Sunrun Secures $267 Million to Expand U.S. Home Solar Power
San Francisco, Wednesday, 5 August 2026.
Sunrun raised $267 million by bundling 37,595 home solar systems, securing cheaper borrowing terms that reflect strong investor confidence in clean energy subscriptions.
Refinancing Seasoned Solar Assets
Sunrun (Nasdaq: RUN), recognized as America’s largest provider of home battery storage, solar, and home-to-grid power [1], priced a $267 million public asset-backed securitization on August 4, 2026 [1]. This transaction represents a refinancing of a seasoned portfolio comprising 37,595 residential solar systems spread across 42 utility service territories in 13 states [1]. The underlying assets consist of residential solar leases and power purchase agreements, backed by customers with a high weighted average FICO score of 756 [1].
According to Sunrun’s Chief Financial Officer, Danny Abajian, this deal marks the company’s 17th securitization since 2015 and its second transaction of 2026 [1]. The company utilizes a “no-upfront-cost subscription model” to deliver home energy systems, creating a recurring revenue stream that can be bundled into investment-grade financial instruments [1].
Improved Financial Terms and Structure
The financial structure of the securitization features Class A notes totaling $267 million, which carry a 6.28% coupon and a 6.33% yield [1]. These Class A notes have an expected weighted average life of 4.94 years and represent a 74.2% advance rate on the Adjusted Portfolio Aggregate Scheduled Balance (ADSAB), calculated using a 7.5% discount rate [1]. Meanwhile, the Class B notes associated with the transaction are being retained by Sunrun [1].
Notably, the Class A notes priced at a 200 basis point credit spread [1]. According to CFO Danny Abajian, this represents a 20 basis point improvement compared to the public Class A-1 Notes issued during Sunrun’s previous securitization in April 2026 [1]. This indicates that the April 2026 securitization priced at a spread of 220 basis points, showcasing increased investor confidence and more favorable borrowing costs for the clean energy provider [1].
Strategic Road Ahead and Closing Timeline
The transaction, structured with BofA Securities serving as the sole structuring agent, is expected to close by the end of August 2026 [1]. Other major financial institutions involved include Citigroup, Morgan Stanley, and RBC Capital Markets acting as joint bookrunners, alongside KeyBanc Capital Markets and First Citizens Capital Securities as co-managers [1]. The transaction defines an Optional Redemption Date of July 30, 2035, and establishes a final maturity date of January 30, 2054 [1].
Looking ahead, Sunrun plans to secure additional subordinated subsidiary-level non-recourse financing, which is intended to impact the company’s cumulative advance rate [1]. This aligns with Sunrun’s ongoing strategy to maintain access to capital markets at scale and on favorable terms, supporting its long-term capacity to deploy home-to-grid power plants across the United States [1].