SunPower Secures More Than $300M in Project Financing Commitments for Industry-Leading Residential Solar and Storage Lease Programs

Rhea-AI Summary

SunPower Corp secures over $300 million in project financing commitments to expand residential solar and storage lease programs. The company aims to offer diverse financing options to customers, enhancing access to clean energy solutions.

Insights

Financial Analyst

SunPower Corp.'s recent securing of over $300 million in project financing commitments is a significant development for the company and its stakeholders. This influx of capital is indicative of strong confidence from institutional investors, such as Apollo Funds, ATLAS SP Partners and Hannon Armstrong Sustainable Infrastructure Capital, in SunPower's business model and growth trajectory. The transaction is likely to enhance SunPower's liquidity position, enabling the company to scale its residential solar and storage lease programs effectively.

From a financial perspective, the availability of diverse financing options is crucial for SunPower as it allows the company to cater to a broader customer base with varying financial needs. The increase in capital also suggests a potential for expansion in market share, especially considering that lease contracts have seen substantial growth from the fourth quarter of 2022 to the fourth quarter of 2023. This strategic move could result in increased revenue streams and a stronger competitive stance within the renewable energy sector.

Market Research Analyst

The renewable energy industry is experiencing a surge in demand and SunPower's focus on residential solar and storage solutions places it in a favorable position to capitalize on this trend. The company's market-leading position in new home builds and its extensive dealer network across the U.S. provide a robust platform for growth. By securing significant financing, SunPower is poised to meet the strong demand for its fastest-growing financial product, which could translate into increased market penetration and customer loyalty.

Furthermore, the partnership with reputable financiers reflects positively on SunPower's reputation and reliability in the industry. It is essential to note that the company's financing agnostic model, which emphasizes customer choice, is a strategic differentiator that may drive consumer preference and adoption. The ability to expand access to clean energy at scale could have a ripple effect, potentially influencing policy decisions and accelerating the transition to renewable energy nationwide.

Energy Sector Analyst

SunPower's strategic collaboration with Apollo, ATLAS SP and HASI underscores a broader industry trend of integrating sustainable practices with financial innovation. The commitment from these funds not only provides SunPower with the necessary capital but also aligns with a global shift towards sustainable infrastructure investment. This alignment could enhance investor confidence and attract additional capital in the future, fostering a conducive environment for SunPower's long-term growth.

The company's emphasis on solar and storage solutions is particularly relevant as energy storage is becoming increasingly important in managing the intermittent nature of renewable energy sources. SunPower's ability to offer these combined solutions positions it well to address a critical need in the market. This strategic direction could lead to improved customer retention rates and a stronger brand presence in the competitive landscape of the renewable energy sector.

Builds on the recent capital raise to provide SunPower with access to more than half a billion dollars in financing

RICHMOND, Calif., Feb. 23, 2024 /PRNewswire/ -- SunPower Corp. (NASDAQ:SPWR), (the "Company" or "SunPower"), a leading residential solar technology and energy services provider, today announced that it has secured over $300 million in project financing commitments from funds managed by Apollo (NYSE: APO) (the "Apollo Funds"), ATLAS SP Partners, ("ATLAS SP") and Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE: HASI) ("HASI") for its residential solar and storage lease programs, which will be paid upon installation. The transaction supports SunPower's ability to offer a variety of attractive financing options to its customers, advancing its mission to change the way our world is powered.

"SunPower's financing agnostic model is a differentiator in the industry and gives customers the ability to choose the best financing product for their needs," said Peter Faricy, SunPower CEO. "We believe this new commitment will enable us to better serve our growing base as we can now provide significantly more customers with leases for solar and storage solutions, meet the strong demand for our fastest growing financial product and ultimately expand access to clean energy at scale."

Olivia Wassenaar, Head of Sustainability and Infrastructure at Apollo, said, "We are pleased to support SunPower with this innovative financing solution, which strengthens its ability to deliver solar and storage solutions to customers across the country. This transaction demonstrates Apollo's integrated and holistic approach to clean energy investing, leveraging cross-platform expertise from our infrastructure and tax teams, as well as ATLAS SP's origination and financing capabilities, to help drive the energy transition."

Together with its recent capital raise, the Company now has access to more than half a billion dollars of capital, provided the Company meets certain funding conditions. This includes amendments to its existing first lien financing and a second lien term loan from Sol Holding LLC.

Since 2010, SunPower has provided solar lease financing options to customers through its network of residential solar dealers across the U.S., new home builders where the company holds a market-leading position and direct sales teams. SunPower lease contracts made up 73% of SunPower Financial originated volume in the fourth quarter of 2023 compared to 26% in the fourth quarter of 2022.

About SunPower
SunPower (NASDAQ:SPWR) is a leading residential solar, storage and energy services provider in North America. SunPower offers solar + storage solutions that give customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners. For more information, visit www.sunpower.com.

Forward Looking Statements
This release includes information that constitutes forward-looking statements. All statements, other than statements of historical fact, are forward-looking statements for purposes of the U.S. federal and state securities laws. Forward-looking statements often address expected future business and financial performance, and often contain words such as "believe," "expect," "anticipate," "intend," "plan," or "will" or the negative thereof or other variations thereof or comparable terminology. By their nature, forward-looking statements address matters that are subject to risks and uncertainties. Any such forward-looking statements may involve risk and uncertainties that could cause actual results to differ materially from any future results encompassed within the forward-looking statements. Examples of such forward-looking statements include, but are not limited to, statements regarding the Company's ability to offer attractive financing options to its customers and to expand access to clean energy at scale; expectations regarding growth, demand, and the Company's future performance and ability to capture or meet consumer demand; and the Company's expectations for industry trends and factors, and the impact on our business and strategic plans. Factors that could cause actual results to differ materially from any future results encompassed within the forward-looking statements include, but are not limited to, the Company's ability to comply with its financing arrangements, including debt covenants, or cure any defaults; the Company's ability to repay its obligations as they come due; the Company's ability to realize the anticipated benefits of capital received or project financings; the Company's liquidity and indebtedness; and the risks and other important factors discussed under the caption "Risk Factors" in the Company's Annual Report on Form 10-K/A for the fiscal year ended January 1, 2023 and the Quarterly Report on Form 10-Q for the quarterly period ended October 1, 2023, and the Company's other filings with the SEC. The Company cautions you that the list of important factors included in the Company's filings with the SEC may not contain all of the material factors that are important to you. In addition, in light of these risks and uncertainties, actual results may differ materially from those expressed in the forward-looking statements contained in this release. These forward-looking statements speak only as of the date they are made and should not be relied upon as representing the Company's views as of any subsequent date, and the Company is under no obligation to, and expressly disclaims any responsibility to, update or alter its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.

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SOURCE SunPower Corp.

FAQ

What is SunPower's ticker symbol?

SunPower's ticker symbol is SPWR.

How much project financing commitments did SunPower secure?

SunPower secured over $300 million in project financing commitments.

Who provided the project financing commitments to SunPower?

The project financing commitments were provided by funds managed by Apollo, ATLAS SP Partners, and Hannon Armstrong Sustainable Infrastructure Capital, Inc.

What percentage of SunPower Financial originated volume were SunPower lease contracts in the fourth quarter of 2023?

SunPower lease contracts made up 73% of SunPower Financial originated volume in the fourth quarter of 2023.

How much capital access does SunPower now have after the recent capital raise?

SunPower now has access to more than half a billion dollars of capital.