Sunnova Energy International Inc. ( NOVA Quick Quote NOVA - Free Report) has announced the extension plan of its service offerings in the solar segment to commercial businesses. Through this expansion, the company intends to tap the solid solar demand prospect in the commercial, industrial, agricultural, commercial real estate, non-profit and public sectors amid rising utility bills. Factors Supporting NOVA’s Growth in Commercial Sector
The recently enacted Inflation Reduction Act (“IRA”) by the Senate highlights commercial solar projects to increase by 20% over the next five years, per the report from SEIA and Wood Mackenzie.
In light of the aforementioned growth opportunity in the commercial solar market, Sunnova Energy intends to use its in-depth experience of services in the residential solar market in the commercial segment as businesses continue to face the hassles of energy costs and prolonged power outages.
Moreover, NOVA may reap the benefits of tapping a widely spread commercial solar market that is majorly unexplored. The commercial solar market boasts a total addressable market of nearly 145 gigawatts (GW), which is only 5% penetrated, per the report from Wood Mackenzie.
Further, Sunnova Energy intends to fortify its presence in the commercial market through a strong channel of dealers. Also, NOVA’s additional value services like the Sunnova Protect Business plan, along with flexible financing options for systems starting at 50 kilowatts, should further boost its recent entry.
Considering the rapidly growing clean energy space and consistently rising energy costs, the entry into the commercial solar market will surely benefit Sunnova Energy and may bolster its revenue generation prospects from the commercial solar market.
The Senate’s declaration of IRA has led many solar companies in the United States to evolve in the solar market. To boost their growth trajectory in the solar market, companies are either exploring the underserved segment of the market or adding new product ranges and expanding manufacturing capacity.
In this context, apart from Sunnova Energy, solar companies that have been strengthening their positions in the U.S. solar market to propel their growth are as follows:
In September 2022,
SunPower ( SPWR Quick Quote SPWR - Free Report) announced marginal investment in leading solar dealers, EmPower Solar and Renova Energy, as part of its Dealer Accelerator Program.
The Zacks Consensus Estimate for SunPower’s 2022 sales suggests a growth rate of 26.1% from the prior-year reported figure. SPWR shares have appreciated 19% in the past year.
Canadian Solar ( CSIQ Quick Quote CSIQ - Free Report) announced the launch of the battery storage solution, EP Cube, for homeowners and SolBank for utility-scale operations in September 2022. Also, the company intends to scale up its battery manufacturing capacity to 10 gigawatt-hours by the end of 2023.
The Zacks Consensus Estimate for Canadian Solar’s 2022 sales suggests a growth rate of 45.9% from the prior-year reported figure. CSIQ shares have appreciated 7.9% in the past year.
In August 2022,
First Solar ( FSLR Quick Quote FSLR - Free Report) announced that it plans to invest up to $1.2 billion in scaling the production of photovoltaic solar modules and boost its production capacity to more than 10 GW by 2025.
First Solar’s long-term earnings growth rate is pegged at 49.3%. FSLR shares have risen 39.3% in the past year.
In the past six months, shares of Sunnova Energy have risen 3.1% compared with the
industry’s growth of 29.6%. Image Source: Zacks Investment Research Zacks Rank
Sunnova Energy currently carries a Zacks Rank #3 (Hold). You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here .