Captona is leveraging flexible capital structures to accelerate the deployment of distributed energy assets through a new preferred equity investment with Nexamp. This transaction finances 55MW of solar generation and 5MWh of battery storage capacity. By targeting a multi-state portfolio, the partnership aims to address rising power demand through localized, integrated generation and storage solutions across the North American energy transition market.
Captona Financing 55MW Solar and 5MWh Storage
The preferred equity investment targets 10 specific projects distributed across four states: Illinois, Maine, Massachusetts, and New York. This deal represents a continuation of Captona’s preferred equity program, which the firm first introduced in 2023. By utilizing this specific financial structure, Captona intends to provide capital with greater flexibility and scale for large-scale distributed generation. The investment supports Nexamp’s ability to bring new generation online to meet accelerating power demand. This transaction highlights a growing trend where specialized investment firms use tiered equity solutions to fund the high capital requirements of multi-state renewable portfolios.
Nexamp Scaling Distributed Generation Infrastructure
Nexamp is positioning this capital injection to advance a diverse portfolio of solar and storage projects designed to enhance grid resilience. The company currently manages nearly 1.5 GW of renewable energy-generating assets in operation, with several more gigawatts in the development pipeline. Through this partnership, Nexamp intends to utilize its end-to-end capabilities—spanning development, construction, and asset management—to integrate these 55MW of solar and 5MWh of storage assets into the domestic grid. The deployment of storage capacity alongside solar generation suggests a strategic focus on managing intermittency and providing more stable power delivery to the communities served by these distributed assets.
Key Takeaways
- The investment finances 55MW of solar generation and 5MWh of battery storage capacity.
- Projects are located across 10 sites in Illinois, Maine, Massachusetts, and New York.
- Captona, which has an enterprise value of nearly $3.5 billion, utilizes a preferred equity structure first rolled out in 2023.
EnergyInsyte's Take
In our view, this deal underscores the increasing importance of specialized financing instruments like preferred equity in the distributed energy resource (DER) sector. As developers like Nexamp face the dual challenge of rising demand and complex multi-state regulatory environments, the ability to access flexible, non-traditional capital is critical. Captona’s move suggests that institutional investors are finding value in structured equity that can scale alongside the rapid expansion of community solar and integrated storage, providing a necessary bridge for mid-scale infrastructure deployment.
Questions & Answers
How does this investment impact Nexamp's current asset base?
The investment supports 10 new projects totaling 55MW of solar and 5MWh of storage, adding to Nexamp's existing 1.5 GW of operational renewable assets.
What is the geographic scope of the new solar and storage projects?
The portfolio is distributed across four U.S. states: Illinois, Maine, Massachusetts, and New York.
What specific financial mechanism is Captona utilizing for this deal?
Captona is using a preferred equity structure, a model the firm has been deploying in the market since 2023 to provide capital flexibility.
What is the strategic objective of combining solar with battery storage in this portfolio?
The companies suggest the integration of 5MWh of storage with 55MW of solar is intended to support rising energy demand and build more resilient power systems.
Source: Captona
