Our Portfolio (Tables)

3 Months Ended

Mar. 31, 2026

Schedule of Analysis of Portfolio Performance Ratings

The following is an analysis of the Performance Ratings of our Portfolio as of March 31, 2026, which is assessed quarterly:


	Portfolio Performance
	1 (1)			2 (2)						3 (3)	Total
	Commercial			Government			Commercial				Commercial
Receivable vintage (4)	(dollars in millions)
2026	$	—		$	—		$	—			$	—		$	—
2025	461			—			35				—			496
2024	18			—			84				—			102
2023	792			—			30				—			822
2022	1,034			—			—				—			1,034
2021	277			—			—				—			277
Prior to 2021	558			30			—				—			588
Total receivables held-for-investment	3,140			30			149				—			3,319
Less: Allowance for loss on receivables	(54)			—			(13)				—			(67)
Net receivables held-for-investment	3,086			30			136				—			3,252
Receivables held-for-sale	33			3			—				—			36
Debt securities and real estate	74			2			—				—			76

Equity method investments (5)	4,228			—			26				—			4,254
Total	$	7,421		$	35		$	162			$	—		$	7,618
Percent of Portfolio	98		%	—		%	2		%		—		%	100		%

(1)This category includes our assets where based on our credit criteria and performance to date we believe that our risk of not receiving our invested capital remains low.

(2)This category includes our assets where based on our credit criteria and performance to date we believe there is a moderate level of risk to not receiving some or all of our invested capital. In the first quarter of 2026, we moved into this category from Category 1 two receivables to the same borrower where the underlying assets are experiencing project-specific technical challenges which are currently in the process of being remediated.

(3)This category includes our assets where based on our credit criteria and performance to date, we believe there is substantial doubt regarding our ability to recover some or all of our invested capital. Receivables or debt securities in this category are placed on non-accrual status.

(4)Receivable vintage refers to the period in which the relevant agreement is signed, and a given vintage may contain advances made in periods subsequent to the period in which the agreement was signed.

(5)Some of the individual projects included in portfolios that make up our equity method investments have government offtakers. As they are part of large portfolios, they are not classified separately.

The following is an analysis of the Performance Ratings of our Portfolio as of December 31, 2025, which is assessed quarterly:


	Portfolio Performance
	1 (1)			2 (2)						3 (3)	Total
	Commercial			Government			Commercial				Commercial
Receivable vintage (4)	(dollars in millions)
2025	$	518		$	—		$	—			$	—		$	518
2024	102			—			—				—			102
2023	904			—			30				—			934
2022	923			—			—				—			923
2021	278			—			—				—			278
Prior to 2021	556			31			—				—			587
Total receivables held-for-investment	3,281			31			30				—			3,342
Less: Allowance for loss on receivables	(58)			—			(4)				—			(62)
Net receivables held-for-investment	3,223			31			26				—			3,280
Receivables held-for-sale	58			56			—				—			114
Debt securities and real estate	74			2			—				—			76

Equity method investments (5)	4,089			—			27				—			4,116
Total	$	7,444		$	89		$	53			$	—		$	7,586
Percent of Portfolio	98		%	1		%	1		%		—		%	100		%

(1)This category includes our assets where based on our credit criteria and performance to date we believe that our risk of not receiving our invested capital remains low.

(2)This category includes our assets where based on our credit criteria and performance to date we believe there is a moderate level of risk to not receiving some or all of our invested capital. In 2025, we moved into this category a receivable previously included in Category 1 where the underlying assets are experiencing project-specific technical challenges which are currently in the process of being remediated.

Schedule of Carrying Value, Expected Loan Funding Commitments, and Allowance by Type of Receivable

Below is a summary of the carrying value of our receivables held-for-investment, loan funding commitments, and allowance by type of receivable or “Portfolio Segment”, as defined by ASC 326, as of March 31, 2026 and December 31, 2025:


	March 31, 2026						December 31, 2025
	Gross Carrying Value		Loan Funding Commitments		Allowance		Gross Carrying Value		Loan Funding Commitments		Allowance
	(in millions)
Commercial (1)	3,289		253		67		3,311		388		62
Government (2)	$	30	$	—	$	—	$	31	$	—	$	—
Total	$	3,319	$	253	$	67	$	3,342	$	388	$	62

(1)As of March 31, 2026, this category of assets includes $1.6 billion of mezzanine loans made on a non-recourse basis to bankruptcy-remote special purpose subsidiaries of residential solar companies which hold residential solar assets where we rely on certain limited indemnities, warranties, and other obligations of the residential solar companies or their other subsidiaries. These residential solar assets typically contain back-up servicer provisions to allow for continuity of operations in the event the project sponsor is unable to fulfill its duties in that capacity.

Risk characteristics of our commercial receivables include a project’s operating risks, which include the impact of the overall economic environment, the sectors in which we invest, the effect of local, industry, and broader economic factors, the impact of any variation in weather and trends in interest rates. We use assumptions related to these risks to estimate an allowance using a discounted cash flow analysis or the PD/LGD method as discussed in Note 2 to our financial statements in this Form 10-Q. For those assets in Performance Rating 1, the credit worthiness of the obligor combined with the various structural protections of our assets cause us to believe we have a low risk we will not receive our invested capital, however we recorded a $54 million allowance on these $3.1 billion in assets as a result of lower probability assumptions utilized in our allowance methodology.

