Greenbacker Delivers Third Quarter Results

Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”), an independent power producer (“IPP”) and energy transition-focused investment manager, has announced financial results[1] for the third quarter of 2024, including year-over-year increases in operating capacity,[2] clean energy generation, and revenue.

Greenbacker continued to execute on project build-out, growing operating fleet by 7% year-over-year with 105 MW of new revenue-generating assets

Through the quarter, Greenbacker continued to advance one of its core objectives: building out the pre-operating projects under its control into fully constructed, revenue-generating assets. As of September 30, 2024, GREC’s operating fleet had expanded to over 1.6 gigawatts (“GW”) of clean energy assets, representing a 7% year-over-year increase and an additional 105 megawatts (“MW”) of operating capacity.

This accomplishment highlights Greenbacker’s execution of its strategy to expand its fleet of clean energy assets, each of which is actively contributing to revenue growth and cash flow through the sale of clean, sustainably-produced electricity.

Greenbacker placed 22 new solar assets into service, driving significant year-over-year production increase for solar fleet; wind repowers, all fully operational since early 2024, continued to contribute to substantial wind fleet production increase

During the third quarter, the Company’s solar and wind energy assets saw significant year-over-year production increases of 15% and 39%, respectively.

Greenbacker celebrated placing nearly two dozen solar assets into service in the year-over-year period—including its 6.5 MW South Street solar project—fueling the solar fleet’s production increases and resulting revenue growth.

GREC’s milestone repowers drove the wind fleet’s year-over-year increases in revenue and production. Three wind energy assets were strategically taken offline during portions of the third quarter last year to retrofit with updated, US-made components—one of the clean energy industry’s first deals to utilize the 10% domestic content bonus created by the Inflation Reduction Act. All three had returned to full operation by late 2023 and early 2024, and continued to produce additional power with new, more efficient turbines through the end of the third quarter.

Along with increasing power production and extending the assets’ contracts to sell electricity, the repowers are expected to significantly increase Greenbacker’s annual operating revenue for the remaining decades of their estimated useful life.[3]

New operational solar asset celebrated with ribbon cutting

Greenbacker's 6.5 MWdc South Street solar project, located at Middlebury College, celebrated commercial operation with a ribbon-cutting ceremony, pictured here. From left to right: Chad Farrell, Founder and Co-CEO of Encore Renewable Energy (developer of the project), David Provost EVP of Finance and Administration at Middlebury, Middlebury President Laurie Patton, and Greenbacker COO Matt Murphy. 

Greenbacker expanded its investment management segment with hire of two seasoned professionals

Greenbacker recently expanded the distribution and capital raising capabilities of its investment management segment, Greenbacker Capital Management (“GCM”), adding two industry veterans to its business development team: Adam Evans CAIA, CIMA and John Hennessey.

Evans came to GCM with 20 years of experience distributing financial services products to institutional and retail investors, which is complemented by Hennessey’s 15 years of expertise distributing investment strategies to the registered investment advisor (“RIA”), family office, and institutional channels.

In their roles at GCM, they oversee the distribution of Company strategies across all channels, respectively focused on the Central and Southeastern US, broadening Greenbacker’s ability to meet rising investor demand for energy transition investments.

Greenbacker’s investment management business increased revenue 72% year-over-year, generating $4.9 million in the quarter

GCM generated $4.9 million of revenue in the third quarter, representing a year-over-year increase of 72%, or an additional $2.0 million of revenue, driven by an increase in fee-earning AUM.

As of quarter end, Greenbacker’s fee-earning AUM[4] was $753 million. The Company’s Aggregate AUM,[5] which includes the assets managed for Greenbacker Renewable Energy Company, for which GCM does not receive management fees, was approximately $3.7 billion.

As of September 30, 2024, GCM served as the SEC-registered investment advisor to four energy transition-focused strategies.

 Revenue-generating operating capacity expected to increase significantly, as Company builds out its remaining pre-operating assets over next four years

By the end of 2028, as Greenbacker continues to advance its development and construction plans, it anticipates a substantial increase in its operating fleet capacity. This progress is expected to drive long-term, stable growth in revenues, cash flows, and Adjusted EBITDA as the Company moves additional assets into operation, producing and selling clean electricity.[6]

 Total operating revenue of $55 million in the third quarter represented a 13% year-over-year increase, driven by continued successful fleet build out

Greenbacker’s increased power generation capacity contributed to its total operating revenue of $55.4 million in the quarter—a 13% year-over-year increase that amounted to an additional $6.2 million of operating revenue.  

