Middle-market infrastructure investment firm Nova Infrastructure announced it has completed its purchase of UGE International, a solar and energy storage developer and operator.

The acquisition includes Nova purchasing approximately 70% of UGE’s shares. The company is publicly traded on the TSX Venture Exchange.

UGE is a solar operator and developer of rooftop and ground mount commercial, industrial and community solar energy solutions. Founded in 2010, UGE develops, builds, finances, owns and operates solar and battery storage projects in New York, New Jersey, Maine, California, Pennsylvania, Oregon, Texas, Illinois, Maryland, Virginia and Massachusetts.

The company has delivered over 500 MW of projects and currently has a portfolio of more than 12 operating and 81 advanced backlog projects in 11 states. UGE is a community solar and battery storage platform with a vertically integrated business model and a diversified project portfolio.

“Nova committed acquisition capital as well as growth capital to support the expansion of the UGE platform and installed MW,” shared Allison Kingsley, co-founder and partner at Nova.

NOVA was advised in this transaction by Blank Rome LLP and Bennett Jones LLP, and UGE was advised by Mintz LLP and CP LLP.

CleanCapital has acquired an operating solar portfolio made up of two brownfield assets in New York. The projects, Steel Sun II and Homeridae, total 13 MW and supply clean energy to a local university, healthcare provider and a municipality in upstate New York.

The two projects were developed in 2019 by BQ Energy Development (BQ), a specialist in brownfield and landfill renewable energy development acquired by CleanCapital in 2022.

CleanCapital’s in-house development team, led by former BQ CEO Paul Curran, now oversees a project pipeline of nearly 2 GW of solar and more than 8 GWh of energy storage.

“The work we did at BQ Energy, including developing and operating these two exceptional projects, is a source of great pride for me,” said Paul Curran, chief development officer at CleanCapital and former BQ CEO. “Fully integrating the former BQ team into CleanCapital has produced a development team with the expertise, track record, and financial runway to develop, build, and operate hundreds of megawatts in the next few years. Our focus now is to execute on the more than 100 projects in our pipeline and deliver more clean megawatts to our customers as expeditiously as we can.”

The Steel Sun II project is located on the former Bethlehem Steel site on Buffalo’s waterfront and is part of a larger revitalization that includes an array of solar and wind projects. The energy generated by this project is contracted to local mainstays Kaleida Health and Canisius University, the latter of which is meeting its sustainability goals with this project.

“Canisius University benefits from this solar project by seeing lower energy costs, helps us meet the goals set out in our sustainability plan, as well as enhance our commitment to Laudato Si,” stated Joseph Snodgress, director of facilities management at Canisius University.

The Homeridae project is one of two solar arrays in Olean sited on a former oil refinery and tank farm, respectively. The City of Olean is the energy offtake for these projects, which reportedly have demonstrated cost savings to taxpayers in the five years the projects have been operating. Both sites benefited from the Department of Environmental Conservation Region 9 brownfield cleanup program.

“The net metering credits generated by the Homeridae solar project have been a significant benefit to our city budget, allowing us to reallocate savings toward other essential services for our community,” stated William Aiello, Mayor of Olean. “We are excited to see the ongoing positive impact of this oil refinery turned solar project that provides reliable and clean energy to the City of Olean.”

This acquisition brings CleanCapital’s portfolio of operating and under-construction assets to 242 projects totaling 341 MW across 23 states and U.S. territories.

From pv magazine Global

Jera Nex, the renewables unit of Japanese power generator Jera, has acquired two U.S. solar projects totaling 395 MW from Lightsource bp. The projects are the 300 MW Oxbow solar array in Louisiana and the 95 MW Happy installation in Arkansas.

Both sites are in commercial operation. The Oxbow site has long term power purchase agreements (PPA) with corporate customers including eBay, while the Happy project was a long-term PPA with Conway Corp, a city-owned utility system in Conway, Arkansas.

The transaction, executed in partnership with Jera Americas, has already secured regulatory approvals. As part of the agreement, Lightsource bp will continue to provide asset management and maintenance services to Jera Nex.

The acquisition is Jera Nex’s first since the company launched in April and marks its first step into the U.S. solar market. The London-based company claims to have a current portfolio of more than 3 GW of solar, onshore and offshore wind and battery storage projects.

“This first transaction since our recent launch is an indication of our ambitious plans to scale onshore and offshore renewables for a sustainable future; we hope to build a broader onshore renewables portfolio in the U.S. and globally,” said Richard Scott, VP for development and construction onshore at Jera Nex.

$500 billion into solar in 2024 The International Energy Agency projects that solar will attract more investment than all other electricity generation sources combined. Global energy spending is set to surpass $3 trillion for the first time this year.

Generac acquires microgrid controller specialist Ageto The company previously known for generators and battery backup systems, moves further into the C&I market with the acquisition of Ageto.

U.S. startup develops 28%-efficient perovskite-silicon tandem solar module PeroNova specializes in metal halide perovskite-silicon tandem solar cells made with its novel stability-enhancing interfacial treatment. It is targeting a range of applications including space and rooftop markets.

New battery sizing approach for virtual synchronous generators, control-based grid-forming inverters A group of researchers outlined a new methodology to determine the minimum power rating of energy storage systems (ESSs) used for emergency under-frequency response. The ESS size must be calculated to maintain the frequency within the standard operating range.

Liquid metal battery storage specialist Ambri emerges from restructuring After filing for Chapter 11 bankruptcy protection, the calcium-antimony liquid metal battery startup incubated at the Massachusetts Institute of Technology (MIT) has now confirmed the closing of the sale of its assets.

Solar array installed for mission to Jupiter’s icy moon, Europa The Europa Clipper mission will send a craft the size of a basketball court to Europa, a moon considered a potential habitat for life.

Goldman Sachs invests $440 million in renewable independent power producer The strategic investment in BrightNight will support the development of utility, commercial, and industrial solar and energy storage projects.

Generac Power Systems, known for its generators, battery backup and other power products, has acquired Ageto, a provider of microgrid controllers.

Ageto, based in Fort Collins, Colorado, developed the ARC microgrid controller, designed to integrate, optimize and manage distributed conventional resources, renewable energy resources and electric vehicle (EV) chargers in the commercial & industrial (C&I) market. Its controller provides a single interface for monitoring all components of a microgrid, the company reports.

“This acquisition enhances our ability to offer a complete energy technology ecosystem to domestic commercial & industrial customers with multi-asset sites,” said Erik Wilde, EVP and president, Domestic C&I at Generac. “By integrating Ageto’s industry-leading microgrid controller and advanced software into our systems, we’re simplifying asset integration, control and optimization for our customers and creating a competitive advantage for Generac.”

Generac has worked with Ageto since 2021, incorporating its microgrid controllers into Generac’s battery energy storage systems (BESS) solutions and generator sets. The transaction closed on August 1, 2024. Terms of the deal were not disclosed.

Generac was recently named a leader by Wood Mackenzie in the residential solar-plus-storage market. Not so long ago, Generac specialized in fossil-fuel based generators but it has fast become a leader in residential clean energy. PWRcell is its residential storage product, and coupled with the Concerto platform that is part of Generac Grid Services, it provides a distributed energy resource management system (DERMS) that is designed to detect spikes in demand, signaling to the the batteries to automatically dispatch clean energy based on real-time grid conditions. 

Generac signed on with Southern California Edison (SCE) as a virtual power plant participant, using this solution to scale the utility’s Power Flex program.

Generac first stepped into the commercial and industrial (C&I) market when it acquired PowerPlay Battery Energy Storage Systems, an engineering, procurement, and construction (EPC) firm. PowerPlay specializes in turnkey battery energy storage systems for commercial and industrial customers, with systems sized up to 7 MWh. Generac said the acquisition will help the company offer a more complete ecosystem of products and solutions to C&I customers.

Acquisition of Avantus complete KKR, a leading global investment firm, acquired the utility-scale solar and storage developer and closed a $522 million development facility to advance Avantus’ pipeline.

Hail risk may bring financial instability to solar projects To ensure sustainability and financial viability, the solar industry needs a critical reevaluation and enhancement of both technical protective measures and financial risk management practices for solar installations in hail-prone regions.

The evolving art and science of agrivoltaics At Bluewave, integrating solar technology with traditional farming practices isn’t just a concept, it’s the new standard. Jesse Robertson-DuBois, director of sustainable solar development, shares insights on the transformative journey of agrivoltaics within the industry.

GIS and data platform raises $11 million to accelerate clean energy development  Paces reports that its software streamlines the traditionally manual process of site selection and project due diligence by consolidating and interpreting spatial, zoning, permitting, interconnection, and environmental data.

Renewables “cheaper and faster” than methane, says nation’s largest utility NextEra’s Q2 2024 quarterly earnings report shows significant growth in the company’s renewable pipeline. However, the group, which is typically exacting, refused to put a hard number on their future demand growth expectations.

Avantus, a U.S. developer of utility-scale solar and solar-plus-storage projects, and KKR, a leading global investment firm, announced in March the acquisition of a majority equity interest by investment funds and accounts managed by KKR.

In the closing Avantus secured a $522 million development facility arranged by KKR Capital Markets and Sumitomo Mitsui Banking Corporation (SMBC). The facility provides Avantus the financial backing to continue to grow its project pipeline, which currently stands at 30 GW of solar and 94 GWh of battery storage, enough to provide 20 million people with clean energy. The company has also developed and sold 7.3 GW of solar and 17 GWh of storage.

“There is enormous opportunity ahead for Avantus, and we look forward to supporting the company in this next phase of growth. The need for clean energy in the United States is increasing substantially, driven by many factors including data center demand, the rise of artificial intelligence, and growth in electrification. Avantus is well positioned to capitalize on these tailwinds,” said Cecilio Velasco, managing director in KKR’s Infrastructure team.

Avantus was founded in 2009 as 8Minute Solar Energy by Tom Buttgenbach with the intention of fighting climate change by developing renewable energy at scale. The company expanded that vision in 2022 to include what it calls an “advanced ecosystem” of clean energy products and services. With the expanded vision came the new name, Avantus, and the plan to build a substantial clean energy development pipeline.

“This announcement is a ringing endorsement of our proven team at Avantus, providing us the capital to advance our portfolio and develop high-performing, high-value clean energy projects,” said Stephanie Perry, chief operating officer at Avantus. “We are excited to work with KKR and our existing investor EIG to achieve our growth plans and build on our track record of delivering record-breaking clean energy solutions that will decarbonize our planet at scale.”

With the close of the transaction, KKR and EIG, a leading institutional investor in the global energy and infrastructure sectors, will be the sole equity investors in Avantus. Both equity sponsors secured commitments for a development financing facility alongside their equity commitments to the company, totaling upwards of $1 billion in the aggregate.

Aurora Solar, a platform for solar sales and design, has acquired Lyra, a specialist in permit packaging software that enables solar professionals to automatically create permit-ready design plans.

The solar permitting process can be challenging due to complex regulations and reliance on manual input methods. Aurora, which specializes in streamlining the sales and design process for installers, sees its acquisition of Lyra as adding another tool to help speed up the permitting process.

“Lyra’s advanced automation software for plan sets is the solution the solar industry needs to alleviate a key homeowner pain point — the often agonizing local permitting process – and cut down on wasted time and energy for solar professionals,” said Chris Hopper, CEO at Aurora Solar. ” Our intention is to be the market leader in U.S. residential plan set services and automation; the acquisition of Lyra significantly accelerates our ability to achieve this goal.”

Aurora’s cloud-based platform uses data, automation and artificial intelligence to streamline the process of selling, designing—and now permitting—solar. The company reports that over 20 million solar projects have been designed with the platform globally. The acquisition of Lyra is only one of the many recent moves that Aurora has made to add tools to its toolbox for installers. In March, for example, Aurora Solar announced it was partnering with EagleView, a software platform provider for rooftop solar project designs and sales proposals, announced it has partnered with EagleView, an aerial imagery and geospatial software specialist. Under the partnership, Aurora will make use of EagleView’s high-resolution imagery taken from its aircraft fleet.

Battery storage deployment in Canada kicks into gear  The deployment of battery energy storage systems (BESS) in Canada is picking up the pace, with the announcement of a 705 MWh battery storage system delivery to Nova Scotia by Canadian Solar’s e-Storage and various other projects in provinces across the country. However, this surge cannot come quickly enough says Energy Storage Canada.

Vineyard installs solar to keep distillery warehouse cool  The 55kW system is expected to produce more than .06 MWh a year and will help keep the vineyard’s distillery storage warehouse at the optimal temperature of 50 to 60 F throughout the year.

