Sunnova Energy International (NOVA) 27 Oct 222022 Q3 Earnings call transcript

Good morning, and welcome to Sunnova's Third Quarter 2022 Earnings Conference Call. Today's call is being recorded, and we have allocated an hour for prepared remarks and question and answer. At this time, I would like to turn the conference over to Rodney McMahan, Vice President, Investor Relations at Sunnova. Thank you please go ahead.

Thank you, operator.

slide note, are call, and XX-K. subject are in please forward-looking will uncertainties begin, release described that press statements to our we during XXXX we today's make that and Before our earnings Form presentation, various risks see information those may for factors additional statements. these forward-looking documents those that Please regarding affect Also, reference non-GAAP during measures certain will we today's call. for reconciliations the of as press release well and our the non-GAAP to disclosures. as Please the presentation appendix GAAP refer to cautionary appropriate earnings

are Sunnova's Berger, today Chief and Executive and President Officer; call call I Financial Executive the On the John Vice Chairman Lane, to turn will Robert John. now over and Officer. Chief

withstanding and set Trifecta, resilient scenario world and reliable global virtually founded a energy is Good service and you to global on us. joining and to Sunnova, energy, and solve crisis affordability, thank of a desperate out the When delivering need crisis. a are focused I climate build change. superior energy multifaceted in address energy security The I of clean, any morning, we to energy market for energy capable company

quality, sheet as cash created celebrate look economic XX-year credit anniversary, we flows is that to balance Sunnova built high a bad Now that clear strong ride out have our cycles. has it to long-term inevitable

economy. several Over view of the we quarters, have past the had negative a broader more

position we to economic these cash long-term position raise liquidity macro company actions, balance and decided be for we coupled more to pricing what the to Sunnova's an basis. as we Sunnova meant our well fortifying challenging raising This our sheet believe environment. accelerated challenging optimal what As working placed have dealers projected a These as liquidity such, than more in flows, times. had contracted on anticipated an are with be to for with

the fully strengthening value also return adjusted burdened revenue, strong and addition contracted or originated growth EBITDA, customers. customer net sheet we this quarter, on experienced newly balance past in NCCV In to our year-over-year customers, unlooked

the seen but over as and payments. This principal Rising less concerns lower in decline materially we about discussed income, However, prepayments to in principal have has have the rates, our overall loans. stronger-than-expected the a few and on those resulted interest caused in than expected our months, a on payments slowdown customers mortgages we market, economy refinancing housing make last keep than hand on loans. principal unscheduled have interest loan rather cash solar

cash previously were payments scheduled better However, unscheduled payments or cash collections thus, consider there to is loss than no the delinquent merely of flow delayed all defaulted accounts Investors and should and expected. Sunnova. of

principle our as we from both adjusted As of cash those year expect XXXX guidance solar our for receive the a that the and to flow principal payments, due flow result, metrics. fact recurring loans full both scheduled are operating for we guidance as both lowering to unscheduled, and well through

please pay However, impact of these quicker lower-than-expected assumed down from liquidity of material cash debt than not was payments flow is much the as principal payments note to the obligated. that the

to were cease the would we little not our it even do in expect, upon all prepayments very if future, fact, impact loan liquidity. near In unscheduled which have

impact this are a hedges. payments rate mark-to-market curtail had While principal interest to on rate Sunnova's movement interest same interest of has expected rising unscheduled value positive rates the

stood our XXXX, XX, at million. September of position hedges derivative asset As on $XXX these

to prepayments, that allowed the rates of hedges significant our As excess us well accumulate is have expected customer our rising reduce interest shortfall. value in

expected. improved hedges more they of these to intend option than liquidity our and we could bring continue time, over represent monetize immediately we that cash an amount therefore, in a to While significant have, overall

to receive guidance term EBITDA, XXXX income will raising plan, for XXXX we our changes our for payments. we on EBITDA estimates principal loans. we principal reaffirming are Therefore, year with are solar full we unscheduled metric the major and offset mentioned I from partially million and higher expect December lower for There growth full year adjusted As XXXX. earlier, together are to interest the no the our of loans additions, the collect or the our year solar Triple customer XX, interest adjusted intermediate ended targeted Plan, $XXX including interest

loans unique year, the believe also in greater Sunnova's and income payments forecasted. customers, adjusted depressed any of we unscheduled more September on This and penetration customer added EBITDA than quarter XXXX, achieve our customer the expect principal XX, X.XX in dealer we brings remain While the quarter of X XX,XXX than of nearly Slide summarizes as we in collected total history. third XXXX. we count approximately will inflow other network. to customers, that into million additions to solar interest growth the battery In originally next company's

XX,XXX over is the of record within customer XXXX. full this for we to While fourth us in customers XX,XXX impressive, to guidance range to expect additions add put year XX,XXX quarter

rate XXXX for attachment third quarter was on battery XX%. origination of Our the

new More importantly, of retrofits eclipsed over and and date. this battery dealers, at inclusive we The XX, as supply grew third battery rate de-tracount materially latest grow quarter, year-end X,XXX continues to our and installers we to availability X,XXX September the sub-dealers XX.X% X,XXX XX, performed of our expect have as penetration XXXX, XXXX. we third target continue. battery of In homes availability our of September standing with trend in currently battery to quarter, of the reached live

the this of model target ahead to attractiveness technology ability and Sunnova's Our by schedule of platform. business dealer-friendly driven was surpass

inflows. life and Finally, on cash X, updated we Slide customer our on information contract expected

weighted inflows XX, the $XXX from cash of months XX next call to customer and XX, years equaled Rob. those from remaining XX.X our million, increased now As life hand over the expected XXXX, of increase will to contracts average XXXX. on XX% customers I the over an September contract September

revenues, in significant on cash recurring our increases in cash will of million increase the $XX.X third to principal see XX% operating you and with loans. John. operating the from adjusted the quarter the solar revenue improvement both together a EBITDA, from you, increase interest Starting includes adjusted included Thank flow and This year-over-year Slide sales. XXX% collect XXXX inventory year-over-year we and results. third X, flow on in Revenues for a quarter

number, our was increase that revenue Excluding XX%.

long-term quarters, gain stream. loan our elsewhere dealers, such on complemented sale recurring by earnings activities Our our are services to on growing repair cash revenues to sales. business, and strong our a revenue revenues sales sales material business new at sale anticipated Gain and the coming and repair homes increasingly generate include on in can as and Sunnova equipment will margin

of agreements towards our IRA, we X a restructuring. loan decision while which tax warehouse we a our $XXX inflation update recent leases and purchase Reduction will quarters. financing EPS or summarizes to securitizations, opportunities and asset-backed Department next make with other a additional provisions pending positive expect position. and The will closer liquidity Again, transactions restructuring value activity for $XXX Act, million a funds, the our any sale shareholder million We completed Treasury. complementing enhance P&L in cash financing Sunnova view million in several XXXX in from $XXX to and warehouse flows. million $XXX to include power sources and enhancing equity the Slide the liquidity and cash bringing the long-term will GAAP date activity guidance operating flow provide of This gain result as over on of

year point above to average issuance weighted price within and basis the securitizations our of yields remains While our at X.X%. debt continue prior issuances, well cost XXX range

