• $500 million joint venture targets more than 300 megawatts of distributed capacity across over 40,000 US homes
• Structure lowers cost of capital while allowing Sunrun to retain long-term asset ownership and balance sheet flexibility
• Deal strengthens private capital’s role in grid resilience, residential storage, and US energy transition priorities

A $500 million financing partnership between HA Sustainable Infrastructure Capital and Sunrun is set to accelerate the buildout of residential solar and battery systems across the United States, reflecting growing investor confidence in distributed energy as a core component of grid reliability and climate strategy.

The two companies confirmed the closing of a newly formed joint venture in December 2025 that will finance home-based power plants combining rooftop solar, battery storage, and grid-interactive capabilities. The platform is expected to support more than 300 megawatts of distributed capacity across over 40,000 homes nationwide.

A Capital Structure Designed for Scale

Under the agreement, HASI will invest up to $500 million over an 18 month period into the joint venture, providing structured equity that monetizes a portion of long-term customer cash flows generated by Sunrun’s residential energy assets. Sunrun will retain a significant ownership stake in the projects, preserving long-term value while gaining increased flexibility in how senior project debt is structured.

The partnership will be accounted for as a consolidated entity on Sunrun’s financial statements, underscoring its strategic importance to the company’s growth model.

HASI said the structure is designed to reduce the overall cost of capital while supporting faster deployment of distributed power assets at a time when US electricity demand, grid congestion, and climate-driven disruptions are rising.

“Together, HASI and Sunrun are accelerating the development of essential infrastructure through home-based energy systems that improve grid reliability and address growing power demand,” said Marc Pangburn, HASI’s Chief Revenue and Strategy Officer. “This milestone transaction builds on our long-standing relationship, which began in 2018, and reflects Sunrun’s proven track record as an owner and operator of residential home energy assets as well as HASI’s strength in structuring differentiated capital solutions.”

Distributed Energy Moves to the Center of Grid Strategy

Residential solar and storage are increasingly viewed as system-level assets rather than purely consumer technologies. Home power plants can reduce peak demand, support grid stability during outages, and provide flexible capacity as extreme weather events strain centralized infrastructure.

The scale of the HASI Sunrun joint venture reflects this shift. By aggregating tens of thousands of distributed systems, the platform supports a model where homes function as networked energy resources, aligned with broader utility and state grid planning objectives.

RELATED ARTICLE: KKR, HASI Add $1 Billion To Scale US Sustainable Infrastructure Platform

For policymakers and regulators, the deal highlights the role of private capital in advancing US energy security goals without relying solely on large-scale generation or transmission buildouts. Distributed assets can often be deployed faster, closer to load centers, and with fewer permitting constraints.

Financial Innovation in Residential Energy

Sunrun characterized the transaction as a first-of-its-kind financing structure for residential solar and storage, signaling continued innovation in how distributed assets are funded as the sector matures.

“This innovative financing structure with HASI is a first-of-a-kind for residential storage and solar financing,” said Danny Abajian, Sunrun’s Chief Financial Officer. “We appreciate the collaboration with the HASI team and continued innovation to unlock additional value for both companies along with our customers across the country.”

Abajian emphasized that the structure is expected to deliver aggregate proceeds that match or exceed traditional financing approaches while supporting Sunrun’s strategy of working with a diverse group of capital providers.

“This partnership provides for an efficient capital structure, which we anticipate will allow aggregate proceeds that are equal to or better than Sunrun’s traditional financing arrangements,” he said. “This structure is consistent with our strategy to utilize various structures and a diverse set of capital providers to finance our growth.”

What Executives and Investors Should Take Away

For C suite leaders and infrastructure investors, the transaction offers a clear signal that residential distributed energy has reached a level of scale and predictability attractive to long-term capital. Structured equity tied to customer cash flows is emerging as a viable tool to fund climate-aligned infrastructure while managing risk.

The joint venture also reinforces the strategic value of partnerships between asset operators and specialized sustainable finance firms, particularly as energy transition investments increasingly intersect with grid reliability, resilience, and national energy priorities.

As the US power system evolves, deals like this one position distributed home energy not as a niche solution, but as a foundational layer of the modern grid with implications far beyond individual rooftops.

Follow ESG News on LinkedIn