Sunnova Energy International (NOVA) 26 Oct 232023 Q3 Earnings call transcript

Good morning, and welcome to Sunnova's Third Quarter 2023 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 Financial Executive the On John Vice Chairman Lane, Robert and Officer. Chief

will I call to John. now the turn over

growth. thank Good by and despite interest the us. market you morning, solar Sunnova higher remains about resilient for joining concerns rates marked dynamics and challenging residential overall

profitable evidenced by as to unlevered Our positioned the we add a has continue in success burdened customers. to Sunnova increases as of long-term develop significant challenges to return face sustainable, platform our fully macroeconomic for commitment new

to achieving with market net economics. offerings, platform, robust price, have and generation Energy distinct power Adaptive at energy for optimized demand our ensuring system our better of a and our provide been we focused increasing liquidity, The our Sunnova a service performance. our dealer cash suite instrumental network with coupled flow. is service energy in better on performance Through this continue and customers steady share profitability

needs working to areas reducing act reducing raising capital expenses. and continue We on focus these operating price, by

This and maintaining to XX% the fourth higher Sunnova's current quarter, continually to First, to spread move our in are capital. healthy us the rate to ability enhancing strength shareholder alignment a in a our is a while the only to its boost prices, aim environment, to with our is implied but prices, focus we returns XX% for our methodically and for profitability allowing also bring during the to we the push value. the value third commitment cost that has of our ensure our increase on quarter. offerings. up expecting profitability growth pushed even we By customers of raising testament to past are not interest returns achieve underscores

committed capital-light to dealers both manufacturing us working our capital, to and are our This we ventures, the of to operating for expenses to working valued has through outstanding interest partners. upselling to businesses, repair capital to and corporate reduce commitment expense. and cutting, asset loans customer services, XXXX showcasing growth. used also Second, reduce its further our execute efficient these Sunnova among are capital continues equipment required amount capital reducing and free on Sunnova enabled batteries

asset services, strategy our energy is Additionally, sustainability an customer existing initiatives our cash to less a represent including generation of and boost from expansion key power and our maximize our These profitability management base. capital plants markets. component essential approach to of and approach reliance returns on virtual in multifaceted with

us expenses to power of Last, operational software the headcount leader and enable reduce of These intelligence. harnessing industry just we continuous artificial aggressively as cutting-edge by move optimize innovation operations. throughout operating pursuit cutting greater our cost in our operational needed the about technologies in strategic are our and but Sunnova an about processes, and efficiency effectiveness. This drive positioning also is savings, not excellence,

origination months. performance XX% next we over and inflow in count, and as of power this Slide we cash per the rate trend continued X customer strong showcases solar expense accelerate progress expected quarter into expected battery expect to XXXX, and to energy attachment customer XXXX. XX under the through generation the year next storage operating Adjusted management, is by decline on

and brought XX, X.X generation quarter, brought the under our XXX as September customer hours XXX,XXX total to power management megawatt which XXXX, of service, During into gigawatts. our count customers under management third solar XX,XXX customers over in to we to placed total over

expenditure customer expectations later paid a our and to the has last intend and the us The comfortable in discuss channel scale setting. will running strategic for pace Rob few leverage core advantages. call, XXXX for been months, at capital of gives residential hold economic we and but dealer this operating our

of the One we these later levered amount our call is key flows, these as beyond growing for advantages large well. and and in cash estimates discuss of XXXX and will

expected and Finally, we have contract our customer updated cash life inflows.

months XXXX, million. contracts XX As XX remaining average contract on over our to those the weighted years equal customers the XX, expected $XXX inflows life from of customer and increased next September cash

totaled Our estimated cash September XXXX. nominal XX, cumulative of flows contracted $XX.X as billion

have to our maintain decisive strong our actions taken sheet. balance and bolster We liquidity

multiple in timely capital sums significant in raised have additional in of asset types corporate level future. capital, of anticipate fashion, capital near closings including and We we the a

numerous We have we are horizon. our proud of opportunities achievements, growth and current on the

market conditions are However, thoughtfully and favorable. time these be right opportunities will more the at pursued when the

Rob, call financial to through will now who hand will over our you I the highlights. walk

Thank see which solar we you, sale. the on and loans ITC third a $XX.X adjusted included Starting million Slide EBITDA John. investment tax credit, X, or will collect adjusted the $XXX together first-ever equaled EBITDA, you principal interest from quarter, our with contribution on in to our million

we the to transaction of third-party into to that third $XXX of prior a ITC ITC entered buyer. a corporate Just sale included the the end million quarter,

