Through a wholly owned subsidiary, Greenbacker Renewable Energy Co. LLC has signed a $6 million purchase and sale agreement for 1,252 operating residential PV solar systems from a subsidiary of TerraForm Power.
The systems have an aggregate generating capacity of approximately 8.92 MW DC and are spread across Arizona, California, Connecticut, Massachusetts, Maryland, Nevada, New Jersey and New York. All the projects have power purchase agreements (PPAs) with an original agreement term of 20 years, and the weighted average remaining life of these systems is approximately 18.6 years.
The tax equity financing investor in the portfolio was Morgan Stanley Renewables Inc., a subsidiary of Morgan Stanley. Greenbacker expects the transaction to close before June 30.
“An investment such as this continues to add significant geographic and financial diversification to Greenbacker’s current portfolio of solar assets,” states Charles Wheeler, CEO of Greenbacker. “While we strategically invest in select residential solar assets from time to time, we continue to implement our broader strategy of acquiring high-quality commercial renewable energy assets.”
This transaction follows Greenbacker’s $800,000 purchase of a 2.5 MW portfolio of residential solar assets from TerraForm on March 31. That portfolio was contracted under a 20-year PPA and renewable energy credit agreements with the Denver Housing Authority and Xcel Energy.