California approves 525 MWac of solar and 320 MW of geothermal Southern California Edison received approval from the State of California to proceed with power purchase agreements for three solar power projects and two geothermal projects from startup Fervo Energy.

How grid operators and renewable energy producers can use batteries to develop a flexible energy system As the urgency of mitigating the impacts of climate change intensifies with each passing year, it is the collective responsibility of grid operators and renewable energy producers to spearhead the transition to a renewable energy system.

Global solar installations to nearly quadruple by 2033 Wood Mackenzie forecasts 4.7 TW of solar capacity to be built between 2024 and 2033, with China accounting for about 50% of the growth.

TrendForce says 210 mm module shipments surpassed 260 GW in Q1 Market intelligence platform TrendForce says 210 mm n-type technology is “set to spearhead a new industrial revolution.” It expects 210mm modules to account for 78.29% of the large-format module market this year, increasing to 82.51% by 2027.

Aggreko Energy acquires C&I solar developer With the acquisition of Infiniti Energy, Aggreko expands its commercial and industrial development portfolio.

Enphase begins shipping U.S.-made microinverters for commercial applications The IQ8P-3P commercial microinverters support up to 480 W of peak output power for three-phase commercial installations, and they’re compatible with a wide range of solar modules up to 640 W.

Aggreko Energy Solutions, a utility-scale and distributed solar and storage developer, owner, and operator announced it has acquired commercial and industrial solar developer Infiniti Energy. 

Infiniti Energy brings 12 MW of contracted operating solar assets and 22 MW of construction-ready projects, and a further pipeline in development. 

Upper Bay Infrastructure Partners, the infrastructure investor that helped Infiniti scale into an IPP platform has fully exited its position in the company. CRC-IB advised Upper Bay Infrastructure Partners on the transaction. 

“Combining the global scale, financial strength, and industry expertise of Aggreko with Infiniti’s distributed solar development and engineering, procurement and construction capabilities uniquely positions us to deliver turnkey decarbonization solutions to our customers,” said Jerry Polacek, president of Aggreko Energy. 

Aggreko is a large multinational business with over 6,000 employees and a fleet exceeding 10 GW of energy assets.

2023 was a banner year for commercial and industrial (C&I) solar, with the segment installing 1.8 GW according to Wood Mackenzie and SEIA, up 19% from 2022 and the most since 2017. California led the pack, accounting for 35% of C&I deployment and doubling its typical installation volumes in Q4 as projects raced to lock in favorable net metering rates before switching to a new regime. Looking ahead, C&I solar is poised for continued expansion.  

Wood Mackenzie forecasts 12% average annual growth through 2028 as improving economics, corporate clean energy goals, and policies like tax credits and state-level incentives support demand. 

Google has made a capital investment in Taiwan-based New Green Power (NGP), in a deal that grants the US tech company the rights to procure up to 300 MW of solar power. The companies said that Google’s suppliers in the region could also gain access to NGP capacity.

NGP is a large-scale PV project developer, engineering & construction (EPC) and operator specialist founded in 2009. It has plans to expand its solar project pipeline in Taiwan to 1 GW in the coming years. NGP is a portfolio company of a climate infrastructure unit of U.S.-based asset manager, Blackrock.

“We’re aiming to reach net-zero emissions across our operations and value chain, supported by a goal to run on 24-7 carbon-free energy everywhere we operate,” said Google head of data center energy, Amanda Peterson Corio, in a statement. “The path to reach these goals is challenging, and requires both commercial efforts and broader energy systems change.”

Google recently procured additional solar power capacity through power purchase agreements in Japan and Australia. In February, Google became the largest buyer of power purchase agreements in Europe. It has also been procuring solar power in Taiwan for several years.

Wendy’s enrolls in community solar to power 130 locations Through a partnership with Ampion, Wendy’s restaurants will access renewable energy certificates to offset carbon emissions.

Recurrent Energy transfers $103 million in tax credits for Oklahoma project The owner and operator of the 160 MW North Fork Solar project signed the tax credit facilitation agreement with Bank of America.

IEA-PVPS releases fact sheet on environmental life cycle assessment of PV Systems The updated IEA PVPS Task 12 Fact Sheet provides a comprehensive assessment of the environmental impacts associated with PV systems. It highlights the significant advancements made in PV technology, emphasizing improved efficiencies and reduced environmental footprints.

Generac acquires commercial and industrial energy storage provider The company acquired engineering, procurement, and construction firm PowerPlay Battery Energy Storage Systems.

Generac Power Systems, a provider of home backup generators, battery energy storage, and other power products, announced it has acquired PowerPlay Battery Energy Storage Systems, an engineering, procurement, and construction (EPC) firm.

PowerPlay specializes in turnkey battery energy storage systems for commercial and industrial customers, with systems sized up to 7 MWh. It is a division of Sungrid, an energy storage EPC and operations and maintenance company.

Generac said the acquisition will help the company offer a more complete ecosystem of products and solutions to C&I customers.

The PowerPlay business will continue its operations in Cambridge, Canada, and serve as a dedicated research and development facility for Generac’s C&I battery energy storage system solutions. SunGrid Solutions will continue its energy storage EPC operations across the United States and Canada, specializing in solutions ranging from 10 MWh to 1 GWh.

“Various factors contribute to the need for energy storage, including the uptake of distributed solar, increased electrification of C&I facilities, rising utility rates, and possibility that the central grid can experience fluctuations due to weather, blackouts, or lack of infrastructure,” said Generac. “[Battery energy storage] systems up to 7 MWh are commonly deployed in C&I enterprises, including retail stores, restaurants, office buildings, manufacturing facilities, and healthcare facilities.”

Energy storage deployment continues to rise nationwide. Across all segments, Wood Mackenzie expects 12.9 GW / 35.8 GWh of storage to be installed in 2024. In its quarterly report, the firm raised its five-year forecast for grid-scale installations by 5% and residential sector installations by 8%. The five-year commercial, community, and industrial forecast was cut by 34% after the California Public Utilities Commission (CPUC) made an unfavorable ruling on community solar. However, Wood Mackenzie sees a strong value proposition for C&I storage for years to come.

“The CCI segment continues to see the highest barriers to growth in the near-term, but its strong value proposition and emerging value streams will make it an exciting growth segment in the later years of our ten-year forecast,” said Wood Mackenzie.

From pv magazine Global

TCL Zhonghuan has revealed a plan to become a majority shareholder of Singapore-based solar module manufacturer Maxeon. The Chinese company said it would finalize the deal through a number of financial transactions, including the issuance of convertible bonds and additional shares via private placement.

TCL Zhonghuan said it aims to use up to $197.5 million for the acquisition, which will increase its shareholding in Maxeon from 22.39% to a controlling stake of at least 50.1%. If the transaction is completed, Maxeon will become a subsidiary controlled by TCL Zhonghuan, and its results will be consolidated into the Chinese company’s financial statements.

“The series of major investments we announced yesterday in conjunction with our strategic partner, TZE, will fortify our balance sheet, and this recapitalization places Maxeon in a solid financial position and reinforces our role as a leading participant in the renewable energy market,” a Maxeon spokesperson told pv magazine. “Specifically, TZE has committed to a $97.5 million convertible bond issuance followed by a $100 million equity investment, both subject to regulatory approvals.  These investments are occurring during a period of significant solar industry volatility and will enhance Maxeon’s ability to navigate the resultant market challenges with confidence while positioning the company to continue its long history of product innovation and drive growth and increased profit.”

In October 2023, Maxeon announced a plan to lay off 15% of its employees to manage the impacts of lower shipments from a distributed-generation client in North America and an “industry-wide demand slowdown” in global distributed-generation markets. Maxeon CEO Bill Mulligan said in a statement at the time that the company had decided to “streamline” operations, invest in new technologies, and develop a mix between the distributed-generation and utility-scale markets due to “rapidly changing market and industry conditions.”

Apricus Generation said it has acquired a controlling interest in Nexus Renewables, a Canadian solar and storage developer and independent power producer (IPP).

Florida-based Apricus Generation said the deal with Nexus Renewables is its first strategic acquisition since it launched earlier this year. It did not provide any additional details about the financial terms of the transaction.

From pv magazine Global

The global solar sector is “experiencing peak uncertainty and a challenging investment climate,” said Mercom Capital Group CEO Raj Prabhu in the consultancy’s new report on funding and merger and acquisitions (M&A) in the first quarter of 2024.

Mercom said total corporate funding into the solar sector stood at $8.1 billion in the first three months of the year. The figure includes 41 deals, marking a 4% year-on-year decline. However, the figure is a 47% quarter-over-quarter increase over the $5.5 billion raised in the fourth quarter of 2023.

Elsewhere, global venture-capital funding in the solar sector in the first quarter of 2024 hit $406 million across 13 deals, down 81% year on year. Public market financing reached $1.4 billion across six deals the first three months of 2024, down 39% year on year. Debt financing rose 59% year on year across 22 deals, according to Mercom.

“The solar sector is experiencing peak uncertainty and a challenging investment climate,” said Prabhu. “The sector is grappling with multiple hurdles, including the likelihood of prolonged high-interest rates, higher labor and construction costs due to inflation, and supply chain issues, coupled with trade disputes and tariffs.”

Mercom recorded a total of 21 solar M&A transactions in the first quarter, unchanged from the fourth quarter of 2023, but down from the 27 solar M&A deals recorded in the first quarter of 2023.

“Although a crash in Chinese module prices has spurred demand, it has made investments in manufacturing projects unattractive, even with incentives. VC investments were down, and M&A activity continues to be subdued,” Prabhu added. “Given the current market conditions, it wouldn’t be surprising if the recovery is delayed further in conjunction with rate cuts.”

Meanwhile, Wood Mackenzie said in a separate report that if high interest rates persist, the transition to a net-zero global economy will be “even harder and more costly.”

In the consultancy’s latest report, ‘Conflicts of interest: the cost of investing in the energy transition in a high interest-rate era’, it said that the higher cost of borrowing negatively affects renewables and nascent technologies compared to oil and gas and metals and mining sectors, putting future renewables projects at risk.

“Interest rates, which have risen sharply in the past two years, may not come down as far or as quickly as markets anticipate,” said Peter Martin, Wood Mackenzie’s head of economics. “This increased cost of capital has profound implications for the energy and natural resource industries, particularly the cost and pace of the transition to low-carbon technologies.”

WoodMac said that in the United States, a 2% increase in the risk-free interest rate could push up the levelized cost of electricity (LCOE) by as much as 20% for renewables. The comparative increase in LCOE for a combined-cycle gas turbine plant is 11%.

The research firm said that solar and wind have an economic advantage over hydrocarbon generation sources, but higher interest rates are eroding it.

“While power and renewables companies have higher gearing, they do compare favourably with other peer groups on a cost-of-debt basis. But this is precisely what makes them more sensitive to interest rates,” Martin said. “Mechanisms to reduce price and offtake risk enable power and renewables companies to obtain debt more cheaply than the relatively risky oil and gas and metals and mining sectors. The recent rise in interest rates, therefore, has a larger proportional impact on their cost of debt.”

FTI Consulting released a report reviewing renewable energy merger and acquisition (M&A) activity in 2023 and provided an outlook for 2024.

Entering 2023, M&A transactions faced headwinds including sustained high interest rates, inflationary pressures, supply chain constraints, government support uncertainties, and grid reliability issues. As a result, renewable energy deal volume dropped from 2022 levels. Interest rates are driving a wedge between potential buyers and sellers on valuation, said the report from FTI.

Established renewable technologies like solar and wind comprised about 60% of deal volume, said FTI. Meanwhile, traditional nuclear energy M&A and “renewable” natural gas and biogas transactions increased, suggesting mainstream adoption for a once-niche market.

Looking into 2024, FTI anticipates various factors will drive an increase in M&A activity in the renewable energy sector. As high costs of capital put pressure on project viability, smaller developers may be forced to sell projects, portfolios, or their entire platform as they seek liquidity or an outright exit.

“Investors and established incumbents with stronger balance sheets may take this opportunity to invest, acquire and structure creative solutions, further driving consolidation in the sector,” said the report.

FTI also expects and uptick in corporate renewables adoption as decarbonization and electrification continues to come to the forefront. It expects oil and gas players to actively invest in the sector.

“Conversely, the sale of unregulated renewable businesses noted in 2022, including Con Edison’s $6.8 billion divestment of its unregulated clean energy segment, continued at an accelerated pace in 2023, with utilities such as AEP, Algonquin, Avangrid, Eversource and Duke Energy announcing their intentions to sell their renewable portfolios,” said the report.