$XXX and funding sold XXXX, inflation Act diversify million introduced EBITDA. source the ITC we of and the adjusted fourth sales XX, worth the When anticipate transferability, another another agreement, least in ITC and this of to ITCs us liquidity it as sources Reduction introduced further quarter. Under million our September at of gave $XX.X ability of

focus contracted continue we time. of we from generate stage flow, short can inflows the long-term reached EBITDA will sales balance that While such from contracted can and our have adjusted cash material growing a activities that cash a to customer on those recurring with we our contracts better ITC tax as period in long-term

added in additional efficiently the to funds. of year, equity access ability capital nearly markets. continued we billion XX October Sunnova's highlights X $X.X Through tax Slide have this

have a quality with Sunnova. some strong from to see strong a such difficulty for as tax securing experience continues equity, While investors, market bias in but indicated we interest that sponsors,

Going forward, to the a capacity evolving TPO the ITC best of approach conditional of Since $XXX employ million, year, our hybrid equity we procuring by we our transfer to of partnership. the with attributes from expanded and warehouse beginning origination. taxable to expect amendments tax benefit our have pace while keep system,

which $XX into over $XXX is facility offering, dealers, million capital in due equity securitization, in with modest a also close and both to revolving to million accessory We bond, fees entered brought our and expenses. second selling secured inventory loan a support billion to facility credit in $XX million $X asset-backed additional to together green after

DOE our guaranteeing expected disadvantaged more very and guaranteed asset-backed with securitization, communities last program in to securitization to and week made power homeowners the with loans. our by loan AAA is cash clean, of consumer billion demand, Included flows first which associated provide increased flexible strong This the access is first priced than $X partly securitization. residential indirectly

was low-risk comes announced commensurate the SP program, cash government we it with its that appetite our week, long-life, sought we guarantee. issuance for to We investors credit When expected uplift to flow. Last attract spreads securitization expected Sunnova The the investments the would on the attachment with project rate allow business. realize build X.Xx first XXX pricing in blended new and our our risk-free to expectation. introduced credit Hestia exceeded spread oversubscribed point BB XX only over basis was book and our the points

We as guarantee. as stack basis estimate in much full DOE points priced a a the loan securitization without XXX similar signed securitization

alone ADS our we primary plan Steel guaranteed make non-DOE legacy do panel, were the applicable. to forward, issuances Going to expect but loan

proceeds, as unimpacted we September and can collateralized continue and of restricted or equity as credit tax, draw In XX, exceeded which are $XX hedge will as year-to-date. liquidity planned. the channel Included unrestricted million $XXX upon both from liquidity TPO cash our facilities. million warehouse Our well our in as XXXX, our available cash our of breakage

available year. we available, money our additional warehouses $XXX billion liquidity of had of amounts million represent other collateral, of or in and to the funds, liquidity $X.X rate equity interest Combined, of warehouse our equity securitization exclusive during further additional tax the closures tax in capacity sources these hedges, funds. open any expansion Subject

and addition, year. by sources amendments to In dozen capital expect a extensions we end the close of more the half new

X, unlevered as new XX, on return increased September to see XX origination trailing will you of XX.X% burdened months. Slide the our fully XXXX, On based on

into equaled These are a XXXX. lesser grow we return XX%. only by implementation primarily of IRA increases as this will quarter, continued and moved the increases driven adder, from which our extent, For to price benefit

burdened With of end the year. from these fully push current originations we XX% past expect unlevered return our factors, by the to

green issued on On the of current weighted to X.X% cost September origination increased cost impact be of debt also Our of bond, debt XX marginal the XX, we to trailing slightly including origination, months. X.X%. the as of estimate approximately the XXXX, recently based on new average

our measure tax declined effect rate issue cost average any stands XX, on interest basis rates yield captures as on materially rather fairly current past interest an cost We of this our and balances capital While September a than based fees of over basis yielded debt the more several at call discounts, XXXX, our weighted and of X.X% additionally. as quarters, the of purposes.

portion is to burdened the the XX% on Based the ABS. capital current fully the fund calculated ABS expect our over on burden of the pricing, well of cost to and full created. we assets the Our investment-grade pricing current of of capital

the combination capital, utilize of of non-rated hedges. high the legacy and yield corporate also tranches warehouse the the We flexibility have of monetization securitization to and market

next our pay $XXX million debt securitization we perform, securitizations year. continue of least at to existing As down legacy to expect

than X% cost burdened The our with XX%, XX in marginal implied to of X.X%. comparing new greater equaled target. though increase was our level XX, increase as quarter return XXXX, of our targeted our the on previous average to long-term the XX average point September burdened a cost is current debt, of fully debt fully was This our to increase the compared return as spreads the months of basis trailing weighted for which of line

point maintenance. to unlevered the adjust we'll be We to range, maintain continue to burdened to basis our fully spread a and expect in able XXX return

net strong seen At our on growth or X% an $X a X Slide of reflects increase XX% billion, rate, to XX, the value discount have NCCV. September was customer XXXX. compared contracted NCCV nearly we

locked-in XX, NCCV NCCV $X,XXX cash I $XX.XX $XX.X way nominal as referenced approximately uppowering, upsell, billion as our in XXXX, customer for XXXX. punitive or rate view anything appreciations incentive per national of other discount at or cumulative equates a this upside. to renewals, XX, September contracted September flow to blowdown our approximately state per Our exclude the share. cash value Remember, NCCV Within remains flows is nominal and noncontracted

