BlackRock buys majority stake in GE’s solar and storage business

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
BlackRock is the world’s largest asset manager and GE’s biggest investor. Credit: BlackRock

General Electric (GE) has sold a majority investment in its seven-year-old distributed solar and storage business to global asset manager BlackRock.

BlackRock took an 80% stake in the new company, Distributed Solar Development (DSD). GE will retain a 20% stake. The financial terms of the deal were not disclosed.

The giant global asset manager's backing is a positive sign for the solar segment, which has become increasingly attractive to big investors. “This investment will deepen our clients’ access to the tremendous growth potential in the US solar industry,” David Giordano, BlackRock's global head of renewable power, said in a news release on Wednesday. “DSD offers end-to-end in-house capabilities and a strong team of experts from across the commercial and industrial value chain.”

The new business will design, build, own and operate distributed solar and storage solutions for industrial, commercial and public-service customers. With BlackRock's help, DSD wants to quadruple the capacity of GE’s solar portfolio from 100MW to 400MW over the next five years.

It’s not the first time BlackRock has endorsed distributed solar. In April, BlackRock invested in small-scale solar specialist CleanCapital.

Erik Schiemann, who founded GE Solar’s business in 2012 and is now CEO of DSD, said that operating as standalone company will streamline operations. “Separating ourselves from GE in this fashion means I can now do things more simply, with lower costs of capital, lower transaction costs, (greater) speed to execution and kind of that one-throat-to-choke from our customers’ perspective,” he said.

BlackRock has invested US$5 billion into wind and solar utility-scale renewables, with 250 wind and solar projects with a total generation capacity of 5.2GW. It is the world’s largest asset manager and GE’s biggest investor.

Read Next

April 16, 2021
There was a more than fourfold increase in corporate solar funding in Q1 2021 compared with the same quarter last year, amid strong demand for PV assets globally, according to new analysis by Mercom Capital.
April 13, 2021
London-based US Solar Fund has launched a placing programme that will be conducted over the next 12 months to help expand its PV portfolio to 543MWdc.
April 8, 2021
The US Department of the Treasury has revealed how new renewable tax incentives will be paid for by a tax raid on the fossil fuel industry, eliminating subsidies for oil and gas companies.
April 8, 2021
Asset managing giant BlackRock has raised US$4.8 billion from institutional investors to fund renewable power generation projects in Europe, Asia and the Americas.
PV Tech Premium
March 31, 2021
As the solar industry continues to mature and adopt more merchant-led business models, how will asset management principles need to adapt? This exclusive recording of a panel discussion from our Solar Finance & Investment Europe event answered that very question.
March 23, 2021
Lightsource bp has been selected to build, own and operate seven solar arrays in Pennsylvania that will provide nearly half of the state government’s electricity.

Subscribe to Newsletter

Upcoming Events

Solar Media Events
April 20, 2021
Upcoming Webinars
April 28, 2021
4:00 - 4:30 PM CET
Solar Media Events
May 11, 2021