New Jersey Resources offloaded its residential solar portfolio from its NJR Clean Energy Ventures subsidiary.

Spruce Power Holding Corp. paid $132.5 million for the 91-megawatt package, according to a Nov. 25 announcement from Wall-based NJR. Existing lease agreements in the solar program cover approximately 9,800 participating homeowners.

NJR said it expects to record a gain on the sale in Fiscal Year 2025. It will use the proceeds to pay down corporate debt and for general working capital purposes. According to Spruce Power’s Tuesday announcement, the deal closed Nov. 22.

Clean Energy Ventures represents one of five of Fortune 1000 company NJR’s primary businesses, along with:

• New Jersey Natural Gas
• Energy Services
• Store and Transportation
• Home Services

The residential solar program operated under “The Sunlight Advantage” brand.

“Renewable energy investments are an integral part of our business and will continue to be a key driver of NJR’s long-term growth strategy,” commented New Jersey Resources President and CEO Steve Westhoven. “Following this transaction, Clean Energy Ventures will have a sharpened focus on the strong opportunities for growth within its commercial solar portfolio, driven by a nearly 1 gigawatt (GW) pipeline of diverse investment options.”

According to New Jersey Resources, CEV has invested more than $1.2 billion in solar projects since 2009. That makes it the largest owner-operator of commercial solar in the Garden State, NJR said. Regionally, the unit has assets in New York, Connecticut, Rhode Island, Indiana and Michigan.

Expanding presence

According to the buyer, construction of the residential installations took place between 2010-2024. Long-term lease agreements with homeowners support the portfolio. The average remaining contract life has 11 years.

Denver-based Spruce said it is entitled to the customer payment streams and renewable energy credit program incentives related to the CEV portfolio, effective Oct. 1, 2024.

Now with 16,000 total customers, the play in New Jersey boosts the state to represent the company’s second-largest geographic presence. Also this year, Spruce rolled out its first in-market field services organization here.

Spruce expects increased local efficiencies related to customer service, ongoing operations and maintenance, as well as environmental commodity market opportunities thanks to the expansion.

“This is an exciting acquisition that provides immediate positive impact to Spruce’s financial and strategic outlook through continued scaling of our ownership of home solar assets and contracts,” said Spruce CEO Chris Hayes. “We are proud that this acquisition solidifies Spruce as a leading provider of residential solar energy in New Jersey.

“Over the past decade, the NJR CEV team has built an impressive portfolio of high-quality residential solar systems and cultivated a strong customer base. We look forward to continuing their commitment to safety, the environment and customer service in the state of New Jersey,” Hayes said.