ConnectM Technology Solutions, Inc. has acquired a 40% equity stake in Sun Solar LLC, a U.S.-based residential and small-commercial solar developer and installer, as part of a move to strengthen its balance sheet and expand its footprint in the distributed energy market.
In a statement, ConnectM said the transaction is expected to increase stockholders’ equity by at least $6.5 million, lifting total equity to more than $9 million. This marks a sharp turnaround from the roughly $50 million stockholders’ deficit reported by the company in July 2024.
Under the deal, Sun Solar will play a central role in ConnectM’s virtual power plant (VPP) deployment strategy. Keen Labs Operations, Inc., ConnectM’s innovation and technology arm, will enter into a VPP kit supply agreement with Sun Solar covering solar panels, batteries, and balance-of-system components. The agreement is expected to generate incremental revenue for Keen Labs as it scales its AI-driven Energy Intelligence Network (EIN) across Sun Solar’s growing installation base.
Operationally, ConnectM plans to consolidate its solar activities under Sun Solar, rebranding the combined regional platform as “Sun Solar Northeast.” Additional capital will be deployed to accelerate solar-plus-storage installations across the U.S. Northeast corridor.
ConnectM Chairman and Chief Executive Officer Bhaskar Panigrahi described Sun Solar as a “best-in-class platform” with strong brand recognition and operational discipline. He said the partnership strengthens ConnectM’s financial position while providing Keen Labs with a scaled channel for its AI-enabled VPP solutions, supporting the delivery of energy savings, reliability, and resilience for customers.
John Pitcavage, President of Home & Building Electrification at ConnectM, said the integration of Sun Solar’s go-to-market capabilities with Keen Labs’ technology platform is expected to standardize system design, shorten project timelines, improve storage attachment rates, and enable long-term, software-driven customer relationships.
ConnectM said the acquisition provides immediate operational scale through Sun Solar’s established platform, which offers predictable cash flows, standardized processes, and a track record of profitable growth. The company highlighted the strategic fit between Sun Solar’s field operations and Keen Labs’ AI models, telemetry, and modular VPP kits, creating a unified solution for system design, installation, monitoring, and grid dispatch.
The combined platform is also expected to support cross-selling opportunities, including energy storage, load control, and grid services, while enabling data-driven customer upselling throughout the asset lifecycle. Centralizing regional operations under the Sun Solar Northeast banner is expected to improve procurement efficiency, working-capital management, and margins as the business mix shifts toward software and recurring services.
Sun Solar Founder and Chief Executive Officer Caleb Arthur said the partnership will allow the company to scale while maintaining its focus on quality and customer service. Arthur will remain actively involved in operations, quality control, and expansion into new regions.
ConnectM said the acquisition aligns with its broader strategy of building a technology-driven portfolio serving the modern energy economy, spanning electrification, distributed energy, logistics, and industrial IoT solutions through its operating businesses and Keen Labs subsidiary.
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