RE Royalties Announces up to a USD $9.0 Million Portfolio-Level Royalty Investment with Solaris Energy Inc.

Executive Summary

• RE Royalties Ltd. entered a definitive agreement to invest up to USD $9.0 million for royalty interests in two portfolios of distributed‑generation solar projects owned by Solaris Energy Inc.
• The first tranche of USD $3.0 million will be funded at closing, with an additional USD $1.8 million expected by Q2 2026, targeting a 25‑year minimum return on Portfolio 1.
• Portfolio 1 comprises 15 projects (9 under construction, 6 in development) across five U.S. states; Portfolio 2 includes 9 projects pending due‑diligence, with closing anticipated later in the year.

Key Details

• Total Commitment: Up to USD $9.0 million for royalty interests in two solar DG portfolios.
• Portfolio 1 Funding:
• Initial advance at closing: USD $3.0 million.
• Additional advance: USD $1.8 million, expected Q2 2026, subject to milestone conditions.
• Royalty rate adjusted per advance to achieve a pre‑agreed minimum return over a 25‑year period; royalty continues for the life of the projects beyond 25 years.
• Portfolio Composition:
• 15 projects (9 under construction, several nearing operation, 6 in development) located in California, Maine, Delaware, New Hampshire, and Colorado.
• Portfolio 2: 9 projects; final composition may evolve as projects advance; closing later in 2026 pending due‑diligence and customary conditions.
• Strategic Rationale: Provides RE Royalties with long‑term, cash‑generating royalty streams from diversified DG solar assets and deepens partnership with Solaris Energy’s extensive U.S. pipeline (estimated value > USD $400 million).
• Comments:
• Peter Leighton, COO of RE Royalties – highlighted focus on renewable‑energy royalties and the attractiveness of DG solar.
• Nick Perugini, CEO of Solaris Energy – noted that the equity infusion strengthens Solaris’ ability to secure sponsor, tax‑equity, and lender financing for its pipeline.

Notable Quotes

• “This transaction reflects RE Royalties' continued focus on partnering with renewable energy developers and acquiring royalty interests on diversified, cash‑generating clean energy assets and near‑term operating projects.” – Peter Leighton, COO, RE Royalties Ltd.
• “Sponsor equity is the most difficult capital to raise, and we're thrilled to join with the RE Royalties team to strengthen our relationships with internal sponsor equity, tax equity, and lender partners…” – Nick Perugini, CEO, Solaris Energy Inc.