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US witnesses 4X y/y rise in deals for solar + storage development platforms in 2022
As per Enerdatics data, there have been $13.8bn of transactions for solar assets co-located with battery storage facilities, in 2022. Deal activity was led primarily by European private equity (PE) firms and utilities as they attempted to tap the substantial tax credits and incentives for renewable energy and storage projects offered under the Inflation Reduction Act (IRA). Under the new guidelines, developers have the option to claim production and investment tax credits (PTCs and ITCs) on solar projects, and ITCs on storage projects, improving the economic attractiveness of storage facilities. Additionally, revenue stacking for battery projects allows developers to earn revenue through the provision of ancillary services such as grid management and balancing, in addition to serving as back-up power sources for intermittent generating facilities.
Recent deal: Switzerland-based SUSI Partners has acquired a controlling equity stake in Encore Renewable Energy, a developer of distributed and utility-scale solar PV and battery storage assets in the northeastern US. Encore has already executed over 85 projects, totaling 60 MW, and plans to develop over 500 MW of community-scale solar and energy storage projects, in addition to a portfolio of utility-scale systems, over the next five years. The deal will enable Encore to transition from project developer to independent power producer (IPP).
Other significant transactions: Some of the recent corporate transactions in the solar-plus-storage segment in the US include Grenergy’s acquisition of 60% stake in Sofos Harbert Renewable Energy, Birch Creek Energy’s takeover of Foundation Solar Partners and Green Investment Group’s purchase of Treaty Oak Clean Energy.
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