Spruce Power Holding Corp., a publicly traded owner and operator of distributed solar energy assets across the United States, announced Aug. 8 a multi-year agreement to sell Spruce’s solar renewable energy credits (“SRECs”) in New Jersey to an investment-grade energy sector counterparty. The transaction is expected to generate about $10 million in fully hedged revenue for Spruce through 2029.
This partnership is part of a broader Spruce initiative to leverage the company’s platform and experience to capture the benefits of its SRECs.
Chris Hayes, chief executive officer of Spruce said, “We view scaling SREC registration as a low-cost, low-risk opportunity to generate capital-light, high-margin, cash flow for the company. This transaction is another example of Spruce’s expertise in maximizing value from our assets while hedging against future price movements. The forward contract provides an important ongoing hedged revenue stream and reinforces the dependability of Spruce’s cash flow generation.”
Hayes concluded, “We believe the counterparty is utilizing Spruce’s SRECs as a compliance instrument to hedge their electricity supply positions in the state of New Jersey.”
Spruce Power Holding Corp. provides subscription-based services for homeowners to benefit from rooftop solar power and battery storage. The company says its power-as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. Spruce Power owns the cash flows from about 85,000 home solar assets and contracts across the United States.
