Summit Ridge Energy has raised $175 million to fuel its development of community solar and energy storage projects.
Apollo, a high-growth alternative asset manager with $513 billion of assets under management, is providing the funds. Summit Ridge intends to use the funds to expand its geographic footprint.
“Summit Ridge is on a strong trajectory and we are excited to welcome Apollo as a new partner," Summit Ridge Energy CEO Steve Raeder said. "Apollo’s long track record of sustainable investing, coupled with its operational expertise and significant resources, are an excellent match for Summit Ridge’s fast-paced growth and leading position in the clean energy economy.”
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Since launching in 2017, Summit Ridge has formed two joint ventures totaling over $1 billion in permanent project capital and has grown its portfolio of solar projects in operation or under construction to more than 300 MW.
By the end of 2023, Summit Ridge expects to have more than 500 MW of solar and 100 MWh of battery storage projects online providing energy savings to approximately 175,000 residential and commercial customers.
Last year, Summit Ridge developed the largest rooftop community solar project in the U.S.
The 9.2 MW solar array is located on the roof of a commercial warehouse in Maryland.
The project is expected to provide monthly energy savings to approximately 1,300 residential and small commercial subscribers across Maryland.
Summit Ridge Energy's community solar portfolio in Maryland has grown to more than 75 MW of capacity with nearly one-third of projects serving low-to-moderate income customers.
Last October, the Biden administration set a target of powering 5 million American homes with community solar projects by 2025 -- an ambition that would require 700% growth of current capacity.
The National Renewable Energy Laboratory estimates a total of 3,253 MW-AC community solar capacity was installed in the U.S. by the end of 2020 -- enough to power 600,000 homes. The cumulative installed capacity of community solar has grown rapidly since 2010, doubling on average year-over-year.
“Community solar is one of the most powerful tools we have to provide affordable solar energy to all American households, regardless of whether they own a home or have a roof suitable for solar panels,” Energy Secretary Jennifer M. Granholm said in a statement. “Achieving these ambitious targets will lead to meaningful energy cost savings, create jobs in these communities, and make our clean energy transition more equitable.”
Community solar enabling legislation exists in 21 states and the District of Columbia, either through state-required programs or authorization of pilot programs, according to NREL.
Currently, 72% of cumulative community solar capacity is concentrated in just four states: Minnesota, Florida, Massachusetts, and New York.
Community solar projects allow residents without suitable rooftops for generation to take advantage of the benefits of solar power, improving access to renewable energy for low-income and disadvantaged communities. Community solar project subscribers often receive guaranteed cost savings on their energy bills, too.
The Biden administration believes reaching its community solar target could create $1 billion in energy savings.
