8point3 Energy Partners has entered into an agreement with SunPower to acquire 49% stake in the 102MW Henrietta solar project, situated in Kings County, California, for $134m.
8point3 Energy Partners CEO Chuck Boynton said: "Our acquisition of SunPower's 49 percent minority interest in Henrietta further re-enforces our long-term strategy of adding high quality solar projects from our sponsors, with investment grade off-takers, to our portfolio.
"With the expected acquisition of Henrietta, our portfolio will grow to interests in 637-MW of solar projects."
The acquisition is expected to generate approximately $10.9m in annual cash distributions and has a 20 year contract life.
The transaction is subject to a financing condition and other customary closing conditions and is expected to close on or about September 30, 2016.
The partnership expects to fund the acquisition through some combination of cash on hand, borrowings under its existing credit facility and the issuance of additional equity.
Located in California's San Luis Valley, the Henrietta project will commence operations in October 2016. The project is majority owned by Southern Company. Pacific Gas and Electric is purchasing the power generated by the project under a 20 year power purchase agreement.