The residential photo voltaic firm Sunnova Power took a beating this week as traders dumped their shares after the announcement of a inventory providing plan rattled confidence within the firm.

Sunnova shares plummeted 26.7% Thursday after the residential photo voltaic firm introduced a $100 million at-the-market inventory providing program. Sunnova’s market cap declined by $382 million within the worst day for the corporate since March 2020 and the second worst day since its preliminary public providing in 2019.

CEO John Berger tried to reassure traders that Sunnova’s funds are sound and the corporate doesn’t intend to promote its inventory to boost capital anytime quickly.

“That is simply an arrow within the quiver simply in case and the rankings businesses wish to see it,” Berger instructed CNBC in an interview Thursday. “We needn’t take care of the rankings businesses anytime quickly, nevertheless it’s a wise factor to have — however we do not want it.”

“I’ll concentrate on producing our personal money fairly than tapping into an fairness, notably one thing that is now 25% discounted,” Berger stated. Sunnova had a complete of $494 million in money as of Dec. 31, 2023, based on its quarterly report.

The announcement got here after Sunnova posted a internet loss that deepened to $234 million within the fourth quarter, in comparison with $62 million within the yr in the past interval. Residential photo voltaic firms have struggled within the face of excessive rates of interest which have made installations extra pricey to households.

Berger and Sunnova CFO Robert Lane described the inventory providing as “good housekeeping.” Sunnova doesn’t see a necessity to boost capital by 2026, Lane instructed analysts in the course of the firm’s earnings name Thursday.

Berger stated on reflection he would have waited on the inventory providing plan: “Good housekeeping certain was costly,” the CEO instructed CNBC after Thursday’s selloff.

Sunnova can be exploring asset gross sales and slashing prices utilizing automation and synthetic intelligence to maintain the corporate’s headcount from rising, Berger stated on the corporate’s convention name.

Sunnova is simply the newest residential photo voltaic firm to take a beating after its quarterly report. Its competitor Sunrun is down 22% this week after firm posted one other quarterly loss. SolarEdge has tumbled almost 18% this week after issuing weak steering for the primary quarter.

The photo voltaic market faces an unsure outlook this yr. Traders had hoped aggressive rate of interest cuts would act as a catalyst for the sector however that now appear much less probably. Federal Reserve officers have made clear they’re in no hurry to chop charges, with the market anticipating the primary discount in June on the earliest fairly than earlier forecasts of March or Might.

Berger doesn’t see rates of interest affecting Sunnova this yr. He stated the foremost utilities, that are additionally price delicate, are charging their prospects extra, which has allowed Sunnova to extend its costs with out impacting demand.

“We now have pricing energy I’ve by no means seen this robust,” Berger stated.

The CEO additionally addressed a December report that customers have filed complaints in Texas alleging predatory gross sales techniques towards the aged. Two Republican members of Congress despatched a letter on Dec. 7 to the Division of Power calling for extra scrutiny of Sunnova’s enterprise practices. Sunnova’s inventory dropped 16% after the lawmakers despatched the letter.

“Whether or not our sellers did one thing or not, we sometimes have gone by and made certain that we have made good with the client. In a few of these circumstances, it is tough to search out damage,” Berger stated. The CEO stated it’s unlawful to say no to promote to somebody due to their age.

“There’s lots of different info which were put forth in these circumstances, nevertheless it does not excuse us from persevering with to attempt to do higher and we will proceed to do this,” Berger stated.

— CNBC’s Pippa Stevens and Chris Hayes contributed to this report.

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