Altus Power will buy a portfolio of distributed solar assets from TGC, the majority of which are located in California, New York, New Jersey, and Massachusetts, for about $293m

Solar-Portfolio

Spencer Community Solar Farm (New York Community Solar Portfolio). (Credit: PRNewswire/True Green Capital Management LLC)

US-based independent solar developer and operator Altus Power has agreed to purchase a 220MW portfolio of solar projects from True Green Capital Management (TGC) for about $293m.

The portfolio includes around 207MW of commercial scale, operating solar assets, developed by TGC, and around 13MW that are nearing the completion of their construction.

The majority of the assets are located in California, New York, New Jersey, and Massachusetts in the US.

The transaction is expected to be completed in early 2023, subject to satisfaction of certain customary closing conditions.

Altus Power co-CEO Gregg Felton said: “We are excited to welcome this new set of customers to the Altus Power brand, deepening our reach, particularly in New York and California.

“TGC has a long history of successfully investing in commercial-scale solar, with underwriting standards consistent with our own.”

TGC is a private equity firm specialised in renewable energy infrastructure.

The company developed the assets through equity financing from its third fund True Green Capital Fund III, along with debt and tax equity provided by its financing partners.

TGC has recently closed a $660m fourth fund and is targeting these core markets, as well as select new ones in North America, the UK, and the European Union (EU).

TGC chief financial officer Chris Kirkman said: “TGC’s partnership with Altus Power has been mutually beneficial. Our alliance again enabled the efficient execution of a transaction that advanced our firms’ respective strategies.”

TGC managing partner and co-founder Panos Ninios said: “Altus Power shares our fundamental belief that commercial scale, distributed solar generation is the most attractive segment of our industry.

“Our collaboration has facilitated TGC’s successful exits of our first and second funds and now a partial exit of Fund III.”

In December 2020, Altus Power acquired around 100MW of distributed solar assets across California, Maryland, Massachusetts, Minnesota, New York, and Vermont.