KKR, SunPower Strike Deal to Buy $550M Solar Energy Loans

Private equity firm KKR & Co has struck a deal to buy $550 million in solar energy loans made to customers of Richmond, CA-based SunPower, a solar technology and energy services provider.

The deal is expected to raise sufficient capital to fund $1 billion of incremental solar loans for SunPower’s customers, supporting the company’s continued growth and increasing access to solar for more homeowners.

Guthrie Dundas, interim CFO of SunPower, noted that with the additional capital, they anticipate powering their loan bookings volume into 2024.

According to Avi Korn, Managing Director at KKR, “residential solar is a key area of focus for their Asset-Based Finance business”, and they are pleased to support SunPower’s platform to provide solar and energy services.

SunPower launched SunPower Financial in 2021 to streamline the process of purchasing solar and other home energy services through a single provider, including design, sales, installation, warranty and financing. SunPower’s loan business grew 99% year-over-year in 2022.

The $550 million commitment follows a $450 million commitment from HASI and Crédit Agricole CIB last month, two leading climate and sustainability investors. Both credit agreements are non-recourse financing deals.