Altus Power (AMPS) JP Morgan Energy, Power and Renewables Conference summary

Market opportunity and industry trends

• Commercial-scale solar (C&I) has low market penetration but significant growth potential, driven by declining component costs and rising retail power prices over the past decade.

• The business operates in 25 states, focusing on local consumption rather than residential or utility-scale projects.

• Growth is supported by regulatory programs and increasing demand for distributed solar solutions.

• The sector benefits from macro tailwinds, including consistent increases in retail power prices.

Growth strategy and business mix

• Forecasts 20%-30% compound annual growth in megawatts through 2026, ending 2023 at 896 MW.

• Growth comes from both self-developed projects and acquisitions of operating assets, with a pipeline spanning all development stages.

• The business can step in at any stage, from early development to operating assets, allowing flexibility in pipeline management.

• Acquisitions can close quickly, while self-development cycles may take up to three years.

Risks and market dynamics

• Key risks include weather, asset uptime, regulatory and political changes, and interest rate fluctuations.

• The company generates cash from existing assets, supporting growth without immediate need for external capital.

• Market consolidation is creating acquisition opportunities as both large and small players exit or face capital constraints.