HASI, Sunrun Expand Business with $500 Million Joint Venture

Core Insights - HA Sustainable Infrastructure Capital (HASI) and Sunrun have formed a joint venture to finance distributed energy assets, aiming to finance over 300 MW of capacity across more than 40,000 home power plants [1] - HASI will invest up to $500 million over an 18-month period into the joint venture, which will allow Sunrun to retain significant long-term ownership and flexibility in structuring senior project debt [1] - The partnership is expected to enhance grid reliability and address increasing power demand through home-based energy systems [1] Investment Structure - HASI's structured equity investment will monetize a portion of long-term customer cash flows from the projects, leading to a more efficient cost of capital [1] - The joint venture will be accounted for as a consolidated entity on Sunrun's financials [1] - This financing structure is described as a first-of-its-kind for residential storage and solar financing, anticipated to provide aggregate proceeds equal to or better than Sunrun's traditional financing arrangements [1] Company Profiles - HASI manages over $15 billion in assets, investing in various sustainable infrastructure asset classes, including utility-scale solar, storage, and onshore wind [1] - Sunrun is a pioneer in home energy systems, offering a no-upfront-cost subscription model that empowers customers with greater energy control and independence [1] - Sunrun contributes to grid resiliency by providing on-demand dispatchable power, which helps lower energy costs [1]