FTI said supply chain constraints, increasing development costs, permitting issues, interconnection delays and shorter tenor offtake agreements have all contributed to an increase in the risk profile of unregulated renewable energy investment.

FTI recognized that a higher interest rate market may persist for some years. This may lead to smaller developers selling off assets, while on the demand side, larger players with greater operational diversity or public equity may be more creative, taking on risks and offering different value proposition to capital-stared developers that cannot achieve scale.

The report shared that government support from the IRA and other programs has begun to roll out, including $110 billion in available grant money made available through the 2022 law. FTI said the incentives could cause a “seismic shift on the U.S. energy sector and the economy as a whole over the next 12 to 24 months.”

Further pushed along by investment from corporate America, and “big oil” will continue to diversify its energy mix with strategic investments and acquisitions.

“Early developments in the new year indicate that these predicted market trends are taking hold, and 2024 will make up lost ground from the relatively low level of M&A activity seen in 2023,” said FTI Consulting.

FTI Consulting provides tailored services for strategic and financial investors, creditors and corporates, and has deep experience with renewable energy platforms, projects and portfolios.

Standard Solar, a commercial and community solar project developer, has acquired an 84 MW community solar portfolio from New Leaf Energy,  a renewable energy developer headquartered in Lowell, Mass. 

The portfolio of ground-mounted community solar facilities includes three sets of sites across Illinois. Six sites have a 47 MW capacity, four have a 12 MW capacity and another four have a 25 MW capacity. Construction is scheduled to begin this year, with some projects expected to be completed on or before December and others throughout 2025. 

Standard Solar and New Leaf Energy have collaborated on 20 other projects across three states.

In March 2023, Standard Solar acquired New Leaf Energy’s 21 MW portfolio of projects in New York and Massachusetts. The Copicut facility in Freetown, Mass., has 12 MW of solar and 22 MWh of storage. The 2.79 MW Main Street Newbury site is a ground-mounted solar array in Byfield, Mass., and the Saunders Settlement project in Sanborn, New York, features over 6 MW of solar and is expected to produce about 8,861 MWh each year. 

In November 2023, Standard Solar acquired New Leaf Energy’s 12 MW community solar portfolio in Chatham and Kilmarnock, Va. Standard Solar states its two Kilmarnock Va., projects with a combined capacity of over 7 MW will serve the energy needs of low-and-moderate income customers. 

Standard Solar’s new 84 MW portfolio is expected to significantly contribute to Illinois’ renewable energy goals, which include establishing 100% renewable electricity generation by 2050. 

Illinois Shines

The Illinois Shines program moving the state toward its clean energy targets. Launched by the Illinois Power Agency (IPA), the scheme provides financial incentives for community solar projects across six categories: small distributed generation, large distributed generation, traditional community solar, community-driven community solar, public schools, and equity-eligible contractors. Incentives are provided through the purchase of renewable energy credits (RECs), which are issued when a renewable energy source produces 1 MWh of electricity.

Illinois sets incentive amounts for each REC generated by participating solar projects each year. Incentives are paid to qualifying approved vendors, which pass savings onto customers. Approved vendors are entities that submit project applications to the Illinois Shines Program and demonstrate they will assume financial liability in the Illinois Shines contracts with utilities. 

“Amidst a year of record-breaking temperatures and rising energy costs in the state, Illinois is providing its residents a clear path to clean, affordable energy for a more sustainable future,” said Harry Benson, the director of business development at Standard Solar. 

Read more about solar in Illinois here.

Venture capital funding in energy storage reached new heights in 2023, according to Mercom Capital, which reported that U.S. firms invested $9.2 billion in energy storage ventures throughout the year. This represents a 59% year-over-year increase. In 2023, 86 deals led to $9.2 billion, up from 2022 totals of 96 deals and $5.8 billion raised.

“Energy storage companies saw their highest VC funding in 2023, largely thanks to the Inflation Reduction Act’s Investment Tax Credit and other incentives like manufacturing credits for battery components,” said Raj Prabhu, chief executive officer, Mercom Capital.

Despite the positive trend, Mercom said merger and acquisition activity lagged due to high asset valuations, elevated interest rates, and investor caution.

Corporate funding in the energy storage sector, including venture capital and private equity funding, decreased 28% year-over-year, with $19 billion raised as opposed to $26.4 billion in 2022. LG Energy Solution’s $10.7 billion initial public offering in 2022 significantly inflated the 2022 total.

Quarter-over-quarter, corporate funding in energy storage decreased 55% from Q3 2023 to Q4 2023. In a year-over-year comparison, funding was down in Q4 by 14%.

Lithium-ion based battery technology companies remained the top VC-funded business in the energy storage sector. Other top businesses included battery recycling, nickel-based battery technology, energy storage downstream, and materials and components companies.

The top five VC funding deals in 2023 were: Zenobe, which raised $1.1 billion; Redwood Materials, which raised $1 billion; SK On, which brought in $944 million; Verkor, which raised $905 million; and Hithium, which raised $622 million.

Announced debt and public market financing for energy storage companies in 2023 decreased 52% year-over-year, totaling $9.8 billion.

Meanwhile, corporate funding for smart grid companies was 30% lower year-over-year, with $3.3 billion in deals in 2023, compared with $4.7 billion in 2022. The top five smart grid venture capital deals were Driveco with $273 million, Jolt Energy with $162 million, SPAN with $96 million, Virta with $93 million, and EO Charging with $80 million.

Scale Microgrids announced it has entered into an agreement with Gutami, Inc. to acquire 500 MW of distributed solar and storage projects. The projects are in locations across the U.S., including in California and New York. 

The transaction builds on an earlier 100 MW partnership in New York. The new agreement calls for Gutami to develop 500 MW of energy transition infrastructure assets. Scale Microgrids will acquire, finance, and own the community solar assets. 

“Community solar continues to be a priority for Scale for both its inclusivity and ability to provide more options to our microgrid customers,” said Ryan Goodman, chief executive officer, Scale Microgrids. “Community solar is a great option for those who are unable to install rooftop solar because they are renters, can’t afford solar, or because their property is not suited for it.” 

The associated assets with the deal will power roughly 80,000 homes and reduce annual CO2 emissions by about 800,000 tons. 

Scale Microgrids is a vertically integrated distributed energy platform, focused on building, financing, owning, and operating solar and energy storage projects. The company provides financing to technology providers, energy developers, and original equipment manufacturers. It also assists large consumers of energy to take charge of their energy infrastructure  

Gutami is a privately owned global developer and investor in sustainable energy solutions. The company, founded in 2006, has invested in utility-scale solar facilities, rooftop solar, energy storage, and hydrogen. 

“After our first success in New York, we were able to expand to other states,” said Gerben Pek, chief executive officer, Gutami. “The fast decision-making processes by local governments combined with clear legal structures and a well-functioning legal system, enables us to accelerate our growth in community solar in the U.S.”

Sunstone Credit, a commercial solar financing platform, announced it has acquired its competitor Orka Finance, a tech-enabled commercial solar lender. The acquisition solidifies Sunstone Credit’s position as a financial platform for small and medium-sized businesses interested in adopting solar.

Historically, many small and medium-sized businesses have lacked access to loans for solar installations, leaving them with the options to pay cash or enter into a power purchase agreement. Sunstone said it is on a mission to close this lending gap and provide more businesses with simple and cost-effective loan financing.

Sunstone said it expects the Orka acquisition to help it serve more contractors and businesses through its proprietary technology platform. As part of the acquisition, key members of Orka’s team will join Sunstone as advisors, including chief executive officer Ted Fawcett.

“ORKA has built an impressive program evaluating businesses for solar loans efficiently, helping those businesses access the many benefits of solar more quickly,” said Josh Goldberg, chief executive officer and co-founder of Sunstone.

The commercial solar sector installed 363 MW in Q3 2023, according to the Solar Energy Industries Association (SEIA). Commercial solar encompasses distributed solar projects with commercial, industrial, agricultural, school, government, or nonprofit offtakers, including remotely net-metered projects. SEIA projected a 9% growth for 2023, and expects more near-term growth in 2024.

“We expect to see an average of 8% growth over the next five years,” said SEIA in its Q4 2023 solar market insight report. “Even though growth in some more saturated states is slowing, development in emerging markets will increase.”

SEIA said the commercial solar sector installed about 1.7 GW in 2023, and it expects deployments to reach 2.4 GW annually by 2028.

The acquisition of Orka follows an October 2023 transaction in which solar lender Sunlight Financial filed for bankruptcy and was acquired by a consortium of players in the space. The consortium acquiring the business includes Greenbacker Capital Management, Sunstone Credit, IGS Ventures, and secured lender Cross River Bank. The businesses operate as ED Umbrella Holdings, LLC and have entered into a restructuring support agreement.

Nautilus Solar Energy LLC has acquired a 75.6 MW portfolio consisting of 16 community solar projects in Illinois, a state that holds a healthy mix residential, commercial, and community solar installations.

The projects are located throughout Illinois and are projected to achieve operation between 2025 and 2027.

“This acquisition marks a significant commitment to the Illinois market and is a pivotal step towards expanding Nautilus’s overall footprint in the Midwest. The scale of this acquisition underlines Nautilus’s capabilities and reaffirms our position as a leading community solar company with projects and subscribers located across the country,” said Jeff Lee, business development director at Nautilus. 

The portfolio of projects is qualified under the Illinois Shines program, also known as the Adjustable Block Program, which created renewable energy certificate incentives with 25% going toward the development of community solar with benefits also being extended to subscribers. The program aims to deploy 400 MW of community solar projects by 2030.

The nearly 76 MW portfolio is expected to generate enough clean energy to serve the needs of approximately 10,000 homes and commercial businesses. Nautilus is overseeing construction, will be the long-term owner and will be responsible for acquiring and managing customer subscriptions. Nautilus reports that the projects will enable Ameren and ComEd customers to save on their electric bills. In addition, the portfolio supports the state’s ambitious Climate and Equitable Jobs Act, which requires 100% carbon-free energy by 2045.

“Illinois’ ambitious renewable energy targets are a testament to its commitment to environment and energy equity. At Nautilus, we are proud to lead this transition,” added Eric Paul, vice president of Partner Development. “Our focus is not just on producing clean energy but ensuring that the benefits, particularly the cost savings, reach every Illinoisan, especially those from low-to-moderate income backgrounds and historically disadvantaged communities.” 

Nautilus Solar, owned by Power Sustainable, a wholly owned subsidiary of Power Corporation of Canada, operates and manages solar farms in 10 states and is known for its portfolio acquisitions in leading markets. For example, Nautilus acquired up to twelve community solar projects in Minnesota  totaling 16.8 MW. It acquired two community solar portfolios totaling 26.2 MW in Maine from BNRG Maine LLC. The company reached an agreement to acquire a nine-project portfolio with 54 MW of community solar assets in New York from Seaboard Solar. And it acquired two community solar portfolios in Maryland totaling 23 MW, comprised of six projects spread across the state. The Illinois acquisition marks its entry into the Midwest.

Standard Solar will become the owner and operator of the Bluebonnet solar behind-the-meter project located in McGregor, Texas, which will provide power to Messer America. Bluebonnet is expected to be complete in Q2 2024.

Messer is a manufacturer of industrial gases, such as argon, helium and oxygen, serving the medical, electronic and other industries. The solar installation is expected to provide energy to the company’s new air separation unit.

This is the fourth acquisition between Standard Solar and EDF Renewables, including Lawsbrook, Knox and Lehigh University, according to Eric Partyka, director of business development at Standard Solar.

EDF Renewables’ Distribution-Scale Power team developed the project and will continue as EPC contractor throughout the construction phase. EDF Renewables is among the largest developers of renewable energy in North America, with 24 GW of solar, storage, and wind projects across the continent. About 70% of the company’s project pipeline is solar.

“This project represents a significant milestone for Standard Solar as we expand our footprint into the Texas renewable energy market,” said Partyka.

The Bluebonnet project is being developed on a greenfield site and features bifacial modules on single-axis trackers. The project is expected to yield approximately 25,000 MWh of renewable energy annually. The energy produced is expected to provide a significant portion of Messer’s energy consumption.

“The Messer McGregor facility marks the first time an air separation unit has had a significant portion of its electricity demand met through a direct connect solar energy scheme,” said Chris Ebeling, EVP, sales and marketing US Bulk, Messer Americas. “The Electric Reliability Council of Texas (ERCOT) market structure and abundance of open space and sunlight make this project a win from an environmental and economic perspective.”

