First Solar and SunPower appear to be coming good on their promise to offer project assets from their Right of First Offer (ROFO) portfolio to their joint partnership 8point3 Energy Partners. The additional 90MW of solar projects, with power purchase agreements of 20 years already in place, will add a nice chunk to 8point3s solar portfolio in the U.S., and are expected to generate $9 million in combined annual pre-tax cash flow.
SunPowers 50MW Hooper Project is located in the Luis Valley in Colorado, and became operational in December 2015. Xcel Energy will buy the power generated from the plant, expected to generate enough electricity to power 13,500 Colorado homes, under a 20-year PPA.
First Solars Kingbird Project is not yet operational, but construction on the 40MW plant in Kern Country, California, is expected to be completed in May. Separate 20-year PPAs are already in place with member cities of the Southern California Public Power Authority and the City of Pasadena.
"These acquisitions continue our long-term strategy of adding high quality solar projects with investment grade off-takers to our portfolio, said Chuck Boynton, CEO of 8point3 Energy Partners. "These transactions, along with our purchase of the Kern County School District project in January, should enable us to achieve our targeted annual distribution growth rate of 12-15 percent through the end of 2017 without additional project acquisitions."