US-based independent power producer Altus Power has reached financial close on 220MW of solar PV assets representing an investment of approximately US$293 million.
The bulk of the financing for the acquisition was provided by Blackstone Structured Finance through a US$204 million debt facility, whilst the remainder was fulfilled with cash on hand.
The assets consist of 207MW of operational projects and 13MW under construction and were purchased from True Green Capital Fund III.
Gregg Felton, Co-CEO of Altus Power, said: “We’re pleased to further expand our relationship with Blackstone as the lender for this new portfolio of assets, Blackstone has a depth of financing experience across a diversity of asset classes and shares our enthusiasm for commercial-scale solar.”
With these acquisitions, over 20% of its solar portfolio is now in community solar assets, with 70MW more in development across New Jersey, Maryland, New York and Hawaii. Community solar refers to smaller-scale projects that directly benefit local communities, without individuals having to install solar on their own land.
A report from Wood Mackenzie earlier this week forecast that the community solar market in the US is set to more than double in the next five years as the Inflation Reduction Act has boosted the sector.
In March last year, Altus established a long-term strategic partnership with Trammwell Crow Company, one of the US’ largest commercial real estate developers, to supply its sites with solar PV, battery energy storage and electric vehicle systems.
December saw the company secure a US$200 million revolving credit facility from financers including Citibank and JP Morgan to support its PV and storage asset growth.
Early last year, Blackstone invested US$3 billion in Invenergy Renewables to accelerate the build-out of its solar and wind assets. Invenergy has since established a joint venture focusing on community solar projects.