Spruce Drives Structural O&M Cost Reductions Through Vertical Integration

In-house New Jersey field services model delivers ~25% O&M cost reduction

Proven operating model now expanding to Southern California to drive similar efficiencies at scale

Spruce Power Holding Corporation (NYSE:SPRU), a leading owner and operator of distributed residential solar energy assets across the United States, today announced continued execution of its strategy to structurally reduce operating and maintenance costs and improve system performance through the expansion of its vertically integrated, in-house field services teams. Following the successful launch of its New Jersey field services operations in early 2025, Spruce is now replicating this proven model in Southern California, its largest portfolio market.

The New Jersey in-house field services team has delivered immediate and measurable results. By internalizing trucks, technicians, materials, and operational oversight, Spruce reduced O&M servicing costs by approximately 25% across its New Jersey portfolio. These cost reductions are driven by improved scheduling efficiency, elimination of third-party vendor markups, tighter inventory control, and direct workforce management.

In addition to cost savings, the vertically integrated model has shortened repair cycle times and improved system availability, enabling more consistent capture and monetization of SREC revenues in a market where uptime directly impacts asset value.

Building on this success, Spruce is expanding the same vertically integrated field services architecture into Southern California, where the Company owns and operates its largest concentration of portfolio assets. The California rollout will initially support servicing needs from San Diego through the Los Angeles region and will scale over time as operations mature.

"These results validate our strategy," said Chris Hayes, Chief Executive Officer of Spruce. "We are not just cutting costs — we are fundamentally redesigning how we operate. By owning the trucks, teams, materials, and workflows in our most important markets, we are creating durable cost advantages, greater operational control, and higher system uptime. We are now applying this proven playbook in California to drive similar results at a larger scale."

Vertical integration also positions Spruce to extend its field services capabilities beyond Spruce-owned systems, creating opportunities to service third-party assets while further leveraging fixed-cost operational infrastructure.

About Spruce Power

Spruce Power Holding Corporation (NYSE:SPRU) is a leading owner and operator of distributed solar energy assets across the United States. We provide subscription-based services that make it easy for homeowners to benefit from solar power and battery storage. Our power as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. Our company owns the cash flows from approximately 84,000 home solar assets and contracts across the United States and also services approximately 140,000 home solar systems across the U.S. For additional information, please visit www.sprucepower.com.

Forward Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and rules promulgated thereunder. Forward-looking statements generally are characterized by the use of certain words or phrases (and their derivatives) such as "believe," "continue," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "goals," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Forward-looking statements in this release include statements, including statements made by Chris Hayes, regarding the Company's initiatives and future opportunities with respect to field services and the expected benefits with respect to this initiative and future similar initiatives. These statements are based on our current plans and strategies, as well as various assumptions, whether or not identified in this press release, and on the current expectations of management, all of which management believes are reasonable as of the date of this report, and reflect our current assessment of the risks and uncertainties related to the Company's business and are made as of the date of this press release. Although we believe that our expectations with respect to forward-looking statements are based upon reasonable assumptions within the bounds of our existing knowledge about the Company's business and operations, there can be no assurance that actual future results, performance or achievements of, or trends affecting, us will not differ materially from any future results, performance, achievements or trends expressed or implied by such forward-looking statements.

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