SunEdison has sold 26 MW of distributed generation (DG) solar plants to its yieldco unit, Terraform Power, for $47 million.
The 21 power plants have long-term contracts with an average remaining life of 20 years, according to SunEdison. Counterparties, or partners with stakes in the PV installations, in the geographically diverse portfolio include municipalities, schools and businesses. The solar installations are located across seven U.S. states.
SunEdison expects the assets to increase annual cash available for distribution (CAFD) by approximately $5 million.
TerraForm funded the purchase of these call right projects with cash on hand.
"DG projects are inherently ‘win-win’ for customers, asset owners and investors," SunEdison said. "By providing clean electricity directly to end users, customers save on energy, while TerraForm benefits in the form of attractive project returns."
TerraForm President and CEO Carlos Domenech added that the deal furthered the company’s leading position in the DG sector, which he described as "one of the most profitable and fastest growing clean energy market segments. In addition, DG is a flow business that delivers consistent growth for our shareholders."