On Tuesday, community solar and energy storage developer Nexamp, announced that it has received a $240 million equity investment led by sustainable infrastructure-as-a-service investor Generate Capital. Along with a $440 million debt financing round in March of this year–the largest-ever such financing for community solar assets–Nexamp has raised $680 million in new funding, which the company says it will use for further expansion.
As a developer of distributed (community) solar and energy storage, Nexamp currently serves 40,000 customers in 10 U.S. states, with nearly 1 GW of solar and energy storage assets currently operating or under construction. The company’s business model serves a broad retail clientele, advertising discounts of up to 20 percent with no credit checks or long-term contracts.
“It’s clear that consumers want more options for reducing their environmental footprint, they want more control over their costs and they care about working with a trusted partner across their many sustainability efforts,” said Nexamp CEO Zaid Ashai. “This funding represents a show of confidence in our team and vision, and we are committed to continuing to provide solutions to address surging clean energy demand. With our track record and momentum in community solar, we have built a foundation for numerous additional opportunities to expand our customers’ access to clean energy and sustainable solutions.”
“Distributed power generation—and community solar in particular—is a growing segment of the renewable energy market that plays a vital role in reducing carbon emissions with the participation of a wide range of community members, and Nexamp is a reputable market leader in this field,” said Takaki Sakai, Managing Director of the Project Finance team at Japanese bank holding company Mitsubishi UFJ (MUFG), which led the financing.
“MUFG is honored to help Nexamp advance its continued growth through the successful closing of this landmark debt financing—one of the largest to have been provided to a community solar portfolio—and we look forward to continuing our strong partnership,” Sakai added.
Walmart moves into solar
The funding round comes two weeks after Nexamp signed a deal with big-box retailer Walmart as the anchor tenant of 129MW of its community solar projects. Calling the deal “one of the biggest of its kind,” Nexamp announced that Walmart will subscribe to a share of each of Nexamp’s 23 New York state solar farms, receiving energy credits equivalent to 50MW of the entire portfolio. Walmart has 32 stores, 4 Sam’s Clubs, and one Distribution Center participating in Nexamp’s program in New York.
“Community solar at this scale allows Walmart to play a direct role in spurring economic development in the communities we serve and reinforces our goal to spark collective climate action,” said Mark Vanderhelm, Walmart’s Vice President of Energy and Facilities Management, in announcing the deal earlier this month.
Walmart is targeting zero emissions across its global operations by 2040 and aims to harvest enough wind, solar and other renewable energy sources to power 100 percent of its facilities with renewables by 2035. Currently, 36 percent of Walmart’s global operations are renewables-powered.
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