US headquartered solar power company SunPower Corporation plans to exit its Commercial and Industrial Solutions (CIS) business for which the company is exploring strategic options 'including new ownership'. Instead, it wants to focus its efforts and investments in growing Residential and Light Commercial (RLC) business for which it needs capital.
The management said this cements its alignment with investors that expect more clarity of focus.
"SunPower is doubling down on residential growth. 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. This clarity and focus will enable us to lead the industry and deliver maximum value to our investors, partners and customers," explained company's new CEO Peter Faricy who took over from Tom Werner in April 2021 (see SunPower CEO Tom Werner To Step Down After 18 Years).
Blue Raven acquisition
To grow its clout and geographic footprint in the residential segment, SunPower has acquired residential solar installer Blue Raven whose more than 90% business is focused in 14 US states where SunPower has only about 5% sales share. This creates a 'significant net-new geographic coverage opportunity' for the company including the Northwest and Mid-Atlantic regions with 'minimal market overlap'. The acquisition also adds to the company's dealer network.
SunPower expects Blue Raven's volume to help expand its comprehensive suite of financial products an increase its 2022 loan volume significantly.
Bought for up to $165 million, Blue Raven works on a direct-to-consumer sales and installation model. Solar panel installer Blue Raven's CEO Ben Peterson will now join SunPower's executive team.
Business position
Following its decision to focus on residential solar, SunPower said it will target RLC segment going forward. Its Q4/2021 standalone RLC remains strong, while for Q3/2021 the key guidance metrics are projected to be at the low end of the prior guidance ranges. It would be mainly due to CIS project schedule delays and costs+performance of its light commercial business.
Management added that the company will invest an incremental $30 million to $35 million as product and digital investment opex in 2022. SunVault bookings remain on track for $100 million run rate by 2021-end.
A little background here to reflect on SunPower's efforts to focus its business vision. Back in May 2018, SunPower said it would be exiting utility scale development business and focus on distributed generation and manufacturing. Its utility scale pipeline worth 4.7 GW was acquired by Clearway Energy Group in September 2018 (see Clearway Acquires SunPower's 4.7 GW PV Pipeline).
It followed up with another bifurcation of its business in August 2020 when it created a separate solar manufacturing business in the form of Singapore headquartered Maxeon Solar Technologies (see SunPower Officially Splits Into 2 Companies).