Standard Solar specializes in developing, funding and long-term ownership and operation of commercial and community solar assets. Based in Rockville, Maryland, Standard Solar currently  more than 300 MW of solar in 23 states across the U.S. In September 2022 Brookfield Renewable acquired Standard Solar for consideration of $540 million with the potential to invest an additional $160 million to support the company’s growth initiatives.

ReVision Energy announced it is acquiring Massachusetts-based Sunbug Solar, a Somerville, Mass.-based solar provider established in 2009.

ReVision Energy, reportedly the largest employee-owned solar installer in the country, has 20 years experience in the renewable energy industry and serves Maine, New Hampshire and Massachusetts customers. The company has offices in South Portland and Montville, Maine; Brentwood and Enfield, New Hampshire; and North Andover, Massachusetts. With over 400 employee co-owners, 15,000 installations, ReVision is a Certified B Corp and member of Amicus Solar Cooperative.

The Amicus Solar Cooperative comprises 75 member companies ranging in size from 10 to 420 employees. Combined, Amicus members reportedly employ over 4,000 solar energy and storage professionals across 50 states, D.C., Puerto Rico, and western Canada. Amicus facilitates collaboration among its members, enabling veteran solar companies to share knowledge with smaller companies, with a goal of furthering the industry overall. They share insights on topics such as safety, marketing, sales, installation best practices, understanding policy changes and they also pool their purchasing needs in supplier partnerships.

With the acquisition of Sunbug Solar, also an Amicus member, ReVision increases its footprint in the state of Massachusetts. The state has a target of doubling solar installations and quadrupling energy storage deployment by 2030 as well as putting one million electric vehicles on the road in the same timeframe.

According to a recent state study, more than 10 times the current amount of solar will need to be installed to generate the 27 to 34 GW necessary for Massachusetts to reach its decarbonization goals.

For more on Massachusetts’ clean energy plans, read 50 states of solar incentives: Massachusetts.

Sunbug Solar and ReVision Energy executives said by working together, they can install more solar, advocate more effectively for clean energy regulation and provide a comprehensive range of solar energy solutions.

“If we are to avoid the worst impacts of climate change, we need to reduce greenhouse gas emissions and transition to clean and renewable energy. This goal cannot be achieved alone or done in a way that leaves out vulnerable communities,” said Fortunat Mueller, CEO and president of ReVision Energy.

The brand transition is expected to be complete in mid-2024, at which time Sunbug Solar’s offices in Woburn and Westfield will unite with ReVision Energy’s North Andover office and will all operate under the ReVision Energy brand, serving Sunbug Solar’s 3,000 existing clients as well as new customers. Sunbug’s 60 employees will join ReVision Energy’s team of 400 employee co-owners and become eligible to become employee-owners as well.

Sunbug Solar CEO Janice DiPietro will transition to a leadership role at ReVision Energy.

“The alignment between our two companies is extremely strong,” said DiPietro. “We share common values, processes, and an unwavering commitment to do right by our employees, customers, and the communities we serve.”

ReVision Energy established its Massachusetts branch in North Andover in 2017. Collectively, the two organizations have completed more than 4,000 installations in Massachusetts and 18,000 across New England.

Nextracker, a leading provider of solar trackers and software solutions, announced its majority holder Flex has enacted a plan to spin-off all of its remaining interests in Nextracker, Inc, making payments to Flex shareholders. The transaction, expected to take place in Q4, would result in a separation by Flex from its ownership in Nextracker.

Nextracker plans to file a registration statement on Form S-4 with the U.S. Securities and Exchange Commission, that includes a preliminary proxy statement of Flex, which will include additional information regarding the spin-off. The separation from Flex is currently expected to close in fiscal Q4 ending March 31, 2024, but remains subject to a number of conditions, and no assurance can be given that the spin-off will in fact occur.

Flex helped us considerably in maturing our business processes and supporting our expansion into emerging markets, especially in our early years as a young company,” said Dan Shugar, Nextracker founder and chief executive officer. “We are energized to start our next chapter.”

Earnings

Nextracker also released its fiscal Q2 quarterly earnings on October 25, showing growth in-quarter and strong earnings guidance for the “next chapter” of 2024.

For Q2 fiscal year 2024, revenue was $573 million, up 23% year-over-year. GAAP net income totaled $81 million, while earnings per share was $0.55. Adjusted EBITDA reached $110 million, rising 164% year-over-year.

“We closed our third consecutive quarter of growth year-over-year, as a public company, and it was our sixth consecutive quarter of margin expansion on a sequential basis,” said Shugar. “With a record first half and our anticipation of a strong second half of the fiscal year, we have raised our annual profit guidance and the mid-point of our annual revenue guidance.”

The company raised its mid-point Fiscal Year 2024 revenue range as a result of strong performance. The company now expects revenues to range $2.3 billion to $2.4 billion. It raised GAAP net income expectations to $237 million to $266 million (raised from previous expectations of $176 million to $205 million. GAAP earnings per share guidance was substantially raised from a range of $1.45 to $1.65 to $1.95 to $2.15.

Nextracker said the quarter was defined by global supply chain repositioning and capacity expansions and product innovation with the next generation of its technology suite. The company launched three new products, including:

• NX Horizon Hail Pro: Hail-stowing solution with hardware, software, service
• NX Horizon XTR-1.5: Doubling the undulation capability of its terrain-following tracker
• TrueCapture Zonal Diffuse: Enhanced energy yield in varied irradiance conditions

“We are well-positioned with our global scale and growth profile, and we are excited to pursue the market opportunities ahead,” said Shugar.

Group interconnection studies: Beneficial but not a panacea  IREC’s latest analysis compares group studies with serial solar interconnection studies, concluding that while group studies can help manage queue challenges, they don’t significantly expedite necessary grid upgrades.

Duke completes sale of renewables business, renamed to Deriva Energy  As part of Brookfield, Deriva has 5.9 GW of clean energy assets operating and under construction.

Sunnova misses on Q3 earnings, posts sunny forecast for 2024 The energy-as-a-service provider had more losses than the expected consensus, but its stock rose based on an optimistic view for 2024.

TotalEnergies adds a 280 MW Texas solar facility to its portfolio Myrtle Solar, located south of Houston, Texas will power Kilroy Realty assets and three of TotalEnergies production plants along the Gulf Coast.

American Battery Factory breaks ground on $1.2 billion Arizona gigafactory The lithium-ferro-phosphate battery cell factory will provide an estimated 1,000 jobs to the Tucson, Arizona area.

Duke Energy has closed on the sale of its Commercial Renewables business to Brookfield and the company is renamed Deriva Energy. The new acquisition will maintain its operations in Charlotte and the employees will transition to the new company.

Based in Charlotte, North Carolina, Duke Energy is a utility that provides electric services to more than 7 million customers in the Carolinas, Florida, Indiana, Ohio and Kentucky, including retail natural gas service to over 500,000 customers in Ohio and Kentucky.

The process began in In November 2022, when Duke launched an auction for its commercial renewable energy platform. In June of 2023 it was announced that Duke Energy reached an agreement to sell its commercial renewable energy business for cash consideration of $1.1 billion and the assumption of $1.7 billion total debt. The utility had previously put a $4 billion valuation on its broader utility-scale renewables business.

“Today is a significant milestone for our business and opens an exciting new chapter in our history,” said Chris Fallon, president of Deriva Energy.

He noted that Deriva is now an independent developer, owner and operator of clean energy projects with the backing of Brookfield. Brookfield is one of the world’s largest owners and operators of renewable power plants, with approximately 900 GW of combined operating and pipeline capacity across all major U.S. power grids.

“As part of Brookfield, we have access to capital for growth and a wealth of operating expertise, which will enable us to continue our leadership in clean energy for many years to come,” Fallon said.

The closure of this sale is the final step in Duke Energy’s portfolio re-positioning to a fully regulated utility. In July 2023, Duke announced an agreement to sell its commercial distributed generation business to an affiliate of ArcLight Capital Partners for an enterprise value of $364 million. Duke said it expected about $259 million of net proceeds from the transaction.

The two divestments support Duke’s focus on the growth of its regulated businesses, including investments to enhance grid reliability and incorporate over 30 GW of regulated renewable energy into its grid by 2035.

Morgan Stanley & Co. LLC and Wells Fargo Securities, LLC served as financial advisors to Duke Energy for this transaction. Skadden, Arps, Slate, Meagher & Flom LLP served as legal counsel to Duke Energy.

Solar energy continues to attract more funding as the world moves along the transition from fossil fuels to renewable and emissions-free energy. This year, through nine months, over $28.9 billion in venture capital, public market, and debt financing was invested in the solar industry worldwide.

Mercom Capital Group reported that this level of funding represents a 55% growth over the first nine months of 2022, which totaled $18.7 billion. The number of deals decreased 5%, according to the report, but the 124 deals inked thus far in 2023 represented a significant leap in capital injection over last year.

“Despite inflationary challenges, financing in the solar industry has remained robust through the first three quarters of 2023 thanks to a strong global push toward decarbonization and substantial incentives created by the Inflation Reduction Act,” remarked Raj Prabhu, chief executive officer, Mercom Capital Group. “M&A activity, on the other hand, has faced adverse effects, especially in the realm of project acquisitions, due to increased due diligence, higher costs, delays, and a tight labor market.”

Through nine months of 2023, venture capital (VC) funding activity rose 4% year-over-year, with $5.7 billion across 51 deals, said the Mercom report. Solar downstream companies led activity in this area, closing 28 deals worth $2.8 billion over the period.

The largest VC deals included $471 million raised by 1KOMMA5°, $428 million raised by Enfinity Global, $375 million raised by Silicon Ranch, $360 million raised by CleanMax, and $350 million raised by Juniper Green Energy.

Public market financing over the report period reached $7.2 billion across 19 deals, a 47% leap year-over-year.

Debt financing had the most robust growth, totaling $16 billion over 54 deals, an impressive 93% growth over 2022 first-nine-month totals.

Securitization deals totaled $3.2 billion over the first nine months of 2023, increasing 39% year-over-year.

Over the report period 75 solar merger and acquisition transactions occurred, representing a pullback from the 90 deals struck over that period in 2022. The largest transaction was Brookfield Renewable’s acquisition of Duke Energy’s unregulated utility-scale renewables business, which was valued at $2.8 billion.

Over 31.6 GW of projects were acquired through the first three quarters this year, a significant increase over the 52.1 GW acquired through three quarters in 2022.

“Project Developers and Independent Power Producers (IPPs) were the most active acquirers of solar projects in Q3 2023, picking up 2 GW, followed by insurance companies, pension funds, energy trading companies, industrial conglomerates, and IT firms with a total of 1.6 GW. Investment firms acquired 959 MW; electric utilities acquired 877 MW; and oil and gas companies acquired 759 MW of projects,” said the Mercom Capital report.

U.S. could be understating global warming impact of blue hydrogen: IEEFA report This report is the first in a series that the organization is planning, which will include analyses of producing hydrogen from coal and renewable natural gas.

Maxeon to acquire shingled cell solar patents from Complete Solaria  In addition to the solar panel patent portfolio, Maxeon will gain complete Solaria’s dealer channel operations and contracts.

Ohio community solar pilot would unlock 1.75 GW market A bill proposed in Ohio promises to generate $5.6 billion in gross economic output and over $400 million in local tax revenues, said a report from Ohio University.

Maxeon Solar Technologies, Ltd. announced that it is acquiring Complete Solaria’s dealer channel operations as well as its solar panel patent portfolio relating to shingled cell solar panel technology.

The shingled cell technology, originally developed by SunPower, is incorporated into Maxeon’s Performance line of solar modules. The 425 W modules use bifacial mono-PERC solar cells made on large-format eight-inch G12 wafers, and have an efficiency of 20.6%, according to Maxeon. Maxeon was spun off from SunPower in 2020, when both became separate entities.

Maxeon’s CEO Bill Mulligan said that the transaction with Complete Solaria will expand the company’s distributed generation footprint incorporating Solaria’s dealer chanel, which will accelerate Maxeon’s direct sales efforts. Plus, he said, it will give Maxeon “immediate access to a qualified source of tariff-free solar panels that we plan to market adjacent to our flagship IBC solar panels, allowing us to replicate in the U.S. market the “better-best” product strategy we have successfully employed in our international markets for years”.

California-based Complete Solaria is an integrated provider of solar installation solutions using its own 360 to 400 watt solar modules. The company was formed in November 2022, when Solaria merged with installer Complete Solar, and operated the resulting Complete Solaria business as a vertically integrated company. In July of this year the company announced its intention to go public upon completion of a special purpose acquisition company (SPAC) merger with Freedom Acquisition I Corporation

The acquisition of Complete Solaria’s solar panel patent portfolio adds to the over 130 granted patents and over 80 pending patent applications for fundamental shingled solar cell panel technology. Mulligan noted that Maxeon designs and manufactures globally, and plans to use the shingled solar cell technology in its the cell and module manufacturing facility the company plans to build in Albuquerque, New Mexico.

