Aggreko’s Energy Transition Solutions division has acquired nine community solar projects in New York, representing a total capacity of about 59 megawatts of clean energy.
With one project in the state recently connected to the grid, Aggreko ETS said it aims for the additional projects to reach commercialization and grid integration within the next year. The projects were acquired on a bilateral basis, and Aggreko reportedly raised tax equity financing from an institutional investor to de-risk funding the transaction.
Instead of installing solar panels directly on buildings, community solar projects use centralized locations with multiple solar panels, and then participants in nearby communities may subscribe to use the generated energy. This often allows subscribers to receive energy credits on utility bills, resulting in more affordable access to clean energy and often lowering electricity costs for consumers.
The nine community solar sites will reportedly allow low- and middle-income residents of the state to benefit from clean, solar energy without the high cost associated with residential panel installation.
“The acquisition of these projects strategically supports the growth of Aggreko ETS’ community solar segment, which includes a complementary portfolio of assets under development in New York and several other states,” said Jerry Polacek, president of Aggreko ETS. “Not only does this acquisition expand the scale of our ambitions to provide clean energy to all New Yorkers, but it also establishes relationships with several anchor commercial and industrial subscribers to align with our growing focus as an energy transition solutions provider for C and I customers.”
Community solar projects represent one of the many renewable energy developments taking place in New York. In October of this year, Gov. Kathy Hochul announced New York's largest-ever investment in renewable energy, supporting 25 new projects including offshore and land-based wind energy, solar energy, and hydropower.
The state has one of the most ambitious climate plans in the U.S. and has allotted billions of dollars to climate action in its 2024 budget. Its Climate Leadership and Community Protection Act, passed in 2019, aims to triple its renewable energy capacity to ensure that 70% of electricity used in the state is renewable by 2030.
The state’s Climate Act Goal aims to install 6 gigwatts of solar by 2025 while allowing for equitable access to clean energy, and community solar projects are a significant contributor to this target.
