U.S.-based residential solar company Sunnova posted a net loss of $61.9 million for the fourth quarter (Q4) of 2022 compared to $31.2 million year-over-year.

The higher net loss was primarily the result of higher operating costs, including general and administrative expenses, and an increase in interest expense of $31.9 million. However, this was partially offset by an increase in interest income of $9.4 million due to the company’s larger customer loan portfolio.

The company recorded revenue of $195.5 million, an increase of 200% YoY. This surge was primarily due to an increased number of solar energy systems in service and the sale of inventory to dealers or other parties.

Total operating expenses increased to $212.4 million, an increase of 186.7% YoY.

Sunnova said that the increase in the number of solar energy systems in service boosted revenue, but the increased cost of operations also led to higher expenses.

The adjusted Earnings before Interest, Tax, Depreciation, and Amortization (EBITDA) totaled $25.5 million for Q4, an increase of 44.2% YoY.

“We delivered strong growth in the fourth quarter as we placed a record number of customers into service, which brought our total customer additions in 2022 to 87,000, the midpoint of our guidance,” said William J. (John) Berger, founder, and Chief Executive Officer of Sunnova.

Berger mentioned their “Energy as a Service” business model with an open platform strategy enabled Sunnova to navigate various macroeconomic challenges and increase market share.

The Full Year 2022

Sunnova posted a net loss of $130.2 million for the full year compared with $147.5 million in 2021.

The company said the lower net loss was primarily the result of an increase in interest income of $25.6 million.

Additionally, a decrease in loss on extinguishment of long-term debt of $9.8 million related to the early repayment of one of their solar asset-backed notes in June 2021 and a reduction in interest expense of $8.5 million led to a cut in overall losses.

This was, however, partially offset by higher general and administrative expenses.

The company posted revenue of $557.6 million, an increase of 130.6% YoY.

The solar company attributed higher revenue was also fueled by the acquisition of SunStreet Energy Group in April 2021 and the sale of inventory to dealers or other parties.

Total operating expenses increased to $639.2 million, up 115.5% YoY.

The adjusted EBITDA for the full year stood at $119.1 million, a spike of 38.7% YoY.

Sunnova’s net loss in the third quarter (Q3) inched 15% to $29.85 million compared to the loss of $25.86 million in the same period last year.