SAN JOSE — SunPower announced Friday that with Hannon Armstrong Sustainable Infrastructure Capital, Inc. and SunStrong Capital Holdings, LLC, it has secured financing commitments for its residential solar lease program.
The commitments will help meet SunPower’s expected customer demand for solar panels into 2020.
SunPower has provided solar lease financing options to customers since 2010. The attractive financing provisions with this new fund will supplement the solar loan and cash sale alternatives currently offered by the company.
The new fund is structured as a levered tax equity partnership with a multi-party forward purchase commitment, allowing generation of upfront cash margins for residential solar leases.
The financing commitments for this new fund are being provided largely from a repeat group of loan and equity providers that continue to have strong long-term relationships with SunPower and Hannon Armstrong.
Bank of America Merrill Lynch acted as the sole structuring and placement agent for the cash equity and multi-draw term loan, as well as the sole tax equity investor. Additional equity capital was provided by SunPower, Hannon Armstrong and their joint venture SunStrong, which holds equity interests in more than 55,000 residential solar energy systems.
“SunPower’s strong suite of acquisition options, and our technologically superior solar energy solutions, allows us to continue meeting growing customer demand,” said Tom Werner, SunPower CEO and chairman of the board. “Thanks to our financing partners, who share our clean energy future goals, we’re able to ensure funding to meet the needs of those customers who desire a leasing option.”
“This latest fund continues our multi-year programmatic investment with SunPower, helping to decarbonize the residential sector using solar, one of the climate solutions essential to mitigating climate change,” said Jeffrey Eckel, Hannon Armstrong president and CEO. “We are especially pleased with the expansion of SunStrong’s role in this innovative fund as it demonstrates the increased financial capabilities of this new joint venture with SunPower.”
Residential Solar Business
SunPower offers its lease program through its network of residential solar dealers across the U.S., new home builders where the company holds a market-leading position and direct sales teams. Last year, SunPower’s U.S. residential business saw annual deployment growth of more than 15 percent, bringing the total number of American homes with SunPower solar to more than 275,000 consumers.
SunStrong Acquires Capital Dynamics Residential Lease Portfolio
Additionally, the company announced that SunStrong has acquired a residential lease portfolio from Capital Dynamics. This transaction adds to SunStrong’s existing high-quality asset portfolio with the addition of more than 41 MW and 5,100 residential systems.
“This transaction reinforces SunStrong’s belief in the long-term value of owning high quality solar systems and SunPower’s commitment to providing on-going products and services to our customers,” Werner said.
As one of the world’s most innovative and sustainable energy companies, SunPower Corporation provides a diverse group of customers with complete solar solutions and services. Residential customers, businesses, governments, schools and utilities around the globe rely on SunPower’s more than 30 years of proven experience. From the first flip of the switch, SunPower delivers maximum value and superb performance throughout the long life of every solar system. Headquartered in Silicon Valley, SunPower has dedicated, customer-focused employees in Africa, Asia, Australia, Europe, North and South America. For more information about how SunPower is changing the way our world is powered, visit www.sunpower.com.