Sunnova Enters into Definitive Agreement to Acquire SunStreet—Lennar’s Residential Solar Platform for Homebuilders

Created by Lennar, SunStreet has a distinct understanding of homebuilding operations that has earned the company a reputation for being a proven leader in the residential solar market for homebuilders.

Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), one of the leading U.S. residential solar and storage service providers, and Len X, LLC ("LENX"), a technology focused subsidiary of Lennar Corporation ("Lennar") (NYSE: LEN and LEN.B), one of the nation's leading homebuilders, announced today they have entered into a definitive agreement under which Sunnova will acquire Lennar's residential solar platform ("SunStreet"). In addition to Sunnova's acquisition of SunStreet, Sunnova will become Lennar's exclusive residential solar and storage service provider for new home communities with solar across the country.

"We are thrilled to announce our acquisition of SunStreet, and our new strategic partnership with Lennar, which will be a first of its kind in the industry geared towards creating innovative pathways for how new communities are powered," said William J. (John) Berger, Chief Executive Officer of Sunnova. "Sunnova's success is built on strong partnerships and shared vision, and this transaction will be no different thanks to our complementary strengths and mutual desire to transform the energy landscape. This agreement will allow Sunnova to increase customer growth, further scale the business, and develop smart microgrids for communities across the U.S."

"The sale of SunStreet to Sunnova underscores our longstanding focus on and strategy around technology and ESG investment in Lennar's future," said Stuart Miller, Executive Chairman of Lennar. "This transaction, in exchange for Sunnova's stock, represents a long-term investment by Lennar in the company that we believe is best suited to innovate and evolve in the dynamic and rapidly growing field of sustainable energy. We look forward to working with the exceptional team at Sunnova to build industry leading solar products for a better future. Lennar's homebuilding expertise and volume coupled with Sunnova's solar expertise and determination creates a winning combination to build best in class products for new homes while enhancing the lives of homeowners."

The global energy landscape is undergoing an incredible transformation and consumers are demanding more from their energy service providers, especially as people spend more time in their homes and as weather events continue to worsen due to climate change. This consumer awakening is challenging the traditional, centralized power infrastructure, and now more than ever, consumers want access to clean, affordable and reliable power.

Strategic Rationale:

Created by Lennar, SunStreet has a distinct understanding of homebuilding operations that has earned the company a reputation for being a proven leader in the residential solar market for homebuilders. This acquisition will provide a new strategic path that will allow Sunnova to generate significant shareholder value, increase customer growth, and develop clean and resilient residential microgrids across the U.S. Sunnova will be able to bring SunStreet's proven track record of high-quality, timely installations to additional homebuilders, while working with existing SunStreet customers to enhance their energy independence through the addition of battery storage and other offerings. As Sunnova's business impact grows, so too will its positive social and environmental impact, helping the company achieve its overarching mission of powering energy independence.

Sunnova SunStreet Acquisition Advantages Include:

Captive pipeline: A multi-year supply of homesites and leading market share drives visibility, resulting in higher option value
Lower costs: Reduced customer acquisition cost driven by making solar a standard feature
Production platform: SunStreet's seamless integration into the homebuilding process avoids potential operational interruptions
Upsell Opportunities: to upsell many of the 250,000+ existing homes built by Lennar in the last decade, and the ~40,000 solar-only SunStreet installations, with Sunnova's broad portfolio of solar and battery storage service offerings, subject to applicable privacy laws
Lennar and Sunnova Strategic Partnership:

In connection with acquiring Lennar's residential solar platform, Lennar and Sunnova have agreed to a multi-year strategic partnership, with the potential to align the strategic and economic interests of both companies, with a focus on enhancing Sunnova and SunStreet's full growth potential. Under the multi-year strategic partnership:

Sunnova will become Lennar's exclusive residential solar and storage service provider
Through LENX, a subsidiary of Lennar, the strategic partnership will focus on the development and rollout of innovative energy technologies, such as home storage and community microgrids
LENX will maintain an equity ownership interest in Sunnova as well as a commitment to provide tax equity investments to support Sunnova's homebuilder customer pipeline
Sunnova and Lennar share a vision and business ethos to create value for their shareholders by further propelling the energy transition towards decarbonization, and providing cleaner more reliable energy solutions to homeowners
Acquisition Details:

Under the terms of the agreement and earnout agreement, LENX will receive total consideration of up to 7.22 million shares of Sunnova common stock, which is comprised of 3.33 million shares in initial consideration payable at closing and 3.89 million shares in consideration associated with two earnouts. The first earnout of up to 2.78 million shares is associated with achieving certain annual customer commitments over four years. The second earnout of up to 1.11 million shares is associated with the development microgrid communities over the next five years. The transaction also provides for certain registration rights for LENX with respect to the shares of Sunnova common stock it will receive as consideration.

The transaction has been structured in a manner intended to cause the receipt of Sunnova common stock as a result of the agreement not to be a taxable event for Lennar. Lennar has agreed to guarantee the performance of LENX under the merger agreement and certain ancillary agreements.

Both Sunnova and LENX have received the necessary approvals for the definitive agreement.

The acquisition of SunStreet is expected to be completed during the second quarter of 2021, subject to regulatory approvals and other customary closing conditions.

Conference Call Information:

Sunnova and Lennar are hosting a joint conference call for analysts, investors and media to discuss the definitive agreement and strategic partnership at 8:30 a.m. Eastern time, on Wednesday, February 17th, 2021. The conference call can be accessed live over the phone by dialing 866-211-4135, or for international callers, 647-689-6729. A replay will be available two hours after the call and can be accessed by dialing 800-585-8367, or for international callers, 416-621-4642. The conference ID for the live call and replay is 8514849. The replay will be available until February 24, 2021.

Interested investors and other parties may also listen to a simultaneous webcast of the conference call by logging onto the Investor Relations section of Sunnova's website at

Featured Product



Under the slogan "engineered for greatness", the SF8 tracker aims to revolutionize the photovoltaic market with its new minimum 2x60 configuration and 4 to 6-strings. This tracker is elegantly designed while it reinforces its structure to perform in any terrain. In addition, the SF8 tracker increases the rigidity of its structure by 22% more than the previous generation of Soltec trackers, the SF7. The SF8 is specially designed for larger 72 and 78 cell modules, an increasing market trend.