NEW YORK—February 15, 2022—Today CleanCapital announced the acquisition of a 65.3 megawatt portfolio of solar assets spanning 12 states. The transaction with seller BR Group Holdings, LLC is a major milestone for CleanCapital and indicative of a larger trend towards consolidation in the clean energy industry. As one of the nation’s leading commercial solar asset owners, CleanCapital is dedicated to accelerating the energy transition via strategic investments in middle market solar and energy storage.
This acquisition comprises 39 projects and 91 total sites ranging from 0.2 MW to 6.5 MW in size. The portfolio includes a number of projects providing solar energy to schools, including 20 carport assets serving California’s Stockton Unified School District and 16 sites serving the Hawaii Department of Education. The portfolio also includes 11.5 MW of Minnesota community solar projects with various C&I off-takers.
“Middle market solar is not only growing rapidly but becoming ever more sophisticated and competitive,” said Thomas Byrne, CEO of CleanCapital. “This significant acquisition is just one more sign that the segment is consolidating; as it does, CleanCapital’s expertise and track record make us well-positioned to emerge as one of the leaders in this space.”
Michelle Davis, Principal Analyst at Wood Mackenzie, states: “CleanCapital’s recent acquisition is substantial for the commercial solar market. In this relatively fragmented segment of the industry, only a handful of commercial solar asset owners have total portfolios over 100 MW. With this acquisition, CleanCapital maintains its position as one of the top ten commercial solar asset owners in the U.S.”
According to Wood Mackenzie, the annual market share of the top commercial solar asset owners has increased from 26% in 2019 to 34% in 2021 through Q3. “In general, the commercial solar industry—including community solar—is slowly consolidating,” Davis remarks. “We would expect this trend to continue as sophisticated long-term asset owners continue to build and expand their financing platforms.”
“CleanCapital’s ability to close on a portfolio of this scale that contains such an incredible range and variety of assets is the perfect illustration of our core competency,” said Julia Bell, Chief Commercial Officer at CleanCapital. “Year after year, closing after closing, we’ve demonstrated our ability to recognize the value of unique, complex solar assets like these and work efficiently to acquire them.”
“We are proud of the diverse solar portfolio we developed and are excited to have CleanCapital as the acquirer and long-term owner of these assets,” said Clay Biddinger, Chairman of BR Group Holdings, LLC. “The CleanCapital team carried out an impressively streamlined and efficient process that gives developers greater optimism about accelerating solar deployment going forward.”
BR Group Holdings, LLC plans to continue its long-standing commitment to the distributed solar space as a passive tax equity investor, leveraging its decade-plus long expertise as a developer, operator, and owner to continue to efficiently provide capital to the industry.
This acquisition is the sixth in a series of investments made since CleanCapital announced a $300 million commitment from Manulife in April 2021. The company has successfully acquired and managed 200 projects in 24 states totaling more than 300 MW. Its cumulative acquisitions total more than $800 million.
CleanCapital engaged Orrick as Buyer’s counsel on this transaction. BR Group Holdings, LLC was represented by Barnes & Thornburg.
CleanCapital is an industry-leading clean energy investment platform. Since 2015, CleanCapital has worked to accelerate investment in distributed solar and storage assets to address the urgent threat of climate change. Its leading-edge technology platform facilitates the evaluation and acquisition of clean energy assets with speed and certainty. More information about CleanCapital can be found at https://cleancapital.com/
For CleanCapital PR
BR Group Holdings, LLC