SunPower has secured financing commitments from Hannon Armstrong Sustainable Infrastructure Capital Inc. and other capital providers for its residential solar lease program, as well as its new solar+storage program – the SunPower Equinox system with SunVault storage.
SunPower expects the new fund to help meet expected customer demand through mid-2021. These customer financing provisions will supplement the solar loan and cash sale alternatives currently offered by SunPower.
The new fund is structured as a levered tax equity partnership with a multi-party forward purchase commitment. The financing commitments for this new fund are being provided by both new as well as repeat groups of loan and equity providers that continue to have long-term relationships with SunPower and Hannon Armstrong. SunPower expects the new facility to materially lower financing costs given its improved capital structure while continuing the company’s commitment to its customers throughout the life of the lease.
“SunPower’s wide array of financing options and our technologically superior solar energy solutions, allow us to continue meeting growing customer demand – and with ongoing revenue streams,” says Tom Werner, chairman of the board and CEO of SunPower. “Thanks to our financing partners, who share our clean energy future goals, we are able to ensure funding for our customers who might want the choice of leasing for their SunPower solar solution. “
BofA Securities Inc. acted as the sole structuring and placement agent for the multi-draw term loan, as well as the sole tax equity investor.
SunPower has provided solar lease financing options to customers since 2010 and has offered them through its network of residential solar dealers in many areas across the U.S., new home builders and direct sales teams. Last year, SunPower’s U.S. residential business saw annual deployment growth of more than 15% bringing the total number of U.S. homes with SunPower solar to over 330,000 households.