U.S. Solar Loan ABS Index: March 2025

Monthly Overview

Remittance reports in March showed a reversal of recent credit performance deterioration for the aggregated ABS pool. Month-over-month (MoM) net losses in KBRA’s Solar Loan ABS Index improved by 53 basis points (bps), landing at 2.54%. Similarly, late-stage (60-120 days) and early-stage (30-59 days) delinquency rates fell 9 bps and 3 bps MoM, respectively.

Meanwhile, on a year-over-year (YoY) basis, the index metrics remain elevated, even with the recent improvement MoM. Net losses are up 34 bps YoY, while early- and late-stage delinquencies have risen by 20 bps and 23 bps, respectively (see Figure 1 and Figure 2).

Current index values, as well as MoM and YoY changes, are shown in the following table.

The significant drop in annualized net losses MoM can be partially attributed to a few deals returning to their typical performance range after exhibiting irregularly poor performance last month.

The data shown in this report and other index metrics can be found