SunPower secures $450 million to support loan business

SunPower, a residential solar technology and energy services provider, announced it has secured $450 million in new financing commitments. The funds are expected to help the company meet rising demand for its solar and storage loan program.

The funding round was led by HASI, and Crédit Agricole CIB, two leading climate and sustainability investors. The financing vehicle will acquire loans made to SunPower customers and is non-recourse to the company.

SunPower’s loan programs offer residential customers 25-year terms to secure a more predictable cost for electricity when compared with volatile utility rates. The company launched SunPower Financial in 2021, and its loan business grew 99% year-over-year in 2022. With a SunPower project, installation, design, sales, financing and warranty are all provided by one entity.

“Among our leading value propositions is full consumer choice when it comes to how our customers purchase our solar and storage systems. We continue to build and strengthen our suite of world-class financing products to meet growing demand. This new transaction also illustrates the health and resilience of consumer credit markets during the recent period of shifting conditions,” said Guthrie Dundas, SunPower interim chief financial officer.

SunPower said it is also a leader in solar lease financing. The company said it sees opportunity to participate in the Energy Community tax credit carve-out created by the Inflation Reduction Act, which adds a 10% credit on top of the 30% base Investment Tax Credit. Guidance has recently been released by the Treasury department on how to qualify for this credit adder. 

(Read: “SunPower solar to top three multi-family buildings in California”)

“The new guidance is a great opportunity to ensure many more Americans receive the critical bill savings and job growth benefits residential solar and battery storage provide,” said Jason MacRae, executive vice president of financial products, SunPower. “We continue to work with our financing partners to grow SunPower’s lease financing facilities in anticipation of continued strong customer demand, which is further boosted by this bonus credit.”

Business activities

SunPower has continued to evolve its customer offerings over the last year. In September, the company introduced two new batteries for residential energy storage applications. The two devices, called SV-BASE13-C and SV-BASE19.5-C, respectively are part of the company’s Sunvault energy storage series.

“With this launch, SunVault is now available in five configurations: 13 kWh, 19.5 kWh, 26 kWh, 39 kWh and 52 kWh. Some of these options include multiple inverters,” it said in a statement released.

Also in September, SunPower announced it partnered with retailer giant IKEA to offer its solutions in select California IKEA stores.

Members of the IKEA Family customer loyalty program will have in-store access to four custom designed SunPower solar packages, which all include a SunPower Equinox solar system, a 25-year warranty for power, product and labor, and a 10-year monitoring warranty. IKEA U.S. customers will work directly with SunPower to access its energy solutions, which contain all the products, services, and warranties that customers will need. 

Last May, the company released SunPower One, a holistic energy management system designed to interface with home solar arrays, battery energy storage systems, as well as the full set of energy loads in the home, including heating and cooling, appliances, lighting, and more.

The platform takes a step beyond monitoring the system, proactively advising homeowners on ways to optimize their energy usage. It is capable of recognizing patterns of electricity consumption and suggests further actions for energy bill savings.