(2)As of March 31, 2026, our government receivables include $4 million of U.S. federal government transactions and $26 million of transactions where the ultimate obligors are state or local governments.

Risk characteristics of our government receivables include the energy savings or the power output of the projects and the ability of the government obligor to generate revenue for debt service, via taxation or other means. Transactions may have guarantees of energy savings or other performance support from third-party service providers, which typically are entities that are rated or whose parent is rated investment grade by an independent rating agency. All of our government receivables are included in Performance Rating 1 in the Portfolio Performance table above. Our allowance for government receivables is primarily calculated by using PD/LGD methods as discussed in Note 2 to our financial statements in this Form 10-Q. Our expectation of credit losses for these receivables is immaterial given the high credit-quality of the obligors.

The following table reconciles our beginning and ending allowance for loss on receivables by Portfolio Segment:


	Three months ended March 31, 2026				Three months ended March 31, 2025
	Government		Commercial		Government		Commercial
	(in millions)
Beginning balance	$	—	$	62	$	—	$	50
Provision for loss on receivables	—		5		—		4



Ending balance	$	—	$	67	$	—	$	54

Schedule of Anticipated Maturity Dates of Receivables and Investments and Weighted Average Yield

The following table provides a summary of the maturity dates of our receivables and the weighted average yield for each range of maturities as of March 31, 2026:


	Total			Less than 1 year			1-5 years			5-10 years			More than 10 years
	(dollars in millions)
Maturities by period (excluding allowance)	$	3,319		$	104		$	1,798		$	474		$	943
Weighted average yield by period	9.6		%	10.1		%	10.4		%	9.2		%	8.1		%

The following table provides a summary of the maturity dates of our debt securities and the weighted average yield for each range of maturities as of March 31, 2026:


	Total			Less than 1 year			1-5 years			5-10 years			More than 10 years
	(dollars in millions)
Maturities by period (excluding allowance)	$	73		$	—		$	—		$	5		$	68
Weighted average yield by period	9.5		%	—		%	—		%	3.1		%	10.0		%

Schedule of Equity Method Investments

As of March 31, 2026, we held the following equity method investments:


Investee	Carrying Value
	(in millions)
CarbonCount Holdings 1 LLC	$	820
Jupiter Equity Holdings LLC	500
Daggett Renewable HoldCo LLC	387




Other equity method investments	2,547
Total equity method investments	$	4,254

The table below provides additional detail on our fees paid by CCH1 to the Broker-Dealer. Amounts below reflect the full fee paid by CCH1 to the broker-dealer. Since HASI owns 50% of CCH1, we eliminate 50% of such fee income through our equity method investment income of CCH1.


	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025
	(in millions)
Up-front origination fees	$	4	$	4
Ongoing asset management fees	4		2
Total	$	8	$	6

The following is a summary of the consolidated balance sheets and income statements of the entities in which we have a significant equity method investment. These amounts are presented on the underlying investees’ accounting basis. In certain instances, adjustment to these equity values may be necessary in order to reflect our basis in these investments, for reasons including but not limited to the investees reporting to us being on a cost basis rather than a fair value basis or due to our allocations under HLBV differing from our purchase price of the investment. As described in Note 2, any difference between the amount of our investment and the amount of our share of underlying equity is generally amortized over the life of the assets and liabilities to which the differences relate. Certain of our equity method investments have the unrealized mark-to-market losses on energy hedges at the project level that do not qualify for hedge accounting. These unrealized mark-to-market losses, which resulted from rising energy prices, are recorded in the revenue line of the projects’ statements of operations. As these swaps are settled, the projects will sell power at the higher market price, offsetting the loss recognized on the energy hedges. Certain of the projects in which we have equity method investments also have interest rate swaps which are designated as cash flow hedges, and we recognize the portion of the gain or loss allocated to us related to those instruments through other comprehensive income. As of March 31, 2026 and December 31, 2025, we have accumulated other comprehensive income net of tax effect of $25 million and $24 million respectively, related to the interest rate swaps designated as cash flow hedges by our investees.


	Palmetto HASI Holdings LLC		Other Investments (1)		Total
	(in millions)
Balance Sheet
As of December 31, 2025
Current assets	$	262	$	918	$	1,180
Total assets	4,185		20,346		24,531
Current liabilities	56		891		947
Total liabilities	1,336		9,549		10,885
Members’ equity	2,849		10,797		13,646
As of December 31, 2024
Current assets	113		926		1,039
Total assets	1,367		20,289		21,656
Current liabilities	5		1,535		1,540
Total liabilities	393		8,971		9,364
Members’ equity	974		11,318		12,292
Income Statement
For the year ended December 31, 2025
Revenue	89		1,380		1,469
Income (loss) from continuing operations	(59)		(393)		(452)
Net income (loss)	(59)		(393)		(452)
For the year ended December 31, 2024
Revenue	15		1,186		1,201
Income (loss) from continuing operations	1		(326)		(325)
Net income (loss)	1		(326)		(325)

(1)Represents aggregated financial statement information for investments not separately presented.

Schedule of Related Party Transactions

The following table provides additional detail on our transactions with related party equity method investees:


	Three Months Ended March 31, 2026		Three Months Ended March 31, 2025
	(in millions)

Interest income from related party loans	$	12	$	19
Additional investments made in related party loans	19		46
Principal collected from related party loans	95		10
Interest collected from related party loans	14		17