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Community solar platform launches equity raise

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A community solar platform based out of Denver, Colorado has launched an equity raise process.

SunShare, which has been developing and owning community solar projects since it was founded in 2011, has initiated a 2-stage capital raise process which could see a buyer acquire up to 100% of the company’s interests, PFR understands.

The process, which is codenamed Project Peregrine, is accepting a first round of bids this year, with an eye to completing the process at the beginning of next year’s second quarter, according to a source close to the process.

While the company is open to the sale of the entire platform, it is also exploring multiple different transaction structures.

CohnReznick Capital Markets has been mandated as the financial adviser on the process, PFR understands. The firm declined to comment on the process when contacted.

The equity raise is understood to appeal to investors who will help SunShare capitalize on the newly passed Inflation Reduction Act and expand its portfolio into new markets across the US.

SunShare is already expected to benefit from the IRA’s incentives. Around 65% of the company’s project portfolio is expected to qualify for the IRA’s energy community investment tax credit adder, while 100% of its projects will qualify for the domestic content investment tax credit adder.

Since its foundation, SunShare has developed 150MW of community solar projects and continues to own and operate 26MW of community solar generation.

The platform also maintains a more than 700MW pipeline of greenfield community solar projects spread across 9 states in the US.

Last year, SunShare closed an equity capital raise with Ember Infrastructure, enabling the company to rapidly expand greenfield development, support growth of its develop and hold platform, expand the in-house team, and pursue additional M&A opportunities. Ember made the investment through its $340 million debut fund, which closed earlier this year (PFR, 7/6).