Good morning. Welcome to Sunnova's first quarter 2021 earnings conference call. Today's call is being recorded, and we have allocated an hour for prepared remarks and question and answer. At this time, I would like to turn the conference over to Rodney McMahan, Vice President, Investor Relations at Sunnova. Thank you. Please go ahead. Thank you, operator, and good morning, everyone. Yesterday, we released our earnings press release and posted a slide presentation to the investor relations portion of our website, which will be referenced during this call. Joining me today are John Berger, Sunnova's Chairman and Chief Executive Officer, and Robert Lane, Executive Vice President and Chief Financial Officer. Before we begin, let me remind everyone that this call may contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These include remarks about future expectations, beliefs, estimates, plans, and prospects. Such statements are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from those indicated or implied by those statements. Such risks and other factors are set forth in our press releases and filings with the Securities and Exchange Commission. We do not undertake any duty to update such forward-looking statements. Additionally, during today's call, we will discuss non-GAAP measures which we believe can be useful in evaluating our performance. The presentation of this additional information should not be considered in isolation or as a substitute for results prepared in accordance with GAAP. A reconciliation of these non-GAAP measures to the most comparable GAAP measure can be found in our earnings release. I will now turn the call over to John. Thank you, Rodney. Good morning, and thank you for joining us. 2021 is off to an excellent start thanks to strong Q1 results, the quick closing of the SunStreet acquisition, and our continued ability to grow faster than the overall market. Sunnova is well-positioned for an exciting year ahead, which includes delivering on its reaffirmed full-year 2021 guidance. On slide three, you will see the details of our strong operational results, where we grew our customer base, increased both our battery penetration and attachment rates, and continued to expand our dealer network. Our customer growth remains healthy, as we've added 8,900 customers in the first quarter of 2021. This is before any contributions from the SunStreet acquisition, which closed on April 1st. On storage, we continue to see strong demand as frustrated homeowners seek out more reliable and resilient energy solutions to combat outdated and ineffective power grids. As discussed during our last earnings call, this demand outpaced available inventory in the second half of 2020, resulting in an industry-wide supply constraint in energy storage systems. However, these constraints began to subside in Q1, resulting in an increase in our battery attachment rate on origination from 19% in Q4 2020 to 23% in Q1 2021. With this strong customer focus on reliability and resiliency, we continue to see an increasing penetration rate of storage on our full base. Our penetration rate now sits at 10.5% as of March 31st, 2021, more than double where it stood just one year ago. We expect this rate to rise even further and could see it reach as high as the mid to upper teens by the end of the year on an expected customer base of roughly 200,000. This exceptional growth is fueled by our over 500 dedicated dealers and sub-dealers. Driven by the attractiveness of the Sunnova Network, we anticipate our dealer count to grow even further in the coming quarters and be at or near 1,000 by the end of 2022. Finally, on this slide, we've added information on customer contract life and expected cash flows. As of March 31st, 2021, the weighted average contract life remaining on our customer contracts equaled 22.4 years, while the cash inflows we expect to receive over the next 12 months, taking into account only our existing customer base of 116,400, stands at $266 million or $2,285 per customer. Turning to slide four, we provide a summary of our Q1 2021 financial results. On our Q4 2020 earnings call, we noted that we expected to capture approximately 15% of both our full-year 2021 adjusted EBITDA and principal and interest from solar loans in the first quarter. I am pleased to report we exceeded that target, as actual Q1 2021 results were all ahead of that goal. As expected, our cash flow results were negative for the quarter due to the typical seasonality of our business as well as the impact of large annual cash expenses exclusive to Q1. We continue to anticipate large year-over-year growth in adjusted operating cash flow for full-year 2021, as well as maintain a break-even midpoint on our recurring operating cash flow. Investors should expect these results to be positive for the balance of the year. On slide five, we provide a summary of our full-year adjusted EBITDA and the principal and interest we received on our solar loans from the past few years, including our guidance estimate for 2021. As you can see, we've experienced significant growth in these key financial metrics, with adjusted EBITDA expected to double between 2018 and 2021 and solar loan P&I to increase seven times over the same time period. This rapid growth, together with the anticipated issuance of a non-amortizing green bond at the corporate level, should translate directly into a significant increase in recurring operating cash flow in the coming years. On slide six, you will see both our gross contracted customer value, or GCCV, and our net contracted customer value, or NCCV, are experiencing significant increases year-over-year. Using what is now a conservative discount rate of 4%, NCCV increased from $1.2 billion on March 31st, 2020, to $1.8 billion on March 31st, 2021. This equates to roughly $16.62 per share as of March 31st, 2021, which is approximately a 15% increase from March 31st, 2020. We continue to see NCCV per customer and services per customer trending higher. The NCCV per share calculation is relatively straightforward. It excludes any value for growth renewals or upsells, given that these cash flows are financed almost entirely with debt, whose interest rate would continue to lower and presently sits below the 4% discount rate used to calculate NCCV. We view this as a metric that is well below any reasonable valuation floor for our common shares. As such, we encourage investors to consider other valuation methodologies such as those that utilize cash flow metrics or consider attaching a multiple to a forward estimate of our adjusted EBITDA and the principal and interest we receive on solar loans. Although these metrics, especially NCCV, vary in growth quarter to quarter due to financing transactions, one-time items, and growth intensity, we do expect these metrics to grow at or above the rate of our customer growth when viewed over several years. The growth in adjusted EBITDA and the P&I from our solar loans should trend higher than the customer growth once meter replacement spend ends and growth investment abates in the coming years. Earlier this month, Sunnova published its inaugural ESG report, detailing the company's strategy and performance on material ESG themes. As noted on slide seven, this report is aligned with the leading ESG frameworks, including the Sustainability Accounting Standards Board and the United Nations Sustainable Development Goals. As I have said from the beginning, I founded Sunnova to deliver a better energy service at a better price and to make a positive difference in the lives of our customers, community, and the world. I firmly believe that we have a moral imperative to make the world a better place for future generations, and at Sunnova, we intend to do just that by leading to a cleaner and more sustainable energy future. Since inception through the end of 2020, Sunnova systems have generated 2.4 billion KWh of clean energy, resulting in 1.7 million metric tons of CO2 avoided. Not only did our systems help address climate change and avoid pollution, but they also provide our customers with affordable and reliable power that they can feel good about. While we believe that our core business is fundamentally more environmentally sustainable than the old energy paradigm, we also believe it's important to not rest on our environmental strengths alone, but to also focus on being a good corporate citizen and making a positive difference in the communities where we operate. We are proud to support high-quality and good-paying jobs in both Houston and across the United States and its territories. In addition to supporting green jobs, we've also supported our communities in times of need, such as after Hurricane Maria struck Puerto Rico. In the aftermath, Sunnova was there to support power service recovery efforts by donating panels and batteries to families and nonprofits in need. To this day, we remain, by far, the largest residential solar and storage service provider on the island. We are also committed to upholding strong corporate governance practices and conducting business the right way as our core values of