US solar installer SunPower is in advanced discussions regarding a potential sale of its commercial and industrial solutions (CIS) business as it looks to heighten its focus on the residential sector.
Having announced in October that it was exploring strategic options for the unit, SunPower has now confirmed it will pursue a sale, with it seeking to finalise discussions as early as Q1 2022.
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The decision was made to optimise SunPower’s capital deployment, the company said, while also enabling CIS to take better advantage of opportunities such as community solar and front-of-meter storage.
SunPower CEO Peter Faricy said that with the right partner, CIS will have the opportunity to fight climate change on a larger scale. “The potential buyer shares CIS’ strategic and financial goals as a champion of affordable, reliable and clean energy solutions with the expertise, balance sheet and capital resources appropriate for large-scale solar and storage projects,” he said.
Reporting its Q3 results last November, SunPower forecasted that CIS and Legacy business revenue in the fourth quarter would be US$31 – 41 million, but they were expected to post a loss of US$5 – 10 million due to supply chain impacts and project schedule delays.
SunPower’s move to bolster its presence in the residential sector has seen it recently launch a new financial services product aimed at making rooftop PV more affordable, while it also introduced a virtual power plant solution that enables SunVault energy storage system customers to get paid for allowing their local utility to use stored energy during peak demand.
SunPower also recently acquired residential solar provider Blue Raven for up to US$165 million to expand its presence in the US Northwest and Mid-Atlantic regions.
When the deal was announced in October, Faricy said it will allow SunPower to improve its revenue and margins through operating and scale efficiencies, including those from lower supply chain costs and the reduced costs of capital.
SunPower also announced last week it has appointed former Spotify and Gap executive June Sauvaget as its new chief marketing officer.
