SUNation Energy, a provider of residential and commercial solar energy systems and battery storage solutions, has signed a definitive reverse merger agreement with Suniva, a U.S.-based manufacturer of monocrystalline silicon solar cells.

Under the agreement, SUNation Merger Sub, a wholly owned subsidiary of SUNation, will merge with and into Suniva, with Suniva continuing as a wholly owned subsidiary of SUNation. The combined company is expected to operate under the Suniva name and continue SUNation’s listing on the Nasdaq Capital Market.

Based on the merger consideration formula in the agreement, pre-merger Suniva stockholders are expected to own about 98.2% of the combined company after closing. Pre-merger SUNation stockholders are expected to own about 1.8%, subject to adjustment for SUNation’s net cash at closing.

SUNation said its pre-merger stockholders are expected to own equity with an implied value of about $2.26 per share.

“By bringing together Suniva’s U.S.-based solar cell manufacturing footprint with our high-growth residential, commercial, and service businesses in some of the highest electricity-cost markets in the country, we believe we can deliver a unique domestic content offering for customers. SUNation’s residential and commercial capabilities, along with deep relationships with other leading installers across the country, should support Suniva and its module partners in accelerating American solar’s transition to a domestic supply chain,” said Scott Maskin, Chief Executive Officer of SUNation.

The merger is intended to combine Suniva’s solar cell manufacturing business with SUNation’s downstream business.

Suniva operates a 1 GW nameplate solar cell manufacturing facility in Georgia and is also planning to add 4.5 GW of capacity in Laurens County, South Carolina.

The transaction has been approved by the boards of both companies and is expected to close in the second half of 2026. Following the closing, the combined company’s board of directors is expected to consist of five members, all of whom will be designated by Suniva.

According to Mercom’s recently released Q1 2026 Solar Funding and M&A report, Corporate M&A activity in the solar sector was 47% higher YoY in the first quarter of 2026, with 28 corporate M&A transactions compared to 19 in Q1 2025.

In 2026, Swift Solar, a company that designs and manufactures Perovskite-based photovoltaic cells, acquired the core manufacturing assets and intellectual property (IP) of Meyer Burger, a manufacturer of solar cells and modules.