Spruce Power Expands Solar Reach With Acquisition Of NJR Clean Energy’s Residential Portfolio

Spruce Power Holding Corporation has announced the acquisition of a residential solar portfolio from NJR Clean Energy Ventures (CEV), a subsidiary of New Jersey Resources Corporation, for $132.5 million. The deal was completed on November 22, 2024. The acquired portfolio, called the “Spruce Power 5 Portfolio,” includes about 9,800 solar systems in New Jersey. These systems were installed through CEV’s residential solar program between 2010 and 2024. The solar systems are backed by long-term lease agreements with homeowners, with an average remaining contract life of over 11 years.

Spruce Power will start receiving customer payments and renewable energy credit incentives from the portfolio, effective October 1, 2024. This acquisition strengthens Spruce’s presence in New Jersey, making it the company’s second-largest market, with nearly 16,000 customers in the state. In 2024, Spruce also launched its first local field services organization in New Jersey. The company expects to see improved efficiencies in customer service, operations, maintenance, and environmental commodity opportunities as a result of this expanded presence.

Chris Hayes, Chief Executive Officer of Spruce, said in a statement, “This is an exciting acquisition that provides immediate positive impact to Spruce’s financial and strategic outlook through continued scaling of our ownership of home solar assets and contracts. We are proud that this acquisition solidifies Spruce as a leading provider of residential solar energy in New Jersey. Over the past decade, the NJR CEV team has built an impressive portfolio of high-quality residential solar systems and cultivated a strong customer base. We look forward to continuing their commitment to safety, the environment and customer service in the state of New Jersey.”

Spruce Power funded the $132.5 million acquisition of the solar portfolio using $22.7 million in cash and proceeds from a new debt facility. As part of the deal, Spruce secured a $109.8 million debt facility, called the “SP5 Facility,” from Santander. The SP5 Facility is secured by the cash flow streams from the acquired lease contracts and related renewable energy credit incentives, and it is non-recourse to Spruce. While Spruce is not updating its full-year 2024 financial guidance, the company expects the acquisition to immediately boost its financials, providing strong initial cash-on-cash returns.

In evaluating acquisitions, Spruce focuses on levered cash flows, which measure the cash available after paying off project-level non-recourse debt, including both interest and principal. For the twelve months ending September 30, 2025, Spruce anticipates the Spruce Power 5 Portfolio will generate approximately $7.0 million in levered cash flows. Over the next three fiscal years (2025-2027), the company expects cumulative levered cash flows from the portfolio to reach about $22.0 million.