TIP Solar Raises $179.7 Million in ABS From Residential Solar, PPA Leases

Why It Matters

The securitization provides low‑cost, long‑term capital for residential solar, accelerating deployment and offering investors a stable, ESG‑aligned return stream.

Key Takeaways

• $179.7M ABS issued on 7,812 residential solar leases.
• A‑ tranche rated A‑, B‑ tranche rated BBB‑.
• Advance rates up to 72.6% on class A notes.
• Over‑collateralization provides 19.9% credit cushion.
• Liquidity reserve funds six months of interest.

Pulse Analysis

The $179.7 million asset‑backed security issued by TIP Solar marks a notable expansion of capital markets into residential solar leasing. By pooling 7,812 power‑purchase agreements and leases originated by GoodLeap, the transaction converts long‑term cash flows into tradable debt, offering investors exposure to the rapidly growing rooftop solar segment. Such securitizations lower financing costs for installers and homeowners, while diversifying funding sources beyond traditional project finance. As utility‑scale solar continues to attract large institutional capital, residential‑focused ABS provide a complementary pathway to accelerate clean‑energy adoption across the United States.

The deal is structured with two classes of notes: an A‑ tranche rated A‑ and a B‑ tranche rated BBB‑, each carrying distinct cash‑flow waterfalls. Advance rates of 62.3 % and 72.6 % on the PV 6.0 and PV 7.5 benchmarks give the senior tranche a strong claim on underlying assets, while a 19.9 % over‑collateralization buffer enhances credit protection. A fully funded liquidity reserve covering six months of interest further mitigates short‑term payment risk. Principal amortization runs through March 2033 with a final maturity in March 2056, providing a long‑dated income stream for fixed‑income investors.

Investor appetite for green‑linked securities has surged, and TIP Solar’s issuance demonstrates how residential solar can meet ESG demand while delivering stable returns. The rating agency’s confidence, reflected in the A‑/BBB‑ grades, signals that the underlying lease pool is sufficiently diversified and serviced. Successful closing by the end of March could set a precedent for additional ABS programs, encouraging more lenders to bundle solar leases and PPAs. In the broader market, such financing tools are expected to lower the cost of rooftop solar, expand deployment, and support policy goals aimed at decarbonizing the residential electricity sector.

TIP Solar raises $179.7 million in ABS from residential solar, PPA leases

By Donna M. Mitchell

February 19, 2026 · 4:16 p.m. EST

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![Solar panels are being installed on a shingled roof by workers, a ladder is on the side]

Ungvar for Adobe Stock

A pool of residential solar panel leases and power purchase agreements (PPAs) that GoodLeap originated will collateralize $179.7 million in securitized bonds.

The asset‑backed securities (ABS) are backed by revenue from 7,812 leases associated with PV systems owned by one project company, the Jaguar Solar Owner 2026‑1, according to Kroll Bond Rating Agency (KBRA).

TIP Borrower Holdings is the deal sponsor, with ATLAS SP Securities, an Apollo Global Securities division, as the structuring agent.

TIP Solar ABS, series 2026‑1, will sell the notes through two tranches of class A and class B notes, with the A tranche distributing the bulk of the notes, according to KBRA. Both tranches have an anticipated repayment date of March 2033 and a final maturity date of March 2056, the rating agency said.

Noteholders will be repaid interest sequentially, KBRA explained. Principal payments will be based on the scheduled outstanding note balance for the upcoming payment period and each note class’s outstanding balance, unless an early amortization period or a sequential interest amortization period is in effect.

Also, interest payments on the class B notes might be deferred to allow the interest and principal on the class A notes if a sequential interest amortization period is in effect, the rating agency said.

KBRA intends to assign ratings of A‑ and BBB‑ on classes A and B, respectively.

The notes include advance rates, which are calculated relative to the securitization share of aggregate discounted solar asset balance (ADSAB). The advance rates are 62.3 % and 72.6 % on the PV 6.0 and PV 7.5, respectively, on the class A notes, which account for the bulk of the notes in the deal.

TIP Solar 2026‑1 has several layers of credit protection worked into the deal structure. Credit enhancements on the notes include over‑collateralization representing about 19.9 % as the excess of the securitization share of the ADSAB over the note balance.

The deal is expected to close on March 31, according to Asset Securitization Report’s deal database. The structure also includes a liquidity reserve account, fully funded at closing to six months of interest on the class A and class B notes, KBRA said.

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Donna M. Mitchell

Editor, Financial Planning

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