service, synergy, and sustainability underpin our corporate culture. We look forward to continuing our work on ESG and will continue to communicate our progress over time. We welcome your feedback on our first report as we enhance our strategies for long-term ESG performance. I will now turn the call over to Rob to walk you through our financial results, our recent financing activities, and our guidance in greater detail. Thank you, John. Turning to slide nine, you will see the momentum we have gained in our first quarter results over the past few years. For instance, Q1 2021 revenues are up 55% from Q1 2019. While over the same period, adjusted EBITDA and interest received on solar loans increased by 58% and 237% respectively. As John noted earlier, Q1 historically generates negative adjusted and recurring operating cash flows, which you can see reflected on this slide. However, the year-over-year trend remains up and to the right as we gain operating leverage. Slide 10 summarizes our recent financing activity. The 2021 financing transactions completed to date include our first solar loan securitization of the year in February that was sized at $189 million and a weighted average blended yield of just over 2%. Other financing activity included a loan warehouse restructuring of $350 million and $75 million in new closed tax equity funds. We have additional commitments of approximately $500 million of tax equity that we expect to close in the near future. We will continue to work with lenders to properly finance the company with the goal of increasing near-term cash flow to the corporate balance sheet. To facilitate this, we remain focused on the issuance of a green bond within the next few months, which should help turn our strong adjusted EBITDA and P&I growth into strong recurring operating cash flow. Our total cash balance as of March 31st, 2021, was $263.5 million, up from $169.2 million at March 31st, 2020, but below our all-time quarter-end high of $377.9 million at December 31st, 2020. This decline since the end of last year was primarily driven by over $30 million in securitized debt paydowns, intentional under-borrowing on our warehouse facilities, the timing of tax equity contributions relative to fund specific construction milestones, the overall seasonality of cash flows, as previously discussed, and a high level of EPC spend fueled by our robust growth that made up approximately 84% of the company's total cash outflows for the quarter. In summary, this change in cash primarily reflects our usage of working capital to facilitate our high rate of growth. On slide 11, we provide additional color around unit economics. As you will see, our fully burdened unlevered return on new origination was 8.9% as of March 31st, 2021, based on a trailing 12 months, while a similarly calculated weighted average cost of debt was 3.1%. This resulted in a trailing 12 months implied spread of 5.8% as of Q1 2021 above the 5.1% spread for full year 2020. As a technology-enabl ed service company, we focus on the long-term relationships we have with our customers, which serves as both our value driver and cash flow engine. Looking at our margins across all services and service contracts, we estimate that net of allocated overhead, we achieved approximately 60% of our net spread from financing our service contracts and approximately the remaining 40% from all our other service offerings. We have seen this split move more towards a lower percentage generated from the financing of customer contracts as the number of and contributions from Sunnova's non-financing services grows and expands, a trend we expect to continue for the foreseeable future. We estimate that we achieved a gross margin of 50% on our service revenues. While unit economics can fluctuate quarter- to- quarter, we expect to continue to see improving fully burdened unlevered returns. This is true regardless of any change to average system size, regional mix, or even contract mix, such as the shift we are currently seeing away from leases and PPAs to more loans. As we have noted on numerous occasions, we are finance contract type agnostic and are thus just as happy to add a customer under a loan contract as we are a lease or PPA. Furthermore, no matter what type of contract a customer chooses, all customers benefit from the peace of mind that comes with Sunnova Protect, Sunnova's comprehensive service solution. Additionally, we will also target similar or greater returns on any new service offerings that become available, such as electric vehicle secondary generation, which are expected to launch by the end of this year. On slide 13, you will see our guidance ranges, which remain unchanged from when they were raised on our last earnings call. We continue to be highly confident in our ability to hit our 2021 targets, thanks to the inherent predictability in our business model and stronger than expected first quarter results. As of March 31st, 2021, approximately 86% of the midpoint of our 2021 targeted revenue and solar loan P&I are already contracted through existing customers as of that same day. As we forecasted, the SunStreet acquisition closed at the very beginning of Q2, and thus we continue to anticipate 9,000 customers added in 2021 through our new home business. Additionally, as of March 31st, 2021, we have spent approximately $4 million of the anticipated $30 million in integration and transaction costs we expect to spend over the next few years associated with SunStreet. In our last earnings call, we estimated that our adjusted EBITDA and the principal and interest we receive on solar loans will increase by 75% in 2022 compared with the midpoints of our 2021 guidance. I'm happy to report that after our most recent forecast update, we now estimate this increase will be closer to 80%. We're also maintaining our year-over-year increase in customer growth of 40% for 2022 over our 2021 levels. Although we were becoming increasingly more constructive on our 2022 growth. Finally, we remain focused on bringing down our costs on a per system basis, which we did in the first quarter of 2021, and expect to continue to do so in the coming quarters. As such, even with meter replacement costs of $10.5 million in 2021 and $9 million in 2022, we continue to expect a 25% reduction in adjusted operating expense per system between 2020 and 2022. I will now turn the call back over to John. Thanks, Rob. Until recently, our industry was dominated by a solar-only sale that primarily focused on saving homeowners money as compared to the centralized monopoly power rates. Storage and the increasing consumer demand for a more reliable and resilient power service has catalyzed our industry to move towards an integrated multiple technology solution sale. This is the wireless power service that we've been building for a number of years, and to which the industry as a whole is beginning to pivot towards. To serve customers with a wireless power solution and make it as efficient and worry-free as possible is a significant technological, logistical, and operational undertaking. Sunnova has been, and is continuing to, invest in software capabilities that enable services to be delivered to consumers. Platform companies such as Sunnova are providing an increasing amount of services and scalability to originators, installers, and closely partnering with the best equipment innovators and providers in the world to create and deliver these integrated technology services to homeowners. We have woven these software and service capabilities together to create an interconnected platform that we call the Sunnova Network. We attain an increasing amount of scale, we can better utilize the Sunnova Network's combination of software and services to enable certain aggregation capabilities and to create additional value for not only our customers, but also our dealers and equipment partners. It is this cohesion of the three components, software, services, and aggregation, that creates tremendous value for our dealers, equipment partners, and most importantly, our customers. Sunnova, along with its dealer and equipment partners, are increasingly building bigger moats against competitors, including the existing centralized utilities. Our unique capitalization strategy has also reached a major tipping point that will produce greater cash flow to the shareholders of Sunnova. Since our founding, we have focused on doing what was right over the long term, and now that patience and investment is paying off with significant competitive advantages and greater cash flows for years to come. With that, operator, please open the line for questions. Thank you. As a reminder to ask a question you will need to press star one on your telephone. To withdraw your question press the pound or hash key. Please standby while we account your Q&A roster. Your first question is from Kashy Harrison with Simmons Energy. Good morning, all. Great start to the year, and thank you for taking my question. I'll start with the big one. A few days ago, Enphase indicated that they're going to have issues meeting demand throughout 2021 