Two Blues Solar partners with US investor True Green Capital Management to cut energy prices for UK businesses by up to 60%
Two Blues Solar (“TBS”) announces the expansion of its investment capacity through a joint venture with US renewable-focused private equity firm True Green Capital Management (“TGC”). This collaboration provides TBS with substantial investment capital for the next five years, enabling the deployment of capex-free on-site solar projects for energy-intensive businesses, reducing their energy price by up to 60%.
Last year, renewable energy accounted for 42% of the UK’s total energy production, with solar energy contributing only 5% – despite being the most cost-efficient renewable source. There are several barriers to its widespread use, not least significant upfront capital investment, as well as capacity constraints on the national grid and the perception that solar energy is land intensive.
“TBS was founded to put solar in places where it makes business sense but has been overlooked – and this joint venture enables us to install approximately 300 new on-site solar projects with a combined capacity of up to 120MW, enough to save the carbon equivalent of 15,000 cars,” explains Dillon Cane, co-founder of TBS.
“There are hundreds of thousands of square meters of underutilised commercial roof space in the UK. Mounting solar panels on a roof of 2,500sqm – a medium-sized factory or warehouse – could generate around 320,000kWh of electricity a year, saving 72 tonnes of carbon. But the initial cost of installation is a barrier for many commercial customers.”
Energy prices have contributed significantly to rising operational costs, and 72% of UK businesses anticipate that high energy costs will adversely affect their profits over the next two years. Addressing this issue, TBS removes the upfront cost of solar installation, helping businesses switch to cheaper renewable energy. The Company mounts solar panels on commercial roof space or nearby land, selling the energy to the client via a Power Purchase Agreement (“PPA”) at rates up to 60% lower than traditional utility companies. The installation process can be completed in as little as twenty-six weeks, after which TBS retains ownership of the panels and takes responsibility for ongoing maintenance.
“There’s a ‘missed middle’ in the PPA market,” explains Rachel Stark, Commercial Director of TBS.
“We’re serving medium-sized businesses with large vacant roof space or available land and high energy requirements – such as warehouse operators, manufacturers, and commercial property landlords. These projects are often overlooked by traditional banks or funding providers as they’re considered too small or won’t meet their rigid investment criteria.”
TGC is a specialised renewable energy infrastructure private equity firm. It has invested into a distributed solar power generation portfolio across 16 U.S. states and France. The partnership with TBS, from its fourth fund, is its first investment in the United Kingdom and further expands TGC’s presence in Europe.
Commenting on the deal, Sam Salisbury, Director of Origination at True Green Capital Management, said, “TBS offers flexible on-site solar solutions to a broad range of UK businesses. On-site solar PV is one of the few sources of renewable, distributed power generation that can be added to the network quickly, reliably, and cost-effectively. We have a 13-year track record in this sector, and believe TBS is well positioned, having built an impressive pipeline of potential customers seeking support to transition to renewables, while reducing their energy spend.”
About True Green Capital Management LLC
True Green Capital Management LLC is a specialised renewable energy infrastructure private equity firm focused on the U.S. and Europe. TGC is headquartered in Westport, Connecticut in the USA, and maintains an office in London in the United Kingdom as well.
The firm was founded in July 2011 and is led by a team of professionals with a proven track record and a demonstrated capacity to originate, finance, construct, and operate distributed renewable power generation projects.
TGC believes the continued increase of power prices, decreasing entry costs of distributed power generation technology and favourable regulatory environments in both the U.S. and Europe will continue to lead to compelling investment opportunities which provide a stable cash flow stream with low correlation to the broader markets.
TGC is currently focused on the approximately $1+ trillion distributed power generation market in the U.S. and the approximately $1+ trillion distributed market in Europe with an emphasis on the sub-utility scale solar power segment. Thanks to rapid advancements in technology, the cost of distributed power generation, including solar, is now on par with traditional electricity generation sources. In many U.S. states and key European jurisdictions, it represents one of the few sources of new power generation infrastructure that can be added to the power network quickly, reliably, and cost efficiently.
To date, TGC has invested into a distributed solar power generation portfolio across 16 U.S. states, the United Kingdom, and France delivering clean, renewable energy. U.S. states include Vermont, Massachusetts, Rhode Island, Connecticut, New York, New Jersey, Delaware, South Carolina, Tennessee, Idaho, California, Maryland, Colorado, Illinois, North Carolina, and Pennsylvania.