and related charges, net, acquisition costs, losses on unenforceable contracts, losses on extinguishment of long-term debt, realized and unrealized gains and losses on fair value instruments and equity securities, amortization of payments to dealers for exclusivity and other bonus arrangements, legal settlements, provision for current expected credit losses, non-cash inventory and other impairments and indemnification payments to tax equity investors and including the impacts of investment tax credit ("ITC") sales.

Adjusted Operating Expense. We define Adjusted Operating Expense as total operating expense less depreciation and amortization expense, financing deal costs, natural disaster losses and related charges, net, amortization of payments to dealers for exclusivity and other bonus arrangements, legal settlements, direct sales costs, cost of revenue related to cash sales, cost of revenue related to inventory sales, unrealized gains and losses on fair value instruments, gains and losses on held-for-sale loans and excluding the effect of certain non-recurring items we do not consider to be indicative of our ongoing operating performance such as, but not limited to, acquisition costs, losses on unenforceable contracts, indemnification payments to tax equity investors and other non-cash items such as non-cash compensation expense, ARO accretion expense, provision for current expected credit losses and non-cash inventory and other impairments.

Contacts

Investor Contact:
Rodney McMahan
IR@sunnova.com
877-770-5211

Media Contact:
Ryan Bechtold
Ryan.Bechtold@sunnova.com

9
v3.24.0.1
Cover Page Document
Feb. 21, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Feb. 21, 2024
Entity Registrant Name Sunnova Energy International Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 001-38995
Entity Tax Identification Number 30-1192746
Entity Address, Address Line One 20 East Greenway Plaza, Suite 540
Entity Address, City or Town Houston
Entity Address, State or Province TX
Entity Address, Postal Zip Code 77046
City Area Code 281
Local Phone Number 892-1588
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Title of 12(b) Security Common Stock, $0.0001 par value per share
Trading Symbol NOVA
Security Exchange Name NYSE
Entity Emerging Growth Company false
Entity Central Index Key 0001772695
Amendment Flag false

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