due to chip shortages, and this has weighed on the sector, just given the potential for bottlenecks. Can you help us just provide some context around your supply chain? What gives you the confidence that you can hit your numbers for the rest of the year? Maybe anything surrounding the amount of inverters you have on your inventory backlog or storage systems and what you're hearing from all your major suppliers. Any context at all would be great. Certainly. Thank you for the question. First and foremost, I wanted to point out that we were the first ones way back in July of last year to signal that there was supply chain problems, and specifically in the energy storage system area. I think it took several months for others to recognize that. On our last earnings call in late February, we said that we saw those constraints freeing up a bit, specifically on the energy storage system. However, if you recall, at the end of the year, of last year rather, and through the first quarter, we did express that we thought there might be a little bit of tightness in the inverter supply marketplace and maybe specifically one or two players, if you will, or providers. I would say that what we did there is that we have a fairly significant safe harbor inventory of inverters. We did stockpile a lot of those, quite a bit, and we have them. We also stockpiled quite a bit of energy storage systems, and we have those. We also, again, anticipating this issue, further purchased more inverters in anticipation of something going wrong. As recently as a few weeks ago, I didn't think anything would go wrong. It appears that there is at least a bit of difficulty with at least one supplier, and we're pretty covered in that regard. We also have a very large purchasing power, as I'm sure a couple of my other competitors do as well, and anything else that we would need, get. We have plenty. Indeed, I look at this as an opportunity to drop some of our inventory down because we're quite confident, especially listening to President Biden's address to the nation last night, that the forward ITC extension around 30% will get extended at some point here in the coming months. In addition to that, on the energy storage system, which has been our problem, we do see, and this is very recent information, that our anticipation of a loosening of that, again, if you recall back to the Q4 earnings call a couple of months ago, we thought that the energy storage system market would loosen up in terms of supply toward the end of this Q2, beginning of Q3. I am pleased to report that we are seeing that possibly loosen earlier, and in particular with one partner, and we see that loosening happening in the next three to four weeks. There'll be a couple of weeks of delivery time to our various locations around the world, around the country. We're also seeing quite a bit of new, very well-managed, very competent firms and partners of ours, such as Generac, is ramping up quite significantly, innovating their product quite aggressively. Enphase has done so as well. I would note that Badri made a comment that he doesn't see any problems there with the Encharge system. Indeed, we have a lot of those already in place and moving towards our previously sold storage customers. In addition to that, we're anticipating SolarEdge to launch their product out here in the next few weeks as well, although Zvi can certainly cover that in his earnings call. All in all, we actually see the supply chain situation improving. We have prepared for what we thought would be the bumps in the road quite more than adequately, and we actually are quite optimistic, and we don't see this getting in the way of anything that we have planned to do in the coming quarters. Kash, if I can just add real quick on the 10-Q that was filed this morning under the inventory note on page 11. We've actually broken out the ESS and the modules and inverters that we have within our inventory. You can see that we still have quite a few of both, and that modules and inverters is a lot more weighted towards inverters. That's our safe harbor in addition to those other purchases that John had referenced. Thanks, guys. That's excellent color. Appreciate it. My second set of questions around California. Just curious if you're seeing any demand pull forward associated with the uncertainty surrounding net energy metering. Maybe not quite related to that, but are you also seeing interest from home builders other than Lennar in using the SunStreet platform that could help you further penetrate the new homes market. I'll leave it there. Thanks. Thank you. On the California question, no, we're not seeing pull forward yet and wouldn't have expected to. Again, we expect that process to maybe take a little bit longer time to work itself out. Probably, certainly at the very end of this year for the California Public Utilities Commission to make a decision, maybe even early next year. The other part of that, of course, is that we expect that the leaders of California will recognize that the amount of good-paying jobs and so much progress has been made, and really, California's done an excellent job of leading the country, everybody knows this, in a clean energy world, which obviously is now just dominating the entire country, and as we move forward and really rapidly transform our energy industry into a clean and more reliable energy system. We see that the California NEM process will end in the right way. I don't anticipate that there'll be any part of demand pull forward, but that's certainly something we wouldn't expect to see till much later this year, if any. On the second, yes. We've had several wins of late. Didn't take long to close on that acquisition, and we already had some several big wins. Most of these homes, I think, would come later in this year, just given the build cycle times and into 2022. It's one of the key reasons why we're starting to get very constructive on 2022 growth. Yes, it's already directly paying off, and we're making more wins, and we certainly expect to see a lot more wins as we fully integrate the SunStreet platform into the Sunnova platform. Thanks for the details. Thank you. Your next question is from Philip Shen with ROTH Capital. Hey, guys. Thanks for taking my questions. As it relates to the growth rates, you're targeting just about 100% year-over-year in 2021. Q1 came in lighter. I was wondering if you might be able to share how you expect customer additions to trend in Q2 and Q3. To what degree do you think we could see upside to that 2021 growth rate given the rate at which you're adding dealers? Just to cover off real quick the rate, Phil, I think that when we had done our year-end call, we guided that we expected about 30% of the customer adds to happen in the first and second quarter, and about 70% of the customer adds to happen in the third and fourth quarter. I think we're still very much on track for that given where we came in this quarter and given the trajectory. As far as upside opportunities, I'll probably let John cover that. I think that we actually came in very much where folks were expecting and actually ahead of where most of the consensus was. Yeah, I would say that we're actually trending more towards a 35/65, maybe even a little better weighting on that. I'd say we're in pretty good shape. I don't want to comment any more on 2021 growth. It's already pretty heady. Quite candidly, I don't really see this reflected in our equity, and I don't think there's any point of pushing it up further. We're seeing a lot of strong growth. We're seeing a lot of growth in areas, more specifically in services offered per customer, whether it's new additional technologies, generators, EV charging, load managers, a bunch of these technologies that we laid out in our third quarter 2020 call. We simply are rushing as fast as we can to get those implemented, put into nice products, make sure we have the appropriate licensing, get those out to our dealers, train them up how to sell and how to install, and that just takes a lot of time. It's a huge operational lift, and it takes some time. Again, we are seeing these opportunities pull forward. So again, as we look to 2022, we're getting very constructive. That's all I'll say about growth and hopefully as we continue to execute the investors will appreciate that growth rate. Great. Thanks, guys, for color. My second question here is around unit economics. Looks like you were able to expand those economics and the implied spread nicely to 5.8% from 5.1% in the year-ago period, actually in the Q4 period on a trailing 12-month basis. In your footnote there, you highlight that I think the spread is even greater. I was wondering if you could talk about kind of the Q1 expansion and then also what you might see in terms of that implied spread ahead. I think you talked about the fully burdened unlevered return expanding as well. Anything on a forward-looking basis would be great. Thanks. Sure, Philip Shen. Yeah. If you look at our last year, 2020, it was roughly about 510 basis points of spread. We certainly see that much higher. We are seeing our