INTERVIEW: Chaberton Energy CEO on the firm's rapidly expanding pipeline

Maryland-based solar developer Charberton Energy, a relative newcomer to the market, is already developing a pipeline of over 200 MW with plans to “more than double” that number next year.

In an interview with NPM, Chaberton Energy CEO Stefano Ratti said the company’s pipeline had grown from 40 MW to 200 MW over the course of this year in addition to development services provided on a third-party basis to another 100 MW of projects.

The firm has also recently fully financed and was given notice to proceed for the construction of its first two assets, the Friendship Solar projects, in Howard County, Maryland. These projects, which have a combined capacity of over 6 MW, were developed in tandem with SunEast Renewables. One is a community solar project that will provide power to residential subscribers, and the other will deliver power exclusively to Loyola University thanks to the recently announced close of a 25-year PPA with the institution. Both projects are slated to be completed in the first half of 2022, according to Ratti.

A Growing Pipeline

Ratti says Chaberton now has site control at 30 locations and plans to “at least double” its pipeline, which is currently over 200 MW, next year. Ratti says Chaberton will continue to focus primarily on community solar and other DG projects that range from 1 to 10 MW. He also says the company is interested in acquiring early-stage solar assets.

“We are looking to potentially acquire early-stage assets, particularly in situations where we can add value to the originator whether we are bringing capital, expertise, or simply our disciplined development approach,” Ratti said.

In addition to its community solar focus, the firm will be targeting other deals with universities like what the firm accomplished in its close with Loyola. Ratti says the firm marketed the Friendship projects in early 2021 and reached out to a number of potential customers before coming to terms with Loyola.

“We’ve developed a strong relationship with Loyola and look forward to serving more universities and other non-profit institutions,” Ratti said. “We find that networking and professional referrals are often the best avenue to open doors.”

However, while Ratti says the university approach will be a part of the company’s strategy moving forward, he says a number of otherwise potential prospects have already signed deals. As a result, the company will focus on expanding its community solar pipeline.

“We certainly think there will be more opportunities with universities going forward, including in the realm of storage and microgrids, but many universities are early adopters and have already deployed renewable energy over the last few years,” Ratti said. “So, our core offering and largest market we see is community solar, which we believe is ideally positioned for greater expansion in the U.S.”

Right now, Chaberton’s pipeline is focused on the Mid-Atlantic region of the U.S. Ratti says the company has put a “particular focus” on its home market of Maryland, but also has projects underway in Virginia, Delaware, Pennsylvania, New Jersey and Washington D.C. Next year, he says the company will look to expand into the Western US through the origination of a “large development portfolio” and is also “planning activities in the Midwest for 2022.” New Mexico, which passed community solar legislation earlier this year, will be a particular focus of this Western expansion.

Capitalized by Greenbacker

Chaberton is currently capitalized through a development fund affiliated with Greenbacker, which Ratti describes as a “large minority” shareholder in the company. Greenbacker first invested in the company back in November 2020 and increased its investment in September. Ratti says Greenbacker’s corporate investment provides development and growth capital for his firm, which Greenbacker Managing Director and Chaberton board member Benjamin Baker says is positioned to “unleash its full potential.”

“Chaberton is uniquely positioned to become a leader in the Mid-Atlantic with an experienced and energetic management team and a disciplined development approach,” Baker said. “In a short amount of time, Chaberton has been able to establish a notable position in the market. With our investment, we look forward to unleashing its full potential and building a regional leader in DG solar.”

Ratti says Chaberton also works with Greenbacker Renewable Energy, which focuses on acquiring de-risked assets.

“We have an excellent relationship with the Greenbacker teams,” Ratti said. “There are a lot of synergies between our operations.”*

*This story was originally published exclusively for NPM subscribers earlier this month.