Climate solutions and sustainable infrastructure investment firm HA Sustainable Infrastructure Capital (HASI) announced that it will invest up to $500 million in a new joint venture with residential clean energy provider Sunrun, aimed at financing and developing home-based distributed energy assets across the U.S.
Founded in 2007, San Francisco-based Sunrun provides home battery storage, solar, and home-to-grid power plants, including offering a no-upfront-cost subscription model home energy system.
According to the companies, the new JV is expected to ultimately finance over 300 MW of capacity across more than 40,000 home power plants across the country.
Marc Pangburn, HASI’s Chief Revenue and Strategy Officer, said:
“Together, HASI and Sunrun are accelerating the development of essential infrastructure through home-based energy systems that improve grid reliability and address growing power demand. This milestone transaction builds on our long-standing relationship, which began in 2018, and reflects Sunrun’s proven track record as an owner and operator of residential home energy assets as well as HASI’s strength in structuring differentiated capital solutions.”
Under the new joint venture, HASI will invest up to $500 million over an 18-month period, with the structured equity investment aimed at monetizing a portion of the long-term customer cash flows from the underlying projects, and enabling Sunrun to retain a significant long-term ownership position and greater flexibility in structuring senior project debt, and allowing for the delivery of a more efficient cost of capital, according to the companies.
Danny Abajian, Sunrun’s Chief Financial Officer, said:
“This innovative financing structure with HASI is a first-of-a-kind for residential storage and solar financing. We appreciate the collaboration with the HASI team and continued innovation to unlock additional value for both companies along with our customers across the country.”
