Sunnova Energy International has entered a definitive agreement with LENX, Lennar’s technology-focused subsidiary, under which it will acquire the home builder’s residential solar platform, SunStreet, and in turn become the exclusive residential solar and storage service provider for Lennar's new-home communities, whether as a standard feature or as an upgrade option.
“We are thrilled to announce our acquisition of SunStreet, and our new strategic partnership with Lennar, which will be a first of its kind in the industry geared toward creating innovative pathways for how new communities are powered,” says William J. (John) Berger, CEO of Sunnova. “Sunnova’s success is built on strong partnerships and shared vision, and this transaction will be no different thanks to our complementary strengths and mutual desire to transform the energy landscape. This agreement will allow Sunnova to increase customer growth, further scale the business, and develop smart microgrids for communities across the U.S.”
The acquisition of the SunStreet platform provides Sunnova with a steady supply of homesites over the course of many years, reduced customer acquisition costs given solar as a standard feature, a seamlessly integrated operational platform, and upsell opportunities for over 250,000 existing Lennar homes built in the last decades, as well as SunStreet’s 40,000 solar-only installations.
For Lennar, the sale of SunStreet and strategic partnership with Sunnova provides an opportunity to align the interests of both companies. LENX will maintain an equity ownership interest in Sunnova and focus on the development and rollout of energy technologies such as home storage systems and community microgrids.
“The sale of SunStreet to Sunnova underscores our longstanding focus on and strategy around technology and ESG investment in Lennar’s future,” says Stuart Miller, executive chairman of of Lennar. “This transaction, in exchange for Sunnova’s stock, represents a long-term investment by Lennar in the company that we believe is best suited to innovate and evolve in the dynamic and rapidly growing field of sustainable energy. We look forward to working with the exceptional team at Sunnova to build industry leading solar products for a better future. Lennar’s home building expertise and volume coupled with Sunnova’s solar expertise and determination creates a winning combination to build best-in-class products for new homes while enhancing the lives of homeowners.”