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  "documentTitle": "Sunnova Energy International Inc. (NOVA)",
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  "authorName": "Spruce Point Capital Management",
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  "presentationDate": "2020-09-29 00:00:00",
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  "notes": "Uses quotes from the Wall Street Journal to validate the thesis that the leasing business model is in a 'vicious cycle'.",
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      "kind": "callout",
      "text": "Solar firms that offer leases—like SolarCity and Vivint—need to keep adding customers and installing new panels at a fast pace, since their business model relies on bundling leases together and selling shares to banks and other investors. \"You need to support the volume to attract the capital,\" said David Field, chief executive of OneRoof Energy Inc., a solar firm that is in the process of liquidating after it ran out of money late last year. \"You find yourself in a vicious cycle.\"",
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      "text": "More than half of U.S. homeowners now buy their panels with cash or a loan, rather than sign a lease or power purchase agreement, up from 38% of home installations in 2015.",
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      "text": "The smaller installers that have been gaining market share at bigger players' expense have lower overhead costs because they don't employ big sales forces and let others provide financing to their customers. They also offer low-cost loans. Solar Mosaic Inc. joins with local installers and offers solar-panel loans to homeowners. Mosaic then packages the loans and sells them to banks, insurance companies and other investors. The company started out making loans for customers of local and regional installers, but it now offers loans to SolarCity and Vivint customers as well. \"There has been a shift in customer preference for loans\" rather than leases, Mosaic Chief Executive Billy Parish said.",
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      "text": "As the cost of installation has fallen over the past few years, the trend towards outright ownership has grown. In 2017, this trend along with other industry headwinds resulted in Sungevity filling bankruptcy.",
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      "text": "Big players like SolarCity, Vivint see market share drop as homeowners opt to buy rather than lease panels",
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      "text": "\"You need to support the volume to attract the capital,\" said David Field, chief executive of OneRoof Energy Inc., a solar firm that is in the process of liquidating after it ran out of money late year. \"You find yourself in a vicious cycle.\" — David Field, OneRoof Energy Inc. CEO; \"There has been a shift in customer preference for loans\" rather than leases, Mosaic Chief Executive Billy Parish said. — Billy Parish, Mosaic CEO",
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      "text": "Source: Wall Street Journal",
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      "kind": "title",
      "text": "Solar Installers Struggle as Panels Become Cheap Enough to Own",
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      "text": "Shift To Outright Purchases",
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