Maxeon announced in August that it had chosen Albuquerque for its new 3 GW facility, which will produce TOPCon PV-silicon cell technology and the Maxeon’s proprietary shingled-cell Performance Line solar modules. The company said the facility will produce millions of solar modules each year for the growing utility-scale and distributed-generation markets in the U.S. Maxeon reports that its new plant is expected to be the first large-scale cell and module manufacturing in New Mexico. While 3 GW is the planned capacity, the company said there’s a chance it will increase it to 4.5 GW in the future.

According to Will Anderson, CEO of Complete Solaria, after the transaction is complete, the company plans to concentrate on it core systems segment.

“This transaction will provide Complete Solaria with capital to optimize our end-to-end customer offering, including beautiful, high-quality solar energy systems with Maxeon premium, high performance solar panels,” said Anderson.

“Make it burn” and other lithium-ion first responder guidance  American Clean Power has published a guide for first responders on lithium-ion battery energy storage system emergencies, offering insights based on the 2023 NFPA 855 code revision.

Coalition urges Biden Administration to scrap hydrogen hub plans; advocates push back  Building out the hydrogen market has been an area of priority for the Biden Administration, and the resource is expected to be a critical tool to decarbonize hard-to-abate sectors.

GridLab 100% clean reliable grid study uses scrubbed data from utility PNM  New Mexico utility PNM has three possible pathways—all relying on a high percentage of wind and solar generation—to reach 100% clean electricity while maintaining reliable service, found a study by the non-profit consultancy GridLab and a team of experts.

Engie acquires Broad Reach Power Engie has acquired 350 MW of operating storage assets and 880 MW of assets under construction from U.S. battery specialist Broad Reach Power, with commissioning of the latter assets expected by the end of 2024.

Arizona approves cut to solar compensation rates  A 37% cut had been proposed, but the Arizona Corporation Commission upheld the precedent of capping the reduction at 10%, but new risks may emerge.

Solar-powered sensors for wildfire detection An AI-powered sensor was developed by Dryad Networks to detect wildfires and alert first responders.

New York’s first state-owned energy storage project now operatonal The 20 MW utility-scale battery energy storage facility will help accelerate the target of 6 GW of energy storage by 2030.

From pv magazine global

Engie has agreed to acquire U.S.-based battery company Broad Reach Power from private equity funds EnCap and Apollo.

The French energy giant said that it has signed a binding agreement for the acquisition, but it did not disclose the purchase price. The deal includes 350 MW of operational assets and 880 MW of assets under construction, with commissioning expected by the end of 2024.

In addition, the deal involves 1.7 GW of advanced-stage projects and a substantial pipeline of early-stage projects, according to a statement from Engie. The projects are situated in Texas, California, and the central United States.

The transaction is now subject to approval from relevant antitrust and energy regulatory authorities. The finalization of the acquisition is anticipated to occur in the fourth quarter of this year.

In July, Engie and Paris-based Meridiam reached an agreement to purchase South African renewables developer BTE Renewables from UK investment firm Actis for an undisclosed sum.

Nautilus Solar Energy, LLC acquired two community solar portfolios in Maryland totaling 23 MW, comprised of six projects spread across the state. Expected to be operational by 2024, the projects will serve over 5,000 Maryland subscribers residing in the Pepco and BG&E utility territories.

Currently about 75% of Maryland households lack the ability to deploy rooftop solar systems based on inadequate roofing or shade conditions, as well as rentals or condominiums prohibiting access to solar systems, according to the Sierra Club. Community solar projects can offer a solution to that suitability problem. These small to mid-scale solar facilities typically sited on private land, commercial rooftops, landfills, industrial sites and other preferred areas in proximity to the utility customers they’re intended to serve.

Maryland was an early adopter of community solar, with a community solar pilot program launched in 2018. Maryland recently became the 23rd state with a permanent community solar program that became law when HB 908 was voted on in May of this year. HB 908 requires at least 40% of solar capacity dedicated to benefit low-to-moderate income (LMI) customers, intended to ensure that historically disadvantaged Marylanders have equitable access to electric bill savings at a time when inflated energy prices are driving up household energy costs.

The new community solar bill replaces the pilot program and eliminates the pilot’s cap of 580 MW of community solar. The new program incentivizes the development of projects on a greater variety of sites, including commercial and industrial rooftops, brownfield sites, as well as on farmland.

Nautilus is no stranger to community solar in Maryland, having been an early participant in the community solar pilot program. The company owns and manages nearly 90 MW of operational and late-stage development projects in the state, which provides clean renewable power to tens of thousands of Marylanders.

“Our focus is not just on producing clean energy but ensuring that the benefits, particularly the cost savings, reach every Marylander, especially those from low-to-moderate income backgrounds and historically disadvantaged communities,” said Eric Paul, vice president of partner development at Nautilus.

Nautilus Solar Energy specializes in community solar, managing solar farms in 10 states. In January Nautilus reached an agreement to acquire a nine-project portfolio with 54 MW of community solar assets from Seaboard Solar, a Connecticut-based utility solar developer. In 2022 Nautilus acquired two community solar portfolios in Maine with five projects under development totaling 26.2 MW in total capacity. In June the company completed a 2.8 MW community solar project in Upstate New York, the first of three in the service area of Orange and Rockland and expects to bring the next two projects online in Q3.

Founded in 2006, Nautilus was acquired in 2019 by Power Corporation of Canada.

Mercom Capital Group’s Solar Funding and M&A, 2023 First Half Report finds healthy financial activity in the solar sector in the first half of 2023. And while the number of deals went down, total funding went up.

Total corporate funding, including venture capital (VC) funding, public market, and debt financing, was up 54% year-over-year (YoY) compared to $12 billion raised in the first half of 2022. The number of deals dropped from 91 in the same period last year to 80 in the first half of this year, a decrease of 12%

“Even amidst the tightening financial market conditions and high interest rates, the solar industry remained strong in the first half of the year. Besides AI, cleantech is one of the few sectors still attracting VC interest. Demand due to the Inflation Reduction Act (IRA) is so strong that even interest rate-sensitive public market and debt financing in solar was up year-over-year. The lack of easy money, however, affected M&A activity negatively,” said Raj Prabhu, CEO of Mercom Capital Group.

Global VC funding rose 3% YoY with 33 deals worth $3.8 billion compared to 53 deals in the same period last year, worth $3.7 billion.

Top five VC deals:

1. 1KOMMAS, $471 million
2. Silicon Ranch, $375 million
3. CleanMax Solar, $360 million
4. Amarenco, $325 million
5. Amp Energy India $250 million

Developers and independent power producers (IPPs) acquired 5.5 GW of solar projects, whereas utilities acquired just under 4 GW. Insurance companies, pension funds, energy trading businesses, industrial conglomerates, and IT firms acquired another 2.1 GW. Oil and gas companies acquired 1.8 GW of projects, and investment firms acquired 407 MW.

Mergers and acquisitions (M&A) were down in the first half of 2023, with 116 project acquisitions for 25.5 GW of solar projects compared to 148 project acquisitions totaling 37.8 GW in the first half of 2022. The largest deal was by Brookfield Renewable, which agreed to acquire Duke Energy’s unregulated utility-scale commercial renewables business in the U.S. The business comprised close to 3.5 GW of utility solar, wind and energy storage projects, and was acquired for cash consideration of $1.1 billion and the assumption of $1.7 billion total debt.

Solar public market financing in the first half of 2023 totaled $6.7 billion in 14 deals, which was 103% higher than the $3.3 billion financed in eight deals in the first half of 2022. Solar debt financing activity in the first half of 2023 reached $8 billion in 33 deals, a 60% increase compared to 1H 2022, when $5 billion was raised in 30 deals.

Duke Energy announced an agreement to sell its commercial distributed generation business to an affiliate of ArcLight Capital Partners for an enterprise value of $364 million. The North Carolina utility said it expects about $259 million of net proceeds from the transaction.

The deal represents the second solar divestment of the year for the utility. In early June, Duke reached an agreement to sell its utility-scale renewables business platform for $2.8 bilion to Brookfield Renewable. The company expects to finalize the sales for its utility and distributed-generation solar businesses by the end of 2023. It said it plans to use sale proceeds to lower balance sheet debt.

The two divestments support Duke’s focus on the growth of its regulated businesses, including investments to enhance grid reliability and incorporate over 30 GW of regulated renewable energy into its grid by 2035.

The distributed-generation business being sold includes REC Solar operating assets, development pipeline and O&M portfolio, as well as various fuel cell projects managed by Bloom Energy. Employees of the distributed generation business will transition to ArcLight to maintain business continuity for its operations and customers.

Duke initially acquired the REC Solar commercial DG business in February 2015 for about $225 million.

“The sale of our commercial renewables businesses streamlines our portfolio and provides the resources to support the long-term needs of our customers in our growing regulated territories,” said Lynn Good, president and chief executive officer of Duke Energy. “Over the next decade, we plan to invest significant amounts of capital to fund the critical energy infrastructure necessary to serve our customers and support our clean energy transition.”

“This transaction leverages ArcLight’s deep experience in investing across the renewables infrastructure sector and utilizing our value-added approach to help drive asset optimization, which allow us to further build upon the portfolio and advance brownfield development opportunities,” said Dan Revers, managing partner of ArcLight.

The sale is subject to closing conditions, including a waiting period under the Hart-Scott-Rodino Act, as well as approval by the Federal Energy Regulatory Commission for the sale of Bloom Energy fuel cell assets.

Bank of America Securities is financial advisor and Mayer Brown LLP is legal advisor to Duke Energy for the divestment. Scotia is financial advisor and Kirkland & Ellis is legal advisor to ArcLight Capital, a Boston-based energy private equity firm invested in $27 billion of transactions since 2001.

Earlier this year, Duke Energy sold its utility-scale solar development business to Brookfield Renewables, which includes a 3.4 GW pipeline of wind, solar and energy storage assets in various stages of development. The utility had previously put a $4 billion valuation on its broader utility-scale renewables business.

Residential solar solutions provider Complete Solaria plans to list as a public company later this month upon completion of a special purpose acquisition company (SPAC) merger with Freedom Acquisition I Corporation. California-based Complete Solaria, an integrated provider of solar installation solutions using its own 360 to 400 Watt solar modules, plans to list itself on the Nasdaq Stock Market under the ticker “CSLR” by the end of July, subject to closing conditions in connection with the business combination.

Freedom Acquisition is a $250 million SPAC platform established in February 2021 by Tidjane Thiam, Adam Gishen and Abhishek Bhatia. Thiam and Gishen have financial services and investor relations experience from over two decades at Credit Suisse and Prudential. Bhatia previously served as group chief executive officer of insurance firm FWD Group.

Complete Solaria’s public offering via SPAC merger is expected to provide gross proceeds of $376 million, prior to any potential redemptions and payment of transaction expenses, which includes $346 million of cash held in Freedom’s trust account and promissory notes.

According to a June 30 investor relations presentation, Complete Solaria anticipates generating $200 million of revenue this year as a “one-stop shopping model” for residential solar solutions.  The Utah-based company reports a cluster of seven residential solar companies based in and around the Salt Lake City, Utah area, where Sunrun and Vivint Solar also operate.

Complete Solaria is led by Will Anderson, co-founder and chairman of Complete Solar, chief financial officer Brian Wuebbels, the former CFO of NIDEC, GCL Solar and SunEdison, and president Vikas Desai, who founded SunPower’s residential business.

Complete Solaria recently encountered a slow down at its Lehi, Utah semiconductor manufacturing facility, running at half speed of 286 day cycle time in 2022 versus 140 days in 2021. The company retained the services of T.J. Rodgers, former chief executive of Cypress Semiconductors who has also worked with Enphase Energy and SunPower, to serve as executive chairman to scale up Complete Solaria’s manufacturing operations.

In November 2022, Solaria announced plans to merge with installer Complete Solar and float the resulting Complete Solaria business as a vertically-integrated company similar to SunPower. The SPAC merger was announced in October 2022, pending closing conditions for the companies’ merger.

Marathon Capital is capital markets advisor and Cooley is legal advisor for Complete Solaria. Cohen & Company, J.P. Morgan, Deutsche Bank and Morgan Stanley were capital markets advisor and book-running managers for the SPAC, with Paul Hastings as its legal advisor.

A new solar development company, Hawthorne Renewables, has launched its headquarters in Phoenix, Arizona. The company is the result of a merger between Power Capital Energy Group and Sulus Solar.

