CleanCapital, a clean energy investment platform, acquired 65.3 MW of solar portfolio from the developer BR Group. The portfolio spans 12 states of the U.S. and comprises 39 projects and 91 total sites ranging from 0.2 MW to 6.5 MW in size.
The portfolio includes various projects providing solar power to schools, including 20 carport assets serving California’s Stockton Unified School District and 16 sites serving the Hawaii Department of Education. The portfolio 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,” he added.
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,” commented Davis, an analyst at Wood Mackenzie.
The company has acquired and managed 200 projects in 24 states totaling over 300 MW. Its cumulative acquisitions total more than $800 million.
CleanCapital engaged Orrick as Buyer’s counsel on this transaction. BR Group was represented by Barnes & Thornburg.
According to Mercom’s recently published Q4 2021 solar funding and M&A report, in 2021, the sector also saw the most project acquisition activity in terms of gigawatts, with more than 69 GW changing hands compared to 40 GW in 2020.
In November 2021, CleanCapital acquired two operating solar projects totaling 11.9 MW from EDF Renewables.