SunPower eyes Silicon Valley expansion with Cobalt Power Systems deal

SunPower (NASDAQ:SPWR) is set to bolster its presence in the lucrative Northern California market through the acquisition of Cobalt Power Systems, a veteran installer known for high-end residential and commercial solar projects.

The all-equity transaction, announced Friday, marks the third major acquisition for the "new" SunPower since its restructuring under Complete Solaria.

Cobalt Power Systems brings 23 years of operational history and an estimated $35 million in annual revenue to the SunPower portfolio.

Headquartered in Mountain View, Cobalt has built a reputation as a "Silicon Valley favorite," specializing in large-scale residential systems and complex commercial installations.

Key projects currently in Cobalt's pipeline include a 1.4 MW installation at Santa Clara University and a high-profile commercial array at the Fortinet building.

SunPower CEO T.J. Rodgers noted that Cobalt will operate as a standalone subsidiary, maintaining its established brand identity while benefiting from SunPower’s broader sales reach and streamlined corporate resources.

The move follows SunPower’s late-2025 acquisitions of Sunder Energy and Ambia Solar, which significantly expanded the company's sales force and geographic footprint.

By acquiring Cobalt, SunPower gains approximately 96 experienced employees and deeper expertise in the "Tier-1" installation market, which is increasingly focused on high-margin solar-plus-storage solutions under California’s NEM 3.0 billing structure.

The transaction is expected to be accretive as SunPower works toward its goal of sustained profitability in 2026.