Since its beginnings in 2016, Portland, Oregon-based Sulus Solar scaled to deliver more than $150 million of solar projects across Oregon and Washington. The company is headed by two industry veterans, Colin Murphy and Conor Grogan.

“We’re incredibly proud of the success we’ve had and have a huge appetite to ramp up our operations with new infrastructure from this merger,” said Grogan.

The company is backed by Omnes Capital, a Paris-based green energy private equity firm valued north of $5 billion. Omnes Capital stated intent to invest over $250 million in the new Phoenix, Arizona-headquartered developer over the next three to four years.

Hawthorne Renewables said it targets 2 GW of operational solar assets over the next five to seven years. The company will develop, finance and operate projects. It will have a Portland office in addition to the Phoenix headquarters.

“We thoroughly analyzed a large set of potential development platform companies for our entry to the U.S., followed by extensive third-party legal and technical due diligence on the Sulus Solar platform,” said Justin Brown, co-founder and co-chief executive of Power Capital. “Conor and Colin stood above the pack as ideal partners amidst a dynamic and competitive market.”

M&A

In 2020 and 2021 mergers and acquisitions activity for renewables surged as valuations for platforms, which included project portfolios and corporate development teams that manage them, reached all-time highs. 

There is a growing trend of international players acquiring experienced U.S. developers with strong project portfolios, and CohnReznick said it expects this trend to continue in 2023. International independent power producers and infrastructure funds see acquisition as an efficient tool to enter or expand their presence in the growing North American market.

Corporate M&A activity that includes developer experience and a portfolio of projects offers scale and transaction efficiency that the acquisition of individual projects aren’t able to match.

FTI Consulting said in a whitepaper that notable 2022 M&A transactions included Brookfield Renewable’s pair of acquisitions of Scout Clean Energy ($1 billion) and Standard Solar ($540 million), Enbridge’s acquisition of Texas wind developer Tri Global Energy for $270 million, and German energy producer RWE AG’s acquisition of Con Edison’s Clean Energy Businesses for $6.8 billion.

“With patience, we anticipate strong M&A activity in traditional renewable assets, platforms and emerging technologies trending toward the second half of 2023 and into 2024 as greater clarity and increased value creation are established,” said the March 2023 whitepaper.

U.S. universities and regional colleges are engaged in carbon neutrality goals, including adding campus-wide energy efficiency and renewable energy projects such as solar generation.

In Pennsylvania, Lehigh University is adding a 2.61 MW solar facility on its campus as a component of its 2040 carbon neutral strategy.

Standard Solar, a Brookfield Renewable-owned community solar developer, has announced the acquisition of the Lehigh solar facility from developer EDF Renewables, solidifying the company’s commitment to advancing solar energy in Pennsylvania and expanding into the education market.

“This transaction adds to Standard Solar’s impressive track record of successfully bringing solar solutions to schools, empowering them with clean and sustainable energy sources,” said Eric Partyka, director of business development, Standard Solar. “We’re thrilled to continue our successful development and construction partnership with EDF Renewables North America with this newest project – delivering clean energy to Pennsylvania’s Lehigh University community.”

Upon completion, the project is anticipated to fully power the Murray H. Goodman Campus, where the majority of the university’s athletic facilities are located. The solar installation is expected to meet 100% of Lehigh University’s electricity demands while offsetting 8% of the university’s grid power consumption.

The project will use a single-axis tracker system estimated to generate 5.22 GWh of clean energy each year, enough to power about 285 houses for one year and offset the carbon dioxide equivalent of burning more than 1,250 tons of coal in one year.

The Lehigh project is part of the developer’s expanding portfolio in the education sector. The company currently owns and operates more than 35 MW of solar projects serving educational institutions, encompassing both K-12 schools and collegiate institutions.

“Lehigh University has a bold, comprehensive plan to become a carbon-neutral institution, one driven by university and Lehigh Valley stakeholders” said Audrey McSain, sustainability director at Lehigh University. “This project will play a key role in our strategy, delivering rapid emissions reductions to help meet our ambitious goals. We thank EDF Renewables and Standard Solar for their partnership and look forward to producing clean energy onsite for our community and environment.”

Lehigh University recently released an ambitious 2040 carbon neutral strategy which includes:

• Virtual Power Purchase Agreement (VPPA) solar project
• On-campus solar project
• High-priority energy projects
• Sustainable policies
• Shifting Lehigh’s vehicle fleet to run on 100% renewables
• Land preservation & local carbon offsets
• Electrify some campus buildings
• Decarbonize central heating plants
• Renewable Energy Credits (RECs) & carbon offsets

The university’s Climate Action Strategy aligns Lehigh with the City of Bethlehem’s Climate Action Plan, which establishes a net-zero by 2040 community-wide target. The strategy deepens Lehigh’s commitments to climate action and puts Lehigh in line with peer and aspirant peer institutions that have developed pathways to net-zero emissions.

Standard Solar, based in Rockville, Maryland, owns and operates more than 300 MW of community solar and small distributed solar projects across the U.S.

Distributed solar installer Aspen Power announced it has completed the initial phase of solar projects for The Michaels Organization, covering a new multifamily housing construction with rooftop PV. 

The Davis, California site is expected to generate 476,000 kWh of electricity in its first year of operations, offsetting an estimated 380 metric tons of carbon emissions, equivalent to avoiding burning 781 barrels of oil. The project will meet an estimated 20% of the building’s electricity needs and is expected to save residents an average of 5% on their Pacific Gas & Electric utility bills. 

Aspen Power self-originated the project and managed each stage from development and engineering through procurement, installation and utility interconnection. The installer owns the project and is responsible for maintenance of the equipment over the life of the project. 

The installation satisfies California’s Title 24 requirements, which mandates multifamily properties to generate renewable energy on-site. Additionally, as of January 1, 2020, all new construction homes, from single-family homes to three-story high multi-family homes, are required to install on-site solar arrays. Exceptions apply to properties with too small a roof or too much shade to be feasible for rooftop solar. 

“By incorporating clean energy technology, we can offer our tenants the dual benefits of environmentally friendly power and reduced energy costs,” said Scott Cooper, vice president, The Michaels Organization. 

The Michaels Organization has over $11 billion in assets under management and has developed over 57,000 units. It has over 200,000 residents across its 596 housing communities, opening the door for a large commitment to distributed rooftop solar. The company said its business model focuses on solutions to communities that help jumpstart housing, education, civic engagement, and neighborhood prosperity, and has paid over $12 million in resident scholarships to date. 

California also voted in 2021 to require the installation of solar and battery energy storage on most new commercial buildings and high-rise residential constructions. The mandate went into effect January 1, 2023, as administered by the state’s Building Standards Commission. 

Homes and buildings make up 70% of California’s electricity use and about a fourth of its greenhouse gas emissions, said the Commission. Over 30 years, the Commission estimates the emissions abated from this mandate would equal taking 2.2 million cars off the road.

Acquisition

Aspen Power recently acquired Safari Energy, increasing its exposure to the commercial and industrial solar market. The acquisition came with more than 70 projects in California combining for over 38 MW of solar capacity. The company has stated goals of reaching a GW scale of distributed solar capacity by mid-decade.

The acquisition follows a banner year for merger and acquisition (M&A) in the solar industry in 2022, according to a report by Mercom Capital. Mercom noted that solar funding dipped in 2022, but M&A activity was the highest since 2010.

There were 128 M&A transactions in 2022, with Essen, Germany-based RWE AG’s acquisition of Consolidated Edison’s clean energy group for $6.8 billion representing the largest deal of the year. The Con Edison Clean Energy Businesses consist of  3 GW of operating assets with a 7 GW development pipeline.

In 2022, 66 GW of solar projects changed hands, with developers acquiring a 35.7 GW majority of the assets put on the auction block, representing the second highest project-level acquisitions since 2010.

As for funding in the solar market, $5.9 billion or 84% of equity deals in 2022 went to project development companies, while photovoltaic suppliers raised $864 million and balance of system companies raised $83 million. Intersect Power ($750M), Longroad Energy ($500M), Yellow Door Energy ($400M), Palmetto Solar ($375M)  and Aspen Power Partners ($350M) represent the five largest corporate funding transactions in 2022 among the largest funded segment for project development or downstream category.

Suntuity Renewables, a Holmdel, N.J.-based residential solar installer, announced plans to go public this week through a merger with special purpose acquisition company (SPAC), Beard Energy Transition Acquisition Corp., a $249 million SPAC platform operated by Gregory A. Beard, a former investment principal from Apollo Global Management, a global private equity firm.

“Since 2017, Suntuity’s mission has been to support the transition to a 100% clean and renewable energy future by simplifying residential solar power,” said Dan Javan, president and chief executive officer of Suntuity. “In taking this next step to become a publicly traded company, we intend to accelerate our growth, broaden our focus to include comprehensive home electrification solutions and services across the country, and establish ourselves as a significant industry participant in the renewable energy transformation.”

New Jersey-based Suntuity provides residential solar installation solutions in 25 U.S. states and has deployed 9,500 systems to date. Since 2017, the company has originated more than 200 MW of aggregate solar and storage systems, as well as third-party financing solutions.

Suntuity’s industry relationships with top-tier suppliers and financing partners have contributed to its 26.7% installation compounded annual growth rate for the past three years, as well as a $55 million backlog for more than 1,152 projects whose cycle time from deal acceptance to installation is 59 days.

The company has forecast growth of 79 MW of installations in 2022 increasing to 125 MW of 2023 solar installations across its 25-state market. Suntuity breaks down its top state markets primarily in the Northeast and Mid-Atlantic markets, such as New Jersey (33%), Pennsylvania (22%), Connecticut (6%), Massachusetts (6%) and Maryland (6%).

Suntuity uses a mix of in-house and outsourced solutions and capabilities to deploy home solar, storage and EV charging solutions. Outside of its key states, Suntuity has an outsourced installation crew in additional states in Ohio, Illinois, Nevada, California and Texas, among other states capable of installing the company’s systems, with outsourced crew hubs in Utah, Texas, Florida, South Carolina and across the Northeast.

Upon closing of the transaction, the combined company will be named Suntuity Inc. and its shares will trade on the New York Stock Exchange under ticker, “STY.” The business combination has been approved by the boards of directors of both Suntuity and Beard, and is expected to close in Q4 2023, subject to regulatory and stockholder approval.

Citigroup and Roth Capital Partners served as underwriter and capital markets advisor on the SPAC transaction, while Loeb & Loeb LLP is Suntuity’s legal advisor. Vinson & Elkins advised Beard.

Suntuity’s senior management are expected to continue to serve in their existing roles following the SPAC transaction. Current Suntuity employees are expected to retain a 40% ownership of the company at closing, assuming no redemptions by the SPAC’s public shareholders.

“When searching for a potential partner in this transaction, we sought to identify a high-growth business in the renewable energy space with a clear path to scalability and a public-ready management team; we believe Suntuity satisfies each of these criteria and much more,” said Beard.

Beard formed his energy transition SPAC platform in March 2021 with $250 million of capital commitments. Other members of the SPAC team held prior roles across the energy market, including Riverstone, Intervale Capital, Athlon Energy and Caelus Energy, both of which are historic oil and gas producers.

Institutional shareholders in Beard include the Alberta Investment Management Corp. (2.8%), Cantor Fitzgerald (4.6%), Sculptor Capital (4.7%), Adage Capital Partners (5.4%) and Saba Capital (7.7%).

Canadian Solar, an integrated solar manufacturer and energy storage systems distributor, reported a record 6.1 GW of solar module shipments in Q1 2023, a 68% yearly increase over 3.63 GW of module shipments in Q1 2022.

Canadian Solar manufactures solar modules in Canada, China, Indonesia, Vietnam and Brazil.

Net revenues of $1.7 billion in Q1 2023 were also a 36% yearly increase from $1.25 billion a year ago, in line with the recent guidance of $1.6 billion to $1.8 billion for Q1 2023.

“We started off the year strong with 36% year-over-year revenue growth and 750% increase in diluted earnings per share. We continue to leverage our premium brand to capture increased solar and battery storage opportunities, while laying the groundwork for future success with strategic capacity expansion,” said Dr. Shawn Qu, chairman and chief executive officer, Canadian Solar.

CSI Solar, which consists of Canadian Solar’s module, battery storage manufacturing, inverters, solar system kits and EPC (engineering, procurement and construction) businesses, is planning to list more than 540 million shares on the Science and Technology Innovation Board, an index of the Shanghai Stock Exchange. The mainly residential storage and inverter business is reportedly close to concluding the IPO by the end of Q2 2023.

