Spruce Power Announces New Partnership to Monetize Solar Renewable Energy Credits (SRECs) in California

Spruce Power Holding Corporation (NYSE: SPRU) (“Spruce” or the “Company”) announced the signing of a new Spruce Pro servicing partnership with commercial & industrial (“C&I”) and residential solar installer Hot Purple Energy (“Hot Purple”) to monetize Solar Renewable Energy Credits (“SREC”) in California.

This partnership is part of a broader Spruce initiative to leverage the Company’s platform and experience to capture the unrealized benefit of SREC credits for installers and C&I operators. As part of this agreement, Spruce will be responsible for initial and ongoing registration and monetization of Hot Purple’s SRECs with the Western Renewable Energy Generation Information System (“WREGIS”). The Company will also manage the monthly reporting of production and sale of SRECs for Hot Purple’s solar generation assets, generating cash flow for both Spruce and Hot Purple.

“Recent market changes in California have made registering SRECs financially rewarding for the first time, more closely aligning with mature SREC markets in certain states on the East Coast,” said Chris Hayes, Chief Executive Officer of Spruce. “We view scaling SREC registration in California as a low cost, low risk opportunity to generate high margin, cash flow for the Company.”

Hayes continued, “Spruce is among a very small number of companies that have completed the approval process to enable monetization of dormant SREC revenue within all three of California’s largest utility zones. This puts Spruce in a unique position to capitalize on a meaningful market opportunity. We are in active discussions for the rights to acquire SRECs from significant 3rd party installers as well as numerous mid-size and local companies that own residential and C&I solar sites in the state.”

Hayes concluded, “The monetization of SRECs plays to our strengths and has strong potential to deliver capital-light growth. Typical contracts will generate approximately 7 years of cash flow, allowing Spruce to grow our SREC trading book in California.”

Spruce Power | www.sprucepower.com