Sunrun Prices $584 Million Securitization of Residential Solar & Storage Assets

Sunrun, the leading US provider of home solar, battery storage, and home-to-grid power systems, has priced a $584 million securitization of residential solar leases and power purchase agreements. This marks the company’s sixteenth securitization since 2015 and its first issuance in 2026. The transaction highlights Sunrun’s continued ability to raise capital at scale with improving credit terms, reflecting strong investor demand for its solar and storage asset portfolio. The securitization was structured into two classes of A-rated notes and one class of BB-rated notes, with the latter retained by Sunrun. The $234 million Class A-1 Notes were publicly marketed, while the $350 million Class A-2 Notes were privately placed, both carrying a coupon rate of 6.30%. The Class A-1 Notes were priced at a 220 basis point credit spread, an improvement over previous deals which priced at 240 basis points, signalling enhanced market confidence. The notes are backed by a diversified pool of nearly 39,000 systems spread across 19 states, Washington D.C., and Puerto Rico, with customers exhibiting a strong average credit score of 744. Sunrun’s CFO, Danny Abajian, emphasised the company’s strengthened position in accessing capital markets, noting the improved pricing terms as evidence of investor appetite for high-quality solar and storage assets. The company also plans to pursue additional subordinated non-recourse financing secured partly by distributions from the retained Class B notes, which is expected to further increase its overall advance rate. The transaction is anticipated to close in early May, with Atlas SP acting as the sole structuring agent alongside several joint bookrunners. This securitization underscores the growing financial maturity of the residential solar and storage sector, as firms like Sunrun leverage asset-backed securities to fund expansion and innovation. By successfully tapping capital markets with favourable terms, Sunrun is well-positioned to continue its growth trajectory while supporting the transition to clean, distributed energy. The transaction also reflects broader investor confidence in the stability and creditworthiness of renewable energy assets amid evolving market and regulatory environments.