unlevered returns and a bit of a surprise, but continue to be fairly strong, and we don't see any dissipation in that. We also achieved a record low and then a lot of our other competitors followed up, so it wasn't a one-hit wonder, so to speak, just a couple of weeks later. In the midst, I would add, the worst bond market performance, I think since the early 1980s. The risk-free certainly did not have the negative impact. If you took that spread that is increased towards 9% and higher, and you have a two, call it low 2s, cost of capital all the way through 100% of the fully burdened cost you start to get something that's closer with a seven handle on it, so to speak. I think that the best way to do this is to look at a trailing 12-month. Both Rob and I have looked at this and said there's some volatility with issuance of securitizations and timing of financings and so on. I think that's a better way of looking at things. That gives us also a more conservative standpoint to be able to look ahead and say, "Yeah, we think these returns either stay here or move higher." We're quite confident that they'll move higher in the coming quarters. We're doing very well on that, and I would say that is a bit of a surprise to how strong those spreads continue to be. Great. Thanks, John. Your next question is from Brian Lee with Goldman Sachs. Hey, guys. Good morning. Thanks for taking the questions. Kudos on the good execution here. John, maybe just to follow up on that, I know you guys are focused on the spreads. Rightfully so. That's the right way to represent increasing value of the business model. You guys have historically talked about Net Contracted Customer Value per customer. I didn't see that in the slides this time. I might have missed it. You usually disclose somewhere in the back. Was that left out deliberately? You said, I think in the call that the numbers have moved up. Could you give us some sense of where those are and how they've been trending here? I don't think we had actually listed out the Net Contracted Customer Value per customer. We certainly have the numbers in there. We have the number of customers, and we have the NCCV. I don't think we'd actually run that calculation in the back of the book. That being said, it still continues on trend to be very strong. If you take a look at what we expect to happen on a per customer basis going forward, there's going to be some stuff in there that changes that a little bit. Recall that for SunStreet, we're going to pick up about 35,000 customers-45,000 customers that we're going to actually bring into that denominator that we're just providing the service for at this point, and that we expect to have a lot more opportunities with. In addition to that, we're going to have the new home build customers, which typically have smaller systems, and typically have systems that don't have batteries attached to them. That's going to change that NCCV per customer metric as well. I think what we're really concentrated on is how we can continue to raise the NCCV per share at the same time, and then come back to these SunStreet customers and raise the NCCV per customer on them as we do a look forward basis. That isn't a number that was taken out. The only number that we took out, and we did in fact preview this last time and say in fact that we were, was the net system value per customer. Again, for the same reasons that we had mentioned last time, that it doesn't really make sense when you're trying to look across geographies, when you're trying to compare different system sizes, when you're trying to compare systems with storage, systems without, different types of tax equity and the like. We felt that was, again, sort of an archaic metric for the industry. If you still need the NCCV per customer, you definitely have the two numbers on page 29 that you can run that back. Yeah, Brian, I think it's roughly about just south of $16,000 per customer. Just to be clear, as we laid out previously, by 2025, we still see the number of services per customer getting towards in that range of seven, and that NCCV per customer being roughly in that $18,000- $20,000 range is our target. That's still the same even with the acquisition. Okay. That's great. I apologize. Either on semantics, I was actually speaking to that metric around the net system value per new customer, but I appreciate the additional context there. Maybe as a follow-up and also on the unit economics, the creation cost leveled off a bit here. They were actually down a decent amount in leases on a quarter-on-quarter basis. I know this jumps around a bit, but is this mix or what kind of drove those dynamics? Are you seeing some cost savings and where are those coming from? I think really the primary driver is as we grow, just getting more and more operating leverage scaling. We talked about this for a few years, right, Brian, is that we grow the business up, we just scale the cost. As we continue to have this rapid growth, we're going to continue to scale the cost out, and we've laid out what that cost reduction looks like. I think in the four years, once you start taking out one-time items like meter replacements and so forth, you'll see an even bigger pickup. I think probably a more simplistic way of looking at that is, as I mentioned in our opening comments, the adjusted EBITDA plus our principal and interest from our solar loans, our loans. That should continue to trend much higher, and over time, you should expect to see that trend higher than the customer growth. You've seen that we've done that in a few quarters, even over a year or so before we went public. We were experiencing such a high rate of growth right now. There's about a one year lag in spending, as I've talked about previously. Again, as you move forward and we get bigger and bigger law of numbers, right? I'm talking about in the four years, you would see that growth investment, et cetera, slow down a bit, as I made in my comments, and then these one-time items drop out, and you'll see even higher operating leverage that's already embedded into the company right now. We're quite big and really certain of moving forward with increasing our operating leverage. Okay, that's great. Maybe if I could just squeeze one last one in on the financing side. The refinancing, you guys have kind of been telegraphing this for Q2. We're there now in terms of timing. Can you give us a bit of sense around maybe more specific timing and then the magnitude of what you're thinking of doing there, and what sort of cost of capital you think you can achieve versus what you will be refinancing and taking off the books? Thanks, guys. I think it's pretty clear that we've been targeting our earlier securitization, that there's definitely opportunity there. If you take a look at any of our first three securitizations, the cost of capital there is well above 2x or more above what we can achieve in the market today. Sort of regular cadence, you can see that we tend to do a securitization on the TPO side. It's been accelerating certainly over time. We did about one a year moving up to two a year. I think that if you're looking at that, you should still expect to see something here by the midsummer, certainly not earlier than that. The market still remains very strong. One thing that we're really happy with, and you saw this not only in our securitization, but in the ones that immediately followed, is that there continues to be compression on the spread. Even with interest rates having a little bit of vol to them, the overall rate that we're able to achieve in the market is still fantastic, and that's because of A, just this overall recognition that this asset class has more resilience than just about any other. B, that the service level that we're providing, especially being really the only ones providing this high of a level of service on loans, is keeping the customer happy and paying, and that those low default delinquency rates are really being recognized by the market. Thanks, guys. Appreciate it. Yeah. Brian, I would just add real quickly to that is that it wouldn't upset us in the least bit to see the risk-free move up here 20, 30 basis points or whatever. Why is that? That seems a curious comment. Well, it's because as we've laid out in the previous call, we do have hedges in place, and those hedges, once we break them and term out the debt, that means money up front we will collect because they're in the money. Then on the other piece of this to build on what Rob was saying is that it's very difficult when the risk-free was plummeting like it was last year to get that spread, that risk premium and spread to compress. It actually expands if you look at this time last year, right? As the risk-free moves up, which you're seeing, and you saw this in February, and we expect that to continue as you would see the risk premium compress because, again, most investors in the ABS market are absolute yield investors. What that means is that's how you make money, is having that risk premium uncompressed, and that's what Rob is saying, and we continue to see that. We actually are not