SunPower Signs LOI to Acquire Cobalt Power Systems in All-Equity Deal

SunPower Inc., a solar technology, services, and installation company, has signed a letter of intent (LOI) to acquire Cobalt Power Systems in an all-equity transaction, the company announced on January 16, 2026. Cobalt Power Systems is headquartered in Mountain View, California, and reported revenues of approximately $35 million with a workforce of 96 employees.

Cobalt is widely known in Silicon Valley for designing and installing large-scale, premium residential solar systems, often featuring 100-panel installations with integrated battery storage. Its headquarters is located close to key historic landmarks of Silicon Valley, including the Shockley Semiconductor Building and the Hewlett-Packard garage in Palo Alto.

Commenting on the announcement, SunPower CEO T.J. Rodgers highlighted Cobalt’s strong reputation and technical expertise. He said the acquisition would help SunPower strengthen its access to technology-driven customers and advanced solar system designs, which he described as “the future of solar.”

Cobalt CEO John Paul Bergh said the company brings over 23 years of operating history to the transaction. He noted that Cobalt was the first SunPower Elite Dealer in the United States and has received multiple SunPower Excellence Awards for customer service. While the company initially focused on premium residential installations, it has expanded into larger projects for educational institutions and commercial clients. Current projects include a 1.4-megawatt installation at Santa Clara University and a landmark commercial installation at the Fortinet building in Sunnyvale, which was the first to use SunPower’s Monolith panels manufactured by REC.

Rodgers said SunPower plans to operate Cobalt as a standalone subsidiary, citing its distinct business model and the company’s ongoing integration of other recent acquisitions. As a subsidiary, Cobalt is expected to benefit from SunPower’s larger sales network, streamlined corporate functions, and equity-based incentives for employees.

The proposed acquisition remains subject to definitive agreements and customary closing conditions.