Generate Capital Invests $240m in Solar Developer Nexamp

Aug 17, 2021 | News

Nexamp, a leader in building tomorrow’s energy infrastructure, and reinventing how people interact with the electricity that powers their lives, has secured a $240m equity investment led by Generate Capital.

The company also recently raised $440m in debt financing, bringing its total new funding to $680m. The new funding will accelerate Nexamp’s ability to offer a flexible range of decarbonization options for customers, expanding its position as a leading clean energy solutions provider.

Nexamp has secured significant funding to fuel its growing footprint and service portfolio.

Nexamp develops, designs, builds and operates distributed solar, and energy storage solutions. Driven by its mission to deliver an accessible and sustainable energy future for all, Nexamp today provides clean energy access to approximately 40,000 customers across 10 states, offering discounts on green energy of up to 20% with no credit checks, and no long-term contracts. Nexamp has nearly 1 Gigawatt of solar, and energy storage assets operating, and under construction.

“It’s clear that consumers want more options for reducing their environmental footprint, they want more control over their costs, and they care about working with a trusted partner across their many sustainability efforts,” said Nexamp CEO Zaid Ashai. “This funding represents a show of confidence in our team, and vision, and we are committed to continuing to provide solutions to address surging clean energy demand. With our track record, and momentum in community solar, we have built a foundation for numerous additional opportunities to expand our customers’ access to clean energy, and sustainable solutions.”

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The new funding comes on the heels of Nexamp’s recent agreement with Walmart to subscribe to 23 of Nexamp’s New York community solar farms.

With a rapidly growing customer base of consumers and businesses, Nexamp already has a proven community solar program that makes solar an option for anyone, eliminating typical barriers of entry such as up-front capital investment, sign-on fees, credit checks or access to your own roof. Nexamp also offers a variety of standalone and co-located energy storage solutions as well as utility scale solar services and is playing a growing role in grid capacity.

With the new funding, Nexamp will expand its capabilities, extending clean energy savings and other benefits to more markets. The company will also continue expanding its team to develop additional retail solutions that help consumers and businesses make better energy decisions and reduce their carbon impact.

Nexamp has grown to more than 300 employees, tripling its workforce in less than three years with robust growth that continued throughout the COVID-19 pandemic thanks to increasing demand for renewable energy. “We have enjoyed unprecedented growth over the past year, and this investment gives us resources to maintain our momentum, creating the foundation for a more equitable clean energy future,” said Nexamp CFO Peter Tawczynski.

“We’re thrilled to be partnering with Nexamp on this next phase of growth to reach our shared goals of delivering affordable, flexible decarbonization solutions to the market,” said Scott Jacobs, chief executive and co-founder of Generate. “Nexamp’s innovative approach to clean energy, strong leadership team and impressive track record is speeding up the democratization of energy—a critical piece in the urgent climate solutions puzzle.”

Diamond Generating Corporation (DGC), an early investor in Nexamp, is very excited about what this new round of investment from Generate represents. “Given the growing market demand for clean energy solutions, investing in a more environmentally conscious base of businesses is advantageous,” said Masanori Kohama, CEO of DGC and Nexamp Board Member. “Nexamp is on a strong growth trajectory, and we recognize that there is an even greater market opportunity. We will continue to offer support to scale Nexamp’s initiatives and pursue our solar development activities with Nexamp’s expanding portfolio.”

The transaction was facilitated by Marathon Capital, an independent investment bank delivering financial advice to the global energy and infrastructure markets.

Source: Markets Insider

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