upset in the least bit to see the risk-free move up here even as much as it's done over the last few months. If it moves up a little bit more, that's not a problem, and it's actually, the way Rob and I laid it out, a little bit of a benefit to us. Your next question is from Ben Kallo with Baird. Hey, guys. Good morning. Good morning. A few questions. Just the dealer network, and can you just remind us, there was a big tick up there. Just remind us the percentage of exclusive relationships there, then maybe John, just what's driving those for you guys to keep signing dealers up? That's my first question. Yeah, certainly. Honestly, I have lost track of how many exclusive relationships we have. We continue to see them escalate in terms of requests for those and signing of those quite a lot. Each of them are slightly different transactions or documents, depending upon the requirements of that dealer. It is a very large part of our network. I think the practical reality is this is where the industry is trending towards. I've talked about this for a number of years. It just makes sense. Look, if we're not the right home for you, go marry up with another service provider and platform. The idea about moving in between the service providers and platforms is just not realistic. As the industry becomes more of an integrated technology solution sales, we laid out, and we've been more specific on slides 15 and 16, and hopefully it helps investors really understand what we're talking about. Again, I don't see this as unique to us necessarily. Our competitors would probably set themselves up and see this as very much in the same way. It's driving at more of the requirements of software and services to these dealers. More and more, as this becomes more complex and you want to offer a simple solution to the customer, it's becoming stickier and stickier with the dealers. Now, why do they come to us? Well, aside from charisma or anything else that my folks have, not me, but my folks, I think it's pretty clear. It's we're dedicated to them. We're not going to compete with our dealers. We have everything invested in them to be successful, and they know that. We have the widest equipment partnerships in terms of the best technology, the best partnerships. This firm partners well. We play well with others. Very helpful, and I see that continuing to be a big part of the value that we provide our dealers. The software tools that we have, in the next few weeks and months, we are going to launch out a number of big, huge steps in software capabilities for our dealers across the board, whether it starts in the origination side all the way into commissioning and making sure that the equipment is done and turned over properly. When you look at the capitalization strategy of the company, it gives them a lot of peace of mind they're going to get paid as we, again, go towards and being very close and issuing the green bond, start flowing more and more cash to the equity. That also gives them peace of mind that they're going to get paid, and they have the ability to marry up, if you will, over the long term. Each of these, I don't think I'll take the time, obviously, to go through all this and aggregation services as we continue to provide a lot of value there, especially on the storage side of things, to our dealers. Each of these is a huge network and huge value set that goes to our dealers. In many ways, this is very unique to us. Now we got to continue to work hard, continue to push on this, and continue to innovate, whether it's software and services and our aggregation capabilities. I feel very good about where we're sitting competitive-wise. You're right, it is driving a very large amount of dealer growth. For the first time, we feel very comfortable saying, look, given our trend, we see this doubling on a very large number of 500 by the end of next year. I think that's astounding growth and goes to our point about pointing towards our growth rate. Great. That's my third question. My second question, though, just on the green bond. Can you just maybe talk a little bit about that then within your guidance, if that's included at all in any of your metrics on the green bond? We haven't really talked too much about it. I think that we don't want to get too far ahead of it. What I would say is that anything we would do in that area would be accretive to our primary metrics, especially to the recurring operating cash flow. It still remains something that we want to be prepared for, deliver for, that we do still very much intend to do. I don't want to get out ahead of my skis here. It is a big focus of mine. Part of the point is that it would be very accretive to ROCF, but the other part is that by retaining the cash flows, we're really the only ones in that position to be able to go out to the market and do something of that nature. Again, don't want to get out ahead, but it's still very much a focus of what we're trying to work on. My third question is about getting ahead out in front of your skis. You guys throw out 2022 numbers, and for all of us that have followed solar for a long time. We can look at that as reckless. I guess it's also better visibility than anyone else has. I guess, why do you do that? You give that kind of forward visibility there and just maybe just from a high level, what gives you confidence to start throwing out 2022 numbers? Yeah, I think, first of all, in our financial metrics, we're adjusted EBITDA plus the principal and interest from our customer loans and cash flow metrics. Right now, as of the end of March 31st, I think we have 86% of our cash flows locked in for the year. Look, I wouldn't say that we can just mail it in and be done with it. We certainly, with this high rate of growth, we've got to manage the expense side of the equation quite carefully. We do have a huge amount of visibility on the financial metrics across the board because of our very conservative capitalization strategy. When you do gain on sale, nothing wrong with that, but it does have a lot more volatility to it. Our belief is that investors over time will appreciate the stability of the financial metrics, the conservatism that the company has been set up with. I would point out that if you go back and you were to go look at late 2018, early 2019 before our IPO, and you were to look forward in time and look at all these metrics, we've exceeded them. That, again, goes to the stability and conservative nature of the way that the company is set up. Again, I hope investors start to appreciate that. As far as that can vary, it does vary more, but again, we're counting a customer when they go in service, and the rest of the industry, I think, is doing very early stage or equipment install, which is fine. It will lead to more volatility in the quarters ahead and not as much certainty. A lot of what we have right now, and we're looking forward certainly for this quarter and even next quarter, is we already have it in hand. That has been giving us a lot more stability and predictability. Having a lot of our dealers and having good plans as far as software building and other capabilities and new technologies, new products. We have the ability to integrate not only lease and PPA, but loans and create some very innovative products out there. Again, it's creating a stickiness factor with dealers, and it's something that we continue to be able to look at to have that kind of stability with those exclusivity and arrangements with our dealers. More and more, like I said earlier, want those exclusive relationships with us. It's just setting ourselves up, and it's taking the pain in the short term, focusing on the long term, and making sure we're set up in a way that we can give more predictability to investors. Great. Just for the record, I wasn't calling you guys reckless. I was saying that we would think that was reckless. Thank you. Yeah, no, I appreciate that. I appreciate that. Take care, y'all. I want to make sure, Ben, that look, do I make sure that it's something of focus of me and the rest of the management team and the board that we constantly are looking at this and pushing. This is not easy. We have a great strategy. We've been conservative on how we set the company up, and that's been painful on the front end, I can tell you. Over the long term, I just fervently believe doing what's right over the long term and being conservative is going to pay off. Thanks. Thanks Thanks a lot, John, Rob. Your next question is from Julien Dumoulin-Smith with Bank of America Securities. Hey, good morning, team. Maybe if I can pick up off of that last dealer conversation here. Given the expectations to double by year-end 2022, what does that mean about implications for continued customer addition growth into 2023? I know you said you were cautious to give too much incremental on customer growth, but clearly, the implication of just annualizing the 1,000-dealer target by year-end 2022 should have pretty sizable implications on 2023 compounding growth, right? Well, now forecasting into 2023, to Ben's comment, probably is reckless for me to do that at this