Alberta — SWITCH Power announced that its wholly owned subsidiary, SWITCH Power Ontario Solar Operating Corporation (SPOSOC), has entered into an asset purchase agreement with a vendor to acquire an operational rooftop solar project in Vaughan, Ontario.
The 428 kWdc system was commissioned in 2015 and will be maintained, operated, and managed by SPOSOC. Power from the Project is sold under a 20-year fixed price Power Purchase Agreement.
“This transaction aligns with our growth-through-acquisition-strategy and will contribute long-term cash flow to support our scaling origination and development portfolio,” says Trevor White, SWITCH’s President and Chief Executive Officer. “Our goal is to grow this single asset acquisition into a portfolio of contracted solar assets in Ontario through further consolidation of existing solar projects, increasing our presence in one of our key target markets.”
This is the second asset purchase for SWITCH in Ontario.
In 2021, it acquired a portfolio of operating and development battery energy storage assets. This acquisition increases SWITCH’s operating and contracted capacity in Ontario to approximately 21 MW. Cash consideration for the Project will be funded through a combination of cash and a secured term loan and royalty agreement between SPOSOC and RE Royalties Ltd.
The transaction is expected to close during the fourth quarter of 2022.