- **Challenges & Adjustments**: 2024 cash generation missed targets due to tax equity delays, but operational efficiency improved (24% cost reduction, 83% faster work order resolution).
- **Strategic Shifts**: 100% solar lease/PPA focus, 15% headcount reduction ($35M annual savings), and $500M tax equity fund closure.
- **Battery Growth**: Q4 2024 battery attachment rate 33% (vs. 24% prior year), storage under management +53%.
- **Debt Maturity Focus**: 2026 corporate debt resolution target mid-2025; going concern disclosure reflects market uncertainty but management maintains execution confidence.
- **Prepayment Boost**: Solar loans prepaying faster than expected, enhancing cash flow resilience.


**【CEO Opening Remarks】**
- Q4 2024 was challenging due to industry peer distress, high interest rates, and regulatory uncertainty, leading to slower tax equity inflows and lower capital deployment.
- Despite challenges, operational efficiency improved: 24% reduction in net service expenses per customer, 12% decline in work orders, and 83% reduction in average work order age.
- Strategic adjustments include: 
  1. Margin prioritization (100% solar lease/PPA focus) and price increases to offset higher capital costs.
  2. Cost-cutting ($35M annual savings from 15% headcount reduction, total 30% since 2023) and working capital optimization.
  3. $500M tax equity fund closure (with $75M restricted cash) and non-recourse asset-based loan facility to bridge funding gaps.

**【CFO Financial Highlights】**
- Full-year 2024 revenue: $840M (+17% YoY), interest income: $150M (+29%), solar customers: +5% (offsetting 57K non-solar exits).
- Battery adoption surged: Q4 2024 attachment rate 33% (vs. 24% in Q4 2023), energy storage under management +53%.
- Stockholders' equity per share: $14.65 (+17%), net contracted customer value per share: $24.22 (-4% due to tax equity delays).
- 2024 capital market achievements: $1.8B asset securitizations (+$613M YoY), 37% increase in tax equity usage, industry-first Puerto Rico securitization.

**【Q&A Key Takeaways】**
- **Tax Equity & Dealer Payments**: $50M released from $500M tax equity fund in Feb 2025; dealer payments expected to be caught up within weeks.
- **Going Concern Disclosure**: Driven by 2026 corporate debt maturities and uncertain tax equity market; management confident in plan to address maturities by mid-2025.
- **Origination Trends**: Conservative 2025 forecast, but Q1 2025 origination pace expected to accelerate with improved capital access.
- **Domestic Content Mandate**: Enhanced political positioning and ITC adder utilization, despite regulatory uncertainty.
- **Prepayment Speed**: Solar loans prepaying materially faster than expected, boosting cash flows.

**【Closing Remarks】**
- Focused on excellent customer service, cost efficiency, and asset-level financing execution.
- Long-term confidence in solar energy demand and Sunnova's unique value proposition.
- 2025 priorities: Address 2026 debt maturities, optimize capital structure, and maintain operational excellence.


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