SFA Research Corner: Walking on Sunshine: Using ABS to Fund Residential Solar Installations

In the first half of 2024, over $3.3 billion in residential solar asset-backed securities (ABS) were issued across 11 deals, averaging $298 million per deal. This figure is just 25% shy of the $4.3 billion issued in 2023, with repeat issuers like Sunrun, Sunnova, and Solar Mosaic making up 77% of this year’s offerings. The residential solar ABS market continues to grow, driven by favorable tax incentives and rising demand for solar energy, and securitization remains a crucial funding source for this expansion.