...Sunnova to become Lennar's exclusive residential solar, storage provider after buying SunStreet platform | Solar Builder
 

Sunnova to become Lennar’s exclusive residential solar, storage provider after buying SunStreet platform

Sunnova_Logo_with_Tagline_Color

Sunnova Energy International Inc. entered into an agreement with Len X — a technology focused subsidiary of leading homebuilder Lennar Corporation — to acquire Lennar’s residential solar platform SunStreet. In addition, Sunnova signed a multi-year partnership to become Lennar’s exclusive residential solar and storage service provider for new home communities across the country. The acquisition of SunStreet is expected to be completed during the second quarter of 2021.

[button link=”http://bit.ly/3cuKxF2″ bg_color=”#ffbc36″]IF YOU CAN MEASURE IT, YOU CAN IMPROVE IT
Click here to learn how to create new revenue streams from your O&M operations with the Mana Monitoring Platform.[/button]

“We are thrilled to announce our acquisition of SunStreet, and our new strategic partnership with Lennar, which will be a first of its kind in the industry geared towards creating innovative pathways for how new communities are powered,” said William J. (John) Berger, Chief Executive Officer of Sunnova. “Sunnova’s success is built on strong partnerships and shared vision, and this transaction will be no different thanks to our complementary strengths and mutual desire to transform the energy landscape.”

Strategic Rationale: Created by Lennar, SunStreet has a distinct understanding of homebuilding operations. This acquisition will allow Sunnova to generate significant shareholder value, increase customer growth, and develop residential microgrids across the U.S. Sunnova will also be able to work with existing SunStreet solar customers to add battery storage and other offerings. We’re talking 250,000+ existing homes built by Lennar in the last decade, and the ~40,000 that are solar-only.

Under the multi-year strategic partnership:

• Sunnova will become Lennar’s exclusive residential solar and storage service provider
• Through LENX, the strategic partnership will focus on the development and rollout of innovative energy technologies, such as home storage and community microgrids
• LENX will maintain an equity ownership interest in Sunnova as well as a commitment to provide tax equity investments to support Sunnova’s homebuilder customer pipeline
• Sunnova and Lennar share a vision and business ethos to create value for their shareholders by further propelling the energy transition towards decarbonization, and providing cleaner more reliable energy solutions to homeowners

Acquisition Details: Under the terms of the agreement and earnout agreement, LENX will receive total consideration of up to 7.22 million shares of Sunnova common stock, which is comprised of 3.33 million shares in initial consideration payable at closing and 3.89 million shares in consideration associated with two earnouts. The first earnout of up to 2.78 million shares is associated with achieving certain annual customer commitments over four years. The second earnout of up to 1.11 million shares is associated with the development microgrid communities over the next five years. The transaction also provides for certain registration rights for LENX with respect to the shares of Sunnova common stock it will receive as consideration.

The transaction has been structured in a manner intended to cause the receipt of Sunnova common stock as a result of the agreement not to be a taxable event for Lennar. Lennar has agreed to guarantee the performance of LENX under the merger agreement and certain ancillary agreements.

Have you checked out our YouTube page?

We have a ton video interviews and additional content on our YouTube page. Recently we debuted Power Forward! -- a collaboration with BayWa r.e. to discuss higher level industry topics as well as best practices / trends for running a solar business today.

Our longer running side project is The Pitch -- in which we have awkward discussions with solar manufacturers and suppliers about their new technology and ideas so that you don't have to. We've discusses everything from residential rail-less deck attaching and home solar financing to large-scale energy storage value stacking and utility-driven new home solar + storage microgrids.

We also post our Project of the Year announcements there! Interviews with this year's winners will be up starting the week of Nov. 8. Head there and subscribe today to stay on top of all this extra stuff.

Tags: , ,

Comments are closed here.