HA Sustainable Infrastructure Capital (HASI), a leading investor in sustainable infrastructure assets, and Sunrun, a provider of home battery storage, solar, and home-to-grid power plants, announced the closing of an innovative joint venture to finance distributed energy assets. The partnership announced January 6 is expected to ultimately finance more than 300 MW of capacity across more than 40,000 home power plants across the country.
Under the agreement, which closed last month, HASI will invest up to $500 million over an 18-month period into a newly formed joint venture with Sunrun. HASI’s structured equity investment monetizes a portion of the long-term customer cash flows from the underlying projects, while enabling Sunrun to retain a significant long-term ownership position and greater flexibility in structuring senior project debt. This structure is expected to deliver a more efficient cost of capital. The partnership will be accounted for as a consolidated entity on Sunrun’s financials.
“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,” said Marc Pangburn, HASI’s chief revenue and strategy officer. “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.”
“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,” said Danny Abajian, Sunrun’s CFO. “This partnership provides for an efficient capital structure, which we anticipate will allow aggregate proceeds that are equal to or better than Sunrun’s traditional financing arrangements. This structure is consistent with our strategy to utilize various structures and a diverse set of capital providers to finance our growth.”
HASI is an investor in sustainable infrastructure assets focused on advancing the energy transition. With more than $15 billion in managed assets, the company’s investments are diversified across multiple asset classes, including utility-scale solar, storage, and onshore wind; distributed solar and storage; RNG; and energy efficiency.
Sunrun is a pioneer of home energy systems offered through a no-upfront-cost subscription model. Sunrun empowers customers nationwide with greater energy control, security, and independence. Sunrun supports the grid by providing on-demand dispatchable power that helps grid resiliency and lower energy costs.
—This content was contributed by the media relations team at HASI.
