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  "documentTitle": "Sunnova Energy International Inc. (NOVA)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Spruce Point Capital Management",
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  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2020-09-29 00:00:00",
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  "pageNumber": 43,
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  "notes": "The slide uses anecdotal evidence from former employees to support the thesis that Sunnova's business model is unsustainable and commoditized.",
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      "text": "Essentially, Sunnova is purchasing future origination volume. While this model reduces sales and marketing expenses, it creates significant risks.",
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      "text": "\"The salesperson is controlling the customer, it's a tabletop sale. You know that salesperson is going to direct that sale to the residential solar financing company that pays them highest price. Yeah. There's no differentiation either, even the colors are the same. Just to prove it to yourself, get a copy of Sunnova's contracts and compare that to SolarCity's. There's just not that much different. The salespeople want to maximize their gain and they'll sell that contract to the highest bidder.\" — Former Sunnova Employee; \"I think if people look, Sunnova discloses to be paying exclusivity payments to channel partners. So in order to prevent the channel partner from shifting the volume to other players and bidding it out fluidly, they have been making advanced payments to these channel partners to secure volume, which is important and is prudent in the sense that if you don't have the volume you can't get scale. I think it's a good idea, but it's diluted to the equity of the business because you're buying the volume. It just means you're just paying an advanced payment to lock it up. But the next time, that goes on for a year, and next year I guarantee you that channel partner is going to be talking to Sunrun, SolarCity and a couple of the other players out there to see if they can get the same deal.\" — Former Sunnova Employee",
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