Apollo to tap into high-growth community solar market with investment in Summit Ridge

Global buyout giant Apollo has agreed to make a $175 million strategic investment in community solar asset owner-operator Summit Ridge to tap into the high-growth segment of the renewable energy market.

Launched 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 to over 300 MW.

The company said it expects to have over 500 MW of solar projects and 100 MWh of pulp storage online by the end of 2023.

The company said community solar power is a rapidly growing segment that enables individuals, businesses, nonprofits and other groups to participate in the clean energy economy by helping themselves. subscribing to local solar farms at reduced rates.

Wilson Handler, Apollo Partner, said, “Summit Ridge is an ideal partner for Apollo in the community solar segment as an early mover with a flexible, fully integrated business model and proven management team. With this investment, we see a tremendous opportunity to tap into a high-growth segment of the renewable energy market while delivering positive environmental and social outcomes for local stakeholders.

“We look forward to working with Steve and the rest of the Summit Ridge team to execute its current pipeline while exploring other opportunities to create value.”

Apollo pledged earlier this year to continue its efforts for a more sustainable future. The firm launched its Sustainable Investing Platform in February, which aims to deploy $50 billion in capital for clean energy and climate over the next five years.

He sees the possibility of deploying more than $100 billion by 2030, pointing out that around $4.5 billion in annual investments are needed to reach global net zero by 2050.

Reports had also indicated earlier in the year that the company had pledged not to invest in fossil fuels from its new $25 billion flagship buyout fund.

The company has invested more than $19 billion in companies related to energy transition and sustainable development over the past five years.

Apollo’s $24.6 billion Fund IX, its previous flagship fund, backed only two companies that provide services to the oil and gas sector, despite marketing space as a central focus when seeking money from investors.

Apollo’s recent sustainability-focused investments included Petros PACE Finance, a clean energy finance, energy storage and renewable energy platform provider Broad Reach Power, funding NextEra Energy Partners’ stake in a 2.5 GW renewable energy portfolio and forming the Ionic Blue joint venture with Johnson Controls to provide sustainability and energy efficiency services.

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