Houston-based solar energy company, Sunnova Energy Corporation, has raised nearly $1.5 billion in capital in three years. It has now announced that it’s securing of a USD $175 million (€151m) warehouse credit line with US-based multinational investment banking firm Goldman Sachs Group, Inc; a strong indicator of increasing credibility, attractiveness-for-investors and confidence of the rapidly growing US solar economy.
The deal with Goldman Sachs follows Sunnova’s securing of USD $300 million in equity from buyout firm Energy Capital Partners (ECP), a private equity firm with over $13 billion of capital commitments.
At the time of the deal with ECP, Sunnova Chief Executive Officer and Co-Founder William J. (John) Berger said, “Our commitment to delivering great value and service to our customers has served as the catalyst for our extraordinary growth since the company’s inception four years ago. Our focus on profitable, scalable growth and a well-capitalized company have established Sunnova as a clear leader in the rapidly growing solar power economy.”
The capital secured with Goldman Sachs will ensure Sunnova’s continued growth in the US residential solar market and the company will use the funds for its expansion plans. Sunnova partners with local installers to invest in assets, in order to provide affordable solar power to homeowners, while creating job opportunities across the US.
According to a report by global clean energy communications and consulting firm Mercom Capital Group, LLC, this was the largest venture capital (VC) funding transaction for the sector during quarter 1 of 2016.
John Berger commented, “Our focus on profitability, cash flow, and measured, sustainable growth sets us apart in the solar industry. We are committed to growing responsibly and our investors and lenders appreciate that. Goldman Sachs’ financing will allow us to continue to execute on our strategy of bringing consumers a cost-effective, clean choice for their electricity.”
The $175 million deal marks the first transaction between the solar company and Goldman Sachs. In November of last year, Goldman Sachs announced updates to its Environmental Policy Framework; that by 2025, Goldman Sachs will invest $150 billion in renewables, expanding the existing $40 billion target previously set by the company in 2012.