New Jersey Resources Corporation (NYSE: NJR) announced on November 25, 2024, that its subsidiary, NJR Clean Energy Ventures II Corporation (CEV II), finalized the sale of its residential solar portfolio and related assets to an affiliate of Spruce Power Holding Corporation for approximately $132.5 m Contact online >>
New Jersey Resources Corporation (NYSE: NJR) announced on November 25, 2024, that its subsidiary, NJR Clean Energy Ventures II Corporation (CEV II), finalized the sale of its residential solar portfolio and related assets to an affiliate of Spruce Power Holding Corporation for approximately $132.5 million. The transaction, completed through an asset purchase agreement, is expected to generate a gain for the Company in fiscal year 2025. The net proceeds from the sale will be utilized by New Jersey Resources to reduce corporate debt and for general working capital purposes.
Simultaneously with the sale, certain solar assets, including equipment leases, were transferred to an affiliate of the buyer, from which CEV II will lease back the assets. The leasing arrangement is expected to extend for sixty months post the initial service date of the solar assets. Additionally, CEV II entered into an agreement with an affiliate of the buyer to oversee the maintenance of the solar assets it leases.
Want More Great Investing Ideas?10 Stocks to Sell NOW!3 Stocks to DOUBLE This YearThe 10 Best Stocks to Own in 20237 Stocks to Buy and Hold Forever The terms of the agreement are expected to be fully detailed in New Jersey Resources Corporation’s Annual Report on Form 10-K for the fiscal year ending September 30, 2024. Additionally, on the same day, the company issued a press release disclosing financial results for the fourth fiscal quarter and fiscal year ended September 30, 2024. The information reported in the press release is attached as Exhibit 99.1 of the 8-K filing.
New Jersey Resources also announced that CEV II will conduct a live public webcast presentation on November 26, 2024, at 10:00 a.m. ET, to discuss the sale of its residential solar business and the leaseback of certain assets. The full presentation and press release regarding the transaction are filed as Exhibits 99.2 and 99.3, respectively.
The Company’s CEO, Steve Westhoven, emphasized the significance of renewable energy investments to their growth strategy. Post-transaction, CEV is set to focus on expanding its commercial solar portfolio, driven by a robust pipeline of nearly 1 gigawatt of investment opportunities.
Founded in 2009, CEV has been a significant investor in solar projects, with investments exceeding $1.2 billion, making it one of the largest commercial solar operators in New Jersey. The company’s expansion has seen them venture into other states such as New York, Connecticut, Rhode Island, Indiana, and Michigan.
New Jersey Resources Corporation (NYSE: NJR) is a Fortune 1000 company specializing in providing natural gas and clean energy services. With a diverse portfolio of businesses, including New Jersey Natural Gas, Clean Energy Ventures, Energy Services, Storage and Transportation, and Home Services, NJR serves a wide range of customers, promoting energy conservation and efficiency through various initiatives.
This announcement highlights the strategic move by New Jersey Resources to optimize its portfolio and focus on its core growth areas within the energy sector.
Contact:New Jersey Resources Corporation1415 Wyckoff Road, Wall, New Jersey 07719Phone: 732-938-1480
This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read New Jersey Resources’s 8K filing here.
New Jersey Resources Corporation, an energy services holding company, distributes natural gas. The company operates through four segments: Natural Gas Distribution, Clean Energy Ventures, Energy Services, and Storage and Transportation. The Natural Gas Distribution segment offers regulated natural gas utility services to approximately 576,000 customers in Burlington, Middlesex, Monmouth, Morris, Ocean, and Sussex counties in New Jersey; provides capacity and storage management services; and participates in the off-system sales and capacity release markets.
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Spruce Power, an owner and operator of distributed residential solar systems, announced the acquisition of a residential solar portfolio from NJR Clean Energy Ventures (CEV), a subsidiary of New Jersey Resources for $132.5 million. The transaction closed on November 22, 2024.
The acquired portfolio, known as Spruce Power 5 Portfolio, includes approximately 9,800 solar systems in New Jersey, which were installed under a CEV residential solar program between 2010 and 2024.
Spruce funded the acquisition purchase price with $22.7 million cash on hand and proceeds from a new debt facility. Alongside the acquisition, the company closed on a $109.8 million debt facility (the SP5 Facility) from Santander.
The portfolio is supported by long-term lease agreements with homeowners, with an average remaining contract life of over 11 years. Spruce is entitled to the customer payment streams and renewable energy credit program incentives related to the portfolio, effective October 1st, 2024.
"This is an exciting acquisition that provides an immediate positive impact to Spruce''s financial and strategic outlook through continued scaling of our ownership of home solar assets and contracts," said Chris Hayes, Chief Executive Officer of Spruce. "We are proud that this acquisition solidifies Spruce as a leading provider of residential solar energy in New Jersey. Over the past decade, the NJR CEV team has built an impressive portfolio of high-quality residential solar systems and cultivated a strong customer base. We look forward to continuing their commitment to safety, the environment and customer service in the state of New Jersey."
According to Mercom''s 9M and Q3 2024 Solar Funding and M&A report, 166 project acquisitions totaling 28.3 GW were transacted in 9M 2024 compared to the same number of project acquisitions totaling 31.6 GW in 9M 2023.
Earlier this week, BayWa r.e., a renewable energy project developer, announced the sale of three solar projects totaling 517 MWdc to a privately held renewable independent power producer.
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Spruce Power bought the 91-megawatt residential portfolio from New Jersey Resources'' Clean Energy Ventures in a $132.5 million deal.
(Source: Shutterstock )
New Jersey Resources (NJR) on Nov. 25 said its subsidiary NJR Clean Energy Ventures has sold its 91-megawatt residential portfolio to Spruce Power Holding Corp. for $132.5 million.
Proceeds of the sale will be used to lower NJR corporate debt and for general working capital purchases, the company said in a news release.
"Following this transaction, Clean Energy Ventures will have a sharpened focus on the strong opportunities for growth within its commercial solar portfolio, driven by a nearly 1 gigawatt (GW) pipeline of diverse investment options," New Jersey Resources CEO Steve Westhoven said.
Clean Energy Ventures is one of the largest owner-operators of commercial solar in New Jersey. Its residential solar program operated under the brand The Sunlight Advantage. As part of the sale, existing lease agreements for about 9,800 participating landowners will be assumed by Spruce, according to the release.
Colorado-based Spruce owns and operates distributed solar energy assets across the U.S. Earlier this year, the company said it was evaluating residential solar portfolio M&A opportunities as well as organic growth prospects.
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