The upward repricing follows a record first half for the company’s renewable energy fleet
New York, NY, September 7, 2022 — Greenbacker Renewable Energy Company LLC (“GREC,” “Greenbacker,” or the “Company”), a leading green energy investment manager and independent power producer, has announced an upward repricing in monthly share value (MSV), with share classes increasing between 1.8% – 2.6% from the Company’s previous MSV that went into effect on August 1, 2022.
Across Greenbacker’s respective share classes, that equates to an MSV increase of between $0.16 and $0.21 per share, reflecting continued momentum in the Company’s growth and execution of its business metrics, as well as in the renewable energy asset class as a whole. (For MSV by share class, please see Appendix at the end of this release.)
This increase comes on the heels of Greenbacker’s second-quarter announcement that it had doubled its year-over-year operating capacity; moved its largest operating asset to date into commercial operation; and set a performance efficiency record for the first half of the year, with its wind and solar portfolios producing at 99.5% and 96.4% of forecast, respectively.1
Greenbacker’s MSV increase also reflects the positive impact that the Inflation Reduction Act (IRA), signed into law on August 16, is expected to have on Greenbacker’s portfolio. The IRA sends a powerful market signal to the renewable energy industry and will play a crucial part in accelerating the US energy transition. Two of the act’s most impactful provisions are designed to spur new wind and solar project development. These include an increased rate for the wind production tax credit (“PTC”), from as low as $0.018/kWh up to $0.026/kWh, and an increase in the solar investment tax credit (“ITC”) from 26% to 30%.
Because a sizable portion of Greenbacker’s solar portfolio is in the pre-operational stage and still being built, many of the Company’s solar energy assets stand to benefit from the higher ITC (and likely will for some time, as the increase has also been extended through 2032).
“We’re incredibly excited to continue expanding and solidifying our position in the renewable energy market,” said Charles Wheeler, CEO of GREC. “In recent years, Greenbacker has strategically pivoted to focus more on acquiring pre-operational assets. Because of that pivot, we’re even better positioned to capitalize on recent legislation and bring to market successful opportunities to drive a clean energy future.”
Given the pricing adjustment clauses included in certain Greenbacker contracts for solar projects, many of the Company’s project partners will share in those incentives, as well.
“As responsible members of the renewable energy infrastructure ecosystem, our deals are structured to share benefits like these with the developers we collaborate with,” said David Sher, Director of GREC. “Whether it’s installing panels on solar farms or raising newer turbines on wind repowers, we know that the energy transition can only be built by durable partnerships.”
Greenbacker’s fleet of clean energy projects comprises nearly 2.9 GW of generating capacity (including assets that are to be constructed) across 33 states, Washington, DC, Puerto Rico, and one province in Canada. Since June 30, 2016, Greenbacker’s renewable energy assets have produced over 4.9 million megawatt-hours2 of clean energy, abating more than 3.5 million metric tons of carbon.3 The Company’s clean energy projects have saved roughly 3.3 billion gallons of water,4 compared to the amount of water needed to produce the same amount of power from burning coal, and the fleet’s business activities will sustain over 5,200 green jobs.5
Appendix – MSV6 Increase by Share Class
About Greenbacker Renewable Energy Company
Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability sustainable infrastructure company that both acquires and manages income-producing renewable energy and other energy-related businesses, including solar and wind farms, and provides asset management services to other renewable energy investment vehicles. We seek to acquire and operate high-quality projects that sell clean power under long-term contracts to high-creditworthy counterparties such as utilities, municipalities, and corporations. We are long-term owner-operators, who strive to be good stewards of the land and responsible members of the communities in which we operate. Greenbacker conducts its asset management business through its wholly owned subsidiary, Greenbacker Capital Management, LLC, an SEC-registered investment adviser. We believe our focus on power production and asset management creates value that we can then pass on to our shareholders—while facilitating the transition toward a clean energy future. For more information, please visit www.greenbackercapital.com.
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although Greenbacker believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Greenbacker undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in its expectations.
1 Portfolio metrics referenced in this press release are unaudited and subject to change.
2 Data is as of June 30, 2022.
3 EPA Greenhouse Gas Equivalencies Calculator. Data is as of June 30, 2022.
4 Gallons of water saved are calculated based on Operational water consumption and withdrawal factors for electricity generating technologies: a review of existing literature – IOPscience, J Macknick et al 2012 Environ. Res. Lett. 7 045802.
5 Green jobs are calculated from the International Renewable Energy Agency‘s measurement that one megawatt of renewable power supports 3.8 jobs. Data is as of June 30, 2022.
6 Monthly Share Value (MSV) based calculations involve significant professional judgment. The calculated value of our assets and liabilities may differ from our actual realizable value or future value, which would affect the MSV as well as any returns derived from MSV, and ultimately the value of your investment.