“We remain focused on profitable growth and continue to optimize our cost structure through vertical integration. With the imminent IPO of our CSI Solar subsidiary, we will have a new platform to raise investment capital and further strengthen our leading position in solar and battery storage manufacturing,” Qu said.

Recurrent Energy, the integrated company’s project development business, operated a global project development pipeline of 24.6 GW, which includes 1.7 GW of projects in construction, 17.7 GW of early- to mid-stage projects, and 5.2 GW of backlog projects.

At March 31, 2023, Recurrent had 609 MW of operating solar projects and 280 MWh of storage projects, with a net resale value of approximately $700 million for the solar projects. The company saw a 24% decrease in its operating portfolio year-over-year due to project divestments.

Business outlook

For Q2 2023, Canadian Solar expects total revenue of between $2.4 billion to $2.6 billion. Total module shipments are expected to be in the range of 8.1 GW to 8.4 GW.

For the full year 2023, the company reiterated its prior outlook for total module shipments of 30 GW to 35 GW. Its battery storage shipments are expected to be in the range of 1.8 GWh to 2.0 GWh.

The company increased its full year revenue guidance to $9.0 billion to $9.5 billion from a prior range of $8.5 billion to $9.5 billion.

“We expect significant revenue and profit growth in the second quarter driven by both higher volume in solar module shipments and project sales. In the CSI Solar segment, volume growth is picking up while costs continue to come down, albeit partially offset by gradual average selling price (ASP) declines,” Qu said.

Recurrent Energy expects to close “a major project sale” during Q2 2023, which will have a positive impact on profit, Qu added.

Recent highlights

On April 11, Canadian Solar announced CSI Solar’s capacity expansion plans. CSI Solar intends to have 20.4 GW of ingot, 35 GW of wafer, 50 GW of cell and 50 GW of module capacities by the end of 2023 and is expected to have 50.4 GW of ingot, 50 GW of wafer, 60 GW of cell and 75 GW of module capacities by the end of Q1 2024.

On April 10, Canadian Solar announced the rebranding of its wholly-owned global energy subsidiary as Recurrent Energy. Recurrent Energy, previously the company’s North American utility-scale solar and energy storage project developer, will now include all of Canadian Solar’s global development and services businesses.

Canadian Solar, based in Guelph, Ontario, traded at $38.72 per share today, up 35% from $28.76 per share a year ago, with a current $2.5 billion market capitalization.

House votes to resume solar tariffs President Biden’s two-year halt on solar import tariffs is intended to create a bridge of supply as the U.S. ramps its domestic manufacturing capacity.

Multi-family housing developer looks to Mass. and Illinois for growth High Impact Solar is planning applications for more than 65 projects for the low-and-moderate income (LMI) communities adder, even though the developer has yet to see the application.

First Solar Q1 2023 revenue down, with investments in U.S. facilities taking precedent Company expects to recognize about 25% of its full year guidance in the first half of 2023 and 75% in the second half, based on Sec. 45X of the IRA taking effect.

Renogy debuts 220 W monocrystalline panel for RV and boat market The off-grid power specialist launched a bifacial 220 W, 12 V monocrystalline solar panel for marine and recreational vehicle applications.

True Green Capital acquires majority stake in CleanChoice Energy The target company has a solar development portfolio of over 300 MW community solar projects in the Northeast and Midwest.

Renewable energy infrastructure investor True Green Capital Management announced the acquisition of a majority stake in CleanChoice Energy, a retail energy provider and community solar aggregator to residential and commercial accounts. 

The investment from TGC is expected to fuel CleanChoice’s solar business across the value chain, from owning solar generation assets to selling renewable energy. TGC said it will maintain the CleanChoice brand and team, and will invest an additional $100 million in acquiring, owning, and operating solar projects. 

CleanChoice currently has a development portfolio of 300 MW of solar projects in various stages of development. The company said it is actively pursuing acquisition and co-development opportunities across the ISO-New England, NYISO, and PJM markets. 

“We continue to believe that the combination of green customers with solar power development and asset ownership will be paramount in the clean energy transition regime we operate,” said Panos Ninios, managing partner and co-founder of TGC. “In CleanChoice, we have found a best-in-class management team with a unique multi-year track record in combining solar power development with a proprietary customer acquisition and management platform.” 

TGC said CleanChoice’s business model demonstrates the attractiveness of a largely untapped opportunity to pair owned renewable generation with renewable retail supply. The investment is expected to scale its retail business by securing long term access to power, capacity, and renewable energy credits (RECs) and by reducing exposure to wholesale commodity markets.

(Read: “Renewables merger and acquisition strategies are shifting“)

“It was important for us to find a mission-aligned buyer who shares our commitment to empowering customers and building a greener future,” said Tom Matzzie, chief executive officer, CleanChoice. “We have found that in TGC, and we look forward to rapidly expanding our farm-to-table clean energy offerings.”

The transaction is expected to close in 60 to 90 days. CIBC Capital Markets served as financial advisor to TGC and DLA Piper served as counsel to the investor. Guggenheim Securities served as financial advisor and Pillsbury Winthrop Shaw Pittman LLP served as counsel to CleanChoice.

Founded in 2012, CleanChoice is a certified B-Corporation that describes itself as the first 100% green “gentailer.” The company pairs renewable energy generation with direct-to-consumer retail offerings in deregulated states that allow retail energy.

TGC, based in Westport, Conn., has raised four private equity funds since forming in 2011 with over $1 billion in equity capital. This includes the May 2022 closing of the investor’s fourth fund with over $660 million of capital to be deployed over the next four years.

In conjunction with Earth Day week, New York utility Con Edison filed its annual Sustainability Report, which provides an update on progress toward attaining a milestone of delivering 100% clean energy by 2040.

The report highlights the New York City metropolitan utility’s Clean Energy Businesses investment of $400 million in renewables projects in 2022. As of December 31, the utility operated a total of 3.07 GW of solar and wind capacity assets.

With targets for distributed solar, energy storage and zero emissions vehicles, Con Edison utilities continue to work with state and federal policy makers and stakeholders to remove barriers to distributed generation (DG) interconnection.

In mid-2020, Con Edison and its Orange & Rockland County, N.Y. utilities published a five-year Distributed System Implementation Plan that serves as an Integrated Planning, Information Sharing and Market Services resource for residents and various stakeholders. The Implementation Plan is designed to encourage the stakeholder engagement process, and Con Edison expects to update the 2020 document in report due out in June.

Solar + EV adoption

The shift to electric vehicles is accelerating in New York and will play a critical role in the state’s integrated plan to reduce greenhouse gas emissions.

Con Edison’s PowerReady incentive program is among the largest of its kind in the U.S., offering utility support for new EV charging infrastructure. Just two years after its establishment, PowerReady has already reportedly supported the deployment of more than 2,600 EV chargepoints, with a goal of 19,000 chargepoints by 2025, and 400,000 by 2035.

Distributed solar is another market that is growing rapidly in New York City. Con Edison’s metropolitan customers, plus Westchester, Orange and Rockland counties have installed more than 60,000 solar systems to date, totaling 700 MW of capacity, adding new clean generation capacity. About 52, 000 distributed generation systems have been installed in Con Edison’s metropolitan territory, while more than 10,000 systems have been deployed in its Orange and Rockland county utilities’ service territory, the company said.

To complement New York’s growing distributed energy resources, Con Edison has installed smart meters across nearly its entire customer base. Smart meters allow customers to track their energy usage in near real time, while giving Con Edison deeper insight into its electric network, improving system efficiency and reducing the impact of service outages.

The author of this pv magazine USA report can confirm Con Edison has lived up to its distributed energy roadmap, having a smart meter installed into his apartment building in the borough of Queens just before the Covid-19 pandemic of 2020. He can also confirm the accessibility to procure community solar to offset his energy consumption via Con Edison from a rooftop warehouse solar generating facility in Long Island City, in the western terminus of the Queens borough.

Heat pumps

While residents and businesses continue to use natural gas and heating oil for heat and cooking throughout the year, Con Edison expects its deliveries of natural gas to decline significantly in the years ahead, as demand for electricity rises with the adoption of EVs and heat pumps.

The utility is supporting New York’s energy transition away from fossil fuel systems. The company has incentivized the installation of heat pumps and other clean heat technologies in more than 24,000 buildings, with a goal of electrifying 150,000 buildings by 2030.

Energy storage

Con Edison’s two main utility groups have a combined energy storage target of 1.5 GW deployed by 2025 and 6 GW by 2030, in line with the state of New York’s Energy Storage roadmap filed in December 2022.

With energy storage the utility anticipates storing energy produced by up and downstate wind and solar resources, which will allow for increased reliance on these clean but intermittent sources of electricity. Various storage assets will participate in NYISO’s wholesale market, the utility said.

Storage connected to distribution end points also provides opportunities to defer infrastructure build, such as non-wire solutions, enhance local reliability, support the deployment of EV charging, and help commercial and residential customers manage their bills.

Through 2022, Con Edison interconnected a total of 446 DG customer energy storage systems, totaling 24.6 MW of capacity, while its Orange and Rockland county utilities interconnected 403 projects with 19.1 MW of capacity.

BQDM storage RFP

Under the utility’s Non-Wire Solutions program, more than 4 MW of utility-scale energy storage systems were deployed through late 2022, with additional storage systems under contract for commercial operation in 2023 and 2024.

In 2022, Con Edison also announced incentives for customer-sited energy storage systems that provide demand relief in the Brooklyn-Queens Demand Management (BQDM) program area. The BQDM program is seeking project applications for up to 15 MW of grid-connected or load-following energy storage systems that will be in operation by summer 2026.

Con Edison has $69 billion of total assets under management and today traded for a $34 billion market capitalization. In March, Con Edison closed the divestment of its renewable energy division, Con Edison Clean Energy Businesses, to German utility RWE AG in a $6.8 billion transaction.

Sunergy Renewables, a New Port Richey, Florida-based residential solar and energy efficiency installer, announced plans to go public at $475 million enterprise value.

The company announced its intent to combine with ESGEN Acquisition Corp., a special purpose acquisition company, in a transaction that would result in the combined company becoming a publicly listed company on the Nasdaq exchange.

For 2022, Sunergy installed more than 2,400 solar systems, generated $123 million of revenue and $11 million in earnings before taxes, interest, depreciation, amortization, or EBITDA, a common financial performance and corporate valuation metric. The Florida company provides rooftop solar installations as well as battery storage systems and energy efficiency solutions which include insulation and roofing systems in various states such as Florida, Texas and Arkansas.

Sunergy sells residential solar systems through a proprietary sales approach that maximizes lead generation and conversion processes. The company uses a custom software platform to augment sales and uses a customer relationship management system to track key performance indicators across the sales cycle. The installer is a SunPower elite dealer and certified Tesla Powerwall energy storage systems installer.

“We believe this combination represents a transformative step on our path to grow as a vertically integrated company,” said Tim Bridgewater, chief executive officer and co-founder of Sunergy.  “The proceeds from the transaction will help Sunergy scale more rapidly to meet the current demand we are seeing from our customers who desire to reduce high energy bills and contribute to a sustainable future.”

“Our primary objective at ESGEN is to partner with sound, scalable and profitable companies we believe will fundamentally disrupt the current energy landscape and take advantage of markets experiencing generational growth,” said Andrejka Bernatova, chief executive officer of ESGEN. “We want to simultaneously accelerate a shift to a low-carbon future.”

ESGEN is a SPAC investment platform formed by Energy Spectrum Capital, a Dallas-based energy private equity firm with $4.5 billion of invested commitments. The SPAC is managed by the firm’s Energy Spectrum Partners VIII fund affiliate, which is also invested in Nightpeak Energy, an Oakland, Calif.-based energy storage platform managed by former Recurrent Energy executives.

Financial overview

Sunergy’s go-public transaction is being funded with proceeds of $65 million in cash, underpinned by $10 million of common stock private investment in public equity (PIPE) financing commitment from Energy Spectrum Partners, valued at $10 per share.

The company said the transaction proceeds will fund operations and growth opportunities, with the SPAC transaction expected to close during Q4 2023.

Cohen & Company Capital Markets, a boutique investment banking business of JVB Financial, a New York debt investment firm, advised ESGEN on the SPAC combination, while Kirkland & Ellis was the sponsor’s legal advisor.

Eversheds Sutherland and Ellenoff Grossman & Schole are counsel to Sunergy.

SPAC market burst

According to an S&P Global Market Intelligence report, SPAC merger activity involving clean energy companies has largely collapsed since Q1 2021. The energy transition was a key beneficiary to the SPAC trend, with numerous electric vehicle, EV charging infrastructure and energy storage companies to go public over a short timeframe through early 2021.

