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SunPower's Commercial & Industrial Solar Business Set to be Acquired by Total-Energies

total energies Clean Energy Group

Climate change and the fast running out of fuels across the globe keep the threat of non-renewable fuel monopolies ever-looming, to the global energy commercial outlook. However, the gains made by sustainable energy in the last ten years present a positive picture of power.

SunPower, TotalEnergies, announced that it would acquire SunPower Corp’s “Commercial and Industrial Solutions”

In February, a significant shareholder of SunPower, TotalEnergies, announced that it would acquire SunPower Corp’s “Commercial and Industrial Solutions” (CIS) business setup in 2022. The deal was finalized when both parties signed an agreement valued the business at $250 million. The final figure includes earnouts to the tune of $60 million, but this aspect of the deal is subject to regulatory developments.

SunPower is a US company leading provider of solar technology and energy services. This acquisition is a step towards expanding the “solar energy” footprint of the “TotalEnergies” generation distribution business worldwide. Currently, “TotalEnergies” accounts for around 500 MW globally, and this agreement allows the company to enter the United States and add 100 MW to their capacity network annually. In addition, the project will expand the energy portfolio of “TotalEnergies” and create a beneficial environment for diverse energy solutions and new avenues for financing capabilities for B2B consumers.

What does the future hold for SunPower post-acquisition? The company announced before the deal with “TotalEnergies” that they will now be focusing on their residential business, focusing more on exploring innovation, development of customer-friendly products, services, and their CIS business. From the looks of it, the acquisition fits in well with both companies’ respective strategies and supports the long term commercial interests of their consumers as well. According to “TotalEnergies”, the move to acquire SunPower distribution generation capacity within the US will support the company’s sustainable development goals whereby they are set to meet the milestone of four GW of solar capacity by 2025. The arrangement will also help sun power focus more on their thriving residential market.

After lengthy negotiations discussions and some unanimous recommendations of a special committee of sun powers independent directors, the acquisition was approved, and this does not affect the total energy majority ownership stake in SunPower.

“TotalEnergies” is a global mammoth in the energy market with stakes in oil and biofuels, when new bills and electricity, natural gas and green gases. What sets the company apart is the core focus on sustainability at the heart of all its operations and various projects. TotalEnergies has a presence in over 130 states and is considered one of the world’s most affordable, accessible, and clean energy providers. The developmental side of the company has always prioritized consumer well-being. The company started its operations in the US in 1957 and remained an active player in the energy market, identifying the evolving needs of the times. “TotalEnergies” target is to tap into the offshore wind energy market; there is great potential off the West Coast of the US, and the company just landed an opportunity to take part in New York’s “Bight Offshore Wind Energy Auction”. Multiple ventures of the global player are joint. To fulfil its mission to get to zero net carbon emissions by 2050, the portfolio of “TotalEnergies” reads like a sustainability manual; core projects are in renewables and electricity. The company is ambitious and has long-term goals of becoming one of the top five providers of sustainably produced electricity from wind and solar energy.

In 2021 the company had a total capacity of 10GW and was hopeful for more; it aims to hit 35 GW by the end of 2025 and 100 GW by the end of 2030. So SunPower’s move will benefit the future of sustainable energy and the plans of “TotalEnergies”.