Altus Power Acquires 8.5 MW Project in New Jersey
Altus Power, a leading provider of clean electric power, has acquired an 8.5 MW solar array in New Jersey. This project strengthens its portfolio to 185.5 MW within the state. The ground-mounted solar array will sell power to PJM and generate Solar Renewable Energy Credits (SRECs). This acquisition includes 63 acres of land, offering flexibility for future redevelopment and long-term value maximization. The project is anticipated to produce around 8,776,000 kWh annually, preventing over 6,100 metric tons of carbon dioxide emissions. Altus Power serves over 450 enterprises and 24,000 Community Solar customers across 25 states.
- Acquisition of an 8.5 MW solar array strengthens New Jersey portfolio to 185.5 MW.
- Project expected to produce approximately 8,776,000 kWh annually.
- Potential to avoid more than 6,100 metric tons of carbon dioxide emissions annually.
- Acquisition includes 63 acres of land, providing future redevelopment and value maximization opportunities.
- Serves over 450 enterprises committed to carbon reduction goals.
- Expands reach to 24,000 Community Solar customers across 25 states.
- None.
Insights
Altus Power's acquisition of an 8.5 MW solar array in New Jersey is a strategic move that is likely to enhance its revenue streams and operational footprint. The project, which will generate approximately
Short-term implications include immediate revenue from electricity and SRECs. Investors might see a marginal increase in quarterly earnings, but the more substantial benefits are likely to manifest over the long term. The added land offers redevelopment opportunities, which could further maximize value. This strategic flexibility can be important for scaling operations and adapting to future market conditions.
Long-term projections look favorable as the renewable energy sector is expected to grow. This acquisition reinforces Altus Power's position as a major player in the industry. New Jersey's commitment to renewable energy policies ensures a supportive regulatory environment, reducing risks associated with policy changes. However, investors should also consider potential future competition and the costs of maintaining and upgrading these facilities.
By expanding its New Jersey portfolio to 185.5 MW, Altus Power not only scales up but also strengthens its market presence, making it a more attractive option for large enterprises and community solar customers. The company's diversified customer base, including homeowners and renters, provides a stable revenue stream less subject to market fluctuations.
Altus Power’s acquisition significantly boosts its capabilities in renewable energy production. The 8.5 MW solar array will contribute to the reduction of approximately 6,100 metric tons of carbon dioxide annually. This is a substantial environmental benefit, aligning with global trends towards carbon reduction and sustainability.
The location in New Jersey is particularly strategic. The state is a leader in renewable energy, offering tiered incentives that make investments in solar projects financially attractive. This acquisition aligns well with state policies, ensuring stable and potentially increasing returns due to favorable state support.
Moreover, the flexibility to redevelop the 63 acres of land enhances long-term strategic options. Future developments could include higher efficiency solar panels or integration with other renewable technologies like battery storage, further optimizing energy output and financial returns. Investors should note that regulatory support can change and while it is currently favorable, monitoring policy shifts is essential for long-term investments.
From a market perspective, Altus Power's acquisition marks a significant step in strengthening its regional dominance in the renewable energy sector. The company’s expansion in New Jersey, a state recognized for its progressive renewable energy policies, enhances its competitive edge.
This move not only increases Altus Power's energy production capacity but also diversifies its project portfolio, making the company more resilient to market changes. With over 185.5 MW now in New Jersey, the company is well-positioned to attract new clients committed to sustainability goals.
Additionally, the Community Solar initiative serving 24,000 customers nationwide demonstrates Altus Power’s commitment to inclusive, sustainable energy. This diversification into community solar projects provides consistent revenue streams and enhances the company’s public image. Investors should consider these factors when evaluating the company’s growth potential and overall market positioning.
“New Jersey is a national leader in renewable energy and we’re pleased to expand our footprint in the Garden State,” said Gregg Felton, CEO, Altus Power. “This acquisition includes 63 acres of land which enhances our flexibility to redevelop this site in the future and maximize long-term value.”
The project is expected to produce approximately 8,776,000 kWh in the next 12 months, the equivalent of more than 6,100 metric tons of carbon dioxide avoided annually. Altus Power’s portfolio across 25 states serves more than 450 enterprises committed to achieving carbon reduction goals, anchored by the company’s distributed solar arrays. In addition, as one of the pioneers of Community Solar, Altus Power serves more than 24,000 Community Solar customers nationwide who benefit from clean energy savings, comprised of homeowners and renters of diverse income brackets.
About Altus Power
Altus Power, based in
Forward-Looking Statements
This press release contains forward-looking statements. Forward-looking statements may be identified by the use of words that predict or indicate future events or trends or that are not statements of historical matters. These statements, which involve risks and uncertainties, relate to analyses and other information that are based on forecasts of future results and estimates of amounts not yet determinable and may also relate to Altus Power’s future prospects, developments and business strategies based on Altus Power’s management’s current expectations and beliefs, as well as a number of assumptions concerning future events.
Such forward-looking statements are subject to known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside Altus Power’s control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. These risks, uncertainties, assumptions and other important factors can be found under the heading “Risk Factors” in Altus Power’s Form 10-K filed with the Securities and Exchange Commission on March 14th, 2024, as well as the other information we file with the Securities and Exchange Commission. New risks and uncertainties arise from time to time, and it is impossible for us to predict these events or how they may affect us. You are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made and the information and assumptions underlying such statement as we know it and on the date such statement was made, and except as required by applicable law, Altus Power undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, changes in expectations, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240624247300/en/
Jenny Volanakis
mediarelations@altuspower.com
Source: Altus Power, Inc.
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