Sunnova Submits Application to Develop First-of-its-Kind Solar “Micro-Utility” in California

Innovative new energy platform allows residents, communities, and businesses to share excess clean power and “island” from the legacy distribution system

Sunnova Energy International Inc. ("Sunnova") (NYSE: NOVA), a leading U.S. Energy as a Service (EaaS) provider, announced it has applied to the California Public Utilities Commission ("CPUC") to develop a first-of-its-kind solar and storage focused "micro-utility" in California.


Sunnova formed a wholly-owned subsidiary called Sunnova Community Microgrids California, LLC ("SCMC") to own and operate EaaS offerings in new communities including energy generation, storage, and distribution infrastructure. SCMC seeks to develop largely self-sustaining micro-utilities by equipping new home communities with solar and storage to provide consumers with a better energy service that allows them to live in a more resilient home and community with latest-generation energy infrastructure. SCMC will focus on newly constructed homes, allowing the company to work with developers to design and implement distributed solar-powered microgrids for communities that will benefit from improved sustainability and clean, resilient and reliable power​. These communities will be known as Sunnova Adaptive Communities™.

"Community microgrids are the future as they offer the unique ability to share excess electricity, putting the power in the hands of homeowners and significantly enhancing the resiliency of communities," said William J. (John) Berger, founder and Chief Executive Officer of Sunnova. "Sunnova is breaking new ground by expanding its distributed energy service platform from homes to whole communities. We see a future where communities, neighborhoods, and businesses can operate independently from the legacy grid with sustainable energy sources that provide uninterrupted power."

"We believe microgrids address a strong need in the market for more robust energy solutions and better connectivity," added Berger. "The Sunnova Adaptive Community™ will provide consumers with the ability to produce, share, and deliver power when it's needed most. SCMC's application highlights the relief that the existing transmission and distribution system will experience given that most of the power that will be consumed by these communities will be generated locally from renewable resources. We hope the CPUC moves expeditiously to approve our application so that we can begin serving new communities."

On August 16th, President Biden signed the Inflation Reduction Act, which brings incentives for renewables and the clean technology required to monitor and control microgrids where communities share power and can island from the grid.

Today, SCMC took formal steps before the CPUC to qualify as a "micro-utility" and to request a certificate to construct and operate microgrids under Section 2780 and Section 1001, respectively, of the California Public Utilities Code. Sunnova views micro-utilities as a path forward for qualified companies to propose to construct multi-property microgrids for residential and commercial customers in California. By submitting its application to the CPUC, SCMC seeks to be the first solar and storage focused "micro-utility" company in California to be certificated to own and operate nanogrids (behind the meter) and community assets, including the distribution infrastructure (front of the meter), as part of integrated microgrid communities. SCMC community assets will include complete distribution infrastructure and energy assets including solar, battery storage, and emergency generation.

Forward Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally relate to future events or Sunnova's future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expect," "plan," "anticipate," "going to," "could," "intend," "target," "project," "contemplates," "believe," "estimate," "predict," "potential" or "continue" or the negative of these words or other similar terms or expressions that concern Sunnova's expectations, strategy, priorities, plans or intentions. Forward-looking statements in this press release include, but are not limited to, statements regarding the implementation and benefits of the application and the microgrid program. Sunnova's expectations and beliefs regarding these matters may not materialize, and actual results in future periods are subject to risks and uncertainties that could cause actual results to differ materially from those projected, including risks regarding our ability to forecast our business due to our limited operating history, the effects of the coronavirus pandemic on our business and operations, results of operations and financial position, our competition, changes in regulations applicable to our business, fluctuations in the solar and home-building markets, availability of capital, supply chain uncertainty, our ability to attract and retain dealers and customers and our dealer and strategic partner relationships. The forward-looking statements contained in this press release are also subject to other risks and uncertainties, including those more fully described in Sunnova's filings with the SEC, including our Annual Report on Form 10-K for the year ended December 31, 2021 and our subsequent Quarterly Reports on Form 10-Q. The forward-looking statements in this press release are based on information available to Sunnova as of the date hereof, and Sunnova disclaims any obligation to update any forward-looking statements, except as required by law.

About Sunnova
Sunnova Energy International Inc. (NYSE: NOVA) is a leading Energy as a Service (EaaS) provider with customers across the U.S. and its territories. Sunnova's goal is to be the source of clean, affordable and reliable energy with a simple mission: to power energy independence so that homeowners have the freedom to live life uninterrupted®. For more information, please visit sunnova.com.

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