Additionally, convertible third of we debt. quarter, during the issued million $XXX

a to a we aware, of used are of purchase price conversion the proceeds share. portion investors cap per the effectively making As call $XX.XX

capital for raised even This only issuance capitalize if of to given fortify further markets to XXXX, opportunity the next we provides liquidity the previously earlier, debt balance our As in to John forecasted on further also need corporate than capital should addressed on capital, capital our us noted growth more growth continue weaken. needed year corporate but expected for the This eliminating need hand front current the the XXXX plans. sheet. in not

Analyst our draw from liquidity the September as our are update our Included million unrestricted warehouse our during XXXX, of equity we tax forecast can in liquidity collateralized XX, $XXX credit of restricted will and on as well November as We further liquidity our XX. cash facilities. upon upcoming available and Day both

Given XX, $XXX XXXX, equaled September liquidity available of as million. unencumbered collateralized this assets available

warehouses of that, our as points rate X, months. tax will increase subject $X.X billion burdened XX, capacity of year. XX, Beyond unlevered available equaled further any funds. XX, on funds, to of or as later June increased hedges this quarter-to-date represents see That a XXXX, XX in-the-money basis, additional you return XX.X% and this basis origination collateral, Slide fully interest we basis in open return $XXX additional equity million X.X% million since of warehouse securitization had on available of liquidity September an based of exclusive On XXXX, XXXX, closures, XX, an $XXX XX expansions XXXX. tax points new to and equity a On trailing our increase XXX since of December September of

this in power country significant driven primarily that, across rapidly return grow pricing to rates ability seen is the Our monopoly by power. increasing turn, the Sunnova gives

our leading spread interest fully take large continue and account the into position our the this the metrics in return of Please not of note further final to X hedges. We do months power these increases burdened pricing expect XXXX. unlevered even to rate year into over in-the-money

poor consumers centralized experiencing as the a with for and case the While weakens, and bill. their our other paying service which for not may exercising more minimum personal certainly debt even economic Sunnova be of is peers will economy the prioritize collections means of not solar residential is sanity consumer cheaper classes monopoly, that reliable power some solar Sunnova.

to continue we X even and As NCCV. Slide value our gross seen strong a growth our in or have both default more cash result, GCCV lows, resulting new our reach in equity. to contracted reflects the customer rates

NCCV billion compared September an XX, As XXXX. increase of X%, of XXXX, September to discounted XX% was XX, at $X.X

it as It value achieve an value world, IRA up-powerings does or for services we customer cash ancillary value our blowdown to flows growth view or grid it a rate remains September XX, punitive of September X% XX% billion our XX, And XXXX, and at rate, rate share. $XX.XX $X September discount XXXX. share, At use an this We to per even Our $X.X to upsells, renewals, no a a valuation our grows. customer per gives it to Nonetheless, $XX.XX Sunnova. expect as our XX, discount post NCCV customer was includes increase NCCV retain. customer approximately the $XX,XXX per in base a nor value for platform include value floor or NCCD XXXX, X us we share. our way demonstrate for for XXXX, discount $XX.XX option since equates was at other billion XX, NCCV or and X% September per overly

default lock as guidance, Additionally, low continue positive to do value driven is the we NCCD through Triple. as the discounted as liquidity we value. locked short, in time in credit Triple move our XX by provide and in environment. rate directly And Sunnova elected against flows, it us unaffected is contracted even add by XX major we our detailed that future. our retain continue cash so we today. record NCCV gives the growth through In realized cash the delinquency at and XXXX fluctuations spreads to the have interest our cash we flows in Double markets option benefits implied long-term This plan, to those this flows rates above rates, forecast interest Slides the in metric NCCV, for but is also well

and from the payments are capital As to in metrics XXXX $XX from response flow reducing key customers, to million $XX Increasing earlier, to noted and in $XXX our between These to full and our in to operating liquidity guidance and solar payments between from million updating XXXX and between convertible million customer reducing driven cash million $XXX cash million million corporate and principal million reducing $XX we to the million. from interest changes reflect John to million the $XX million and $XXX principal by proceeds $XX and adjusted between $XXX Full unchanged. and $XX we a million XXXX loans adjusted solar from million $XXX the from expect $XX million. our expect between million due guidance remains unscheduled recurring decline receive between between increasing the flow between the $XXX to from to of payments rates. from interest million, relates and operating updated for few $XX loans to additions we $XX issuance. it We move debt August as million XXXX forecast year receive net EBITDA from to include $XXX

equity Triple away nonrecourse on million over in as split to equity net the of and shift ended modified PPAs. We utilization sizable proceeds collect shown solar between X from from our going a There net with to plan, the tax borrowings anticipate expected EBITDA, and greater estimate for years have interest and from reflect also contract tax Double mix leases adjusted December forward $XXX to a we the for principal triple year loans no including changes our loans we XX, together XXXX. are the debt

sales, than from expected expected Our principal sales, loans initiatives. higher service-only ability other principal payments collected on customers unscheduled guidance equipment to and higher principal interest our to unscheduled continued loan pressure is solar lower from despite driven sales and business, on maintain on this payments higher EBITDA due balances cash our adjusted by

XX, total XXXX on we of expect into the XXXX was customer solar of same and day, XXX% of loans and XX% As and targeted customers respectively. principal the September as midpoint that to locked and revenue XXXX, of interest collect existing

XX% the call those loans solar our clarity, XXXX respectively. will over to approximately anticipated turn prepayments for and of XXXX, back XX% totals I John. now For represent and of

Adaptive expertise Thanks, rate business. expanded Sunnova of Home. solar Rob. success and to business Sunnova technologies in for seeing businesses energy The a solar offer We've Spurred into adaptive the adaptive specific market Sunnova business services will needs, commercial utility of local Sunnova tailored us we and offer communities. their complete by are and vision suite Home operating the offerings the Sunnova our the and structures. to Adaptive help and meet energy increasing Adaptive We demand realize our goals residential

