Expands multifamily solar projects with three new developers in California
RICHMOND, Calif., Jan. 31, 2023 /PRNewswire/ -- Today, SunPower Corp. (NASDAQ: SPWR), a leading residential solar technology and energy services provider, announced three new customers in its multifamily solar business, underscoring the company's progress toward making it easier for developers to adopt solar while passing along energy savings to tenants. This enables both developers and renters to realize the economic benefits of renewable energy.
Working with SunPower, builders of multifamily residences like apartment buildings can reduce the out-of-pocket expenses typically required to install solar, participate in state and federal incentives such as the Inflation Reduction Act (IRA), and fairly distribute benefits back to residents — all while offsetting up to 100% of the community's estimated electricity consumption. SunPower enables builders to sell energy generated by solar panels back to their tenants at a discounted price compared to local utility rates and collect payments directly with new financing tools alongside specialized billing software. The income generated from the sale of electricity by the building owner can help pay off the solar investment more quickly.
"Families renting in apartments or other multiunit complexes can benefit tremendously from lower electricity bills, especially as utility rates continue to rise," said Matt Brost, Vice President of New Homes Sales at SunPower. "By pioneering a business model that helps multifamily developers adopt solar, we are enabling builders and renters to save with stabilized, affordable energy while also making a positive impact on the environment."
To meet the shrinking supply of affordably priced housing, developers are expected to build 4.3 million new apartment units between now and 2035, according to the National Multifamily Housing Council and National Apartment Association. SunPower aims to help builders lower their operating costs and build more sustainable residences with solar-as-a-service by monetizing the building's electricity usage.
New California multifamily builders offering SunPower solar as an amenity to residents include:
The Grupe Company
SunPower is near completion on a solar installation atop the 248-unit complex, Brix 325 Apartments, in Santa Rosa, California. The switch to solar is expected to save tenants approximately 10% or more compared to sourcing power directly from their local utility. Using SunPower's specialized services and products exclusively for multifamily development, The Grupe Company will include solar credits and electricity costs alongside the tenant's monthly rent. The Brix 325 Apartment complex will be ready to lease by spring 2023.
"Solar provides a hedge against rising electricity costs. By incorporating solar into our homes since 2005, our residents can avoid rising utility rates while doing the right thing for the environment," said Mark Fischer, The Grupe Company President. "We look forward to continuing our relationship with SunPower to help more homeowners and tenants take advantage of affordable, clean energy."
HomeFed Corporation
SunPower is finalizing designs for two apartment buildings in San Diego built by HomeFed Corporation. Once completed, Artisan at The Village of Escaya and Luminary at Cota Vera combined are expected to generate 1.5 million kilowatts (kWh) in the first year, offsetting approximately 1,000 metric tons of carbon with about 2,300 panels. This is projected to increase the total net operating income by $16 million and property value by over $9 million over the lifetime of both systems.
Metonic Real Estate Solutions
SunPower recently signed a new agreement with Metonic to power Millennium Apartments, a low-rise community in Palm Desert, California. This project will include approximately 2,200 solar panels, 18 solar carports, and dozens of EV charging stations that could act as an extra source of revenue for the developer. This 330-unit apartment home community will help support the increasing demand for housing in and around Coachella Valley.
"Being able to bring solar sustainability and luxury design to a growing Palm Desert sub-market is very exciting for our company and stakeholders, allowing us to better support the mixed-income community in this area," said Kassie Inness, President of Metonic Real Estate Solutions. "Working hand-in-hand with SunPower to create a flexible financing solution, we turned standard energy efficiency upgrades into attractive, revenue-generating assets that make economic sense for our residents and investors."
SunPower can also help builders leverage available federal and state incentives for improving energy and climate resilience in multifamily construction, including the Investment Tax Credit (ITC) and New Energy Efficient Home credit under the IRA. The additional savings can make it more affordable for builders and owners to add solar and storage to rental properties that helps provide relief to over a third of American homes from rising electricity bills.
To learn more about how SunPower is powering apartment complexes with solar, visit: https://us.sunpower.com/home-builders/multifamily.
About SunPower
SunPower (NASDAQ: SPWR) is a leading solar, storage and energy services provider in North America. SunPower offers the only solar + storage solution designed and warranted by one company that gives customers control over electricity consumption and resiliency during power outages while providing cost savings to homeowners. For more information, visit www.sunpower.com.
SunPower Forward-Looking Statements
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding expected business and project plans, product performance, projected energy output, and cost savings. These forward-looking statements are based on our current assumptions, expectations, and beliefs and involve substantial risks and uncertainties that may cause results to materially differ from those expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, regulatory changes and the availability of economic incentives promoting use of solar energy, and fluctuations or declines in the performance of our solar panels and other products and solutions. A detailed discussion of these factors and other risks that affect our business is included in filings we make with the Securities and Exchange Commission (SEC) from time to time, including our most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Copies of these filings are available online from the SEC or on the SEC Filings section of our Investor Relations website at investors.sunpowercorp.com. All forward-looking statements in this press release are based on information currently available to us, and we assume no obligation to update these forward-looking statements in light of new information or future events.
SOURCE SunPower Corp.
