NJR Clean Energy Ventures Sells Residential Solar Portfolio for $132.5M to Spruce Power

NJR Clean Energy Ventures sold its 91 MW residential solar portfolio to Spruce Power for $132.5M, with proceeds to be used to pay down corporate debt and for general working capital purposes. NJR expects a gain on sale in fiscal 2025. The sale will enable Clean Energy Ventures to focus on its commercial solar portfolio, driven by a 1 GW pipeline of diverse investment options.

In a significant move to streamline its operations and focus on commercial solar opportunities, NJR Clean Energy Ventures (CEV) has sold its 91 MW residential solar portfolio to Spruce Power Holding Corporation for a total of $132.5 million [1]. This transaction, expected to generate a gain on sale for CEV in fiscal 2025, will enable the clean energy subsidiary to concentrate on its commercial solar portfolio, driven by a nearly 1 GW pipeline of diverse investment options [1].

CEV's residential solar program, which operated under the brand "The Sunlight Advantage®," provided qualifying homeowners with the opportunity to have a solar system installed at their home with no installation or maintenance expenses [1]. The existing lease agreements will be assumed by Spruce in full for the approximately 9,800 participating homeowners [1]. Since 2009, CEV has invested over $1.2 billion in solar projects, making it the largest owner-operator of commercial solar in New Jersey [1].

With this sale, CEV is poised to expand its commercial solar footprint beyond New Jersey, as it now has assets in New York, Connecticut, Rhode Island, Indiana, and Michigan [1]. The company's President and CEO, Steve Westhoven, emphasized that renewable energy investments will continue to be a key driver of NJR's long-term growth strategy [1].

Spruce Power, a leading digital utility, will benefit from this acquisition by gaining a significant presence in the residential solar market and expanding its customer base [2]. The company's CEO, Paul Copleman, expressed his enthusiasm for the deal, stating, "This acquisition is a testament to Spruce Power's commitment to growing our business and expanding our reach in the renewable energy sector" [2].

References:
[1] Business Wire. (2024, November 25). NJR Clean Energy Ventures Sells Residential Solar Portfolio to Spruce Power for $132.5 Million. https://markets.ft.com/data/announce/detail?dockey=600-202411251629BIZWIRE_USPRX____20241124_BW648889-1
[2] Spruce Power. (2024, November 25). Spruce Power Acquires 91 MW Residential Solar Portfolio from NJR Clean Energy Ventures. https://www.sprucepower.com/press-releases/spruce-power-acquires-91-mw-residential-solar-portfolio-from-njr-clean-energy-ventures