Revenue from the sale of clean energy within Greenbacker’s IPP segment totaled $48.4 million, of which $41.4 million, or approximately 86%, came from the Company’s long-term power purchase agreements (“PPAs”).

For the third quarter, Funds From Operations (“FFO”) was $(11.2) million, Adjusted EBTIDA was $2.1 million, and the net loss attributable to Greenbacker was $(46.4) million, representing year-over-year changes of (371)%, (80)%, and 23%, respectively. These results were driven primarily by a cost related to the termination of a procurement contract (approximately $16 million), as well as by depreciation, amortization, and impairment charges in the period. Greenbacker terminated the contract after determining it had become less favorable relative to market.

The Company has secured a more favorable replacement contract that provides both reduced exposure to tariff risk and significant cost savings, which the Company expects to outweigh the cost of terminating the previous contract.

NOTE: Figures are unaudited. See the Company’s quarterly 10-Q filed with the SEC for additional financial information and important related disclosures.
*Total operating revenue excludes non-cash contract amortization, net.
†See “Non-GAAP Financial Measures” for additional discussion. Adjusted EBITDA and FFO are unaudited.

The revenue increases were primarily driven by increased clean power production from Greenbacker’s operating solar and wind fleets, which generated nearly 800,000 megawatt-hours (“MWh”) of combined total power in the quarter, representing a year-over-year production increase of 21%.

Some figures may not add to stated totals due to rounding. Total clean power generated does not include power produced by other renewable sources.

Company’s investments abate carbon emissions, conserve water, and support green jobs 

In addition to executing on significant year-over-year increases in revenue, power production, and operating fleet capacity, GREC also continued to deliver on its sustainability goals.

As of September 30, 2024, Greenbacker’s clean energy assets had cumulatively produced over 10 million MWh of clean power since January 2016, abating more than 7 million metric tons of carbon[7] and saving over 7 billion gallons of water.[8] Greenbacker’s fleet of operating and pre-operating projects currently support, or are expected to support, thousands of green jobs.[9]

Additional information regarding the Company’s impact can also be found in Greenbacker’s latest impact report.

Greenbacker Capital Management | www.greenbackercapital.com

[1] Past performance is not indicative of future results.

[2] Data as of September 30, 2024. Total assets and megawatts statistics include those projects where we have contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”). The financial and portfolio metrics set forth herein are unaudited and subject to change.

[3] Represents forward looking guidance. Please see our forward-looking statement disclosure at the end of this press release.

[4] Fee-earning AUM represents the asset base upon which management fee revenue is earned from GCM's managed funds.

[5] Aggregate AUM includes GREC and GCM’s managed funds. AUM represents the underlying fair value of investments, determined generally in accordance with ASC 820, cash and cash equivalents and project level debt. These figures are unaudited and subject to change.

[6] Represents forward looking guidance. Please see our forward-looking statement disclosure at the end of this press release, as well as Greenbacker's recent SEC filings and shareholder communication for more information regarding Key Factors Impacting Our Operating Results and Financial Condition, which include a number of factors that present significant opportunities for Greenbacker but also pose risks and challenges.

[7] Data is as of September 30, 2024. When compared with a similar amount of power generation from fossil fuels. Carbon abatement is calculated using the EPA Greenhouse Gas Equivalencies Calculator which uses the Avoided Emissions and generation Tool (AVERT) US national weighted average CO2 marginal emission rate to convert reductions of kilowatt-hours into avoided units of carbon dioxide emissions.

[8] Data is as of September 30, 2024. Water saved by Greenbacker’s clean energy projects is compared to the amount of water needed to produce the same amount of power by burning coal. Gallons of water saved are calculated based on Operational water consumption and withdrawal factors for electricity generating technologies: a review of existing literature – IOPscience, J Macknick et al 2012 Environ. Res. Lett. 7 045802.

[9] Data is as of September 30, 2024. Green jobs calculated using The National Renewable Energy Laboratory (NREL) State Clean Energy Employment Projection Support, nrel.gov.