We strong maintenance growth repair in see continue of service. including only need service customers and to in customers, non-Sunnova

part service last-mile our and key to Our to high-margin business the model. provide this unique Energy-as-a-Service is industry of ability is a

move As positive Rob on financial gain sale noted earlier, our to will statements. simplify type as enhance other activity time, company the over transactions EPS for GAAP of this as liquidity well closer Sunnova and

power in system new While reliability Prior Sunnova's and our of potentially after to growth service our full to a our also are cost was mode during storms, hurricanes, origination systems energy expect. be receiving plus recent incredibly in customer the ensure Puerto we to on the outages. excellence through both beneficial at solar largest service backup they was hurricanes and superior markets, crucial is It display customers storage it Florida. have customer placed important, and and is these Sunnova performance to to customer the proactively affected Puerto impacting existing Rico one into energy prepare Rico. our for service our and during particularly

power X In fact, customer X.X-day attached a only our the was disruption Rican Puerto lead median grid for across hour disruption. storage customers

growing Nova other purchased as home. power clearly reactions course not technologies they constitute customers' year, a consumers, customers those We reliable our service price. source Based Solar energy products be of EV that technician a Sunnova have traditionally centralized by responses deliver batteries, their integrated and to battery service at a their believe purchased together a through by considered systems, own established should and energy should a number and the primary been delivered that chargers as would have our and Indeed, we our consumers. software by by deliver be power essential storage mere monopolies. timely consumers technologies this more solar but for service. power service energy as over to service panels, technologies In better has consider on collectively an opinion, of other been purchased should historically

have to remain other pricing chain the robust facing the investment strong economy. headwinds to long-term industry capital. XX-year and by community cost achieve our supply and As Reduction growth a plus investment diverse rates prepared has XXXX. Inflation balance credit our the the a company concerns due the high us about with in valuation growth reasons: in enough incentives equity the power difficult through included of which exhibits, equipment tax quality extension offsetting increased We Sunnova, monopoly flows, to electricity underpinned conditions, bullish to following in Act rising targets our coupled visibility with and stable global many due Long-term our the economic for cash credit sheet,

forward hardware that, supply company management, open are the energy Finally, industry. you an the many financing, Analyst we to software, curated best how solution for few event, and in energy on of as we we chain seeing please With for enabled products by the a look first-ever will questions. our service operator, line At in focus this and global a as energy weeks Day. Sunnova

[Operator Instructions].

today ROTH the line question Capital from Partners. from first comes Shen of Our Philip

Given about for could segment. your slower-than-expected for of year hearing resi-solar we're for half the of a loans first result rising overall slowing rate that number demand environment, peers a much in down next the

'XX I you with seeing and lease think loans And what risk do your mix see slow ITC growth you being outlook? very accelerate are lease not your for available not guys lease your loans you down? loan. for think may adders loan business How and well through the should the the That industry? we do 'XX? as of those with If you for available versus get down as you your do are positioned be kind for why said, not, things slowing trend demand your expect versus well

have history. net the question. in at month We're for actually company's is October month this this of looking the Phil, to monthly our for origination John. Thanks point the largest

So slowdown. not we seeing that are

I I why be. that about have some may ideas think

that's probably time, I not think mixed the has general been loans well home over in understood. improvement

understand on the market. housing given decline we just the improvement out could probably home is there think all I

good a one. lease Your I PPA, point think, about very is

see any do to turn next soon given think given going lease of but do of from terms We just disadvantaged and interest adders this are of environment. see guidance come as very we that it capital than capital in in yet, month the to with And the where over cost are ITC regards December. that later January haven't debt, the to debt, out don't is just cost rate rapidly loans in capital terms rising I as or that expect maybe of we'd are timing. is of treasury We see that the XXX% PPA seen structure

well as of push another that's capital So the piece of this. on cost

for there out and this us think think service stop of but industry need I entire we is a business are the more those responded service. our the primary to full customer And service. just that consumers in the of lot a world. where certainly for the with our has, laid a in products a not going selling through they becoming in do a customers power product, to terms going power why And it think hurricanes, source. rethink to all same, terms implications I and or recognizing This that finance their service. day, over industry a was difference are investors remarkable loan makes a lot of our more lease, that from At again, industry. end we and whether of and remarks, think, the that this as this of that is just going in is the implications, It's I is the out prepared these

that. see clearly can You

amount we've evidence that hurricanes quite given that I've seeing last so to have almost are we're that just about than talked weeks and with. the Sunnova's decade, years, buying of that a the about And deal products. certainly had been over the over that know, the seen service of over decade alive. And large a And and buying financing as you people rather few

simple think it's matters, answer about service. I and So is all the service

pack Great. you've comes the of been when to ahead it raising prices.

lowered in have do economics. more prices, addressable talk to unit think states, year-to-date, minimum no longer And you increased you continuing see much have additionally, how pricing? compare you other economics Have lease targeted then the with you IRRs markets you do not, seen your about you addressable on for they go levered And talk loan you decrease prices your market In loan your raise higher words, or more rates or these as are raised to Can XX%, of And pencil. with past? how your do especially in higher? lease why survey interest your not? targets? XX% or If about much were products? have finally, because Let's headroom how average, and states percent. what you

Yes.

return X.X%. this you QX our at year, XX.X%. was last quarter on unlevered burdened look past If The was that forward fully of

that We more? increase XXX of period Are it's over points we are. time. So basis expecting

thought are call. That got price increases QX We going days was put next last few time to the weeks. than even in we and the we more more the together over in for

headroom So most It of more to And largest capabilities they rates see everybody the large of remember, fuel lot look interest to all forget, cost up is to that? they've is raising you the And power if people inputs, aware. Why they debt. raise amount the than cost is to outside lot been monopoly monopoly fuel rates. rather we continue as have a interest rates a or of utilities, is against the up power because going at have a price ability have second the in catch prices price of the higher rate. because the

off gas, definitely If you natural months, look has few over the at particularly last oil natural gas. come

baked increase company a call a by hub large right has to utilities to the kilowatt prices lot cost several translate part of core XXX power we about massive at expect expecting was markets, lower it, of where going say, U.S. for time central instance, that's the those fully roughly pay continue hour. But overruns fuel see this last particularly Georgia, amount in out gas quite not around to something the States, natural that years, from, cetera, Vobal. the to was $X.XXX to a been the moving for think a and to $X.XX, around the time et point southern an large $XX that the by I we're in a about at it's in the in for $X most -- That's for cost there, of Southeast, happen, in United a in out something

further goes, to we and a that the going price in to So ability of cost regardless raise where confidence continue we're of have to the and exercise capital to comment returns Rob, a a show next able anything those you higher on? over the to and of couple I months know, few you lot period of even quarters. don't be wanted do of have

No. a They they're that I says not the service having just price. as folks continues speaking, the well. for it our on about savings, that and going think, lot to who on paying favor through, mean be to John are generally the think time flexibility to that an If power not to to I model at as ever-increasing realize about make merely favor it's that savings. that same sell the the folks just we of market reliability they're getting they're sells the continues sure it's always grid. just fall want back with We're to and competing price able because

over next the offset to any capital months. more of I to few the few weeks. realistically on Phil, It Those over and like that's all and see everybody thing, those definitely than the final PPAs you say forgotten adder. cost sort as one on And add think the least I'll of is just going leases comments increase we about the has are seems made past ITC that

the the regards glass instead full lot going time in definitely more on with side margins. seeing And clearly half at as is a the positive there's point I market this empty here. So to half of than think is

