Altus Power (AMPS) Wells Fargo 8th Annual TMT Summit Conference summary

Market trends and growth outlook

• Commercial-scale solar is positioned for significant growth as electricity demand, flat for decades, is now projected to rise about 3% annually, driven by factors like data centers and electrification.

• Solar, especially commercial-scale, is seen as a key part of a diversified energy solution, alongside nuclear and natural gas.

• The company operates in 25 states with about 500 sites, focusing on high-consumption, high-price power markets.

• Long-term growth targets include a 20%-30% annual rate through 2026, reflecting robust deal flow and market optimism.

• Market volatility from interest rates and political shifts is viewed as an opportunity for consolidation and expansion.

Business model and partnerships

• Operates as a vertically integrated, end-to-end provider, servicing real estate owners directly and through channel partners.

• Partnership model allows for efficient scaling, leveraging local developers for early-stage work and focusing on actionable opportunities.

• Maintains a lean operation with efficient access to capital, using portfolio securitization for financing rather than project-by-project funding.

• Symbiotic partnerships maximize economics for both developers and the company, with a focus on long-term ownership and operation.

• Expansion is driven by building density in existing markets and leveraging relationships for additional asset origination.

Community solar and market expansion

• Community solar is a major growth driver, enabling projects on sites with insufficient on-site demand by selling power to local subscribers.

• Active in all nine states with community solar programs, with plans to grow as more states implement similar initiatives.

• Community solar helps unlock new sites, supports grid stability, and mitigates the need for major transmission investments.

• The company has a decade of experience in community solar, with a strong brand and customer acquisition capabilities.

• New Jersey, Maryland, Maine, and Illinois are among the states recently expanding or implementing community solar programs.