point. Look, I understand running a evaluation analysis of the company, you look at, yes, it obviously is going to have a positive knock-on impact to growth. I don't want to get into what that is. You should definitely look at that as a positive impact on growth. I would also add in becoming just as important is the launching of new service products, upsell opportunities to our existing customer base. That we just simply cannot get all that out the door fast enouhg and really up and running. Again, it's a huge operational lift. We just see enormous amount of opportunities. Grid services, we're running flat out. Microgrids. That's something that I thought would take a while. We're getting inbounds like crazy from folks like, "We want to do this. We want to do this project." Right? You got generators, you've got EV chargers, you got load managers. All this stuff is coming so fast. That's going to have knock-on implications, particularly into 2022 and beyond. Of upselling more services and making more margin, more revenue per customer on both existing customers and new customers. Again, we laid it out in the Q3 call last year, but we're growing and seeing a lot more opportunities to grow both on the per customer basis, old and new, and then on the overall customer growth. Got it. If I can pivot back to that inventory and supply question here, can you elaborate a little bit more, especially on the supply side and storage, considering Tesla's commentary about shifting away from providing Powerwall to third parties? Just talk about the overall mix and ability, more importantly perhaps, how does this reconcile against your overall attach rates and year-end penetration targets to the mid upper teens, if you will? Yeah. To our knowledge, and it's very recent, I think that the relationship there with Tesla is very good. Something that we value, and I think they value it as well. I would say that we're not aware that they will not sell to good partners like ourselves, and so we continue to take delivery of units and expect delivery of units. Again, value the relationship there. I think that was mostly a commentary that Mr. Musk made on not selling in his service part of the business without batteries. I applaud him on that, I think that's exactly where we think everything's going to go, I think faster than people think. I do think we're going to need to see some price declines in the ESSs in the coming couple of years or so to really get that penetration rate up there. I think we're going to get it. I think the point is, I laid it out on answering the first question, which is we have a lot more partners on the ESS side. SolarEdge is coming to market, and we know that they're going to have a good product, very well-run company, good partner. Generac is continuing to do a lot of great things and innovate their product roadmap, and what they're doing is just unbelievable. They're going to have a lot of new products out there, Enphase is doing a phenomenal job. There's going to be a lot more availability just period out there, but I think that's great. I think Elon would agree. There's a lot to do. There's a lot of business out there, and we want to do what's right and make the energy system convert over because we have a climate emergency. We have a major humanitarian crisis that we need to solve, and there's plenty to do. We see a lot of different partnerships, and they're bringing new products and they're innovating those products fairly quickly. Overall, there's no way that we're not in a better situation in terms of this company, I can speak to that, in the coming three to six months on ESSs than we've ever been. No firm year-end commitment? Firm year commitments in what, Julien? Total penetration by year. Well, I talked about it in the commentary about penetration rate moving from the 10.5% to mid to upper teens. That is something about as close as what I'll get at this point to move in and consider the new home market, which is going to have a little bit of a slower uptake, possibly. Maybe I'm wrong on that. On storage penetration, we're certainly going to push it. We don't know how exactly all that math will work out. I will tell you that including yesterday, in the last few weeks, our storage penetration rate is moving right back up very smartly from the 23%, pushing into the 30s. I think we're in good shape, and I think that the guidance I gave out there is probably better than anybody else was willing to give. Again, to do anything more than that I think would be a bit reckless on my part. Impressive. All right. Good luck. Thank you. Thanks. Your next question is from Michael Weinstein with Credit Suisse. Hey. A lot of my questions have been answered, but maybe you could talk a little bit. If you look at the fully burdened return, or IRR of 8.9%, trailing 12 months. If you look at the first quarter alone, it's what? 9.1%? I think that's a decline from fourth quarter, about 9.7%. Is there something you could talk about there about what's driving the reduction? Yeah. It really is. There's a lot influence that on a quarter-to-quarter basis. It could be the structure and the terms of certain tax equity funds over others. It could be the geographic mix. It could be the difference in mix of different products and so forth. Again, I think what Rob and I are looking towards is just say, look at the trailing 12 months and that gets you the general trend of the focus on that. Look, I'm proud of the 9.1, I'll tell you that. I didn't see that one coming. Again who knows? At this point in time, could that move back up? Possibly. 9.1's pretty darn good, and again, point to a trailing 12 months, I think would give investors the best visibility to the overall spread. Yeah, I'm going to go ahead and take that. What we don't want to do is to have the deployment into a particular tax equity fund or if we're doing more loans or leases or if we have a big boon in one state or territory, to make that go up or down and then point to it and say, "Aha, that's the number right there." We really want to look at it on an overall company basis and over a broad enough period of time that we can actually get some insights out of that number. Makes sense. I think you said something earlier about with green bonds, that your advantage is that you're retaining the cash flows. Right? The green bond. Yes. What does that mean in terms of ABS and tax equity usage going forward? Is that going to be less? I'm thinking we still look to the ABS market, and we still look to the tax equity market. I think that where there's some advantage is really how we do some of that structuring within the ABS market. Again, your firm, as you know, we do a lot with them, so really looking forward to continuing working with them on optimizing those structures. Got you. In terms of dealer landscape, you're projecting about 1,000 next year. What's the total addressable dealer market out there? How many dealers are there? How many sub-dealers are there? At what point does Sunnova University really have to kick up a gear? We still have a ways to go, we think. I would say that there's thousands out there. Certainly, if you do the math several thousand. They're growing in number. Continuously seeing new names and some folks leave others and start their own and so on. That's just normal, not just this industry, but whether it's cellular, telephony, satellite cable television, home security, et cetera. We see ample opportunity, really do. At the same time, we're getting very serious about and diligent with Sunnova University. We want to create more. We need a lot more. Let's get even more growth in the outer years. Got you. Hey, one last question. On slide 23, looking at cash assets, there's a dip there in the latest quarter, and this is a number that steadily grows over time. Just wondering, if you look at total cash, including construction and progress and inventory, that fell basically $100 million in a quarter. What's driving that? There's a couple of different things that are going on there. One, we did a restructuring of one of our credit facilities that released a lot of cash that had been held in reserve. We had some significant reserves in one of our credit facilities that we were able to get released. We lowered some of the debt borrow. We didn't borrow 100%, close to 100% of our facilities, which we tend to do up at month end. That was there. The first quarter is usually going to be a quarter where you're going to see some fall anyway from the prior quarter. In fact, if you look back historically, the first quarter is always a little lower than prior quarters. When we have more and more securitizations, the ROCF impact is going to be greater in that we paid off $30 million worth of debt in that first quarter in that securitization debt. The final thing is that we really started ramping up on our EPC. I say the final thing, but that really is the biggest one, that we were ramping up a lot. We expect to continue to be able to put those into facilities, which should help us catch up a little bit on cash. Really, we keep talking about this, but it's probably a really good