Sunrun Inc., the rooftop-solar installer that tumbled Friday amid concerns about exposure to Silicon Valley Bank, is now able to tap its funds at the failed lender and said it has no issues accessing capital.
(Bloomberg) — Sunrun Inc., the rooftop-solar installer that tumbled Friday amid concerns about exposure to Silicon Valley Bank, is now able to tap its funds at the failed lender and said it has no issues accessing capital.
The company was able to access its $80 million in deposits at SVB Monday morning after federal financial regulators stepped in, according to Chief Executive Officer Mary Powell. The company had $953 million in cash at the end of 2022.
“We have really good access to capital,” Powell said in an interview at Bloomberg’s bureau in San Francisco. Other financial institutions reached out to offer their services after SVB’s collapse.
The shares gained 2.6% Monday after falling 12% Friday. They were up 0.2% at 11:17 a.m. in New York.
SVB’s collapse poses a new threat to the residential-solar industry, which is already grappling with the impact of higher interest rates. The suddenly turbulent banking market may prompt some lenders to pull back from financing home systems. Even if that’s just temporary, it would likely increase the cost of debt and potentially erode the edge rooftop companies have gained over utilities, which have sharply increased power bills in recent months.
Read more: What Silicon Valley Bank’s Collapse Means for Climate Tech
SVB was an important partner for Sunrun. “By 2020, SVB had provided nearly $240 million of financing across five Sunrun debt transactions,” according to an SVB web page touting its relationship with Sunrun.
Powell said she wouldn’t be surprised to see market choppiness for the next four to six weeks following the “shock wave” caused by SVB’s quick descent. Despite the short-term market turmoil, she said Sunrun’s solar and battery systems offer savings to utility customers who are facing rising energy bills.
–With assistance from David R. Baker.
(Updates share prices in fourth paragraph)
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