Sunnova Energy International (NOVA.N) 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.
Shares of the company rose 2.3% to $16.20 in premarket trading.
The company last month said it was in discussion with the DOE regarding the potential issuance of an indirect guarantee of 90% for up to $3.3 billion in solar loans.
The DOE's Loan Program Office aims to speed development 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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This is great news for Sunnova! The $3 billion loan guarantee from the US Department of Energy will help them expand their solar energy services and create more opportunities for clean energy. It shows that the US government is serious about investing in renewable energy sources, which is encouraging for the industry as a whole.
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Clean energy all the way.
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@gorffly_mokua True!
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This will surely help the green energy.... good move
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This is very promising
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@jane_wangui I agree
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@jane_wangui Indeed it is
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this is a guarantee that our future will be saved
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A great move here by the US Energy Department.
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Funding in support of clean energy is highly welcomed.