point worth reiterating, is if we take a look at what moves that cash number, we're originating assets on a fully burdened basis at or above breakeven, and we are moving to ROCF positive. That's really all the movements of cash with the exception of just working capital. That's really the only thing that's going to be moving around a little bit from quarter to quarter. This is just one of those quarters where it ends up being down a little bit just because of the big uptick in new opportunities. Got you. Thank you. It sounds like a lot of just lumpiness and timing more than anything else. Well, welcome to the solar business. A lot of lumpiness and timing. Capital energy business. Yeah. Thanks. Sorry, that was my two-year-old in the background there, screaming. Very excited about solar these days. Welcome to take his question, but ask you. All right. Thanks a lot, guys. Thanks. Thank you. Your next question is from Mark Strouse with JPMorgan. Yeah. Good morning. Thank you very much for taking our questions. Just wanted to go back to your comment about EV chargers being available later this year. Can you just kind of clarify for us what your expectations are for the cadence of new hardware offerings, whether it be EV chargers or generators over the foreseeable future, and how we should think about the value per customer ramping over time with that? Is there kind of a learning period that you're expecting where people are fine-tuning the sales and the installation process and then the value really kicks in one, two, three, four quarters later? What are you expecting there? Yeah, it's a good question. What I've said in the past is that I thought most of these would be in the 2022 and beyond timeframe. What we're seeing now from customers is that they want it now. I can't tell you how many times I've even had friends come in and say, "I want solar storage. A generator." What they don't know to ask for is a load manager as well. They come back and say, "Oh, by the way, I've just bought an EV." Throw the charger in there. They say, "I want you to run it all. The service and all that, I don't want to worry about it. I want the uptime. I want to pay this bill, and that's it." That's complex. I mean, to put all those different pieces together and productize that offering and those integration of technologies across multiple manufacturers, I think is the most realistic way of looking at this. That will definitely take a long time, whether you're developing your software platform to launch those products out. You got to think about you're dealing across multiple states. You got to adhere to their individual licensing requirements and so forth. And the legal language on the contracts. You got a PPA, you got a lease, you got a loan, you got all the different tenures of the loans and so forth. There's a lot there. We're launching out products. We've been doing it for at least three years, but we continue to see more and more opportunity to launch even newer products out the door even faster. We continue to build up our quite extensive IT capabilities in terms of personnel and people. We're hiring like crazy for those positions, and have been doing so for the last couple of years. All that leads to is that we're trying to get these out instead of 2022, towards the end of the year, as we talked about. Will it take some time to "knock the rust off" and get the appreciable amount of the dealer network really moving? Sure, it will. Right now, we haven't really been able to factor that into our growth plans, but we know it's going to hit sometime later this year in 2022 versus my previous expectations are really starting to hit in kind of late 2022 and 2023 and beyond. Okay. That's very helpful, John. Thank you. Thank you. Your next question is from Pavel Molchanov with Raymond James. Thanks for taking the question. You've touched several times already on the landscape of rising interest rates. Maybe I'll just ask this kind of a very high level. At what point would the broader yield environment get to a point where you would have to say it's getting tough for solar leasing? Is that at 3% 10-year Treasury, 4%, 5%? What's the magic number? I think at the end of the day, I think it'd be foolhardy to pick a magic number, Pavel. We can all, and not just Sunnova, but we'll all adjust our pricing. Whether the financing arrangement that the customer chooses is a lease or a PPA or a loan, we'll adjust our pricing accordingly to the risk-free market as you would expect us to do. As we're going through and we're issuing the term securitizations and then down the road here with a corporate bond, those are long-term debt issuance. We don't really worry too much about a movement in the risk-free in that regard because we've locked in our cost of debt and the term of debt that we for the most part need. I would say that your competitor, or our competitor rather, the utilities, one of their biggest cost inputs is interest, right? Their costs are going to go up. Again, when I look at this, I've been in the power business now, hard to believe, 25 years, a quarter of a century. I will tell you, I see no reason for power rates to drop. Zero. I see nothing but reasons for them to go up, and that's included in there is interest rates. The price to beat is just getting easier and easier to beat, frankly. As they pile on more and more costs, that's creating more and more of a upward pressure in rates. Again, that gets a wider and wider spread if that's the way you want to look at it. Especially as our equipment costs, namely batteries, ESSs drop in the coming years or continue to drop. All this goes to a point where they're actually widening. I think a risk-free move, and certainly if you look at even the risk-free move that we've had over the last few months really crippled the refinancing demand in the mortgage market, right. Potentially even the ability to buy homes. I think anything north of 3% on the 10-year is going to cause real broad economic damage. That would be the least of your concerns as far as what our cost of capital would. Simply put, we'll adjust to it. There is no rate that you would pick that would be really a problem, and we're terming out our debt obligations and we're doing so at record low rates, even despite the pretty significant move up here. We feel quite comfortable about it. Speaking of utilities, in the 90 days or so since the last earnings call, we have the joint application by the California utilities to the regulator for new grid connection fees for solar households. Any comment on those? Well, I don't think that they're good for the people of California. It's pretty clear. If they really cared about serving low, moderate income customers and other customers that may have challenging credit rates, we certainly will take the same subsidy that they had in terms of credit backstop from the state. We'll certainly take that. We'll certainly work in the leadership of California in some ways we already are, but happy to step that up significantly to address those folks if that's truly what they care about. I think it's really more of an anti-competitive move than an anti-consumer move. Again, I don't think that it's going to stand. I don't think the leadership of California is going to want to really crush a very bright spot for their economy and for the consumers of California. Thank you very much. Your next question is from Sophie Karp with KeyBanc. Hi, good morning. Thank you for taking my question. Most of the questions have been answered. I just also wanted to ask you a philosophical question about the numbers that you guys put out. You adjust amount credit loss provisions out of your EBITDA figure. As loans grow bigger as a part of your mix, as you hinted, does that make sense to maybe adjust that loss provision that you're taking to match more closely the real numbers? If it is already pretty closely matched, does it make sense philosophically to take it out of your adjusted EBITDA and kind of present your numbers that way? Just curious to hear your thoughts on that. Yeah, Sophie, it's a great question. Keep in mind that CECL is trying to take your full credit losses for the entire 25 years in one slug as soon as you originate the loan. One of the things that we've been doing is realizing that, and this is really a great credit to our credit and collections team, is that we continue to do better than sort of where our expectations and our modeling has been. If you want to say, "Well, where are we taking it out?" Well, it's being taken out in the actual solar loan P&I. Every quarter, we're actually realizing it on a cash basis, and that's why we present adjusted EBITDA together with the solar loan P&I, is to give you that full picture. That is non-cash. CECL is non-cash, where it comes and gets realized is in what we actually produce, in solar loan P&I. If there's a default, we're not collecting. If there's a delinquency, we're not collecting there. It's already fully baked into the numbers that we show on a cash basis. Got it. Very helpful. Thank you. That's all I had. Thanks, Sophie. One comment to build on that