The Santa Clara, Calif., company said it would retain majority ownership of Solar Juice after the spinoff.
SPI recently traded at $8.84, up 11%. The shares have nearly quintupled this year. The stock traded under $1 as recently as mid-June.
SPI recently announced a partnership with Shaanxi Tongjia, a maker of all-electric logistic vehicles in China.
Solar Juice sells solar photovoltaic panels, solar inverters, energy storage, and electric vehicle chargers for residential and small commercial markets, targeting the Asia-Pacific and American regions.
"Solar Juice is a leader in Asia-Pacific ... and we believe we can unlock greater value of this business through a successful spinoff,” SPI CEO Xiaofeng Peng said in a statement.
SPI also said Tuesday that it settled a lawsuit against minority stockholders of Solar Juice Australia, its 80%-owned subsidiary.
The suit related to a new rights issue undertaken by Solar Juice Australia, SPI said. Given the settlement, the legal proceedings were dismissed, SPI said.