Dive Brief:
- Renewable energy investment firm CleanCapital and Sunrock Distributed Generation, a commercial solar and battery storage developer, owner and operator, have entered a strategic partnership to finance and develop solar and storage portfolios in U.S. communities, the companies announced Wednesday.
- Sunrock will originate and develop all of the solar and storage projects using its underwriting system and platform, while CleanCapital will lend its funding expertise and capabilities to the project, according to the release.
- The partnership will look to remove barriers that prevent small-and medium-sized organizations from accessing funding for renewable energy projects, according to the release. Winston Chen, CleanCapital’s senior director of investments and capital markets, said the partnership will allow the companies to accelerate the nation's energy transition “where it matters most.”
Dive Insight:
CleanCapital and Sunrock Distributed Generation will collectively develop, finance and manage “ongoing portfolios” of the distributed solar and energy storage assets in the local communities, the companies said.
Sunrock CEO Wilson Chang said in the release that the partnership will “significantly increase” the amount of financial resources available to local businesses and entities to reduce their energy bills and carbon emissions and increase the resilience of the grid.
“[The partnership] will enable us to help many more local businesses, public entities, and nonprofits – groups that have historically been overlooked and underserved by the finance industry – to transform their operations with renewable energy solutions,” Chang said.
For CleanCapital, the strategic partnership follows announced renewable energy development partnerships between the clean energy investor and Arena Renewables, Sunrise Mountain Partners and distributed storage developer Available Power in the calendar year. CleanCapital surpassed $1 billion in deployed investments in June 2023, announcing a $500 million investment from prior investor Manulife Investment Management at the same time.
“Our partnership with Sunrock marks an exciting step in deploying behind-the-meter solar assets, which are not only economically attractive but also instrumental in bringing clean energy directly to local communities,” CleanCapital’s Chen said in the release.
The partnership announcement comes at a time when U.S. solar investments are lagging. U.S. solar industry investments decreased 12% between the end of 2023 and the first half of 2024, according to BloombergNEF’s Renewable Energy Investment Tracker. Overall U.S. renewable energy investments are up 63% from before the Inflation Reduction Act, according to the analysis.
Julia Bell, CleanCapital’s chief investment officer, said the deal highlights the growth of both the company and “broader momentum within the solar and energy storage sectors,” in an emailed statement to ESG Dive Thursday.
“We are continuing to invest into the clean energy transition and saw this partnership as a piece of that puzzle,” Bell said. “Sunrock's team has deep expertise in several smaller markets and brings an extensive network of local [engineering, procurement and construction] installers.”
