SunPower Secures Attractive Financing for Residential Solar Lease Business Through 2021
New Fund Includes Option to Lease SunPower's SunVault Energy Storage System
Sep 22, 2020, 08:30 ET
SAN JOSE, Calif., Sept. 22, 2020 /PRNewswire/ -- SunPower (NASDAQ:SPWR) today announced that it has secured financing commitments from Hannon Armstrong Sustainable Infrastructure Capital, Inc. (Hannon Armstrong) (NYSE:HASI) and other capital providers for its residential solar lease program, as well as its new solar plus storage program, SunPower Equinox® system with SunVault™ storage. SunPower expects the new fund to help meet expected customer demand through mid-2021. These attractive customer financing provisions will supplement the solar loan and cash sale alternatives currently offered by SunPower.
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.
"SunPower's wide array of financing options and our technologically superior solar energy solutions, allow us to continue meeting growing customer demand – and with ongoing revenue streams," said Tom Werner, SunPower CEO and chairman of the board. "Thanks to our financing partners, who share our clean energy future goals, we are able to ensure funding for our customers who might want the choice of leasing for their SunPower solar solution. "
"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.
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.
Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding customer financing offerings and capabilities and expected demand and our ability to meet it. These forward-looking statements are based on our current assumptions, expectations, and beliefs and involve substantial risks and uncertainties that may cause results to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, regulatory changes and the availability of economic incentives promoting use of solar energy, challenges managing our acquisitions, joint ventures and partnerships, fluctuations or declines in the performance of our solar panels and other products and solutions, and potential disruptions to our operations and supply chain that may result from epidemics or natural disasters, including impacts of the Covid-19 pandemic. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpowercorp.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.
About SunPower
Headquartered in California's Silicon Valley, SunPower (NASDAQ:SPWR) is a leading Distributed Generation Storage and Energy Services provider in North America. SunPower offers the only solar + storage solution designed and warranted by one company that gives customers control over energy consumption, resiliency during power outages while providing cost savings to homeowners, businesses, governments, schools and utilities. For more information, visit www.sunpower.com.
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SOURCE SunPower Corp.
