Spruce acquires portfolio of solars systems and contracts for $21M

Spruce Power Holding announced the acquisition of a portfolio of over 2,400 residential solar systems and contracts from a publicly traded, regulated utility company for $20.9M. The acquisition closed on August 18. The acquired portfolio consists of residential solar systems located in California, New Jersey, and Massachusetts, with an average remaining contract life of nearly 11 years. The portfolio is expected to generate about $4.0 million of annual run-rate revenue. Prior to the acquisition, Spruce was the third-party services solution provider for the portfolio, which allows for efficient, low-cost integration into Spruce’s existing portfolio of home solar assets and contracts. Spruce’s total portfolio grows to over 75,000 home solar assets and contracts, representing almost 50% growth in less than a year since the Company’s transition into a pure play owner and operator of residential rooftop solar assets in 2022. Spruce funded the acquisition purchase price entirely through proceeds from the concurrent upsizing of its Spruce Power 2 credit facility…Sarah Wells, Spruce’s Chief Financial Officer, added, “This is an exciting acquisition where Spruce could self-fund growth by tapping the operational excellence of the Company’s asset management teams and strong performance of our existing assets. With this acquisition, our financial outlook continues to improve, and we are tightening our expectation for annual run-rate business cash inflows to between $120M and $130M.”