- Sunnova has agreed to take over Lennar’s residential solar platform SunStreet
- Lennar gets Sunnova’s stock in exchange while growing the expertise of SunStreet
- Sunnova gets exclusive residential solar and storage service contract for Lennar’s new home communities as part of the deal
In a strategic deal, US based solar and storage services company Sunnova Energy International Inc., has entered into a definitive agreement to acquire SunStreet, the residential solar platform of one of the largest home builders, Lennar Corporation. The agreement has been signed between Sunnova and Lennar’s technology focused subsidiary Len X, LLC.
As part of the deal reached, Sunnova also gets to become the exclusive residential solar and storage service provider for new home communities of Lennar. Lennar gets up to 7.22 million shares of Sunnova’s common stock under the deal that’s expected to close during Q2/2021.
For Sunnova, explained CEO William John Berger, this acquisition will enable it to increase customer growth, further scale the business and develop smart microgrids for communities across the US, since SunStreet comes with a multi-year supply of homesites lowering customer acquisition cost. It also gets an opportunity to upsell its products to some 250,000 homes built by Lennar and 40,000 solar-only SunStreet installations.
As for Lennar, the transaction is aligned with its strategy to ‘build best in class products for new homes’. Together they will rollout innovative energy technologies, defined as home storage and community microgrids.
The 2 partners see growing scope for residential solar and storage in the US as the country faces climate related disruptions as the one currently with massive cold waves snapping power supply. At the same time, as more people are forced to spend time indoors due to the weather and the lingering COVID-19 pandemic, the need to have a secure power supply is all the more, bringing them an opportunity to provide ‘clean, affordable and reliable power’.
Last year, US residential solar installer Sunrun swelled to over 3 GW of solar energy assets in its portfolio with the acquisition of Vivint Solar (see Sunrun’s Acquisition Of Vivint Solar Complete).