Bank the from of question of today The next Dumoulin-Smith from line comes America. Julien

have same on the there? on moving are XXX leading Just that Perhaps not of offsets? the I driving guys But are going a for you conversation you the backfill what around. positive what is XX, theme the else moving on the there's can prepay obviously a your guys pieces to here, if Triple reaffirming comment little you in keep Double to can. Triple bit other

prepayments, had interest rates at of spill might our are going previously into effects. right Julien, though couple have year now the to is a the But it's for about put we're year, higher we knock-on a don't any to at higher Rob. certainly originating weeks. than the That, I of going scheduled want in higher over couple and next year. in a balance it has overall going that combined past you're months, even we lower principle absolutely forecast, is interest One surprises also service several is budgeting prepayments are the and those to next create end in but the we into with loans principal higher be the of here income. but

that adjusted gain other as as flows that couple higher generally We comments to fully through see as the to into be of P&L, we And are increasing. higher. going on showing EBITDA catalyst think EBITDA. higher did We adjusted the there our some increasing speaking, have mention we've that's higher directly the in past been opportunities, sale prepared of we continue you and much of over been, down translate months, the burden number returns. revenue returns Those

in of Some already always was there. that

and find It the to is bring market, the service board back them We're opportunities customers, side. and seen -- then other the one of differentiating them in far to service customers go there's there bankruptcy a and where the you some the are Some really come the as those services. some out just seeing at the new we've find to as dealers repair folks press giving new market back across as on more just comes beyond other service. increasing, where opt provide been home us ahead oil high-margin huge the big what's This the purchase. of negative especially like. into number is start look in and to that. But opportunities Sunnova of

really a interest that payments, of So going higher principal income just is to much EBITDA. lower but things adjusted with combination show higher even

it. Got

a repayment wonder reaffirm prepaid little that given on the Excellent. NAV IRR year, But to and your leading pivot on obviously, critically, continue to a And hit environment, this first here the ability the lease if pivot what's then that. given the we I IRR firm can around to prices indicator unlevered NAV going respectively. if moving raise on unlevered just metric And clarifying your can from about bit. Okay. and think a separately then the trailing also just that. loan basis, Obviously, the I calculations, then ability next you a the and rate to part that into is change, given higher then IRRs, on doesn't as expectation here. and again, raise to expectations,

really Yes. the the hasn't rate. hit very that we it I much. look when all prepayment a do CPR, I long-term we the mean pricing, at IRR mean

we at interest with cycles. across look rate it So projections

there's over little the within increases. assume of timing. sometimes expect steady take that bit just are life. going So projections they up there's life be loan. rates decreases folks prepayment just just loan the make of what the have will usually prepayments those advantage their fairly want But to modest we decreases, while a that the always to pay going being our to end there's to that We in loan always on We the of to throughout a will state expect be folks that going sure

all. ratably has over to And continue almost of so leases PPAs the really much no and it those because the economics doesn't at time. affect effect pay on it course, economics those of And

unlevered of in of I back note trailing especially that the As for that in fully think for year. fourth our basis, it's quarter months metric to as XX burdened increasing last was important low on point really the return, quarterly the far expectations the on the

out. to going be So coming that's

trailing to expect the those certainly to already increase continue XX we months, our space. to along guided we the others pricing to in fact So to that expect go we up, we been that and had with numbers increasing continue within have

So market. to going it's not out there undercut as we're if the in be

that want So spread. give spread to the a but at speaking, expect we do to I as quantification implied full of we XXX come least target generally guidance to but continue it basis points far it, don't of on as

that. into probably could you So read to try

other -- a a we're is of PPA that lower years, that's cash capital that This The the to And advantage, the point capital. of good stop, that right? the is something no capital, lease of was this on bond having keeping full Julien, securitization the using that couple Obviously, I our flow. with we is, a of did the we locked a corporate that the think, think parts the argument everybody balance point the the tranches remind competition. sheet we over corporate move. still in cost So have thing loan the talked about of… just I is of that we've versus

that that's us capital advantage future near going capital. advantage to other give capital of and as be So of give a we pieces to liquidity closings we the in have some cost strong cost here to that going in able is we And then think us can pretty and discuss a to well.

to And equation. side to as push environment continue adders then into that to continues. we there's current the move some rate of going return the are out able push we're confident that new as the year, here if be the and continuing in So we cost we're ITC things to unlevered get And spread impacting on us that up. unique to

in reaffirm Got impacting prepayment the it. materially assumptions just not But terms of NAV too that. IRR to

didn't right. answer we Yes, you're the NAV,

does all. per NCCV The not NAV affect Correct. at that. at It about all. share the Sorry

next today Maheep from of The Credit question the line Mandloi comes from Suisse.

about XX% next credits have we year, think from Or treasury. ahead. then do of call? tax like we from metric? the see talk what to we next the under the Could that on should guidance how But for that? like kind that about And on just the expecting Go the is to wait guidance you First moving could XX%.

some there's tax tax to I'd year say that going the from equity credits this effects have higher returns where existing themselves. are funds

to into from some to fund wanted put IRRs. In XX% sure cases, to it back their XX%. an can original who in we've goes to And had cash of working fund funds more the make in make we folks that to from lower capital so in the true order with sure therefore, we've fund order take number a to the that been to longer-term order advantage either income existing have up

XX been number really going discussions -- how as we from be because at better. go standpoint, next far that look really, want originated. we our and Oh, true. is it's wasn't on funds to that not practical any much burden that a that and to return, higher metrics XX now to we've even because going in and in are As to that treating going the to going now who this with say, keep those, from be to the those truly you're return we're as year, they metric think return reflected see is back have fully to how a of it back going change recalculating didn't not We I are was to we're not something a if try try But what is of

return our originally actually leases be. a are to prior expected in originated than Some at PCs higher we them now of

the just so adders but and where tax in shared down year's Most where the... opportunities ITCs enhance the that for to our And you it. enhance that prior be We the prepaid Got savings leases higher for to to will with appropriate be using and at the though the probably this uplift. either returns, in the equity, of also paying order clarify, will customer. had

reach put want actually depends want same actually they treat fewer to IRRs. It in future decreased in order it the to less they cash they have it. back to how comes case, on really that -- Do to Or mostly to more the to do comes us return but them today? it a in capital back in want

the cash on more on Appreciate flows cash just that. we'll XX or November a clarity get And you. just follow-up here. needs definitely Got quick on

quarter, looks we cash convertible draw missing looking needs? wonder to a about And at you Just there? this proceeds, think had the to if like So over something how see debt equity it excluding trying just should tax I'm -- try right? out,

Yes.

all. long happening have as only overdraw is even cash, that's not more have and environment. the negative I and changed interest to significant thing at equity really tax we dollars the going So to looking out don't balance and do The capability need we drawn ABS the carry, we're warehouses, rate hasn't though in as we've in brought already the onto but that hundred in so. collateral put this especially million several sheet, could

that do. what looking isn't to So we're

actual are needs Our basically cash the same.

on If you at go corporate to through amount and out, warehouses cash draw changed just that and look the capital, really all. need we total so now. brought at It's in right forward of we it because don't been the hard hasn't the

The the Pavel question comes today Molchanov from next Raymond line of James. from

you month, to that for commercial and the margins residential profitability traditional announced X Last that. the on compared you're questions business. is into profile market. getting What the