XX forecast. guidance guidance, through our XX XXXX provide and liquidity Slides XXXX

into for XXX,XXX our of additions to visibility end backlog, the higher range the at to of guidance arrive customer our Given XXX,XXX. we expect XXXX

in ranges. entered fall ITC quarter, we due million our the transaction adjusted EBITDA Additionally, sales third the generate the in to $XXX quarter we have made will On within and confident financial to we guidance are necessary additional the on transfer ITC progress the fourth we

Slide our income principal from million, adjusted proceeds XX, customer ranges you notes customer will in XXXX, receivable million investments between $XXX million proceeds $XXX $XXX $XXX distance find are which between $XXX customer and and million solar and EBITDA XXX,XXX from between receivable between $XXX and and million XXX,XXX, from interest notes million. for receivables guidance and

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

conditions. liquidity forecast updated to subject have estimated included on On which earnings XX. an be capital Slide call, in We we raise XXXX, our our previous XXXX, $XXX needs corporate forecast million the in found for our can market also and of

steps for working reducing reducing result we and adjusted temper including several pricing As capital reducing have move unlevered the to investments this further in systems our burdened of as our and John mentioned, return, operating raising expenses. new taken prices need, fully a actively

our We tranche including taking are recent funding, transaction. BB also of FDA the advantage additional on

$XXX proceeds As to a X. result, we by corporate capital XXXX our million forecasted have reduced

earlier, basis. on reducing operating are customer noted on we per As John expense focused a

scale and various IT through being leverage, as We several operating processes more this expenses by through automate we are reducing doing operating improvements. improved efficient

While one asset successfully our certain have we've where maintained costs investment we reduced is collections department. in areas, our

safe for we essential economic is stands capital rate, and which XX downturn low our loss currently annum per ensuring at basis team collection SaaS potential points. well against party maintain Our

to the million leverage estimated for our expect now per X We are cash asset next flow. years our base $XXX following our flows plus embedded updating $XXX leveraged XX We million for from also the approximately cash years. and existing be approximately year

assets. cash levered some reflect its investment We the to of corporate capital have flow allocated our into to

inclusive include is sale securitization, but and other currently this of not and revenues before, our activity excess loans, gain servicing and corporate our assets current not As expenses. bonds, service in capital rate loss does or convertible on

now turn call back will John. I over to the

implemented we forefront a corporate the promise our Sunnova's Rob. our to liquidity, and to reflected we same unwavering strategy, responsibility. coupled remains in ensure the increasing diligent optimization actions prices, stakeholders employees cash returns. that provide financial our flow its profitability commitment in with of this expenses strategically not By just increase pursuit of the customers. steady is exemplifies Thanks, agenda, at At investors, and the underscore commitment. capital time, approach the to working our it's reduction, a is value We financial of operational our our that

efficiency unmatched robust on cutting Our and enabled IT edge, our have deliver generate to to achieve to scale AI and returns. and commitment advancements us

to increase discussed equipment have the prices have presented requests of in notable in of in we utility decreasing a the opportunity the a in increase by expectations to of California XX% previous we see a the a crucial just in XX% consistent Wyoming, and decline, regions as utility name it's a country, increase a few. rates. distinct Contrary to observed As and XX.X% solar calls, rate Rico, increase across Puerto combination rise various such in nearly hike

higher profitable and continued uncertainty, rates demand, interest characterized we we by experience is and these to As gone. challenges, our committed market strong Despite resilience confront and adaptability to we've expansion. remain and

our remains to value, customers just has also management marginal after to cash impressively the return to We prudent our financial of prudent success working to our and corporate investors. remain profitability at providing and on our pricing, not streamlined a just focused in management we relentless dedication below path strategic X%. our through of look central forward strategy. enhancement and to cost pursuit remained increase even flow profitability successful as our but continued capital raise, of Moreover, of capital continued Our debt through competitive cases The liquidity, sustained regarding operations.

actions to ahead for by the path enhance we The are Sunnova efficiency. eliminated is profitability and taking

to to operational energy commitment excellence and lead the strength us Our ever-evolving landscape. positions in financial

progress sustained our unwavering profitability the of year, to we the end of the our commitment remains to strategy. As cornerstone

With open please that, line operator, questions. the for

Our comes question Philip Roth from Shen line first the of with MKM.

