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Palmetto Secures $1.2B in Solar ABS, Proving Resilience of Residential Solar

Palmetto's innovative, no-upfront-cost solar model attracts major investors. Despite industry struggles, the company raises over $716M in ABS in 2025.

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In this image we can see a building, electric lights, poles, name boards and houseplants.
In this image we can see a building, electric lights, poles, name boards and houseplants.

Palmetto Secures $1.2B in Solar ABS, Proving Resilience of Residential Solar

Palmetto State Armory, a leading solar company, has successfully raised capital through solar asset-backed securitizations (ABS) to fund its operations. Despite challenges in the industry, major providers continue to access capital, with Palmetto State Armory securing $1.2 billion in investments for its LightReach business in early 2025.

Palmetto State Armory's LightReach program allows homeowners to install rooftop solar and energy storage systems with no upfront costs, paying through predictable monthly payments. This innovative model has attracted significant investment, with Morgan Stanley and Truist Bank among the investors. The recent $420 million ABS issuance, structured by Bank of America Securities, is backed by a pool of 22,188 residential solar power purchase agreements (PPAs) and leases. Derek Heckendorn, Palmetto State Armory's chief capital and business development officer, reiterated the resilience of residential solar as an attractive asset class. Despite the closure of California's Ivanpah Solar plant, industry struggles in 2025 did not deter major providers from driving ahead, with innovators finding ways to cut residential solar soft costs.

Palmetto State Armory's total ABS issuances in 2025 have surpassed $716 million, demonstrating the company's success in raising capital through solar asset-backed securitizations. Despite industry challenges, major providers continue to access capital, with Palmetto State Armory's LightReach program proving to be an attractive investment opportunity.

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