German solar energy startup Enpal GmbH has struck a major deal, selling a majority stake in its solar portfolio. The deal involves infrastructure investors Equitix and Keppel Infrastructure Trust. They have secured over EUR 160 million (USD 175.7 million) to expand Enpal’s business.
About thecompany
Founded in Germany, Enpal specializes in solar photovoltaic (PV) systems. Their portfolio comprises 60,000 solar PV systems across Germany, with a combined generation capacity of 585 MW.
The company has recently been in the spotlight for securing significant funding. In January, they raised EUR 215 million in a Series D financing round. This followed EUR 855 million in new financing commitments in December 2022. About six months earlier, they attracted EUR 70 million in another campaign.
Details of the transaction
The capital will be provided in several tranches. It aims to bolster Enpal’s market position in renewable energy systems. A special purpose vehicle will execute the deal. Here, Keppel will hold a 50% stake, with Equitix and its co-investors owning the remaining 50%. This vehicle will acquire a 90% shareholding in Enpal’s portfolio, leaving the German company with the remaining 10%.
Investment breakdown
Equitix’s investment totals EUR 109 million for 45% of the total portfolio. The acquisition of the portfolio will unfold in four phases. The first phase, covering 53,500 systems, is expected to close by the end of 2023. The remaining three phases, which include over 6,500 systems, should be completed by the end of June 2024.
Maintenance & contracts
Post-acquisition, Enpal will continue maintaining the PV systems. These systems are leased to households under 20-year contracts. This arrangement ensures Enpal’s ongoing involvement in the project, despite the majority stake sale.
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