Emeren Group Closes Strategic Sale of 2.8 MWdc Maine Solar Project to Altus Power in Renewable Energy Deal

December 20, 2024

Rhea-AI Impact

(Neutral)

Rhea-AI Sentiment

(Very Positive)

Rhea-AI Summary

Emeren Group (NYSE: SOL) has announced the sale of its 2.8 MWdc solar project in Maine to Altus Power (NYSE: AMPS). The project, which has reached full commercial operation, is the final asset from Emeren’s Maine pipeline. Altus Power, the largest commercial scale provider of clean electric power, will take over ownership and long-term management of the facility to deliver sustainable energy to local communities and support Maine’s renewable energy objectives.

The transaction demonstrates Emeren’s ability to efficiently deliver COD projects and strengthens its presence in the U.S. market while supporting Maine’s growing demand for renewable energy. The project will contribute to Altus Power’s expanding portfolio and support Community Solar subscribers.

Positive

Successfully completed and sold 2.8 MWdc solar project in Maine
Project achieved full commercial operation status
Completed divestment of Maine pipeline assets

Negative

Insights

The sale of a 2.8 MW solar project in Maine represents a small but strategic transaction for Emeren Group (SOL). With a current market cap of$91.2M, this divestment marks the completion of their Maine pipeline, demonstrating effective project execution and monetization. The deal’s financial impact is likely minimal relative to SOL’s overall operations, but it validates their business model of developing and selling operational solar assets. The partnership with Altus Power (AMPS), a larger player in commercial-scale clean energy, could open doors for future collaborations. This transaction type typically generates both upfront cash and potential recurring revenue streams through ongoing maintenance agreements, though specific terms weren’t disclosed. Small-scale solar project sales like this usually yield margins between15-20%of total project value, suggesting modest but positive financial implications for SOL’s Q4 performance.

Maine’s renewable energy market context makes this deal particularly noteworthy. The state’s aggressive renewable portfolio standard mandates80%renewable energy by 2030 and100%by 2050, creating strong demand for solar assets. The 2.8 MW project, while modest in size, contributes to Maine’s community solar program, which has seen substantial growth due to favorable policies and incentives. For context, a facility this size typically powers about 560 average homes and represents approximately$4-5Min project value at current market rates. The transfer to Altus Power, a larger operator with over 685MW of capacity, ensures stable long-term operation and maintenance. This type of small-scale project sale reflects the ongoing consolidation trend in the U.S. solar market, where developers like SOL are increasingly focusing on development and selling to larger operators who can achieve economies of scale in asset management.

12/20/2024 – 06:00 AM

NORWALK, Conn., Dec. 20, 2024 /PRNewswire/ — Emeren Group Ltd (“Emeren” or the “Company”) (www.emeren.com) (NYSE: SOL), a leading global solar project developer, owner, and operator, today announced the sale of its 2.8 MWdc solar project located in Maine to Altus Power, Inc. (“Altus Power”) (NYSE: AMPS), the largest commercial scale provider of clean electric power. This transaction underscores Emeren’s commitment to advancing clean energy solutions and its active role in supporting renewable energy goals nationwide.

The project is the final asset to be sold from Emeren’s Maine pipeline. The Company has brought the project to full commercial operation, achieving a significant milestone in its development. With this sale, Altus Power will assume ownership and long-term management, utilizing the project to deliver clean, sustainable energy to local communities and support Maine’s renewable energy objectives.

Yumin Liu, CEO of Emeren Group, commented, “We are excited to partner with Altus Power on this project. This sale not only strengthens our presence in the U.S. market but also supports the growing demand for renewable energy in Maine. The project demonstrates Emeren’s capacity to efficiently deliver COD projects without compromising quality. We look forward to Altus Power’s continued success as they integrate high-quality solar assets like ours to their expanding portfolio.”

“We’re proud to expand our footprint in Maine through this acquisition. Emeren is a leader in renewable energy and we appreciate their collaboration and expertise in bringing this project to fruition,” said Matt Marlow, co-Head of Investment and Structured Finance, Altus Power. “This acquisition reinforces our commitment to delivering clean energy to the communities we serve and supporting the growing number of Community Solar subscribers, driving the transition to a more sustainable future.”

About Emeren Group Ltd

Emeren Group Ltd (NYSE: SOL), a renewable energy leader, showcases a comprehensive portfolio of solar projects and Independent Power Producer (IPP) assets, complemented by a significant global Battery Energy Storage System (BESS) capacity. Specializing in the entire solar project lifecycle — from development through construction to financing — we excel by leveraging local talent in each market, ensuring our sustainable energy solutions are at the forefront of efficiency and impact. Our commitment to enhancing solar power and energy storage underlines our dedication to innovation, excellence, and environmental responsibility. For more information, go to www.emeren.com.

For investor and media inquiries, please contact:

Emeren Group Ltd – Investor Relations
+1 (925) 425-7335
ir@emeren.com

The Blueshirt Group
Gary Dvorchak
+1 (323) 240-5796
gary@blueshirtgroup.co

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