Solar firm Sunnova gets $3 billion loan guarantee from US energy department

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Solar firm Sunnova gets $3 billion loan guarantee from US energy department
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Sunnova Energy International said on Thursday the U.S. Department of Energy (DOE) will provide the solar company up to $3 billion in a partial loan guarantee to expand clean energy access.

said on Thursday the U.S. Department of Energy will provide the solar company up to $3 billion in a partial loan guarantee to expand clean energy access.The company last month said it was in

with the DOE regarding the potential issuance of an indirect guarantee of 90% for up to $3.3 billion in solar loans.of the clean energy sector with loans to automakers, miners, recyclers and others, many of which would struggle to obtain private financing given their large capital needs. "The DOE financing would accelerate the adoption of solar and storage, decrease greenhouse gas emissions, and expand the availability of reliable, clean, and affordable energy to those communities who benefit the most from low-cost energy," Sunnova CEO William Berger said in a statement.

Sunnova also expects the DOE loan guarantee to support up to $4 billion - $5 billion in the company's loan originations, reduce its weighted average cost of capital and generate interest savings. The transaction is expected to close in the second quarter and Sunnova plans to issue its first securitization under the program in the first half of 2023.

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