A U.S.-based solar panel maker, SunPower Corp., has announced a strategic partnership of $1 billion (~₹74.97 billion) with Technology Credit Union (Tech CU), one of the leading credit unions in California.

The new partnership is expected to increase financing options for U.S. residential solar customers and give SunPower the much-needed access to capital for its loan program.

The partnership is expected to reduce SunPower’s operating costs through low per watt financing fees. It is also expected to streamline the loan application and contract signing process for the customers. The platform will give the customers the freedom to compare cash, lease, or loan acquisition options all at the same time.

Recently, in a move to tackle the unprecedented economic crisis caused by the ensuing COVID-19 pandemic, SunPower Corp decided to stop production in its factories across five countries temporarily. The company, which is one of the leading manufacturers of solar modules, stopped production in its facilities in France, Malaysia, Mexico, the Philippines, and the United States. Apart from stalling the production, the California-based company also reduced the pay of its senior executives for the second time in a week. The company has also asked some of its employees for a four-day week. In addition to this, the company’s $55 million credit revolver remains undrawn, and the company anticipates that its existing tax equity and debt capacity is sufficient to fund all projects throughout the remainder of 2020.

Previously, Mercom had reported that Enphase Energy and SunPower Corporation had announced the signing of a definitive agreement under which Enphase would acquire SunPower’s microinverter business.

Mercom Capital Group recently released its  Q1 2020 Solar Funding and M&A Report which revealed that the total corporate funding in the global solar sector, which includes venture capital funding, public market, and debt financing has plummeted by 31% at $1.9 billion (~₹143.4 billion) in Q1 2020 as compared $2.8 billion (~₹211.35 billion) raised in Q1 of 2019. The report attributed this downturn in funding activity to lower venture capital and public market financing as the COVID-19 pandemic has affected people and industries across the globe.