A portfolio of seven community solar projects is on the verge of construction. With a capacity of approximately 21 megawatts peak (MWp), it is the largest portfolio to date for which hep is handling both project development and construction under one roof through its integrated approach. In successfully developing this portfolio, hep is leveraging its broad expertise and strong strategic partnerships with U.S. solar companies.
US portfolio of approximately 21 MWp has successfully completed the hep project development process
Strategic partnerships enable record-breaking scale and speed
In late 2020, hep acquired the projects at an early stage of development and, together with the project developer and project development partner Solops, brought them to the construction-ready stage. After a development phase of just five months, the approximately 21 MWp portfolio is now ready for construction and will be taken over by the fund “HEP – Solar Portfolio 2 GmbH & Co. geschlossene Investment KG.” Further project development, as well as the construction and subsequent operation of the seven projects, will be carried out by hepPetra, a solar company in which hep has held a majority stake since July 2020.
What makes these seven projects unique is that they are all community solar projects. In the U.S., this refers to solar projects in which various electricity consumers—including both individuals and businesses—within a community jointly finance a solar project. The electricity generated is also used collectively. The financing model is similar to the “Power Purchase Agreements” with which hep has already gained years of experience. In these agreements, processes and compensation are contractually fixed for 20 years.
Strong network in the U.S.
The project development company Solops, with which hep entered into a strategic partnership in February 2020, also played a key role in the successful project development. “By rapidly and successfully advancing seven ‘early-stage projects’ to the construction phase, we have once again demonstrated our strong position in the U.S. project development business,” says Chief Project Officer Dr. Alexander Zhou. “Through our project development partner Solops, the project development company hep Peak Clean Energy, which we acquired, and our majority stake in hepPetra, we have established a strong foundation from which we can look forward to a successful future for our project development business in the U.S., particularly in the ‘early-stage’ and ‘active development’ sectors.”