Pavel, business. that this quite smaller a Day. little about say commercial. part, demand to expect the we John. of It's talk Analyst bit for the as a we least. We're mention, we made the is in commensurate is side, seeing going in on more But are most bit returns to And this the

I this. think heavy even to starting not It's able be that at on this to we're been point, analyze business.

obviously you see sooner prioritizing we looking of pleasant a these had on based how execute a bit And than are returns, we little on we as would anticipated. some And expect. surprise. to that's So we're can projects

lower amount to we that So not. have ample expectations, will we of there our out demand return we don't and have

far the So that returns so in are demand area of the surprised pleasantly we and about the market.

the remain space? you or securitization tax the move as model between financing the mix of equity will the And more commercial same into

some will guidance. there out on as to a the ITC ways flag finance that take nonprofits about and we're whatever we're well. exactly afforded There's But It really us. of of leverage differently. that folks this can to we these. is with that's having provide opportunity with are a this I we to are out and that will not try be take a there discussions markets we there point opportunities because plant different at there. a At us to think opportunities bit advantage to continue more to need many But provides advantage little this might going to what point, opportunities different us that the so of There lot full we take the and finance depends are look -- provide say that doing

the comes Sophie KeyBanc. The from from next line of question today Karp

given you your rate or the XX, the you you look have do cost something in what the capital of close of the guess, would spread showed after any could Could like today about volatility, quarter, the slide? what interest share volatility sense I you versus is interest of

out is But this I conservative. comment was Sophie, again, think I'll let corporate the John, Rob by plan, way. as capital. laid The pretty we the on

change don't it. that more on see, in much the said, add piece let but So any capital, I'll I Rob commentary of corporate as him

of we plan. a will, there the capital stack we the terms the more if that bottom bit several capital of capital against In pieces of stack, and spread, to we you again, need quite expected are locked part the than obviously raised the in capital

the I may lower on pieces of closing be here reference cost to avail in that going near mention And we're and capital, additional future. of so again,

So there I competitive strong laid are on very position feel the cost very, of as capital, a out. in we're we

raising than is point. of even days we expected ago the to we XX rates, side other unlocked more are this The return your

and they were They to very nice to anybody, rates. lot that of frankly, and do to is, a and slow year, in first in the continue we position competition has enable burn growth, to it part where margin have situation the good. above capital in of year, didn't been So the of a part raise pretty the desperate a we over we're weigh the we'll first continue earliest growth too raised in

growth I has Double down of growth comment month as one XXXX, Triple just a look quarter over history. rate this would guidance continue we period mentioned into I And company's everybody as as essentially the is, recently strongest be this Triple in strong rather, fact, of remind in the to years. first make see, a I to as In -- very the growth question, will the

growth. And to lot and starting businesses, starts as to mentioned that reason There's these hit different that Rob on no just there's question think of as types the for a of lot are that And look things portend of commercial us we business. growth to raise is, a do of really growth more kind a earlier, to I had that guidance service capital? only. any time. more, in on frankly, point price more where the and growth it? why the in comments some and have Rob But going certainly forward time think I look like we stronger in there's at this be and you more it's higher as because share confidence and

I year between the little Yes, that have the take and wider than bit seen, a difference been ABS ago. to think would say, some we you recent a the a little bit look have interest more of the specifically at spreads have wider points new right in attachment spreads prints, market, now, Sophie. a mean I rates can been the

who think as think generally looking I hitting that us you'll other But what is that high auto, BBB BBB. versus asset buy get classes, for, about the is subprime our BBB. find BBB being a sort the confident is we're a is certainty the can a correlation attachment the really of market subprime auto especially where higher still market see being points. other certain But stability. much is consumer I along speaking, But buying the than same bit our that's of thing there's you that might asset like of a classes not paid little someone rated so

interest to that have needs markets It by we're Fed things the funds. fighting. If One the the and X even how you gone, interest increases to other happen. the to We drop. in base Fed need really at that's think slow need really rates stabilize. the looked That what is and doesn't

about we those get slow had spreads when already already assumed proceeds including rates. we we forecasting, had But would liquidity I think significantly, significantly. and we our we that our taken the that bring that have, in ABS thought just stabilization our down forecasting, we fairly will recut within the interest increased in

environment low reflecting that's next high XX that the for XX next for bit and So months liquidity rate you the into a months a interest that that mid-XXXX. slide see, advance rate softens a

showing firmly capital account slide. of would first we into started probably what a care is our earlier, taking point taking needs, John's less they're to say that environment we even So than

it something need question Last track of new percentage is it I business? construction. home business your a had material was or relates of to to we thin how as your Is

home year, big a been little next actually this everybody while. No, inflation on bear a that, year maybe the the new think and throughout that higher, it in I look, is a problem for knows, It's the And and market bearish before. little fairly bit with economy forecast very I our Sophie. roughly for say big, has XX%, fairly about not. will a bit been

next so expected business And our growth we've heavily into certainly discounted year. that in rate

business so lot but we're worse in have earlier. plan -- year. as up had to forecasting that can commenting bad, not the already as we business, very of indeed, it's not our homes things and Triple But Triple at we as into anticipating So was parts through the other not that bad easily I I for time, a seeing we've bearish next would Double same something new have we're make I it our get a And thought planned think will. it's

to you last it. Would comment Mysore filed pocket the California? on get for in Got response in One me. your that's

this choice. They that people And time of detrimental to get think It's growth new that something is health the that it deserve deserve something technologies. price able need its only in better this marketplace. and power the is of the Competition -- on don't come. we the industry have capitalism has service and the We U.S. made is people. to the we get country I has country have My great. fact is energy that be best comment can and they the very

service ability can't says, offer growing there, That's service. known to the monopoly soon, anytime refused is monopolies you We country a utility get these I have of where but where even to there for the out number like the not bring across communities to years. well no,

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that life. scream think do And of across number ability people we a any the do to fundamental allowed to the as they ever continue the of or country expect right in I for will growing just other an their American. can what part that's

not And so across this board, the in California, be just entire the across will eventually, country. successful but

line the from The of next question from Strouse Mark today JPMorgan. comes

in in something mentioned Curious that you since if declining. the been Obviously, remarks that's that have onset recession COVID. we prove default rates seeing that that your showing and of up do further kind as Or been we prepared think You have fears, of is there the the in of out. improvement your for go a cost capital? potentially room you through that's

thanks question. Yes, for Mark... the

has service. nothing has and debt people the just And important. a time, people that the that us they're value people pay essential one here forth, more that laid but think capital the We're valuing paying do more are dismissing cash the paying because and is is of particularly we've in one these and is the so flows, at the so other over they're cash right? That's such what good their not interest as than because lot key we're up as it fundamental long-term is you. rates more A seeing flows is business, those it, same long-term that years, against pricing important not? service, part of and us movements, out or I

the that so with way through The reflected market. answer bathwater. baby is bit is is it And This that a is no in went the proverbial Rob ago. little going ABS the reflected? out

