Greenbacker Renewable Energy Company LLC, a publicly registered, non-traded limited liability company, has reported its financial results for the third quarter of 2021.
Total revenue from the sale of energy and environmental attributes was $29.5 million for the third quarter of 2021, an increase of 6.6 percent from the previous quarter’s total of $27.7 million and an increase of 52.5 percent when compared to $19.4 million in the third quarter of 2020.
The company’s fleet of sustainable infrastructure projects increased by 35 net assets during the quarter, bringing its total project count to 337. At the end of the quarter, the total number of states, districts, territories, and provinces in which Greenbacker conducts business activities had risen to 35.
The projects generated 392,010 megawatt-hours of total energy during the third quarter of 2021, which represents quarter-over-quarter and year-over-year increases of 8.6 percent and 75.7 percent, respectively.
Greenbacker’s investment activity decreased quarter-over-quarter, but more than quadrupled year-over-year. The company deployed more than $240 million into new or existing investments during the third quarter of 2021. During the previous quarter, the company deployed a record $315.2 million of new capital into additional assets and $57.2 million in third quarter of 2020.
The fair value of Greenbacker’s investments in both controlled and non-controlled projects exceeded $1.22 billion, marking quarterly and year-over-year increases of 16.8 percent and 105.1 percent, respectively. The fair value totaled $1.04 billion in the second quarter of 2021 and $594.6 million during the same period last year.
“Consumers are increasingly realizing the financial advantages of using clean power to meet their growing energy needs…,” said Charles Wheeler, chief executive officer. “The renewable energy asset class itself continues to enjoy strong policy support and impact investor momentum, as more and more governments, institutional investors, and individuals appreciate how critical sustainable infrastructure is to addressing—and ultimately reversing—the climate crisis.”
At the end of the third quarter, Greenbacker’s total gross investment value had surpassed $1.7 billion, a quarter-over-quarter increase of 12.4 percent and a year-over-year increase of 80.9 percent. The total gross investment value was $1.5 billion at the second quarter of 2021 and $958.9 million at the end of the third quarter of 2020.
Greenbacker’s shareholder distributions totaled $19.6 million in the third quarter, up from $16.6 million in the second quarter and $8.1 million in the third quarter of last year, marking quarter-over-quarter growth of 18 percent and a year-over-year increase of 142 percent.
The company’s pre-operational and non-earning assets more than doubled in size on a year-over-year basis from $134.6 million to $328.7 million, as of September 30, 2021. However, this is a decrease from the second quarter, when pre-operational and non-earning assets totaled $429.8 million.
During the third quarter, several assets reached commercial completion, including Altamont (57.5 megawatts), Greenbacker’s largest wind project to date. Greenbacker noted that this contributed to the 23.5 percent quarter-over-quarter decrease in the size of its pre-operational portfolio, as these assets came online and began generating revenue.
During the third quarter, Greenbacker raised $215.4 million in capital, bringing the year-to-date total to $768.2 million.
As of September 30, 2021, the company’s net asset value totaled $1.28 billion, an increase of 18.2 percent from the June 30, 2021 NAV of $1.09 billion, and an increase of 148 percent from the September 30, 2020 NAV of $512.9 million.
The company also added around 790 new investors to its shareholder base during the third quarter (after adding roughly 485 new investors in the second quarter), bringing its total investor base to approximately 10,500.
As of September 30, 2021, Greenbacker’s pipeline of potential transactions topped $527.1 million, reaching a new high for a third consecutive quarter, the company said. The previous high was set in the second quarter of this year, when the pipeline totaled $436.9 million, which surpassed the first quarter’s record of $383.8 million.
Greenbacker purchased two 20-megawatt utility-scale solar projects located in New York from Hecate Energy during the quarter. The projects, Albany 1 and Albany 2, add 40 megawatts to Greenbacker’s fleet. The projects are among the company’s largest sustainable energy assets in New York, and Greenbacker said that it has a number of signed commitments with Hecate to develop sustainable infrastructure projects in the state.
At the beginning of the quarter, Greenbacker’s RoxWind project in Roxbury, Maine entered the final stages of construction. At 15.3 megawatts, the wind farm represents the company’s largest asset in the state.
Greenbacker Renewable Energy Company purchases and manages renewable energy and other energy-related businesses, including solar and wind farms. The company invests in projects that sell clean power under long-term contract to counterparties such as utilities, municipalities, and corporations.