#United States #Charlotte, N.C. #Clean Technology #Palmetto #solar financing

Palmetto's $420 Million Securitization: A Boost for Clean Energy

Palmetto, a prominent name in clean technology, has announced the completion of its second asset-backed securitization (ABS) for this year, successfully raising $420 million. This groundbreaking transaction, tied to 22,188 residential solar power purchase agreements (PPAs) and leases, signifies a progressive stride in the realm of residential solar financing.

The recent ABS issue is noteworthy, particularly as it follows an earlier issuance valued at approximately $286 million that closed on April 15, 2025. Together, these financial maneuvers reflect Palmetto's robust approach toward accessing capital markets effectively, highlighting its commitment to expanding the reach of affordable clean energy solutions across homeowners in the United States.

The Significance of the Securitization

As detailed by Chris Kemper, founder and CEO of Palmetto, many U.S. homeowners are actively seeking energy solutions that offer cost stability, resilience, and sustainability. The intersection of rooftop solar energy, battery storage, electric vehicle (EV) charging, and intelligent load management is central to maximizing savings and efficiency for consumers. The assets included in this recent ABS transaction play a critical role in supporting essential time-of-use and grid-services programs, thus rewarding and benefiting homeowners.

Palmetto’s strategic approach aims to make solar energy adoption more attainable and economically viable. By combining a trusted consumer marketplace with an innovative software-driven origination and servicing platform, the company amplifies its financing capabilities in the clean energy sector. The recent ABS issuance is a testament to the burgeoning potential of residential solar as a mainstream and high-credit-quality asset class, showcasing long-term growth prospects.

Those interested in capital markets should note that the securitization was executed by Bank of America Securities, with prominent players such as Deutsche Bank Securities, Morgan Stanley, and RBC Capital Markets participating as active joint book runners. Additionally, Citigroup and HSBC played roles as passive joint book runners, contributing to the successful closing of this pivotal transaction.

Paving the Way for Future Developments

Derek Heckendorn, Palmetto's Chief Capital Business Development Officer, emphasized the importance of this transaction, reiterating that residential solar remains a resilient asset class that can attract institutional capital. Such access is crucial for amplifying clean energy adoption, bolstering the journey toward a more robust home energy ecosystem.

As Palmetto positions itself as a leader in the clean tech landscape, its foresight in harnessing diverse financing approaches continues to set it apart. The company seeks to provide comprehensive solutions tailored to the energy needs of homeowners, helping them navigate the transition towards cleaner energy sources.

About Palmetto

Palmetto isn’t just about enabling solar energy; it’s about revolutionizing how homeowners perceive and interact with clean technology. The company is dedicated to simplifying the renewable energy adoption process through a sophisticated technology platform, fostering innovation, and facilitating scalability to achieve a significant positive impact on the environment.

Interestingly, Palmetto also operates a Get Solar, Give Solar initiative, underscoring its commitment to social responsibility by funding clean energy projects for underserved communities globally. This effort encapsulates their triple bottom line approach, combining people, planet, and profit within their operational ethos, ensuring they leave a positive impression in every sector they engage.

With an expanding range of services like the LightReach financing and asset management platform, alongside solid support plans for solar projects, HVAC, and energy backup solutions, Palmetto is charting pathways toward making clean energy equivalent to mainstream residential living. As the discourse around energy transitions shifts, Palmetto stands firm, ready to lead the next generation of clean tech innovations.