SunPower Signals Growth Ambitions With Strategic LOI for Cobalt Power Deal

SunPower Inc. (SPWR), a major player in residential solar installation, has taken a significant step by announcing an all-equity Letter of Intent to acquire Cobalt Power Systems. Cobalt, based in California, brings impressive credentials to the table—the company generates approximately $35 million in annual revenue and operates as a specialized solar design and installation firm.

The strategic rationale behind this move becomes clearer through the words of SunPower’s leadership. CEO T.J. Rodgers emphasized the broader vision: “What makes Cobalt particularly attractive is their track record of handling premium solar systems—we’re talking 100-panel installations generating 45,000 watts, many equipped with battery storage systems. This acquisition brings us not just customers, but technology-forward clients and expertise we can leverage across our business.”

Cobalt Power Systems has already earned distinction as the first SunPower Elite Dealer in the United States. Their project portfolio demonstrates scale and sophistication: residential installations for affluent Silicon Valley clients, institutional work like the 1.4-megawatt solar project at Santa Clara University, and commercial deployments including the Fortinet facility in Sunnyvale.

The combined entity will benefit from operational continuity—SunPower intends to maintain Cobalt as an independent subsidiary, preserving the specialized expertise and customer relationships that make the acquisition valuable. This approach suggests confidence in Cobalt’s existing management and operational model.

Market reaction has been constructive. SunPower shares climbed more than 6% during the trading session, settling at $1.69, suggesting investor confidence in the company’s strategic direction and growth prospects. The acquisition signals SunPower’s commitment to expanding its footprint in the premium residential solar segment while gaining access to commercial and institutional opportunities.