Microgrids - Solar

Sunnova launches bid to be a ‘micro-utility’ in California

Sunnova launches bid to be a ‘micro-utility’ in California
(Sunnova aims to become a micro-utility in California. Credit: Sunnova)

Sunnova Energy International filed paperwork with state regulators to develop a solar and storage-focused micro-utility in California. The proposal could pose a relatively small, but novel, challenge to the state’s incumbent investor-owned utilities.

The Houston-based company formed a wholly owned subsidiary called Sunnova Community Microgrids California, LLC. The unit would own and operate EaaS offerings in new communities, including energy generation, storage, and distribution infrastructure. 

The business unit would develop largely self-sustaining micro-utilities by equipping new home communities with solar and storage. The venture is intended to focus on new homes, allowing the company to work with developers to design and implement distributed solar-powered microgrids that would be known as Sunnova Adaptive Communities. Homebuilder Lennar reportedly has said it would consider using a microgrid, if regulators approve the plan.

“Community microgrids are the future as they offer the unique ability to share excess electricity, putting the power in the hands of homeowners and significantly enhancing the resiliency of communities,” said William J. (John) Berger, founder and chief executive officer of Sunnova.

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The regulatory process with the Public Utilities Commission aims to qualify the Sunnova business unit as a micro-utility and secure a certificate to build and operate microgrids under sections of the California Public Utilities Code. 

The New York Times reported that the effort is based on an earlier precedent that allowed a Lake Tahoe area resort serve as a micro-utility for years. That venture never was able to provide consistently affordable electricity and eventually was absorbed into the larger statewide grid.

The Sunnova business unit aims to own and operate nanogrids (behind the meter) and community assets, including the distribution infrastructure (front of the meter), as part of integrated microgrid communities. Community assets are expected to include distribution infrastructure and energy assets including solar, battery storage, and emergency generation.