We are almost into February and the growth of the SPAC (special purpose acquisition company) route to taking fintech companies public shows no sign of abating. On Monday, Jan. 25, Sunlight Financial, a point-of-sale lender for residential solar systems, merged with Apollo-backed blank-check company Spartan Acquisition Corp., taking the business public. The transaction was bolstered by a $250M investment with participation from SPAC investor Chamath Palihapitiya, Coatue, and BlackRock, among others. The deal values Sunlight at $1.3B.

Why should we care?
Sunlight Financial boasts instant credit decisions and affordable solar loans to homeowners nationwide. For investors making bets on it – including Palihapitiya – Sunlight Financial is a key to unlocking the benefits of residential solar power and could help drive the shift to clean energy. Sunlight has funded over $3.5B of loans through its proprietary technology. Its story is a testament to the growth of ESG (environmental, social, and governance) principles in financial services, as it has facilitated financing for an estimated 100,000 residential solar systems, which will produce over 500 megawatts of solar-generated electricity and avoid more than 10 million metric tons of carbon dioxide emissions. Let’s hope this is the boost that this movement needs as policymakers usher in a transition to green energy sources.