US solar installer SunPower is exploring alternatives for its commercial and industrial solutions (CIS) unit as it increases its residential footprint through the acquisition of Blue Raven Solar.
SunPower said the restructuring, which could result in the sale of CIS, would allow the unit to better take advantage of opportunities such as community solar, front-of-meter storage and infrastructure legislation tailwinds while optimising capital deployment for the company’s residential and light commercial (RLC) business.
“SunPower is doubling down on residential growth,” said CEO Peter Faricy. “By investing in residential market expansion and technology innovation, we can put solar on more homes and provide customers with an incredible experience when they choose renewable energy.”
The company said in an update today (Tuesday) that its Q3 key guidance metrics are projected to be below the low end of the prior guidance ranges, primarily due to CIS project schedule delays and costs as well as the performance of its light commercial business.
Publishing its second-quarter results last month, SunPower had forecasted Q3 revenues to be within the range of US$325 million and US$375 million and adjusted EBITDA between US$21 million and US$31 million.
The CIS division increased installs by around 30% year-on-year in Q2, bringing the unit’s total installed base up to 1GW, while its backlog was more than 260MW at the end of the quarter.
Blue Raven deal expanding SunPower’s footprint
SunPower is paying up to US$165 million to acquire residential solar provider Blue Raven, a transaction it says will allow it to serve more customers in the US Northwest and Mid-Atlantic regions.
The company touted the complementary geographic footprint of the two businesses, with Blue Raven currently conducting more than 90% of its volume in 14 US states that account for only about 5% of SunPower’s sales.
Founded in 2014, Utah-headquartered Blue Raven has achieved a 93% revenue compound annual growth rate with a direct-to-consumer sales and installation model. In the last year, the company posted revenue of US$136 million and deployed 40MW of solar.
Blue Raven CEO Ben Peterson, who will join SunPower’s executive team, said the transaction is a “clear win” for both companies, adding: “Together we will provide even more compelling reasons for homeowners to make the switch to clean, renewable energy.”