SunPower Gets $190M in Program Financing

SunPower Corp. has secured $190 million in financing from Morgan Stanley to fund solar-power installations for commercial and public agencies under its SunPower Access program, the company said Wednesday.

The Access program allows entities to purchase solar electricity generated by the systems through a long-term agreement instead of purchasing the systems to be installed. The systems have a projected life of more than 25 years, depending on site location and other variables.

Under the terms of the credit facility, Morgan Stanley and SunPower jointly own a holding company that will finance project companies established for individual installations. The project companies will purchase solar systems from SunPower and resell the electricity to customers.

SunPower did not disclose revenue-sharing terms, but said Morgan Stanley will finance up to $190 million and SunPower will finance up to $10 million through the facility.

Hewlett-Packard Co. on Tuesday reported a contract with SunPower to install 5,000 solar panels on its San Diego facilities under the Access program. The panels will provide more than 10 percent of HP's energy use there.

SunPower shares rose $2.95, or 2.8 percent to $108.55 in Wednesday premarket trading.