Why Are Sunnova Energy Shares Trading Higher Today? - Sunnova Energy Intl (NYSE:NOVA)

Sunnova Energy International Inc NOVA, an Energy as a Service (EaaS) provider, announced a conditional commitment by the U.S. Department of Energy (DOE) Loan Programs Office (LPO) to provide an up to $3.0 billion partial loan guarantee, which equates to a 90% guarantee of up to $3.3 billion of financing to support a new solar loan channel named "Project Hestia."
Project Hestia would provide disadvantaged individuals and communities with increased access to Sunnova services by indirectly and partially guaranteeing the cash flows associated with those consumers' loans.
Each energy system must be outfitted with Sunnova's purpose-built technology.
If issued, the DOE loan guarantee would support the origination of Sunnova loans associated with solar, storage, or other Sunnova Adaptive Home technologies that utilize Sunnova's purpose-built demand response and VPP-enabling software.
Sunnova anticipates the DOE loan guarantee will support up to $4.0 - $5.0 billion in Sunnova loan originations, reduce the company's weighted average cost of capital, and generate interest savings.
The DOE loan guarantee would be issued under Title XVII of the Energy Policy Act of 2005.
Sunnova has agreed to provide monthly servicing reports supplemented by hardware and software deployment information to DOE.
Sunnova has also agreed to measure the reduction in greenhouse gases associated with Project Hestia.
The transaction is expected to close in the second quarter of 2023. Sunnova plans to issue its first securitization under the program in 1H 2023.
Wall Street Journal writes that the Biden administration has sought to attract private capital to clean-energy projects by making the investments less risky.
The government hopes that guaranteeing the payments will unleash billions of dollars in rooftop solar deployments.
Price Action: NOVA shares are up 11.90% at $17.71 on the last check Thursday.

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