Sunrun Prices $584 million Securitization of Residential Solar and Storage Assets
Sunrun priced a $584 million securitization of residential solar and storage assets, its sixteenth such transaction since 2015, with improved credit terms compared to prior deals.
Sunrun announced the pricing of a $584 million securitization backed by leases and power purchase agreements tied to 38,706 residential solar and storage systems across 19 states, Washington D.C., and Puerto Rico. The transaction includes $234 million in publicly marketed Class A-1 notes and $350 million in privately placed Class A-2 notes, both rated A-, along with retained Class B notes rated BB. The Class A notes carry a 6.30% coupon and a 220 basis point credit spread, reflecting a 20 basis point improvement over Sunrun’s most recent 2025 transactions. The deal is expected to close in early May, with Atlas SP as sole structuring agent and BofA Securities, MUFG, and Truist Securities as joint bookrunners.
Danny Abajian, Sunrun’s Chief Financial Officer, stated the transaction demonstrates the company’s ability to access capital at scale on improving terms, highlighting a 79.3% advance rate on the securitized assets. The weighted average life of the Class A notes is 6.88 years, with an anticipated repayment date of August 1, 2033, and a final maturity of August 1, 2061. Sunrun also anticipates raising additional subordinated financing secured by retained Class B notes to further increase its cumulative advance rate. The diversified portfolio spans 76 utility service territories, with a weighted average customer FICO score of 744.
The securitization follows Sunrun’s pattern of recurring transactions since 2015, reflecting strong investor demand for its solar and storage assets. The improved credit spread of 220 basis points compares favorably to prior deals priced at 240 basis points in September and July 2025. The transaction is structured to provide long-term financing stability for Sunrun’s home energy systems, supporting its subscription-based model that requires no upfront costs for customers. The notes are backed by a geographically dispersed portfolio, reducing concentration risk across utility service territories.
The deal was arranged with Atlas SP as sole structuring agent and ING as co-manager, alongside joint bookrunners BofA Securities, MUFG, and Truist Securities. Sunrun emphasized the transaction’s role in strengthening its balance sheet while enabling continued deployment of residential solar and storage systems. The company cautioned that forward-looking statements involve risks, including volatile interest rates, regulatory changes, and supply chain disruptions, which could impact future financing terms or operational performance.