Qcells residential solar financing arm closes its first asset backed securities totaling over $250 million

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Qcells, a leading residential solar panel provider in the U.S. market, announced its solar project financing platform, called EnFin, secured its first asset backed securities (ABS) transaction. The transaction totals $252.86 million and comprises bonds backed by thousands of consumer loans used to finance residential solar installations.

RBC Capital Markets acted as the sole structuring advisor and bookrunner, and Santander served as co-manager in the transaction.

“EnFin is the only financing platform in the market backed by a major manufacturer, and we benefit from Qcells’ trusted reputation for high-quality equipment and its significant investment to build a sustainable solar supply chain in the U.S.,” said Alex Kaplan, EnFin president and chief executive officer.

The ABS transaction adds to two revolving credit warehouse transactions totaling $500 million of committed capacity. The first warehouse was closed with RBC in April 2023 and the second with Santander in January 2024, each for $250 million.

EnFin is a wholly owned subsidiary of Qcells. It began pilot lending operations in the second half of 2022 and officially launched in January 2023. Since then, it has accumulated about 18,000 consumer loan contracts with an aggregate principal balance of more than $800 million.

Loans under the EnFin program are made through a partnership with Hatch Bank, which extends access to a national lending charter that has enabled EnFin to be active in 46 states and the District of Columbia.

Qcells’ unique investment in a solar finance platform opens new opportunities for customers. For example, homeowners can benefit from a 30-year performance warranty option on Qcells modules when financed through the platform.

“Providing competitive financing for solar and battery storage systems is part of Qcells’ long-term strategy to become a one-stop shop and offer a full suite of clean energy solutions to the market,” said Qcells.

In January 2024 EnFin launched a third-party ownership financing option, providing power purchase agreement and lease options to customers. 

“It’s exciting to see Qcells grow in the residential solar financing space,” said Justin Lee, chief executive officer, Qcells. “This first ABS transaction truly reflects investor confidence and showcases EnFin as a unique value proposition.”

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