EnFin by Qcells Closes $325 Million ABS Transaction

EnFin's second ABS Transaction in 2024 signals strong investor interest in the Qcells brand and its in-house residential financing business

IRVINE, Calif., Nov. 21, 2024 /PRNewswire/ -- Qcells, a premier provider of complete clean energy solutions and a leader in the U.S. solar market, today announced EnFin by Qcells (EnFin), its residential solar financing platform, completed its most recent asset-backed securities (ABS) transaction totaling $324.5 million. The transaction comprises bonds backed by thousands of consumer loans used to finance residential solar and battery storage installations. RBC Capital Markets, who led the transaction, acted as the sole structuring advisor and joint bookrunner, with Santander serving as a joint bookrunner and Societe Generale co-managing the deal.

In addition to this transaction, EnFin closed its inaugural ABS transaction in April 2024 for $253 million. The company has also previously closed two revolving warehouse transactions totaling $750 million of committed capacity. The first warehouse was closed with RBC in April 2023 and the second with Santander in January 2024, each for $250 million. The latter warehouse was upsized to $500 million in July 2024 with Societe Generale committing  an additional $250 million.

"With this deal, EnFin continues to generate significant investor demand in the capital markets," said Alex Kaplan, President and CEO of EnFin. "As the only financing platform in the market backed by a major manufacturer, EnFin can offer its homeowner customers reliable, competitive financing for Qcells' high-quality equipment. Our differentiated product mix, intuitive platform interface, and operational and financial stability make EnFin uniquely poised for continued growth in an evolving market."

EnFin, a wholly owned subsidiary of Qcells, began pilot lending operations in the latter half of 2022 and officially launched in January of 2023. Since launch, EnFin has accumulated approximately 22,000 consumer loan contracts with an aggregate principal balance of more than $1 billion. Loans under the EnFin program are made through a partnership with Hatch Bank, whose national lending charter has enabled EnFin to be active in 46 states and the District of Columbia.

EnFin offers a number of advantages to its customers and installer partners that leverage its connection with Qcells. For instance, qualified homeowners can benefit from a 30-year performance warranty option on select Qcells modules when financed with EnFin. Installers can benefit from added rebates by bundling Qcells hardware with EnFin loan financing. Additionally, EnFin enables residential customers to maximize the value from their solar and battery storage installations by connecting them with other Qcells incentive programs through which they can participate in grid services offerings and monetize solar renewable energy credits (SRECs) produced by their systems. 

Providing competitive financing for solar and battery storage systems is part of Qcells' long-term strategy to become a one-stop shop that offers a full suite of clean energy solutions to the market. In pursuit of this goal, in January 2024 EnFin launched a third-party ownership (TPO) financing offering which provides power purchase agreement (PPA) and lease options to homeowners who want to use solar energy without purchasing a solar or solar + battery storage system. EnFin's TPO financing platform has achieved scale quickly, with over 10,000 contracts signed across six states through October 2024. EnFin plans to grow and strengthen its installer partner relationships to facilitate further expansion of its TPO footprint in 2025.

With the announcement of this transaction and the previous ABS transaction, EnFin continues to demonstrate the sustainability of its business model through diversified sources of financing and stable, high-quality loan and TPO originations.

About Qcells
Qcells is one of the world's leading clean energy companies, recognized for its established reputation as a manufacturer of high-performance, high-quality solar cells and modules, portfolio of intelligent storage systems, and growing international pipeline of large-scale renewable energy projects. Qcells also provides renewable electricity retail services and packages to end customers across the world. The company is headquartered in Seoul, South Korea (Global Executive HQ) with its diverse international manufacturing facilities in the U.S., Malaysia, and South Korea. Qcells offers Completely Clean Energy through the full spectrum of photovoltaic products, storage solutions, renewable electricity contracting and large-scale solar power plants. Through its growing global business network spanning North America, Europe, Asia, South America, Africa and the Middle East, Qcells provides excellent services and long-term partnerships to its customers in the utility, commercial, governmental and residential markets. For more information, visit: https://qcells.com/us/.

Safe-Harbor Statement

This press release contains forward-looking statements. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates" and similar statements. Among other things, the quotations from management in this press release and Qcells' operations and business outlook, contain forward-looking statements. Such statements involve certain risks and uncertainties that could cause actual results to differ materially from those expressed in or suggested by the forward-looking statements. Except as required by law, Qcells does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE EnFin by Qcells