I you touched greater reducing you're give about, some First way? John, aggressively one in efficiency OpEx. Can is think on you And more any you cutting headcount, on you operations. about color talked OpEx. us how Can of software, the any expenses? quantify that in

that basis, for thanks it XX% the on by and a see Phil, saying a year XXXX. per accelerating towards customer we question. then We negative quantified next

are point for we're But I and scale it? So we it. get One, more going we we'll time. looking a this have at think than XX, how in get sufficient to

size running that has the we're scale I very scale say in the comfortable things. of think a X at that's levers would and in having I been pace we're enough X of important. probably there always

are. And so we like where we

first scale. is So the one

is software. Second

yes, with less. automating, and use do that machine able to a real, of have are to lot initiatives We we're AI it's a but including, some these learning buzzwords, lot a and more lot

so some putting pieces already of which place, and into And QX in QX of much we're and into of then software which those beyond. is place, going are

next have and as year, to far feel software been the So to in increase. continue dividends leverage that as pay be investments, and we operating quite real some expense significant which in those going operating are

general, is processes, that per continues there's And the by trend. looser then significantly labor so operating customer, And itself. selling more better always you're market that's leverage to just and

extremely of ago. well years inflated highly so And say, helpful that an couple market tight labor a was as versus that's

So fruit that expect promised a QX I these to savings we we and and might starting leverage, of come to operating bear to continue forth, to are call. the push in lot and as the increase add,

Great.

equity value, much buyer that X% to paying discount, every wondering for partner? dollar come. an you You through around market? beginning netting credit the how the economics what's you if you're guys some insurance you is much how market? think What I well. more credit congrats. outlook versus more your How transfer then credit here 'XX for $X.XX to first was a sale, are How as be the know $X.XX. from from come of guys deep the of your Additionally, tax buyer to borrowers and And there? tax worked in transaction tax the I able business, guess is tax about are to fees? could lot might How you of it's your kind standpoint much as PPO the was netting, guys are economic many share for XX%? first My

Phil, I'll take that one.

if have my head. $X.XX to I think $X.XX, got I John would

doing partners, on we we've we're So no, that. first number better got The actually partners both our as that fund quite this others. with economics. have pleased are a than -- well as We're different of on

nice there So with equity well. having are and some we've them folks long conversations for time, that with corporates a to most our as match and -- it's and folks been up tax of

we've So a really just and time. a say time would that been opportune had it's coming long to together, at market develop, I it's a

have the here equity as transfer we far funds. be tax that funds As within versus would ITC -- that amount could

really fully haven't quantified that. We

the for for a good work back the It year, insurance. insurance. interesting to timing year has majority make there the to to I be next that leverage. has only will you transfer, buyer. really it be But It about a fairly tax parties of do takes lot doing and work. with combination. themselves. work expect to both not in just rest fully funds this the It of work think has I I we'll be work an for mean what the for of in the to of sort has And that this ITC has to point to made equity and for

more have are given that the done sure We're to our tax together something space. work that's really just IRA, is for that legal done with done, some team we've And to it's us our order has that others successful, the would I of able has parties of for we this team way -- of who make think proud become outside this the going in landscape be in sustainable. our team has our and that just treasury done regular

job, And we Phil, way done well I ITC they of regular would sales. a add, a and fantastic mix have -- to planned of planned ahead I and and team Rob his think time tax do equity

So tell I maybe point say think it's we're we're to fair doc the some until covered later. where pretty equity folks wait in to going to

So of they've fantastic have done there. job thinking we really and a of and amounts ahead, capital planning ample

Our with Bank line next from Julian of comes Dumoulin-Smith of question America. the

kind It's alluded of Alex on just may here. off, strong to growth Congrats for there you for If kick on to listen, it, Julien. there's a lot John, out the like, results I of guys. you opportunity

forward? end where How growth bench. curious but looking your of in about you more that that's forward high-grading bias to may will, Rob, you going towards impacts I'm as extra that the a now oversubscribed that might the spread not about it sort just time. spread can talk given confirm of if be forward? low how looking I'm like right that, it sort Obviously, can rate very I And obviously be the finance You're guess, the as want environment? how sort of far sounds looking of a of And you if very, you, you hearing on Pecia do opportunity, loan has room the you that at if narrow forward. moving you're sort book the that very to think

and I'll this Alex, part then over out. turn it to John. Rob it to is finish it of answer

guidance don't still have in backdrop, we out laid about are I of those if there, we do think for now to next the on microgrids, opportunities will. close that But fairly conservative you need we've was to more a and in be And Europe. what work of those We've all talked to them -- year. we'll lot still right anything mobility, that.

to wait. price the and is will times I in table. a share candid, those So value being is growth left negative mean on factoring lot quite be of

-- point? just the what's So we'll pause So let's that. on push

you've even this a moving that than you think where utilities prices, up prices. prices with -- equipment when -- got probably again. who sooner mean wedge. industry gas knows gas pretty start There's edge, straightforward. if look low I are way I and value rather at is, value remains but it's falling is And the it's jacking rates, later.

