Lennar Corp. plans to sell its residential solar division to Sunnova Energy International in a deal worth over $358 million.
As part of the agreement, Houston-based Sunnova will become Lennar’s exclusive residential solar provider for new home communities across the country as demand for solar energy grows.
Miami-based Lennar agreed to sell the solar division known as SunStreet in exchange for 7.22 million shares of Sunnova common stock, which closed at $49.64 on Wednesday, for a total of $358.4 million. About 3.3 million shares will be paid out at closing and the rest will be paid once certain milestones are met, according to a joint press release from the companies.
“This agreement will allow Sunnova to increase customer growth, further scale the business, and develop smart microgrids for communities across the U.S.,” William Berger, CEO of Sunnova, said in a statement.
LenX, a Lennar subsidiary, and Sunnova are also planning to continue to develop new energy technologies, such as home storage and community microgrids, according to the release.
Along with installing solar on new homes, Sunnova said it could upsell many of the 250,000 existing homes built by Lennar in the last decade.
The deal is expected to close in the second quarter, according to the release.
Led by Stuart Miller, Lennar is one of the largest homebuilders in the country, and is known for its no-thrills, efficient single-family home communities.
The company has performed exceptionally well during the pandemic, as more people sought to buy new homes due to record low mortgage rates. In 2020, Lennar received 56,000 new home orders, up 9 percent, year-over-year, according to the company’s fourth quarter earnings.