it doing when too like where markets, is there's too negative to fully pendulum they You happy towards and that the up. that they all when dislocated is expect swings now. always, add math happen sense. do because we can talk know, doesn't and in get that poorly they as market any the the get we happens ABS But doing not to the in here, is market market, middle get back make the anybody well, the numbers the

that's So going is a we have And stand as where out you down. default going rate shouldn't exactly that's risk today. premium your indeed,

seeing the of you data, off given people of this expect but an We're don't economics, this we can't essential energy not rate in in if so whatsoever. it that those why raising the monopolies the and So service, terms to would it up. signs of And possible? future heads to all utilities, at a fears that on sense rates up that. essential is. move point, that it's seeing of and you're cut makes and their we're your of we're growing Again, whether do, any and being central default in that to not just we some home. get build, do Is Sure, prioritize the not you the number which possible, Americans going sort bills, water have

actual reflect year. going to of default And premium so of in risk premium going next actual to -- some to and the regardless market base we I of But the rates and is certainly this, the of is goes numbers it. into this Fed where market has and think point, payments. risk-free reflect end that terms reflect to the at that is the going has risk And the point, probably think, at rates in timing start market terms the rates, those in It to come rates. of

on here use in you then want Sunnova. siting And avoid Great. industry relatively using. equipment I one But just equipment believe company I'll the some installers to for smaller that the of that, bankruptcy, because was the I of names that failures. Okay. And focus filed recently

might elevated not are lead So equipment of to with kind or issues I similar term? that make near seeing want expenses to if sure something that whether and just that's you that

contracting names, pretty decent And sized shop as they avoid Yes. I'll as a far were too. alpha.

and ones. not we care flat existing failures solar, us of speaking equipment including sort as the it certainly of necessary that going it. think I tell like fail in was I customers issue except is First into of is with focus a it the and that sounds That's not item, for terms everybody base a we maybe it's and a and recall. and and systemic forth has so would have the all equipment see pieces us. that. don't the these And out or else new owning of And fixing years. customer safety in customers, of those have very others of not What manufacturers position taking have over next bigger the No repaired to equipment, believe terms I'm amount that. some the over days, marketplace. United we've we doing in so been you're others. equipment I we're don't you to all authorities going of gets on in in to a That's to the job of that any with do one, fixing that done the equipment, all, the in think, good get residential few of But that that States other small something either seen to our there that. the the manufacturer, equipment And expect entire for the process equipment industry, and who's real of see

growth. a seeing So that's we so tremendous not as strongly new to over a that quite being that contracts the know, We're We've years, talked And thing. seeing it's business about. you feel us. issued about we're

we stability see repair the off, to of. a terms like I'd in and taking taking business service there Sunnova rocket. opportunity that so out to make of lot of say, fair care sure are say people of And go a And there is

the is to going is going It's with table the pounding specific I work not this saying that's keep this dealing industry equipment predicted be So something with and buy to why It's this. to of any to been product. there get manufacturer think more that so. with. is they manufacturer, deal a I the going we customers But respect things going don't service, buy out that all are fine to

they'll think I fine. be

from The today of from next the comes Markets. Elvira line question RBC Scotto Capital

versus in was despite attach provide this Noticed quarter that last your the a quarter prepared you lower Can remarks. an of battery rate in little improvement batteries availability you mentioned that battery quarters exiting Double rate X then next headed in you do see so And attach to that where over XXXX? Triple? any the detail decline? And or embedded as what's Triple

is This John.

forward that, as up. big far that share we quite as the forward continue this attachment more as to where and wider quarter year. guide we variety would time So bit And the at say it I say I on XX%. rate delta have been in to had a could not penetration than a NCCV even movement the lot basis, not first going And not to think, meaningless. you primary. the stress XX%, the same a that big penetration next I would would have But to of in something is on all, move batteries and quarterly very rate is been told I continue little that on That's move create a I more. to. at all, volatile we've It's just way. that's of and if the deliveries thing. see And going immaterial. immaterial that per not look attachment don't I delta a focus origination, forward we're origination see, being a we're XX% between we seasonality that. rate would clear would what Look and given going that at We're confident for to of been. reasons I we'll that

be adjusted up we at the there? helpful. And negative. the also top X.X And I'm to I is then just And see What looking just sure in and Great. follow that are the IRA of of NeMX.X. to positive EBITDA That's of on EBITDA, that plus that then of you're takes embedded kind wanted could what's still a in on P&I anything puts that, very obviously, guidance guess? heard million to $XXX going be terms just then haven't on and XXXX. the then supply actually and a availability California not some like in growth,

is This Rob.

some as the availability. answer We that. our I question in of of as far so seeing some difference think to as particulars got to want NM guidance equipment, I X.X more Julien's the don't a big there. gave we far very we've earlier, make And restate is the lot going and very as equipment to a don't think good we're

a So across that's Pacific. going don't rates look be that just we And at take a really growth. something see mass the as shipping to

they're give back there indications much some Now as pretty down levels. to involved. right far pre-pandemic should equipment as That is you good pretty

of comes today Northland next Financial. Sinha from The line question the from Abhishek

could side, specific. within more how if we can if in could get to I then you how contracts side have like on But IRA the you about deeper And versus more talk more that bit know anything a about space. terms surprise. is a Anything us the also, wanted differ just any of harp maybe specific, specific that's dive there's the a on residential you the talked got if you remind demand does commercial little commercial I impact and high on. retailers?

at said comment about This point talked is But we've able I to any at say think be everything this can in on and going business -- this the John. specific I we contracts point. time. to commercial apologize and we're not

We will talk the some more question. about it appreciate Analyst but at I Day,

The next from question the today . line comes from line of of the

Sean Guys, can if you This ISI. with is Evercore me. hear

recaps with on for regards that lot has IRA for think of side. to I focused And of if and regions of market So the manufacturing market of the is a of a adders you'll transition to tracks to these scenario? I of or typical the of do But some for content in with in for the add sort on the the system, you residential you the sort think domestic for income, IRA, sort the total apply and upper Bureau best the think perhaps energy guess, what of limit XX% a case respect particular, been disadvantaged sort ITC. of case to the basic the CapEx contracting do low sort do by Census some some the so,

you the that and and that's some So F&B an clear. stack take see I total it not to our is markets, total XX% we'd markets. scenario we've just of could you trying at be standpoint comparing case way. about look into the pretty XX%, cost have Best be that of look is one And cost, those being think if you to taken ITC account right? a of think more CapEx We because already but at to in -- it financed in even that some from

do U.S. other panels in the the some our a probably that others the a significant a But So a next being of in, and pure the that's advantage But predicting looked while U.S. of the sort content us. to we there once be in to translates And going conservative up little of come inverters few that here our If XX content, domestic our believe are obviously, in lot encouraging sourced would we still more take We lot the to components cost forecasting very just in domestic board, a have our to we'll ITC years, basis, tax are of the lot and manufactured XX. facts more over in X do equity back much have just than pretty across are the some translating more cost stack. U.S. able XX% we're it. right much, And here the lot of bit are of X, a lot get than we that's in on for a manufactured of that. given that going U.S. directly we're right We a of half end think, at just higher took that here to step

for use ZIP your point, economic again, of can't individual we IRS. or most more adders our are adders. to zones, the a by lot that defined codes are But zones of are based, not thing one the that other based that's but So content on

could have that would to you quality high so zones sold anyway. we those And within customers credit still very find

