The states have accounted for ~30% of all deals since 2022, due to favorable market conditions and state incentives.
Texas accounted for ~15% of the deals, targeting assets located in central north Texas and the Panhandle, where renewable development offsets the lack of revenue from O&G operations. Meanwhile, New York, Massachusetts and Illinois dominated deal activity for sub-utility assets, driven by the availability of state incentives and support programs in the form of low-interest loans, which are incentivizing installations of commercial and industrial (C&I) as well as community solar systems.
Asset-level acquisitions accounted for 67% of the deals, with private firms including Greenbacker, Sol Systems and Standard Solar, tapping into development portfolios with capacity of over 100 MW. Meanwhile, Corporate M&A activity was led by IPPs and PE firms, expanding their portfolios in the country. Investors are acquiring utilities' assets in deregulated markets, as the latter shift focus to regulated assets and transmission system upgrades.
The above analysis is proprietary to Enerdatics’ energy analytics team, based on the current understanding of the available data. The information is subject to change and should not be taken to constitute professional advice or a recommendation.
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