SunPower and Hannon Armstrong invest $10 million in residential solar leases

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I do admit, the 22.8% efficiency X Series has snuck into a dream once, maybe twice. And with homeowners in the United States explicitly choosing to buy better looking first, and higher efficiency second, the pitch-black SPR-X21-335-BLK (.pdf) is the Ferrari of our field.

With that, according to an 8-k filed on November 5, SunPower and Hannon Armstrong have created a joint venture, SunStrong Capital, funded with $10 million from Hannon for 49% ownership of the fund. The purpose of the joint venture is:

 To acquire, own, manage, operate, finance, and maintain a portfolio of solar photovoltaic electric generating systems currently or expected to be installed on residential rooftops or ground-mounted on the property of host customers (the “Solar Assets”), in each case through various direct and indirect subsidiaries or through interests in entities jointly owned with tax equity investors.

The 8-K notes that SunPower Services shall receive a service fee in the amount of $50,000 for the period from the Commencement Date to the six-month anniversary of the Commencement Date, and thereafter $375,000 annually.

As part of the broader agreement, SunStrong also entered into a sub- agreement under which SunPower has access to a $32 million mezzanine loan, from which the pv maker has drawn $24.6 million worth. The loan is seemingly created for the purpose of further developing the portfolio, as it has a 25 year payback term with an 11.75% interest rate.

Hannon Armstrong invests in solar projects that are supported by long term power purchase agreements with utilities and commercial electricity users and equipment leases with residential homeowners. Hannon Armstrong also invests in land under utility scale solar projects and receives lease payments from project owners. The company notes they’ve invested in over 3,000 MW of solar power.

 

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