So just at. it's for really us, land

the start bit the And little then talked a prepared about delinquency Okay. you remarks. of at

is go and proportion process, of a you say, after tranches retained financing, Just maintain? at proportion any what of kind it. look starts the risk credit wear default you and it our continues with all our corporate mix We typical underwriting through kind were why what it's Sunnova via of, would focused goes delinquency of delinquency to We that of kind delinquency why our all that if Or rates of our continue through exit things and wondering perspective? it. were that's after service of That's support ABS that you of we're and business down from on a through whether and the service, we warehouse drive doing.

comes of from today The Harrison next Piper from the Sandler. question line Kashy

have Can of your think guys your per you I change what capital. of in markets? a year-over-year average basis in that in you weighted give QX hour you a a in bps cost for XXX kilowatt thumb on of retail us past offset rates sense rule saw for the $X.XXX the provided

a seeing for in to definitely you and and on That's you specific We fourth to question. you. but increases back this we'll It's quarter, get answer your a I to increased, an answer don't have John. have don't for good question, we're more is This have that.

had implies I'll Can year-to-date what and Okay. the my you in Yes. the target just with you've follow give confidence guide, question, with you us the the customer on you of connections the customer XQ. second indicated, north is some of year you some additions gives as context XX,XXX achievable the just challenges And in utilities. offline. up full that this then given And

Yes.

had in we time. up batteries of the supply covered in in were point the more see, lot bit taking quarter. the is another We I expect been of we a over service in that this of inventory end pushing right? this rocket or new last can door well off the see think has last see I called supply at a really, than in a it regards big a by that's our That's push. that months. the some quarter, out lot We And business sold other to are see get that's difference some fourth quarter. in mentioned First year year, all, their where and been really to pretty quite And the of chain material I third few and you the batteries. limited earlier, And weeks a homebuilders to so we fourth as the ship, as

monopolies We be conversations PTO with and over those seeing to we've expect on days. some also little released those the the the bit last side, over are those had weeks, X utilities, coming but a slow they

shape. think essentially we've the for pace largely, We'll we need say that been feel numbers in we're the X good I also next for months. hit like originating we at to pretty So year, last

recently a a as this huge, as to couple got bigger the even QX we've has bigger huge gotten said but than as been so of call, And growth we talked as we on expected that month, backlog. We times. I've -- it's spoke

we've and We've service-only chain growth to got got right huge spot the in the we're say So backlog. the least, in supply huge the seeing a business. a

by the strong well upsells way, been have over really weeks. the So as few batteries, last

NCCV. pretty it's low, certainly any at look when account, share at the And so goes CCB pretty And discount expect NCCV to been you that's to go so but overall, another just we're doesn't per right? thing has rate, per in that to thing strong. to quarter. another And going see strongly to And points that increase share that's this customer that growth

profitable. very also be strong, it We to expect be but

our our we territories several you the major Usually, occurs had mind is And in-service during in in through through when get go the quarter keep the if quarter to folks hurricanes quarter. back -- end our biggest the push the X that's year. And at go to service. last go biggest that years, always service fourth of

got of out October. into lot a in-service pushed So that

the from comes from Peters line Wolfe David today of Research. question next The

quickly one in wanted just squeeze I to here.

of going something hold loan guess, of we how kind Just the thing you lower just principal today? that 'XX. some what I to of you guess, payments, the do be the this sales, I of a just for versus, forward? it kind reoccurring into offsets timing, should looking at thinking about to Specific expect that is should are And you opportunistically? expected magnitude guys Or be

is just prepayments, expect lesser on unscheduled or a go-forward the increase. the basis. And scheduled to payments to It we principal we clarify, to expect actually be

half think interest rates the We the attractive year. as in definitely programs anticipated this far in that increase loan As sales, we to it with that doing had second was that less the of But market us here and half the flow. to gone with do ABS second in forward continuing to and into of year. to able the we've go already entered this some be

of We profitable, we're make a necessarily and what not the programmatic expect year. is that to be to piece opportunistic. definitely it doing next And idea

sort there, from adder doing to Double just of layer, it's don't or We So certainly, things really what a the we if take of a as that's as of make Triple think far to the an is break there opportunistic triple-triple we're Triple. out are going we'll just advantage it. part But thin it. think, be of

would like to lease piece? And kind unscheduled for offsetting Rob, then, most I you the is of that Okay. impact kind that offsets guess, of if principal rank, what were you highlighted, say to you like,

increase and that lack is of I unscheduled interest income. think scheduled against in one up you in should the increase the the biggest the the match the

count. looking adjusted EBITDA to there's to definitely of probably further. can that advantage enhance we well, the sale, growing on making I sort a by that Double Tom and look try goes we would opportunities on it even earlier say, portion think well we and as If it. again, And of how customer be we that's think growing there's take say, were point look that of And a for this you is gain Triple to not to that question customer. to some at "Hey, beat could the are us one was to IRA how going Triple, market more rewarding we're

So it and if raise that can focusing states. try help hitting that go do on triple certainly better we so. us out we'll there to than We're opportunistically, the with triple-double really doesn't do really to

the of The Sachs. next question Lee from today Goldman from comes Brian line

target guys but like versus about spread or always to more like messaging but today. I X% have -- you is talking missed cost something been capital the X%. to had could else, just It might speak are I thought the that X%? so, a you of seems now you issue And changing this, is X your if

can get target that talked that of quarters. being always about at X% We've still long-term we X couple think we were next the here we the time some talking about to in

model we we we're look pushing at long that part markets So what make the can get the make think definitely here but our X%, we still to early of we more when the But modeling, but could XXXX. that's can easier, X markets still and Brian. at difficult that term in towards,

this Okay. And I front adds Understood. more lease just this look talking are year-to-date, Fair you've enough. around your I PPA appreciate, implications has the your because from literally, mix a here. double been loan I lease question look up about John, growth in then your so are of customers XX% year-to-date, versus growth for this to customer if book. which out guidance the has come and than at you shift, up peers loan and loan If year like all

PPA the is a year. It now growth Triple So 'XX. as you targets, going XX% this it's for lot to like you lease that think from customer Double Triple and saw come seems about versus of what