So a in the increased capital faster than is that is bonds. wedge the been despite what most there because of bare for value opportunity clearly market of cost is capital part, has growing the increasing cost in historic

we'll So nobody set I keep we're mix. has. got think the We've overall, of that a what is nice else weapons saying

We high-grade we origination it. number grab channels of have from and of all to we're that a can looking

nothing Energy there's with So in of pick that Department on. We've got we're the loans. going here program nice the with a to Hestia

that's have capital and service-only like it. business liked of a accessory capital. And X yes, capital. I We I've to amount light X nice

So margin care, cash. -- It's of I the it's margin, business, who it's didn't for to thing you and those right net do. high don't

core XX% leased And portion has resi dealer, ITC and there. is definitely XX%, the side showing all which up adders and our is of more been other our of business, the are And flow more dominant and that's PPA, in year. our

and more cash. have we'll So more

knows going point And And that to costs to point? what continue I returns when up. we're returns, up start at who think further we're so push unlevered going capital unlevered overall, look forward, cut knows stopped some we we're in going up the to as to to the is, cost moving going the time, of Who need push just and to

far products to we've in to what will next further as This high-grading shareholders it. pushing no continue be that add? matter we we'll and our to the like up rate. stick We about to make spread keep And choices to as very need what is expect do laid cut if it as And to we'll the to to We're we channels be as year. where And out. healthy. the so going and have far Rob, capital them you be. expenditure margins anything the budget forth,

The that up. at standpoint, we something and everything Yes. sure add would about do John finance that I talking from looking We're pushing a where done through on we flyer. are we only it's the thing just returns But also need of is returns, those a to other look available is stack that fully the make to capital. not we

Let's to just see stuff, know newer if corporate to continue day X. from it some to works or develop, it trigger not, accretive not it's that that a we We'll to then stuff. that going we're unless we'll to financed Sunnova. exciting do we address capital really but something And that's going fully means financing later. has on pull Anything be some be

guiding So that's principle. the really

no you Got it. guys -- pricing or may I clear, listen, point, are mean And To negative Super John. in there. a I growth. just concern guys. your out if lot there's growth been of

sort a I long permutations sort curious of at understand I various, -- of You off. out where clearly 'XX, the that. in almost that's sale at can in trading add you fire sit today, way if up look 'XX, guess, of bonds we prices. I'm If

wall, of where notional you if how in quite But trading take obviously, just You're currently? think years bit holdco you thinking some maturity given there's you curious could they're a where sort will, that, addressing about of those choose. the sort out down there about value of callability you

Yes.

point, to pretty there. Alex, far it's of your first think I all, out

sales. do and just is our pulling the got And said, with cash bring those what to liquidity, foremost. think into focusing think indeed, right, And corporate so asset next first anticipation. Rob I some that going of year we've that's company. said, to And that's that do ability on to the But always we will I more

that we So weapon. have

We which continue levered have to base, nicely. quite flows going cash is grow of our our to

up so the facilities and then to And part of a at we'll right time. take pile cash down able be to able be those

refinance. I'll would have note cash deeply it notional day. And on trading we number pile they $XX.X more we single that. billion are leave a yes, we and a at we couldn't that. flow of can of And employ, there's strategies every discounted, But

of well to a people not, take we'll or them they're whether it, of point and financial ahead of have weapons, underline number noted we that the have trading, maturity to We probably it's care want quite time. see where And appealing.

and not explain replace still we yield. a to really really the I'd high and hurry cost capital we're is for say on those in see are in that on a our the of go other executing mean, attractive I I only and that when so had maturity The rate locked for they XX in build date, years, executing today. mean, that we'd But they're time. hurry and They're up everything or when to at a normal rather -- most it, they we on bps sure resources execute to converts manner appropriate maturity before before, thing do capital when place to resources Yes. it course. especially the so X date. that have have the in make are that expensive a an the not years in more the efficient and we're a X with year in 'XX on folks, X.XXX

West Evercore ISI. Our with question from comes next James

that So maybe not thinking part with go are off becoming as to it's the energy you are up. given the John, or in plants to start [indiscernible] clear here, keeping forward strategy utilities to power abundantly business going John. and of for we're everybody distributed your how about going your that VPPs virtual

of driving that much just or any how or your change of is shift part your so any And -- kind overall strategy?

was to power it, as and at and centralized got a years ago centralized, like resiliency, fuels combination natural this particularly in of well. the line is Yes, energy will the system, lot I permitting stuff. into be say it's system transmission upgrades why cheaper as James, with technologies with business more key. provide the other the least the batteries key But it's frankly, Internet say Yes, at very and solar instead -- a saw are the look decentralized of very to a cost new to decentralized as all far XXX% of a things. -- going really a reliability essentially I friction gas and more It's of part getting and and that some less centralized industry and to least and distribution installation to side much regards different

