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Nexamp Raises USD 520 Million to Expand Community Solar Reach Nationwide

The company revealed that it has secured USD 520 million in a capital raise led by Manulife Investment Management, alongside existing investors Diamond Generating Corporation and Generate Capital.

April 11, 2024. By Abha Rustagi

Nexamp, an independent renewable energy provider, community solar developer and owner, has announced a milestone in its journey toward a greener future.

The company revealed that it has secured USD 520 million in a capital raise led by Manulife Investment Management, alongside existing investors Diamond Generating Corporation and Generate Capital.

The influx of capital is earmarked to expedite the deployment of Nexamp's national project pipeline, accelerate expansion and developer partnerships in both new and existing markets, and fuel the continued growth of its generation and consumer-driven offerings.

"This landmark financing comes at a pivotal moment in the evolution of America's energy economy, and underscores the indispensable role of community solar in democratizing access to clean, affordable energy solutions for every American," remarked Nexamp CEO Zaid Ashai.

"This unprecedented investment reflects swelling confidence in the ability of independent renewable energy providers to reimagine outmoded infrastructure and reshape our grid. Nexamp is committed to deep collaboration with communities across the nation in building a more sustainable future for us all," added Ashai.

The scale of this investment reflects the surge in demand for renewable power across the United States and highlights a growing appreciation within the investor community of the essential need to balance utility-scale infrastructure with reliable distributed power solutions in navigating the clean energy transition.

Nexamp oversees every facet of the solar asset lifecycle, from development and engineering to operations and customer acquisition and engagement. This comprehensive approach has enabled Nexamp to deliver local access to clean energy and high-quality jobs in the communities it serves.

Propelled by the momentum of the Inflation Reduction Act (IRA) and increased market and customer demand, Nexamp has expanded its reach over the past year. The company recently announced a second national headquarters in Chicago and plans to invest more than USD 2 billion into local renewable energy infrastructure in Illinois. Additionally, Nexamp launched a partnership with North American solar manufacturer Heliene, gaining access to 1.5 GW of domestically sourced modules to be deployed on hundreds of community solar projects nationwide.

"We believe in community solar, and Nexamp has built an exceptional platform to meet the moment," said Pradeep Killamsetty, Managing Director at Manulife Investment Management. "We are proud to support the Nexamp team in their efforts to further expand their community reach and execute on their growth plans for a cleaner future," added Killamsetty.

"The infrastructure transition relies on the rapid deployment of proven technology solutions, and Generate is proud of its track record in cultivating and investing in the companies that are developing, building, and operating clean energy projects at scale," said Generate Capital CEO and Co-Founder Scott Jacobs.

BofA Securities served as the exclusive placement agent to Nexamp, facilitating this capital raise.

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Manulife Investment Management

Inflation reduction act