US residential solar installer Sunnova has received a conditional commitment from the US Department of Energy for a partial loan guarantee worth up to US$3 billion. This will support Sunnova's Project Hestia, which seeks to provide better access to solar, battery storage, or virtual power plant software to disadvantaged individuals and communities.
Sunnova's technology is designed to improve customer insights on their power usage and facilitate demand response behavior. To be eligible for the loan guarantee, the energy system must be outfitted with Sunnova's technology.
See also: SunPower Secures $450 Million Financing for Residential Solar and Storage Loan Program
According to Sunnova, the partial loan guarantee represents a 90% guarantee of up to US$3.3 billion of financing to support loans originated by the company under Project Hestia. The company anticipates that the loan guarantee will support up to US$5 billion in loan originations, reduce its weighted average cost of capital, and generate interest savings.
William Berger, CEO of Sunnova, said, “Project Hestia would make possible a historic private sector investment in disadvantaged American communities and energy infrastructure. The DOE financing would accelerate the adoption of solar and storage, decrease greenhouse gas emissions, and expand the availability of reliable, clean, and affordable energy to those communities who benefit the most from low-cost energy.”
The transaction is expected to close in the second quarter of 2023. Sunnova's commitment to providing solar solutions to underprivileged communities is commendable, and the loan guarantee will go a long way in achieving this goal.
