Sunnova Energy International Inc.

Sunnova is a residential solar and energy service company that provides solar panel systems, battery storage, and related energy products to homeowners. Unlike a traditional lender, Sunnova takes on a broader role in the solar process, offering financing alongside the installation and ongoing service of the systems it provides.

Sunnova offers several financing structures for homeowners interested in going solar. These include outright loans, solar leases, and power purchase agreements, often referred to as PPAs. Each structure has different financial and ownership implications.

With a solar loan, you own the system and make monthly loan payments. You are eligible for any available tax credits, such as the federal solar investment tax credit, because you own the equipment. With a solar lease or PPA, Sunnova retains ownership of the system and you pay either a monthly lease fee or a per-kilowatt-hour rate for the electricity it produces. In lease and PPA arrangements, you typically do not receive tax credits since you do not own the equipment.

Owning the system generally builds equity and allows you to capture the full value of energy savings, but requires either an upfront payment or loan repayment. Leases and PPAs offer lower or no upfront cost but involve a long-term contractual commitment, typically fifteen to twenty-five years, and the financial benefit depends on the terms negotiated.

Before choosing any Sunnova product, read the full agreement carefully. For loans, compare the interest rate, fees, total repayment cost, and loan term against other solar financing options. For leases or PPAs, understand the escalation clauses, early termination penalties, and how the agreement transfers if you sell your home.