SunStrong Capital Holdings (SunStrong), a provider of financing solutions for the residential solar sector, has announced the successful closing of a $254 million securitization backed by residential solar and battery system loan agreements.
The transaction was structured with four classes: a $169.1 million AA-rated Class A and a $67.1 million A-rated Class B, which were issued; a $9.4 million BBB-rated Class C; and an $8.2 million BB-rated Class D, which were retained. The Class A notes and Class B notes were both placed in the public asset-backed securitization market, with coupons of 6.19% and 6.70%, respectively.
The notes are supported by a $349.4 million portfolio of solar loan obligations, financing 8,639 residential systems spread across 33 states, with a total generation capacity of 68 MW.
SunStrong was established through the acquisition of legacy SunPower assets, including over 110,000 solar loan and lease systems, and is dedicated to managing distributed energy assets.
“We’re proud to have worked alongside SunStrong and its partners on this landmark securitization, which showcases the strength of the underlying assets, the value of independent servicing, and the power of innovative structuring and disciplined execution,” said Spencer Hunsberger, Head of Energy Origination at ATLAS.
ATLAS SP Partners, the warehouse finance and securitized products business majority owned by Apollo funds, served as the sole structuring agent and sole bookrunner on the transaction.
According to Mercom’s Q1 2025 Solar Funding and M&A Report, debt financing for the solar sector reached $3.5 billion across 23 deals, a 45% drop compared to the $6.4 billion secured in the same number of deals in Q1 2024.
Earlier this year, Sunrun, a provider of residential solar energy solutions, priced $629 million in the securitization of leases and power purchase agreements. ATLAS SP Partners was the sole structuring agent and served as joint book-runner alongside BofA Securities, Morgan Stanley, MUFG, and TD Securities. First Citizens Capital Securities and ING acted as co-managers for the securitization.
