In March 2016, ECP invested in Sunnova Energy Corp., a fast growing owner and operator of residential solar and storage assets. Sunnova finances and manages residential solar and storage systems for customers across the United States and its territories. The company is headquartered in Houston, Texas.

Sunnova is in the business of acquiring and managing residential solar and storage projects with long-term contracts. The company has built an extensive network of regional channel partners who originate, develop and assist in servicing systems. The market for residential solar and storage developers and installers in the United States is highly fragmented owing to localized regulations, permitting processes, and customer demographics. By partnering with a network of regional installers, we believe that Sunnova is well-positioned to scale efficiently and better able to service its distributed customers and assets.

The distributed solar sector has been rapidly expanding, driven by significant declines in solar project installation costs, rising utility rates, greater customer choice and state and federal environmental regulations supporting carbon-free and distributed electricity. Market demand for distributed storage has also emerged in certain areas, usually paired with solar, for added reliability and/or more efficient usage of excess solar production.