So point. your to this is inevitable

already a negates net call And as more key frankly, executing more called others lot we the concerns a the we're strategy, services, of what forth. of VPPs. this We part so and of see energy and and metering

but open bring able those system that's the take connect And aggregate, we're market deals. capitalism of who transparent, get and basically, to weeks we'll and We right choice here of we're our wins. an consumer wholesale we'll announce over Sentient and open, now, more customers. where more able seeing play days wide our platform you'll choice consumer software type see value all and some didn't open these into to and So let's back to into essentially be customers our coming over see the sell anything

this wiped our bill the lasted customer you're our summer the power have wiped retail some that if electric not then lot usual, also seemed than longer the took bill right? they customers only a a have out in them but out provider, Houston, point, past which they summer, in of Dallas, remaining Case and to There's with money.

just about So that. think

continuing. which regulations get talked rates Monopoly's we country update We've at overhaul way having of got of up Japan instead forward works. Europe country ridiculous comments, power So Australia works, or JAK the list a about to this here this prepared is U.K. can that's our in moving obviously the move we and pace, works. like so

billion by next amount few lot a cumulative that we're stand $X So over the the XXXXs doing I huge of value in customer talked huge and a more value. that. We of of about opportunity amount There's we can it. and basis. asset and here, our base And squeeze years of here out

markets some a John then either the capital in I you bit I that next it answer, or unrelated, release Right. the -- agree don't about outlined. I be maybe year at little comments Rob, a a to you you access to that think totally Right. capital there. need to all can quick made fair? said and fund And growth it but needs, but press know follow-up the you Is seems literally me but one-word

Yes. fair. That's

question Ben next Baird. Kallo from with Our comes

on question. up Maybe following last the

to since million the times, growth Just growth be for that of other quarter? a be 'XX, get stuff you'd clear, is said $XXX removing need that it and removing to factors you you have the for like was capital here? versus you've are to there have Or the because going million there's enough outlined to in for last stuff corporate couple I $XXX funding but know that

of I'll that. going and a part of any Nobody detail. calls. QX it else give first more at these industry earnings to guidance does really is Look, a other Rob pretty Nobody over turn Well, give to one, out, than else round far out. in chain answer the then little 'XX value far forecast it was to us this on

the what exercising market pricing that and looked we And up, so company's at we're pricing history, things a is our and out. was change power. tightening the that. can talked had of enabled that about in We've in terms power never more I've And far forecast

So that's reducing moving we our we're is expensive the favor. favor The industry, with working prices, is reducing in that expenses, labor and in our overall partners. Working and we're of to a capital in got our can. regard. part and working economy dealers it, market that OEM nonexistent operating The in reducing our And capital. moving raising and has

look upturns. will. you economy than do like you is power We it stock long-term if we're utility, the call price, at And tend of that the more part to tell. the business, company or a in look better downturns at can go in Go

of here, see of become little real so opportunity reducing -- and lot it very to a we little capital a that price, shape a shave reducing working operating raising take running advantage saw money. when you to company you a there. we And And we've large large. And bit up Suddenly, adds expenses. you're bit

And been next going have we're execute. we comfortable even opportunity to So flows to levered a doing, we cash and to of period to like them be to and able over that. that this we pile continue cash few those do or pile like and time, outdo I'd see those years us see to -- ample feel up. grow -- is continue

some, anything the and add? on to that liquidity, focused profitability we've we're to to come. then done flow So already cash more Rob, and you and gap close and the want

covers it. No, that

That's a great answer detailed answer.

the equity, route do And one versus make and you Rob, sales equity follow-up tax just if Now up maybe that growing sales tax like versus you then ITC to into ITC something the how traditional giving on decision. you have just go I just decision? could There's you're if here. there's

of ITC If route given if think able here fund credit, really to just I all full sells being just bit an to advantages. the if credit, friction. because equity There's take. you some one about take probably ITC, Yes, attributes. that we've then you're very the advantage tax ITC there's there's the value little getting that's a an are all the of Yes. a misconception sells tax a chosen up, not And

going into sheet balance So X.X% total we maybe It's that's whatever, our that's very pardon, qualify just funds, that equity of number fully credits of tax and a have some don't we're always small. some less just to generate or assets. limits than few of because directly directly, for our TPO concentration tax assets a because our that

that the about is of instead over sheet. the have -- out tax balance a is be equity as doing, that onto home that But the that sold the are what credits XX% nice piling funds. thing for just can now that be agreement But going vast to those majority, the well, we we're of of

and regards P&L. it fact, with very very, little then friction becomes liquidity, the to accretive there's in on overall the So there

capital on then of of dealers it just about overall dealers relates Got relationship health it. maybe dealers? could John, because working your the then And to And just talk the efficiency economy? impact maybe, with your it as just does just if you the

a of good in quite are businesses, Ben. of can those Yes, I dealers some our think business. are that And the shops run started at I entrepreneurs businesses look, sure, lot large. very Well, that of and think all of are them