The SPAC market collapsed amid tightening investor scrutiny tied to regulatory loopholes closed from previous allowances for target companies to go public with overstated financial projections, with numerous companies involved in SPAC mergers now seeing dwindling stock performance, the report notes.

Through Q1 2021, the most active quarter, SPAC IPO’s across all sectors peaked at 311 deals valued at $99.7 billion in aggregate transaction values, while subsequent quarters saw an average of about 73 SPAC deals and $12.4 billion average quarterly transaction values, according to S&P Global.

Tigo Energy, a provider of solar inverter, electronics and energy storage products, revealed plans in December 2022 to go public through a SPAC merger with Roth CH Acquisition IV Company (ROCG), a platform managed by Roth Capital Partners and Craig-Hallum Capital Group. That deal is valued at $600 million pre-money equity valuation and expected to close by June 30, 2023.

Ascent Solar Technologies, a Colorado-based manufacturer of copper indium gallium selenide (CIGS) thin-film solar modules, announced the closing of its acquisition of Flisom AG, a Swiss manufacturer of thin-film solar modules with 15 MW of production capacity.

Ascent will continue to be headquartered in Thornton, Colo. where it has a research and development center and 5 MW nameplate production facility. It will commence manufacturing  immediately from its new roll-to-roll thin-film manufacturing facilities in Zurich, Switzerland.  As a result of the deal’s closing, Ascent will triple its production capacity from its 5 MW of existing nameplate capacity production.

The transaction reflects a significant milestone in Ascent’s turnaround plan by delivering new committed contract revenue, increased production capacity and an international foothold as European and Asian governments adopt legislation to increase solar energy production and domestic manufacturing capabilities, a company statement said.

The Flisom acquisition is expected to provide Ascent with a new revenue stream in the luxury goods and building integrated photovoltaics (BIPV) markets. The company intends to use its new European presence to provide in-region support for Euro Zone driven net zero initiatives and to support new demand for thin-film arrays in the U.S., Europe and Asia.

Modern equipment of the Swiss facility supports Ascent’s focus on operational efficiency and optimization. The Zurich facility is capable of roll-to-roll thin-film outputs up to 3.2 feet in width and 3,200 feet in length.

Ascent’s management anticipates the EBITDA-positive operations of the Swiss assets as early as the second half of 2023 providing a boost to the company’s bottom line earnings profile over the year ahead.

“Since coming aboard the company in September 2022, my priority has been to execute an aggressive turnaround plan and to re-establish Ascent as the leading provider of high-performance, flexible thin-film solar modules for use in scenarios where traditional rigid panels don’t work,” said Jeffrey Max, chief executive officer of Ascent.

“We are seeing a global push for more solar power production and we have identified unmet demand for alternatives to traditional rigid panels that can be used in scenarios where land, form-factor, or weight constraints exist, particularly in Europe and Asia,” Max added.

On December 20, 2022, Ascent raised $50 million in equity from two institutional investors, with Bryan Garnier & Co. acting as financial advisor on the capital raise.

Ascent’s modules have been deployed on space missions, airborne vehicles, agrivoltaic installations, industrial/commercial construction and consumer goods applications.

Founded in 2005 and a public company since 2006, Ascent manufactures its thin-film PV product using a process called monolithic integration (MI). MI enables modules and arrays to have a specific footprint and power output with custom options for voltage and current. The architecture of the module allows it to continue to operate if damaged and in cloudy or overcast conditions, the company said.

The company’s shares traded at $0.37 per share today, down from $2.42 per share on December 19, one day before it disclosed its equity raise.

People on the move: American Battery Factory, Scale Microgrid Solutions and more  Job moves in solar, storage, cleantech, utilities, and energy transition finance.

Fluke receives NABCEP certification for solar workforce development  The company is now the first test and measurement tools manufacturer certified by the North American Board of Certified Energy Practitioners.

Masdar UAE developer acquires 50% of U.S. solar project from EDF Renewables  Acquiring a stake in the California 128 MW Big Beau solar-plus-storage facility is the first step the company’s partnership with EDF Renewables on a 1.6 GW portfolio of clean energy projects.

Building the workforce with Solar 101 online learning  With hundreds of thousands of solar and storage workers needed in the next decade, SEIA’s online tool is intended to prepare a workforce for the clean energy transition.

California senate transport committee passes solar parking canopy and highwayside law  The bipartisan committee unanimously approved a bill to support tax credits for solar canopies over parking lots and along highways.

Generac unveils commercial and industrial scale battery energy storage system  Zero-emissions SBE series of stationary storage systems will be available in capacities from 200 kWh to 1,000 kWh.

Regional Clean Hydrogen Hub applications seeking $7 billion in funds submitted across the U.S.  The DOE’s $7 billion Hydrogen Hub grant program closed its application window on April 7th, after giving encouragement to 33 applications seeking tens of billions in government funding.

Masdar, a clean energy company based in Abu Dabi, United Arab Emirates (UAE) is expanding its presence in the United States’ renewables market after closing the acquisition of a 50% stake in a combined solar and battery storage project from EDF Renewables North America. The acquisition was a long time in process, as first close was announced more than two years ago.

The Big Beau project, located in Kern County, California, achieved commercial operation in 2021. The facility comprises a 128 MWac solar plant and a 40 MW/160 MWh battery energy storage system. At full capacity the plant generates enough electricity to meet the consumption needs of up to 64,000 average California homes, or the equivalent to avoiding the greenhouse gas emissions from 67,000 passenger vehicles driven over the course of one year.

EDF Renewables signed two 20-year power purchase agreements (PPA) with Silicon Valley Clean Energy purchasing 55% of the output, and Monterey Bay Community Power purchasing 45%.

Big Beau and the other projects that we are operating with EDF Renewables are already making an active contribution to U.S. clean energy targets, highlighting the strength of the UAE-U.S. relationship that the recent PACE announcement seeks to build on,” “If we are to keep the objective of limiting global warming to 1.5 degrees alive, we need to see countries coming together in concerted action – one of the key areas of focus for the upcoming COP28 in the UAE. Partnerships between companies like Masdar and EDF Renewables are also vital in ensuring we hold back emissions, not progress, said HE Dr Sultan Al Jaber, UAE minister of industry and advanced technology, COP28 president-designate and chairman of Masdar.

In November 2022, the Partnership for Accelerating Clean Energy (PACE) was announced. In partnership,  UAE and the U.S. would allocate $20 billion to fund 15 GW of clean energy projects in the United States before 2035, led by Masdar and a consortium of U.S. private investors. The intention is to focus on the scalable development of low-emission energy sources, with the goal of deploying 100 GW of clean energy globally by 2035. In a statement, White House Press Secretary Karine Jean-Pierre said that the two countries “will also invest in the management of harmful emissions like carbon and methane, the development of advanced nuclear technology, and the decarbonization of the industrial and transportation sectors”.

Masdar and EDF Renewables North America agreed in 2020 to jointly partner on the 1.6 GW portfolio, which includes three utility-scale wind projects in Nebraska and Texas totalling 815 MW, and five solar projects in California totalling 689 MW,  two of which include battery energy storage systems representing 75 MW. All of the projects are operational, and combined they are displacing more than 3 million tons of emissions per year.

Masdar is active in more than 40 countries and invested in projects with a combined capacity of more than 20 GW, and is targeting a combined portfolio capacity of at least 100 GW by 2030, with expectations of doubling that in coming years. The company recently announced a new shareholding structure and additional focus on green hydrogen, and has set a goal of producing 1 million tons of green hydrogen annually by 2030.

EDF Renewables’ North American portfolio consists of 16 GW of developed projects and 13 GW under service contracts. EDF Renewables North America is a subsidiary of EDF Renewables, the  renewable energy affiliate of the EDF Group.

EDF Renewables North America  announced two agreements with American Electric Power utility Indiana Michigan Power (I&M) to deploy 425 MWac of utility solar projects in Indiana.

Under the agreements, I&M will purchase power output from Sculpin Solar (180 MWac) in DeKalb County, Ind., under a 30-year power purchase agreement.  The utility will acquire 100% of the equity interests in Lake Trout Solar (245 MWac) in Blackford County, Ind., following the completion of construction of the facility, the developer said.  Both projects are anticipated to be put into service in late 2025 at the earliest.

“Indiana and its farmers are taking the lead to decarbonize the energy sector, while also revitalizing the local economy with jobs, vendor contracts, taxes, and lease payments,” said Eric Spigelman, senior director, origination & power marketing, EDF. “We are excited to bring EDF Renewables first solar projects to Indiana and to support I&M as it delivers long-term price stability, stimulates economic growth, and reduces emissions.” 

The Sculpin and Lake Trout solar projects are expected to generate 880,000 MWh of clean energy each year, the equivalent to avoiding over 624,000 metric tons of carbon (CO₂) emissions each year from fossil fuel generating facilities.

According to the American Clean Power IQ database, Indiana generates about 1.6 GW or 39% of its 4.18 GW of renewable energy generation mix from solar resources. The Solar Energy Industries Association ranks the state 18^th in the nation for solar generation, where it fares within the top five U.S. states with a robust 8.24 GW development pipeline over the next five years.

Indiana’s solar market has been restricted to utility-scale projects in recent years, as May 2017 saw the reversal of a net metering mechanism destroy the value of rooftop solar for its 6.8 million residents.

Indiana’s Clean Energy Portfolio Standard (CPS) is significantly lower than comparable states. Known as the Comprehensive Hoosier Option to Incentivize Cleaner Energy (CHOICE) program, the utility program was enacted in May 2011 by Senate Bill 251 and sets a voluntary goal of generating 10% renewable energy off the grid by 2025.

Once completed, the 245 MW Lake Trout Solar project could become the second largest solar facility in Indiana after NextEra Energy’s Petersburg Solar project, a 250 MW solar plus 180 MWh battery storage project in development in Pike County, Indiana. The Petersburg project is on track for construction by May 2024.

UGE International, a commercial and community solar developer, announced the receipt of ‘Notice to Proceed’ (NTP) milestone for a 2.8 MW ground-mounted solar project in Bangor, Maine, whose fair market value is $9.2 million.

The project is UGE’s largest community solar project to date and will be built on a vacant field on the outskirts of Bangor, Maine, owned by Grant Realty.

The NTP milestone indicates that financing for the project has closed, and all permits and interconnection approvals for the project are in place.

Subscriptions for the project will be managed by Energywell, an energy technology company offering clean electricity and community solar products under its ThinkEnergy retail platform. All energy produced by the facility will be used by local residents.

UGE had the project appraised by an third-party firm at a value of $3.24 per watt, giving the project a fair market value of $9.2 million. The project is expected to produce an average of approximately $626,402 in annual revenue, once operational, with a total facility lifetime of up to 35 years. The company currently expects average recurring revenue to carry gross margins at or around 85%.

The Bangor community solar project is among 18 MW of UGE solar projects  currently under development in Maine and follows two other recent NTPs announced earlier this month in Dover-Foxcroft, a 1 MW project to be deployed for the Foxcroft Academy, a private school, and Veazie, Maine, a 2.7 MW community solar project.

The Veazie project location is categorized as a low-to-moderate income (LMI) community, and is expected to receive the 10% LMI Investment Tax Credit adder as part of the Inflation Reduction Act, UGI stated, potentially bringing the total ITC on the $9.1 million project to a 50% ITC credit. 

Including the Bangor project, UGE has reached NTP on 10 MW of projects this year and commercial operation on 1.4 MW of projects. Construction on its latest project is set to begin this spring.

Maine was one of the early adopters of community solar in the U.S., with original legislation for community solar first passed in 2009.  Due to net metering caps and policy changes, in 2019 the Maine Legislature passed its current community solar framework, ‘An Act to Promote Solar Energy Projects and Distributed Generation Resources in Maine,’ to encourage the development of DG solar to both residential and commercial businesses.

Under its community solar program, participating customers receive kilowatt-hour (kWh) credits on their electric utility bill that reduce the amount of the payment owed to the utility, to the standard offer service provider, or, if applicable, to the customer’s competitive electricity provider.

According to the Department of Energy’s Community Solar Market Trends database, as of early 2022 the state of Maine had 12.49 MW of active community solar projects.

Over the last two years alone, Brookfield Renewable-owned Luminace, Nautilus Solar Energy, Nexamp, Renewable Properties, Standard Solar, Summit Ridge Energy, SunRaise and Syncarpha Capital have been involved in Maine community solar development through project financing, development or acquisition, according to pv magazine USA coverage.