First Solar, SunPower in Talks for Joint YieldCo

By Josh Beckerman 

First Solar Inc. and SunPower Corp. are in talks to form a joint "YieldCo," an entity that provides power under long-term contracts and pays out much of its cash flow to shareholders.

The two solar-products companies have separately made statements in the past about possible formation of YieldCos. Rival SunEdison Inc. spun off its own YieldCo, TerraForm Power Inc., which had strong demand when it went public in July.

In late trading, First Solar shares were up 10% and SunPower rose 12%.

First Solar Chief Executive Jim Hughes said in November that the company was "not prepared" to "pursue a listed yield vehicle at this time."

NRG Energy Inc. was an early player in the YieldCo trend, spinning off a mix of conventional power plants and wind and solar farms as NRG Yield Inc.

Write to Josh Beckerman at [e-mail]

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