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I certainly would you what is. in And look, of another certainly thing pricing can We it, it call like by said, like, oh, that continue spending I'm so inflation money forth, and it frankly, I the navigate is you terms phone administration. up recess called, spending got is which push is them high. Trump need to say, government stop of into Powell. you the up, you're to, I've payment reduced obviously again. well, the terms and up federal push well as can waiting align not being from cost glad pushing Chairman as really price the mean they're the was in that Biden to I begun and so by

going And -- need are we of what that can there's we about, So do? complain we here. to all things lot we're but a

input price monopolies and utilities the that these got push matter we thankfully, are. no to fuel costs what Well, up want just

clip then And a really other lot obviously that continues scale a got nice cost. And the at lot globally frankly. than we're efficiency sell of we've a more so think and improving and against. technology rise to the people and both faster is And getting price understand, I a side, to in

the so this. And falling of

navigate can this than others. lose dealers a few Will and our we better dealers of all some Sure. So do

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credit of about very feel comfortable sorry. exposure, our really, all and we So liquidity exposure there

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of point in But think I may at in equipment up at I that think of and purchase a we I starts that that equipment point do QX frame, But pricing, for it my volume here, best see the while point to I time. goes. in of as do like troughing time a the guess is stay somewhat far the as volume some but the terms think at move said,

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with Molchanov comes Raymond James. question from Pavel next Our

You've lithium-ion your equipment. X at of talked benchmark XX% down about the supply in about down same a observing pricing lot the bit We rate of are months, a benchmarks? specific module capital. you about little the batteries relationships, of look as the of kind In last kind Maybe talk cost decline sharply.

I as question, But Pavel. just more. answered Probably a

best rather that batteries panels. think somewhere my be instance, I like, but QX probably it's and would in in certain guess, inverters troughed components the possible these frame, time of than for

I starts up think where in some terms point So the frame. point, right? at some better it's best think troughing and of falling to to firm particularly stays pricing frame. the And some it my we'll move start I in larger the up time volumes volume, drops technology pricing, start QX of at where in the in think QX expectation you I more time And players. probably

to are starting investors thing in election. terms One look that's lot people at is to of of interesting the a trepidation with

for batteries, tax year. domestic with out put IRA content, look it final the next get the by in we do. to the make in and ponder people better I let's when out out I'd going at credits end of guidance thing year -- a election decision the is Americans all the think of to I One QX, go. certainly hopefully to trepidation get treasury, of the as before on credits not now, there is any it's terms certainly of

anything that repealed or I about. in you because be least more the think start so on. don't it it sense only is do that talked that would of what worse. pull -- But to thing you make what think tiny forward people little get wouldn't like are the demand election going IRA could see is are reasons that contract on? maybe a But the The I happen waiting bit and you waiting somewhat book is ahead at to we've gets for some, incremental

on Right. things opportunity? Can an update where stand we get commercial with your

but continues high-profile to with That public, a I signed deals, It we've will don't We've Yes. move companies. number which throw some nice business. any off it's made forward. some a think cash year. of next of

another. amount market and start want ample expenditure grow for of, all There's budget on, make terms Are one. again, one of they're to our count think capital business it is, the what that point. the we've take you really and that's and going that falls that from in but And we're now budgets there. of related? we've a to out. year. in that next about not where not There customer they is to budget is expenditure going be I capital forecast capital more on so we industry, talking out this capital expenditure crazy budget Yes, the to the is need laid part for And for opportunity it expenditure a going opportunity It's there's of budget And than side in an we're to laid of frankly, I part advantage and of okay.

Karp next with Sophie Our line from of KeyBanc. question the comes

A question green bond. on

when out first on time this turned So the of type be using first what -- are your you that thoughts given forward relative of where to going time? pricing financing

Yes.

add, This timely, answer I had which we've it continuation was Rob. I'll years. a strategy very place that terms Sophie, for clearly, to and have that issuance turn over would bond, of a in over our then X.X was of in

to company ability your the so having the rated us in And sector. by have is only enjoyed

others it have. gives don't And channel us, liquidity of so weapon another that again, another

that we opportunities. is means what other so And have also

that the have ABS as the We have in other channels well, marketplace. pieces nonrated as people such other

like right we're going of to now. combination We we are always So where do these. a

forecast that capital very is is. corporate think and it stands I it the clear, where

rate is definitely the market. the paid rated so that And pieces ABS lower we than the in

that now price. issued But nice there's as ago? as the time a it was as again, so. it that we years was Would we we fix So high not want a And things first lot the of Obviously is our X.X a near result. wish. pricing

So we operate on a spread basis.

we're whether clearly, the We'd part something it's Rob, going that? the than rather that year. doing a or So it's right to not down to to nice reducing it but of next that's think be asset level. you we're rather someday something increasing but anything it's be I no now, comfortable. matter want strategy, leverage add road, that And level corporate

a say execute said with investors No, coming John it to moment. of timely we to as we're is able very it reiterate some to we strong we now. lot happy well were But I into was with did good fund. what a right think long-time are that as just and very for And that demand that's or that --

will we through we stay that have look what And able able and corporate cash generate to the created amount be so of we're delever time to within side capital we're to to And flows balance corporate sheet. the the here looking of we're that the carrying. over

the question et you was kind to utilities and distributed homes want whole distributed generation right, might we'll and a that power a try the that with competitive are in hold, plants, virtual to this model you business begins -- as envisioning whole a compete of people's plants, take and other Is threat? in My piece with of virtual power cetera.

