SunPower strengthened its residential solar lease program, as well as its new solar plus storage program (SunPower Equinox system with SunVault storage) by securing financing commitments from Hannon Armstrong Sustainable Infrastructure Capital and other capital providers. SunPower expects the new fund to help meet expected customer demand through mid-2021.
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 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 over 330,000 households.
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 strong 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.
“SunStrong, our multi-year programmatic joint venture with SunPower, continues to expand by providing attractive capital solutions designed to support SunPower’s business,” said Jeffrey W. Eckel, Hannon Armstrong Chairman and CEO. “We are pleased to build on this platform with a new solar plus storage solution that provides homeowners resiliency during power outages often driven by climate change impacts.”
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.
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