SunPower and First Solar to collectively sell yieldco

Facebook
Twitter
LinkedIn
Reddit
Email
US-headquartered PV manufacturers SunPower and First Solar are expected to collectively sell their stakes in their joint venture yieldco, 8point3 Energy Partners. Image: SunPower

US-headquartered PV manufacturers SunPower and First Solar are expected to collectively sell their stakes in their joint venture yieldco, 8point3 Energy Partners.

Initially, First Solar had announced plans to sell its stake in the yieldco in May, 2017 as it sought to recoup its investment and boost its balance sheet during the time of heavy capital expenditure requirements with the manufacturing migration from its Series 4 CdTe thin-film modules to its large-area Series 6 module format. 

During SunPower’s second quarter earnings call, management noted that its own assessment of attracting a new investor to replace First Solar had led to the realization that the demand from potential investors centred on purchasing the yieldco in its entirety. 

Thomas H. Werner, CEO of SunPower said, “So the feedback from the market, and again, this is SunPower as a sponsor or an investor talking, not 8point3 talking. But the feedback from the market overwhelmingly was to buy out SunPower and First Solar or buy out the whole company, not to replace First Solar. And based on the feedback from the market, we've decided to take that option off the table and no longer seek a replacement partner for First Solar. And that's just simply based on the feedback that we've received.”

SunPower also highlighted its strategy to return to profitability in 2018 through becoming a more streamlined business and have less complex accounting with greater transparency would benefit by selling the yieldco. The sale of 8point3 would also mean the company could retire a convertible bond due in 2018, limiting shareholder dilution.

The company has a convertible bond of US$300.0 million, due June 1, 2018, which parent company Total holds US$200 million. SunPower noted in financial filings that it would find it difficult to retire the bond, due to lack of liquidity. 

The company also noted that it was looking at selling the majority of its residential rooftop solar leases (400MW) as part of that strategy. 

15 September 2022
Bifacial PV modules will be the dominant solar PV technology globally within one or two years; in the utility-scale sector, their market share is already above 70%. This webinar will provide a clear view on the successful implementation of bifacial technology, maximizing system performance and minimising LCoE.

Read Next

August 11, 2022
Finlay Colville, Solar Media's head of market research, lays out the UK's path to achieving 40GW+ of solar PV by 2030 after rebounding from recent headwinds in its solar sector
August 10, 2022
OMERS Private Equity has acquired a minority stake in the Arizona-headquartered solar operations & maintenance (O&M) provider NovaSource Power Services.
August 9, 2022
The Public Service Commission of the District of Columbia (DCPSC) has approved a 15-year power purchase agreement (PPA) with renewables developer Invenergy for 73MW of solar power to meet a 5% renewables target for district’s default electricity supply.
August 8, 2022
India deployed 8,359MW of solar PV in the first half of the year, marking a significant increase of 71% compared to the same period last year
August 8, 2022
Energy technology company AES Corporation is still on track to reach its target of 4.5-5.5GW in long-term renewables and energy storage contracts in 2022, having already signed 1,618MW in the year to date, according the firm’s Q2 financial report.
August 3, 2022
Tata Power subsidiary Tata Power Green Energy has commissioned a 225MW hybrid wind and solar project in the Indian solar hotbed state of Rajasthan.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
September 7, 2022
15:30 AEST (UTC +10)
Solar Media Events
September 14, 2022
London
Solar Media Events
October 4, 2022
New York, USA
Solar Media Events
October 11, 2022
Virtual event