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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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      "text": "Why wouldn’t a dealer sign up to receive “exclusivity payments” with those benefits, while still being able to work with other providers?",
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      "text": "We question why Sunnova would be paying “exclusivity bonuses” to its channel partners who are not limited to using Sunnova’s financing solutions? Sunnova is required to send all its leads in a given geography while partners (i.e. Trinity Solar, one of Sunnova’s largest partners) are not required to use Sunnova financing for its customers.",
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      "text": "Why wouldn't a dealer sign up to receive \"exclusivity payments\" with those benefits, while still being able to work with other providers?",
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      "text": "Sunnova's exclusivity agreements limit Sunnova while providing upside for its partners. We believe Sunnova is forced to pay “exclusivity bonuses” to secure volumes for its undifferentiated financing services. Sunnova pays partners to send them its leads when in turn, we believe if Sunnova provided any value, Sunnova should be the party receiving exclusivity payments from partners.",
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      "text": "At year-end, the total number of dealer and sub dealers who partnered with Sunnova reached 155, a 14% increase from the end of September 2019. We currently have a growing backlog of high-quality contractors, who are looking to become Sunnova dealers and an increasing number of them desire exclusivity.",
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      "text": "What did come as a surprise that we recently had our dealers summit, and this was something that was a pretty strong feedback. I think, look, we're adding a lot of operational capabilities to the company. And then, again, looking at our widest product portfolio, there really isn't a need. And certainly, there is a desire to cut costs by the dealers to just plug in again to one service platform. Our strong financial position, relationships, we've proven that we're focused on the dealer and the customer and service. So all that comes together is that dealers are looking to find a home. They want to be able to pick up the phone, talk to senior management if need be because things do happen on both sides of the relationship, and they know we're totally focused on them. And so that is giving a lot more comfort to folks, and you're seeing a lot of dealers talks amongst each other that are not yet Sunnova dealers and saying, you know what, you need to come over here. This is home. This is the place you want to be. This is where you can build your business over the long term.",
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      "text": "So it's really a benefit to Trinity, not to Sunnova. It's very easy to give for Trinity. It's very easy to get a Sunnova exclusive.",
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      "text": "We mostly provide financing through Sunnova, but can also offer Sunrun, Sunlight and other financing providers.",
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      "text": "\"So it's really a benefit to Trinity, not to Sunnova. It's very easy to give for Trinity. It's very easy to get a Sunnova exclusive.\" — Industry Executive; \"We mostly provide financing through Sunnova, but can also offer Sunrun, Sunlight and other financing providers.\" — Manager, Trinity Solar; \"At year-end, the total number of dealer and sub dealers who partnered with Sunnova reached 155, a 14% increase from the end of September 2019. We currently have a growing backlog of high-quality contractors, who are looking to become Sunnova dealers and an increasing number of them desire exclusivity.\" — CEO Sunnova, Q4 2019 Call Feb 25, 2020; \"Could you discuss, actually, a bit more on the increase in exclusivity for dealers?\" — BoA Analyst; \"What did come as a surprise that we recently had our dealers summit, and this was something that was a pretty strong feedback. I think, look, we're adding a lot of operational capabilities to the company. And then, again, looking at our widest product portfolio, there really isn't a need. And certainly, there is a desire to cut costs by the dealers to just plug in again to one service platform. Our strong financial position, relationships, we've proven that we're focused on the dealer and the customer and service. So all that comes together is that dealers are looking to find a home. They want to be able to pick up the phone, talk to senior management if need be because things do happen on both sides of the relationship, and they know we're totally focused on them. And so that is giving a lot more comfort to folks, and you're seeing a lot of dealers talks amongst each other that are not yet Sunnova dealers and saying, you know what, you need to come over here. This is home. This is the place you want to be. This is where you can build your business over the long term.\" — CEO Sunnova, Q4 2019 Call Feb 25, 2020",
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      "text": "Source: Earnings call transcripts",
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