The investment returns of solar investments have won over Berkshire Hathway, BlackRock and Blackstone. Their investments in the climate transition, while, noteworthy, wouldn't be happening with this scale, if it weren't for the strong financials.
Berkshire, BlackRock and Blackstone each recognize that the steadily increasing demand for electricity results in favorable long-term economics for solar generation, which in the U.S. are supported by a combination of tax credits and depreciation, which help to de-risk projects.
Berkshire Hathaway:
As one of the largest owners of utilities in the U.S., Berkshire Hathaway has invested approximately $7.7 billion in solar projects, including projects in California, Solar Star (579 MW) and Topaz Solar (550 MW) farms, which are two of largest solar farms in the U.S.
As one of the most profitable companies in the world, the tax credits that are a key to the project's capital stack, provide direct economic benefit for Berkshire Hathaway.
In addition to its solar investments, Berkshire Hathaway is also the second largest owner of renewable energy assets in the U.S. with around $40 Billion in clean energy assets as of 2023.
BlackRock:
As the world's largest asset manager, it's noteworthy that BlackRock has significantly increased its solar investments during 2024. This includes solar assets acquired through its $12.5 Billion Acquistion of quietly massive Global Infrastructure Partners in 2024.
While Global Infrastructure Partners (GIP) funds a lot of infrastructure beyond solar, it has been one the world's largest funders of solar projects, through its role funding large developers (extremely large, just not as large as GIP), including some of the biggest up & running solar projects in US.
Good discussion below, after announcing deal, with GIP's Founder + CEO Bayo Ogunlesi and BlackRock Founder + CEO Larry Fink below. Small enough world, in that they worked together in the eighties, years before starting their own respective businesses.
BlackRock's solar investments are placed under the investment thesis that the climate transition is a secular investment opportunity, "The world is in transition, requiring a reconfigured energy system and investment across all sectors to decarbonize."
Blackstone
Blackstone, the world's largest private equity firm, has committed to investing $100 billion over the next decade to finance and develop energy ate transition projects.
As a leading creditor, Blackstone sees a critical role in providing project financing for solar investments, recognizing that solar is an asset class with a favorable risk profile, stemming from the uniquely robust incentive supported solar capital stack, and consistently increasing electricity demand over the long-term.
It's important to acknowledge that these companies, some of the world's largest and most successful investors, don't make investments solely because it's altruistic. They make the investments because these projects make great money, which makes it easier to do good things on a much greater scale.
Many of the same programs that the largest investors benefit from are also available to smaller investors, property portfolios and businesses.
To discuss solar monetization & investments for your properties, email stuart@westchestercleanenergy.com