I'd love to compete against them.

and idea Australia, in market, Europe the great choice a an like it's Houston, Dallas, have how consumers in think U.K. do we Japan, I open to

update country and needs see it for with compete the rest best the get company who business think to regulations let's I the see of and the and wins. the consumers'

and it's support So it. open provide a and I consumers idea blow competition I to great think choices

Brian Sachs. Lee Goldman question next from comes with Our

follow-up on forecast This corporate Brian. question, the on questions first or just I to a liquidity is the previous for needs. Grace guess, capital

You capital prices, increasing there from mentioned OpEx such different like as pull, XX corporate X reducing help working XXX. your that to you down to capital, are need can improving levers

wondering if follow-up. more? Just levers you purge us major help can a bit And those a gap the have quantify here I and

is this Grace, John.

clear these dropped inventory been far anybody else look as pull. to we We've XX% point very that's levers balance than like about been -- to a I'd on been guidance things as I are clear. continue out And the think has. liquidity giving by we've very sheet. that far quarter-over-quarter. It at line our we've forecast the

the sense able all at we So out, frankly you all volumes are that to of numbers if put out, that together, and nobody data I be think to you. puts just which else metrics and dig huge put you'll look I numbers think the pieces it makes

Okay. Fair. question on the guide. the second I And guess, EBITDA

I XX% Sorry, the your embedded sales in of if ITC missed are much EBITDA How that. number?

like We haven't to XX%. quantified right it looks it's but that, about now, XX%

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comes question Wells with Fargo. Satish next from Praneeth Our

corporate just on clarifying capital. I start thing by wanted the to one

to strategy a savings? guess I X, operating 'XX. Or for Has to on longer-term is X shift close of I'm cost been higher-margin near-term to minimize of the lower in corporate just the tied event focus to there capital, basically it's customers? about more it this recognizing a kind kind So strategy keep tied there. just asking

Yes.

I think earlier. I that question answered

corporate else corporate equity, speaking the side. ability it And obviously, speaking of have an and when corporate of has. go as that doesn't issue to corporate no is can asset but capital issue I'm one to debt I'm do an the everybody issuing capital, ability asset and We the capital the

criticize you something ability into to something to it. easy the it's when have So or do it make don't to

ability the it. to do do We We that ability have retain it. to

this have flexibility. We

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is Our flexibility we and what as XXXX wide. beyond can as in pretty far do

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continue to provide liquidity us. more going it levers better build we're than more and to different and capital, cheaper opportunities nobody those and and and channels So does to

higher of scale complexity ITC No, went I'm I this much ITC the kind deal about industry then that years? versus curious the tax that one was onerous Okay. coming to how the process deal of this the -- makes in get sense. -- how guys to that infrastructure Does you the place if process? it since in just this across would And And guess, you you guess, the were versus could you through of talk is first, transferability the done compare transfers of I equity?

you modest, want the one this, the We first but say Rob finish were must first. answering only were and it. I comment one There's to because won't do he's question. Rob, the first. did he we

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the that that I is how exactly now have now But think is the it We for we good what have model blueprint. works.

more valuable. with buyers to that subsequent to you go with And piece to able will, that same secret is that if blueprint a incredibly we leveraging. just of corporate intend same so It's one being model continue sauce,

and we've One add that a talked is part, thing would service I this. is key about

our not are and service maybe in is or other X outside space. We prevalent a company, X competitors that

So somebody is that a going that's will takes is have to of really and capital lots That of build to lift something great that be years, talent. massive that interesting. heavy lots

so that's forth. to competitive another able being really And and so PPAs and offer edge leases,

have We for more time question. one

So line Jordan of the Levy our from with final question comes Truist.

for to that another quarter wanted just main It But in seems good here. curious about briefly segment, just the you of customer on thinking that into is you're like move lever kind how of touch appreciate year. that around sort I segment Service overall XXXX? you after growth the can next

of Yes, care what of the customers. This done good is Jordan, immense. I a the opportunity not is in taking job feel there is industry

improve very modest can that there that also But is you a enormous can company, do as we lot I a think to is a forecast. better. an better we that. We and I -- lot continue do will promise and amount improve. a

all for are time have questions Those the today. we

the So closing to call remarks. I'll back turn over John for

execute Thank look equipment expenses. by new growing you. in see you prices. cash on our I further speaking falling monopolies we when again We focused reducing value to liquidity, can edge, raising capital are continued prices with We're by to execution. the flow. discuss and driven profitability to We going prices, working reducing clearly a forward and and raising thin year operating

Thank This disconnect you for call, may your today. concludes lines. us you, everyone, joining our and now