SunPower Targets High-End Solar with Cobalt Power Systems Acquisition

OREM, Utah – January 16, 2026 – SunPower Inc. (NASDAQ: SPWR) today announced a significant strategic move to capture the premium solar market, signing a non-binding letter of intent (LOI) for an all-equity acquisition of Cobalt Power Systems. The deal brings the highly respected Silicon Valley-based installer, with its $35 million in annual revenue and deep expertise in complex, high-value projects, into the fold of one of North America's largest residential solar providers.

This potential acquisition signals SunPower's focused effort to expand beyond its traditional residential services and dominate the technologically advanced, high-margin segment of the solar industry. Cobalt Power Systems, a 23-year-old company based in Mountain View, California, has built a sterling reputation for designing and installing large-scale solar solutions for an elite clientele.

A Strategic Play for the Premium Market

The acquisition is a calculated move to integrate Cobalt's specialized knowledge and prestigious customer base. Cobalt is renowned for its work with affluent clients, including what SunPower CEO T.J. Rodgers described as "Silicon Valley moguls," for whom the company has designed systems with over 100 panels and 20 batteries. This niche expertise in high-end residential and complex commercial projects represents a significant growth opportunity for SunPower.

"My personal big win here is to acquire a company that will bring to us technology and technology-savvy customers, the future of solar,” Rodgers stated, highlighting the strategic value beyond immediate revenue.

Cobalt's portfolio extends beyond luxury homes. The company is currently engaged in a 1.4-megawatt project at Santa Clara University and recently completed a landmark installation at the Fortinet building in Sunnyvale, which was the first project to feature SunPower's new Monolith panel. These projects underscore Cobalt's capability to handle large-scale commercial and institutional jobs, a sector where technical proficiency and reliability are paramount.

John Paul Bergh, CEO of Cobalt Power Systems, emphasized the long-standing and successful relationship between the two companies. “Cobalt has 23 years of operating history, was the first SunPower Elite Dealer in the U.S., and received multiple SunPower Excellence Awards for customer service,” said Bergh. “We started by deploying SunPower technology in premium residential properties, and are now expanding into bigger jobs.”

SunPower's Aggressive Consolidation Continues

This move is the latest in a series of aggressive acquisitions by the newly reshaped SunPower. The company itself is a product of recent industry consolidation, having been rebranded in April 2025 after Complete Solaria acquired key assets—including the SunPower brand name and its non-installing dealer network—from the original SunPower Corporation following its Chapter 11 bankruptcy filing in 2024.

Under the leadership of CEO T.J. Rodgers, the revitalized SunPower has pursued a rapid growth-by-acquisition strategy to solidify its market position. In September 2025, the company acquired Sunder Energy to nearly double its salesforce and expand its footprint to 45 states. That was followed by the acquisition of Ambia Solar in November 2025, a deal that propelled SunPower to become the fifth-largest residential solar company in the United States.

According to Rodgers, the integration of these companies is well underway, with the Sunder acquisition being 85% complete and Ambia at 40%. The addition of Cobalt fits into this broader strategy of absorbing specialized, high-performing companies to build a national powerhouse in an industry facing a projected 20% contraction in early 2026 before an expected recovery.

An Autonomous Future for a Silicon Valley Pioneer

Despite the acquisition, SunPower plans to preserve the unique identity and operational model that has made Cobalt successful. Rodgers confirmed that Cobalt will be managed as a standalone subsidiary, a decision driven by its distinct business focus on larger, more expensive systems and its remote location.

“Due to that load, and the fact that Cobalt is a remote stand-alone company with a different business model supporting bigger, more expensive systems, we have decided to manage it as a standalone subsidiary company,” Rodgers explained.

This structure aims to provide Cobalt with the best of both worlds. The company and its 96 employees will maintain their operational autonomy while gaining access to SunPower's immense resources. This includes a sales force of over 1,800 professionals, cost efficiencies from centralized corporate functions, and the significant incentive of stock options in a publicly traded company.

Cobalt's history is deeply rooted in the technological cradle of Silicon Valley. Its headquarters is just miles from the historic sites where the transistor was first commercialized and where Hewlett-Packard was born in a garage, a legacy that reflects its own technologically forward approach to solar energy.

Navigating a Non-Binding Path Forward

While both companies have expressed strong optimism, the deal is not yet final. The signed LOI is non-binding, meaning either party can walk away from negotiations. The path to finalization requires clearing several hurdles, including further due diligence by SunPower, the negotiation and execution of a definitive acquisition agreement, and securing approvals from Cobalt and its equity holders.

SunPower's own financial position adds a layer of complexity. While the company has reported impressive revenue growth of over 650% in the last twelve months, fueled by its recent acquisitions, it also faces challenges, including negative operating margins. Successfully integrating Cobalt and leveraging its high-margin business will be critical for improving SunPower's overall financial health and proving its consolidation strategy to investors.

Should all conditions be met, SunPower and Cobalt expect the transaction to close during the first quarter of 2026. The solar industry will be watching closely as SunPower attempts to integrate this crown jewel of Silicon Valley solar, a move that could significantly reshape the competitive landscape for premium energy solutions in the United States.