Sunnova Energy (NOVA), Green Bank Duo to Promote Solar Energy

Sunnova Energy International Inc. NOVA,in alliance with Montgomery County Green Bank, has pledged to assist low-to-moderate-income (“LMI”) households in Montgomery County, MD in enjoying affordable solar as a source of energy amid consistently rising utility prices.

The collaboration seeks to ease the adaptability of solar-based energy for Montgomery County’s LMI community and enjoy its perks. Meanwhile, it also provides an edge to Sunnova to tap a market that boasts significant demand.

Benefits for Customers

The programs stand to benefit those households that earn up to $97,500 per year and cannot afford upfront costs associated with solar deployment. The Sunnova and Green Bank partnership will provide households with options to either opt for pre-agreed solar energy rates for 25 years or pick NOVA’s subscription, which seeks to benefit customers with a pre-fixed discount from the utility.

Consequently, the partnership seeks to provide a platform for County households that do not qualify for traditional financing to go solar through creative, affordable financing solutions.

With increasing utility rates nationwide, the latest collaboration should attract more customers to choose Sunnova as they tend to adopt clean energy at an affordable price, thereby strengthening its customer base.

U.S. Solar Outlook

The U.S. solar market is poised to gain strength going forward due to the government’s increased effort to decarbonize the environment. In this context, the Biden administration’s continuous commitment to increasing the pace of solar development can be gauged from its recent announcement of waiving any new potential tariffs on the imports of solar components from four Southeast Asian countries, paired with the declaration of the Defense Production Act.

Such efforts and support by the government exemplify bright prospects for solar companies to prosper in the expanding market. In lieu of these factors, solar companies that can reap the benefits of the growing U.S. solar market are:

SunPower SPWR: SunPower is one of the most forward-integrated solar companies, having more than a decade of experience in designing, manufacturing and supplying large-scale solar systems. In October 2021, it acquired Blue Raven Solar, which is expected to provide SunPower with a path to quickly expand in the solar market to serve more customers in underpenetrated areas, including the Northwest and Mid-Atlantic regions.

The Zacks Consensus Estimate for SunPower’s 2022 sales implies a growth rate of 20.8% from the prior-year reported figure. SPWR shares have returned 8.4% in the past month.

Canadian SolarCSIQ: It has a strong pipeline of projects in the United States and carries out various acquisitions and strategies to further consolidate its position in this nation. In May 2022, Canadian Solar completed the construction of a 100 megawatt (MW) renewable solar power plant near Ruleville in the Mississippi Delta. The Sunflower Solar Station is the largest solar installation in Mississippi and provides enough energy to power 16,000 homes.

The Zacks Consensus Estimate for Canadian Solar’s 2022 sales indicates an improvement of 41.2% from the prior-year reported figure. CSIQ shares have returned 41.2% in the past month.

ReneSola SOL: ReneSola is a leading company in solar project development, construction, operations and asset management, with the United States continuing to be one of its primary markets. In June 2022, the company announced that it was awarded 20-year Index Renewable Energy Credit contracts for two solar projects in New York and Illinois.

The Zacks Consensus Estimate for ReneSola’s 2022 sales suggests growth of 34.6% from the prior-year reported figure. SOL shares have rallied 7% in the past month.

Price Movement

In the past month, shares of Sunnova Energy have rallied 19.4% compared with the industry’s rise of 16.8%.

Image Source: Zacks Investment Research

Zacks Rank

Sunnova Energy currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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