The Mortenson transaction represents Generate’s first foray into the promising community solar market through the acquisition of a construction-ready 14MW portfolio in Minnesota. Community-aggregated solar offers an alternative to both traditional utility-scale development and on-site residential installations, opening the market for direct procurement of cleaner and cheaper electricity to more customers at more attractive economics. Still in its nascent stages, the US community solar market is expected to install over 400 MW in 2017. Generate’s portfolio, which consists of two ~7MW projects, is expected to begin operating in Q4 2017 and will sell power to over 2,000 residential “subscribers” with an average FICO score of 790. M.A. Mortenson, our tax equity, EPC and O&M partner in the transaction, is a US-based and family-owned construction company with expertise in renewable energy development that has been active in the Minnesota community solar market over the past several years.
- $37M total investment
- 15% levered after-tax IRR
- 9-year payback