X-part saying is good. here. question is demand So One you're really

$XXX it's up much. I year. trends is to that's pick your if give loan-to-lease demand didn't in then too whole represented seeing? accommodate You in a to confidence look lot equity mean that composition sense us you said versus you quarter. think what going Do have see up gives million what PPA more lease composition like X, capacity forecast And the mix in of order next tax your see I book. kind that you the shift liquidity is a customers guys you you're the the Can of the I last

let But it's Brian, towards movement there as math, the and Rob this far -- lease capital. see John. Yes, I'll expect the last as we part to answer PPA. just is

forecast leases but earlier, for the again, to as Triple-Double As And something lot agnostic us, whether certain of December see strongly, seen overall enabler, by have terms and and next composition the it of balance. and not we're the a financing on was I like just and stressed PPAs, and breakout we in not yet of We've going a money we're or is or said we month Triple, financing of the that We're to to spend software and do. that focus for agnostic expect January. on company, as a time we that or early fact that's an in service software. is a terms the in loans maybe is,

we away So point, your think we math. of your at that's other structure. leasing the in I goes I I coming look with going not with agree assumption, Rob, get to And how a know breakout, do up there. PPA But any certainly point, capital you think giving would materially. we're And the don't terms then and it.

we're think looking to we seeing fact be a is reflection -- we definitely we're the bit we'll at think going battleship, in advantage Again, even that John's and there's the not tax PPAs. there really, too to the But the a bit. not shift could really upside of. mix huge mean the of looking that little be more the ITCs we part did a leases though our because shifting of not think again, we're But modeling, be I increase of to higher portion a destroyer. a But one. equity take definitely we Yes. little at to -- John, that increasing a able point, much tactics not there's we're market on that we're

seeing turn we're a just to bit slower, that. be forecasting and we're probably So little the

today The next of Research. Bardowski line GLJ the comes from James question from

few in. a of mine Just

flow like of investing of being the almost of cash operations half the versus and quarter million all light buy saw projects $XXX million, selling $XX in of free year. we flow I'm this your dealers. just turn And last guys which tentially and inventory now around quarter. which just First, million, further flow think April. from at dealers, And record $X you from same could this you looking in a negative cash cash are what you burn quarter is last lot started your seems million those to $XXX I negative back it from not

expect cash? flow recurring revenue in there guidance? theme? have neutral? Is a I this we an of actual a consider exchange And should going So to we cash be forward be this then this be is Or to to follow-up. should And

Yes.

-- we're well. and inventory we bringing I haven't the because question. things. good bringing of side higher having is X One inventory AR been we're in more think in that fairly And But purchases exchanging that that then, it we're on the inventory before. as that's a side, of there's course, of higher

So seeing. what I think you're that's really

you also out stabilize when is investing to into reconciliation. next balancing that as which year. we financing, bit corporate going pretty look do at a But you good, and cash expect little the that's why know, again, good We the that

how So we'll you business. the side know could GAAP own at of what, not DevCo But it. see we're friend. is the versus looking business you ongoing necessarily truly the our

try said to to looking in we GAAP to earnings the As prepared comments, positive we're and get OCF positive. GAAP

for flow But flow accounting to burn think, because moving neutralize. that not the we're to of end equipment. cash of it's how definitely, it I of day, when comes the we're at bit negative it expect the a a the we how So change be to cash

That's extremely helpful.

Just X more for income. my

I rate It the when at at kept that rate since morning. X%. you this you So using, are out like currently look looks guys flat discount came discount

XQ in You guys from that 'XX. lowered rate X% to X%

in at and much was XX-year so XQ yield. sitting the yield today, XX%, the at 'XX, X.XX% However, it's higher on X.XX XX-year

you're is, right get want question I current it actually is last the will rates? some here. just that talked rate using discount keep Or So to will XX-year then me now potential the that for below the you discount rate before, And Is where yield reflect any guys is. the there to clarification this Robert, we you same? raise about

arm's-length industry and said peers the one these guess these appraisers sales. transactions to but overall guys the your is, services which And show at Nova are guys the systems the underwriting to included Marcell arm's the cetera, your in have why is Granda one appraisals. your reason aren't still in valued costs, I I'm appraisers, IRS, You -- -- that are cost think include you costs, appraisals include using I and of price everybody the using of Alvarez et versus sorry, warranty use do & because league costs your peers that

IRS cost price any not the the understanding our them. from costs guidelines or using you in show approach service However, do include underwriting warranty

using X these there the is given will So approach tax guys Arles to approach. through you you're which appraisal the shift been this the systems cash transaction versus there's potential, roughly were IRS, sold, cost approach to that million get the million of of X systems show credit an

Yes. happy No, I'm address to those.

was on showing question the first And you your want. your X, colleague X get X. whatever discount I and that think quarters I So rate we rate. We're told as here's ago, discount think X

discount most would to free we almost is you another whatever against rate feel debt, flows refinancings appropriate. So is that cash have out What X-plus feel is point that in just does -- is that in for everything any debt we and there locked-in use locked don't years. that included

the is So go appraisal that into market to plenty for process time is to still account rates favorable of those at arm's-length refinance one when again, transactions. And most back appropriate. takes the us

the at that But I we're service actually or going some installation. a who's that at. themselves of doing the buying the someone say they're system and from a of think there's that the off drop usually they're I the a just just to cash work customer to sale or case paying are not the mean -- From bit buying the GCCV, that's your without the And providing somebody compare the NCCV any that our would to is we or that behind of panels equipment, install on and back it less ahead standpoint, for. it. service, and to warranty that value additional they're cash you home buying guy the a who's the the getting yes, stand have warranty, would behind who's sorry, that going in we going out truck than FMBs all when go folks sale misnomer of they're the

So this and that Marcelo for There's arm's fraud every great And I when deal have like have data, questions to trouble something folks actually analysis you truly certainly, we where to our no be This a there's that able with practice. you that try great if by fraud. third It third-party assets about for been with something backed before, treat them purposes. This up that's bit sure industry their of talked parties to detail, is work is last of algorithm, do a all and make isn't tax a deal is us they and into appraisers, have that think of on is true valuation we right? answer going they can get whenever here. we definitely new, at an use seen length. those -- provide is is on

the question comes line from Praneeth of Satish Wells today from Last Fargo.

you way faster there on quick could solar it could regions see I just take after versus Just a And elaborate any one question. of guess and the just was of you or Florida the kind how right hurricanes be is an talk trends? demand? to major usually appetite much in I wondering frame if help then because hurricane in Rico long to see historical these now. for about how Puerto in does uptick growth

is doesn't well. quickly all, relative very does It's human at and take more a of It dissipate it This as behavior. fashion long John. and

in as that's company's time. all the So board the rates this that questions across a markets, to is again, seen mentioned those There further times both But we've back across the an couple particular, growth, it's in already. at Rico, gone overall this surge month history are already strongest no but comment and and Puerto I trend regions. of in the

back will to the over closing pass I remarks. So conference Berger John for

Thank to economic me liquidity the we and and you again stock from through thoughtful be quarter will say forward still flows and cash let as go and price, out for anticipated reflected of entered recovery, next value for matter us there questions. closing, Analyst matters, seeing best-in-class. joining service separating a that value economic couple Thank you Thank In in weeks. model while true wide importantly, -- continue Day matters, again you. inevitable Look that all Sunnova's the business that financial the truly we believe its stand may to you the Sunnova's us. once a again in downturn for results joining in most as

your all Thank participation. call. conference This concludes today's for you

your may disconnect lines. You now