is we did see in this last quarter a really surprising amount of the very good delinquency and default numbers. That continues to trend much better. Loan payoffs continue to trend much higher than we expected. Things are very good on the credit front, and if everybody recalls where we were this time last year, I mean, amazing how well our credit team and collections team has done just a phenomenal job. Your next question is from Richard Tullis with Capital One Securities. Hey, thanks. Good morning, everyone. Two quick questions, hopefully. John, on, I guess a large U.S. utility reported recently. It sounded like from the call comments that they were looking to get a little bit more aggressive on the solar front. I guess it's mainly PPAs initially. How do you view the current competitive landscape for the solar providers in relation to the utilities? I know you talked a little bit in your opening comments about building moats, but how do you see the landscape at this point? Yeah. I would obviously think it's best for the consumers of the country to make sure that they have a choice. If they have a choice, I think that if your focus is on this business, which is materially different, again, I've operated, I've traded power across the entire country. I've operated a utility system from the control room. I understand how the centralized power system works, I think, better than anybody in our part of the industry. It's materially different. Doesn't mean that they can't be successful, but we're totally focused on this as well as competitors. I think that I would certainly respect, I think I know who you're referring to and highly respect them as a company. It needs to be, in terms of the competition provided on the competitive side, not the monopoly side of the equation. I think that's very, very damaging to the consumers of the country. People need choices. We need competition. The competitive landscape, increasingly, very quickly, we're moving to a service provider. That's something we've talked about for a number of years. We're there. Simply just offering out one financial product or something of that nature is not competitive enough. You look at what Tesla's doing, obviously with SunPower, Sunrun, and ourselves, I think that's a very good competitive landscape that obviously continues to get smaller. It certainly got smaller last year. We made it even smaller with our acquisition of SunStreet. I think that the scale and operating leverage that you need, and again, I laid out the logistical and operational and the financial complexity that goes into what our business is. It's a huge lift. I think that's going to be a, I know it is, a very daunting task no matter how big you are. It doesn't mean that it can't be pulled off, but it's a very daunting task. Thank you, John. That's helpful. Just lastly, with Sunnova being based in Texas following the Winter Storm Uri in February, how much additional solar and storage business could be generated, say, over the next two years just from the storm compared to your prior thoughts? How many of the 250,000 Lennar homes roughly are located in the Texas area that also could provide an uplift? I think most of the homes that Lennar has built focus in the California area and some other states, but they do have a good presence in Texas. I don't know what the breakout is, but it's certainly something that will be available to us, and we're ramping that up right now as far as creating the lead generation for our dealers and such. We've definitely seen a storage attachment rate move up on Texas, and we continue to see a lot of demand. The other thing that's happened, well-known, is there's a lot of outages. The increasing amount of power failures in the utilities, and certainly even my house. Luckily, I've got Sunnova service. That frequency and the fear, and keep in mind, what we just went through as Texas, that was the easy season, winter. Now it gets hard. You've got storm season, particularly sitting here in Houston on the coast, and you've got the cooling season or the hot summer that's coming. There's going to be some more problems. I don't know if it'll be this year or next year, but there's more problems coming, and people know that, and they're going out looking for solutions, and we're here, and they're coming to us. I see nothing but upward pressure on the growth rate in Texas. Consumers of Texas, the people of Texas constantly get reminded, "You know what? I really should call Sunnova and get a better energy service. Thank you, John. Your next question is from Sean Morgan with Evercore. Hey, John. In terms of the 66 dealers you guys added in Q1, what's the thought process there? Are you adding mostly in existing kind of strong geographies, California, New Jersey, or is there economies of scale that you kind of weigh versus maybe becoming a new incumbent and expanding into new states and territories, how do you balance those kind of factors? Yeah, we made an announcement a few days ago on entering, I think, Ohio and North Carolina, and we have others on deck here. We are expanding geographies this year. That was a pull forward just based on demand from some prospective dealers. We're going to continue to do that. The preponderance of our growth focus is on the existing areas. However, as we continue to add new states, that kind of becomes a self-fulfilling prophecy, right? There's only 50 states in the Union plus the territories. If you keep adding them, eventually it'll just all be about the existing territories. You don't have to look towards the international market. Right now, most of our focus is on the existing areas and continues to be. I think the southern part of the U.S. and the middle part of the U.S. is an area of particular focus on us, we're seeing a lot of ability and interest there from dealers. Some are new firms as well. I think that's where you'll see a lot more of our state additions, if you will, in the coming months. Okay, thanks. Just a quick follow-up on the G&A was up a little bit this quarter, I think there may have been some acquisition costs that could be backed out of that. When you're integrating with SunStreet over the next couple of quarters, do you expect that Q1 to be sort of a run rate, or is that kind of there's some anomalous first quarter items in that that would maybe have it be a little more escalated than we'll see going forward? There's a little bit of both in there. I think that there are going to be some acquisition and integration costs. Clearly, we're bringing on some additional G&A here with SunStreet as well that we had already had baked into the numbers that we had confirmed here in the quarter for the full year. There are a few other things that are in there, like the CECL provision that Sophie had talked about that are non-cash. One of the bigger ones just had to do with a first-quarter phenomenon having to do with the vesting of stock options. A lot of that really ended up being backed out of the P&L anyway. It's more of a financing charge, and it ends up being treated on the cash flow statement as a cost of financing. You'll see that, I think, when we get to the first quarter. As many of you know, we receive, as part of our compensation, stock. I think that just about everyone here would rather receive more stock relative to other forms of compensation, given the opportunity. That's just going to flow through as a non-cash charge on the P&L in the first quarter when we reach the vesting anniversaries. Okay. While we're on the topic of the stock, that $3.3 million in closing for SunStreet, that's going to hit April 1st, so that'll be a second-quarter item? Yes, sir. Okay, thanks. That's all I have. Great. Thanks. At this time, there are no further questions. I would like to turn the call back over to John Berger for any closing remarks. Thank you. I first want to pause briefly and say something. Tom Werner of SunPower is going to retire in a few days. He has given 18 years to the industry. I think too often, especially our part of the industry, is too vicious in competition, and certainly everybody knows that we're competitive, we're competitors together, and I'm as competitive as they come. At the same time, I think we need to be respectful with each other. I have a high degree of respect for Tom and everything that he's done. Just wanted to let him know, and for everybody here at Sunnova, Houston, and across the country, we're tipping our hat to him and very appreciative for everything that he's done for us and our industry over his 18 years of his life he's dedicated and wish him the best in the years to come. We want to thank our dealers, our equipment partners, our employees, and most of all, our customers for a great quarter and building to what is obviously an even better coming execution over the next few quarters and next few years. The world of energy is changing at an accelerating pace, this company is focused on delivering and creating bigger moats and greater cash flows. Look forward to hearing and talking to everybody on the next second quarter call. Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.