Does Storage Salvage States In A Post Net-Metering World? A Q&A With Sunnova

By Frank Andorka, Senior Correspondent

Residential installer Sunnova left the Arizona market when it decided the regulatory environment was too unstable for it to function effectively. Now it has decided to return with a solar + storage offering. SolarWakeup wanted to find out what made it change its mind and come back to the Grand Canyon State.

SolarWakeup (SWup): What has changed about Arizona that has encouraged Sunnova to come back to the state?

Kelsey Smith, Sunnova Director of Public Relations (KS): Two things: The first is that there is more regulatory certainty about how the state plans to value solar. We still believe credits for excess solar generation should still be at retail rate but, although credits are now slightly lower, we at least have a better sense of what they are. And the second thing is that batteries are quickly coming down in price and it makes a lot of sense to pair them with solar in Arizona to help mitigate the cost of things like time of use rates and demand charges.

SWup: Why did Sunnova leave in the first place?

KS: The regulatory uncertainty in the state and the lack of clarity about how utilities were going to compensate solar customers combined with SRP’s demand charges made it difficult to do business for a while in AZ.

SWup: Does Sunnova think batteries are the solution for states that have dismantled/are dismantling net metering?

KS: We do. Having a battery to store excess solar generation negates any need to use the grid to absorb that generation. At some point, we think that the majority of customers will have batteries, and utilities will be incenting them to use the grid more by offering net-metering.

SWup: Have prices in the battery market finally reached levels that make it a good investment for your average homeowner?

KS: Battery prices have continued to improve year over year and the answer to a good investment is really dependent on two different issues. 1) Price of electricity: if the cost for a kWh from the utility is high enough then it can absolutely justify the cost of a battery to defer solar usage during the home’s peak usage or during utility on-peak rates (for TOU). 2) the value a homeowner puts on reliability and peace of mind. So, yes, while the reasons may vary, we see solar plus storage as a solid investment for energy resiliency, independence and reliability in AZ.

SWup: What does Sunnova’s solar + storage arrangement look like?

KS: In Arizona, we are offering our Sunnova SunSafe™ solar plus storage offering as both a lease and a loan, which both come with our 25-year Sunnova Protect warranty.

SWup: What makes Sunnova think Arizona is ripe for a solar + storage revolution?

KS: Arizona is a legacy solar market – Sunnova’s first solar market—and beyond that, it’s a sunny state with a healthy solar market. With the ongoing tumult in energy policy and pricing, we feel that energy storage provides the flexibility needed to respond to a rapidly changing energy environment. We know customers in Arizona want choices when it comes to their energy and we feel that we can provide them with just that while enhancing their energy service through energy storage as well as smart home products that improve efficiency and economics in the home.