NJR Clean Energy Ventures (CEV), a clean energy subsidiary of New Jersey Resources, has announced the sale of its 91-megawatt (MW) residential solar portfolio to Spruce Power Holding Corporation for $132.5 million. The transaction marks a strategic move by NJR to refine its focus on commercial solar investments while leveraging the sale proceeds for debt reduction and general working capital.
Strategic Shift Towards Commercial Solar Growth
The sale aligns with NJR’s long-term strategy to prioritize renewable energy investments as a driver of growth. Steve Westhoven, President and CEO of New Jersey Resources, emphasized this focus in a statement:
“Renewable energy investments are an integral part of our business and will continue to be a key driver of NJR’s long-term growth strategy. Following this transaction, Clean Energy Ventures will have a sharpened focus on the strong opportunities for growth within its commercial solar portfolio, driven by a nearly 1-gigawatt (GW) pipeline of diverse investment options.”
CEV’s residential solar program, branded as The Sunlight Advantage®, offered homeowners the chance to install solar systems at no cost for installation or maintenance. This program catered to approximately 9,800 homeowners, whose existing lease agreements will now be fully assumed by Spruce Power.
A Legacy of Solar Investments
Since its inception in 2009, CEV has invested over $1.2 billion in solar projects, establishing itself as a leader in the clean energy sector and the largest owner-operator of commercial solar projects in New Jersey. Beyond its home state, CEV has expanded regionally into New York, Connecticut, Rhode Island, Indiana, and Michigan, diversifying its solar energy assets.
With the residential solar business now divested, CEV will channel its efforts into its commercial portfolio, which boasts nearly 1 GW of investment opportunities. This shift reflects NJR’s commitment to scaling clean energy solutions and meeting the growing demand for low-carbon technologies.
Transaction Details and Financial Implications
The $132.5 million sale to Spruce Power is expected to generate a gain for NJR in fiscal 2025. Proceeds from the transaction will primarily be used to reduce corporate debt, enhancing NJR’s financial flexibility, and supporting general working capital needs.
The decision to divest the residential solar portfolio aligns with market trends and NJR’s strategy to maximize value through targeted investments. Spruce Power, a company specializing in residential solar energy systems, is well-positioned to manage and grow the portfolio, ensuring continued service to the participating homeowners.
NJR: A Leader in Clean Energy and Natural Gas Services
New Jersey Resources is a Fortune 1000 company providing a wide range of energy services, from natural gas distribution to clean energy investments. Its diversified operations include:
- New Jersey Natural Gas (NJNG): The company’s principal subsidiary delivers natural gas to customers across Monmouth, Ocean, Morris, Middlesex, Sussex, and Burlington counties in New Jersey.
- Clean Energy Ventures (CEV): Focused on owning and operating solar projects to provide low-carbon solutions to businesses and communities.
- Energy Services: Manages a portfolio of natural gas transportation and storage assets while offering customized energy solutions across North America.
- Storage and Transportation: Operates Leaf River Storage and the Adelphia Gateway Pipeline and holds a 50% equity stake in Steckman Ridge, a natural gas storage facility.
- Home Services: Offers a range of residential solutions, including heating, cooling, water heaters, solar, and standby generators, catering to New Jersey homeowners.
Future Prospects for CEV
The sale of its residential solar business positions CEV to accelerate its growth in the commercial solar market, leveraging its nearly 1 GW pipeline of projects. This strategic focus reflects NJR’s vision of driving sustainable energy solutions while maintaining its leadership in clean energy innovation.
By realigning its investments and prioritizing commercial solar opportunities, NJR Clean Energy Ventures continues to play a pivotal role in the transition to a low-carbon energy future, supporting businesses, communities, and the environment. The transaction underscores NJR’s dedication to financial discipline and long-term growth while delivering value to its stakeholders.
