SunPower's Strategic Move: All-Stock LOI Agreement To Bring Cobalt Power Into Fold

SunPower Inc. (SPWR), a leading residential solar services provider, has moved forward with its expansion strategy by announcing an all-equity letter of intent (LOI) to acquire Cobalt Power Systems. The California-based solar design and installation specialist brings approximately $35 million in annual revenue to the table, alongside a client portfolio that includes some of Silicon Valley’s most prominent names.

Strategic Acquisition Through LOI Framework

The LOI structure signals SunPower’s confidence in this expansion path. According to SunPower CEO T.J. Rodgers, the acquisition targets not just market share but innovation potential. “This opportunity allows us to integrate a company that has built deep expertise in high-end solar system design and installation. We’re talking about premium installations—systems reaching 45,000 watts with up to 20 battery units—for some of the region’s most demanding clients. What makes this particularly valuable is gaining access to technology-forward customers who represent solar’s future trajectory.”

Cobalt’s Track Record And Market Position

Cobalt Power Systems has established itself as the first SunPower Elite Dealer in the United States, a designation reflecting its technical excellence. The company’s portfolio spans multiple sectors: it handles premium residential projects, manages large-scale institutional work including Santa Clara University’s 1.4-megawatt installation, and serves commercial clients such as Fortinet’s Sunnyvale headquarters.

CEO John Paul Bergh emphasized Cobalt’s specialized positioning within the market, which focuses on delivering complex, high-performance solar solutions rather than mass-market installations.

Operational Structure And Market Response

Following the LOI announcement, SunPower intends to maintain Cobalt Power Systems as an independent operating subsidiary, preserving the company’s specialized brand identity and client relationships. Market sentiment reflected confidence in the strategic rationale, with SunPower shares climbing more than 6% to reach $1.69 by Thursday’s close.

The move represents SunPower’s broader strategy to consolidate premium solar service capabilities and expand its footprint in high-value residential and commercial segments.