Texas-based Sunnova Energy, one of the solar market’s leaders working on residential solar and energy management, has reportedly made plans to IPO later this year. Though Sunnova declined to comment on the Reuters report that initially broke the news, anonymous sources close to the company appear to be credible.
Financially, Sunnova’s cap table is a lot more crowded than its closest competitors, including Sunrun, the current market leader in residential solar ownership, and Solar City, now part of Tesla.
The company has reportedly raised over $2.5 billion in funding, a mix of debt and equity fundraising. Its competitors, on the other hand, raised at most in the hundreds of millions prior to IPO. Despite publicly announced round-sizes, Sunnova’s valuation is a black box. As such, Sunnova’s IPO price is far from clear.
Either way, Austin Perea, a solar analyst at research firm, Wood Mackenzie, believes that a Sunnova IPO could clarify investor interest in residential solar. Specifically, with respect to Sunnova’s localized distribution model, market interest is largely unclear. An IPO by a unicorn like Sunnova would offer unprecedented clarity into the private company.