New York, NY, June 21, 2023 — Greenbacker Capital Management (“GCM” or “Greenbacker”), a leading renewable energy asset manager, has purchased, through an affiliated investment vehicle, a to-be-constructed battery energy storage system (“BESS”) project in Imperial County, California from SunCode LLC (“SunCode Energy”). With a total power capacity of 30 MW and the ability to store up to 120 MWh of energy, the Holtville BESS project is now the largest standalone battery storage asset in GCM’s clean energy fleet.

With the project, Greenbacker continues to build out its standalone energy storage portfolio, a sector critical to the clean energy transition. BESS projects can contribute to both reduce energy costs for consumers and improved grid resiliency, as they store power that can be deployed during times of peak demand or power outage. Holtville’s 120 MWh capacity represents enough energy to power approximately 4119 homes for a 24-hour period, on average.¹

“Utility-scale energy storage is central to both our investment thesis and our broader mission of empowering a sustainable world,” said Mehul Mehta, CIO of Greenbacker. “Our successful partnership with SunCode Energy on our largest BESS asset to date will lower power bills while increasing grid stability in California, and we look forward to working together on future clean energy collaborations.”

Greenbacker’s largest standalone energy storage project

Holtville represents the company’s first transaction with SunCode Energy, an experienced California-based developer with a national footprint of solar and storage projects.

“We are excited to partner with Greenbacker on its largest standalone energy storage project,” said XJ Chen, Managing Director of SunCode Energy. “We are committed to bringing the project online this summer and supporting grid resilience in California. We also look forward to expanding our partnership with Greenbacker on more solar and battery storage projects in the future.”

The project has a long-term power purchase agreement in place with an investment-grade utility. It is expected to enter commercial operation in the third quarter of 2023. Transaction counsel for Greenbacker was Greenberg Traurig; Troutman Pepper served as counsel for SunCode Energy. 

Energy storage is set to play an essential role in reaching California’s goal of 100% renewable energy by 2045. A recent update from the governor estimated that 19,500 MW of battery storage will come online in the state by 2035, with 52,000 MW online by 2045.

1 Calculation based on annual electricity consumption of a US residential consumer, according to the U.S. Energy Information Administration. Frequently Asked Questions (FAQs) – U.S. Energy Information Administration (EIA).

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THIS NOTICE SHOULD BE READ IN CONJUNCTION WITH THE PROXY STATEMENT
NOTICE OF CHANGE OF DATE OF ANNUAL MEETING OF SHAREHOLDERS
TO BE HELD ON THURSDAY, JULY 13, 2023

To the Shareholders of Greenbacker Renewable Energy Company LLC:

NOTICE IS HEREBY GIVEN that the Greenbacker Renewable Energy Company LLC Annual Meeting of Shareholders originally scheduled for May 31, 2023 at 9:00 a.m. Eastern Time was adjourned due to lack of sufficient votes. The date of the Annual Meeting of Shareholders has been rescheduled to Thursday, July 13, 2023 at 9:00 a.m. Eastern Time.

The location of the Annual Meeting of the Shareholders will be held in a virtual meeting format only. There is no in-person meeting for you to attend. As described in the proxy materials for the Annual Meeting previously distributed, you are entitled to participate in the Annual Meeting if you were a shareholder as of the close of business on March 15, 2023, the record date.

To attend the Annual Meeting, you must register in advance, using your control number and other information at www.proxypush.com/greenbacker prior to the deadline of Monday, July 10, 2023 at 5:00 p.m. Eastern Time. Upon completing your registration, you will receive further instructions via email, including your unique link that will allow you to access the Annual Meeting and vote online during the meeting. You will also be permitted to submit questions at the time of registration.

The meeting will begin promptly at 9:00 a.m. Eastern Time. We encourage you to access the meeting prior to the start time. Online access will open at approximately 8:45 a.m. Eastern Time, and you should allow ample time to log in to the meeting and test your computer audio system. We recommend that you carefully review the procedures needed to gain admission in advance.

There will be technicians ready to assist you with any technical difficulties you may have accessing the virtual meeting. If you encounter any difficulties accessing the virtual meeting during check-in or during the meeting, please call the technical support number that will be listed on the email you will receive after completing your registration.

Whether or not you plan to attend the Annual Meeting, we urge you to vote and submit your proxy in advance of the meeting by one of the methods described in the proxy materials for the Annual Meeting. The proxy card included with the proxy materials previously distributed will not be updated to reflect the change in location and may continue to be used to vote your shares in connection with the Annual Meeting. Proxies previously submitted will be voted at the Annual Meeting unless properly revoked, and shareholders who have already submitted a proxy or otherwise voted need not take any further action. The Company’s Proxy Statement for the Annual Meeting and the Annual Report sent to Shareholders for the fiscal year ended December 31, 2022 are available at www.greenbackercapital.com/greenbacker-renewable-energy-company.

Sincerely,

Greenbacker Renewable Energy Company LLC

About Greenbacker Renewable Energy Company

Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability sustainable infrastructure company that both acquires and manages income-producing renewable energy and other energy-related businesses, including solar and wind farms, and provides investment management services to other renewable energy investment vehicles. We seek to acquire and operate high-quality projects that sell clean power under long-term contracts to high-creditworthy counterparties such as utilities, municipalities, and corporations. We are long-term owner-operators, who strive to be good stewards of the land and responsible members of the communities in which we operate. Greenbacker conducts its investment management business through its wholly owned subsidiary, Greenbacker Capital Management, LLC, an SEC-registered investment adviser. We believe our focus on power production and asset management creates value that we can then pass on to our shareholders—while facilitating the transition toward a clean energy future. For more information, please visit www.greenbackercapital.com/greenbacker-renewable-energy-company.

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Key Takeaways

• Fleet added nearly 730 MW of additional clean energy capacity and over 50 new assets.
• Company closed on largest solar-plus-storage project to date.
• Portfolio acquisition more than doubled solar fleet in Wisconsin, expanded solar footprint into Iowa.
• Operational fleet continued to expand, supporting significant production increase.
• Operating revenue of over $41 million in the quarter, driven by energy revenue.
• Over $58 million capital raised in investment vehicles managed by GCM; AUM increased to approximately $3.1 billion.
• Company’s investments abate carbon emissions, conserve water, and support green jobs.

New York, NY, May 16, 2023 — Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”), an independent power producer and a leading climate-focused investment manager, has announced financial results¹ for the first quarter of 2023, as well as substantial year-over-year expansion that included closing on its largest solar-plus-storage project to date.

Fleet added nearly 730 MW of additional clean energy capacity and over 50 new assets

Greenbacker’s clean energy fleet grew by 52 assets, on a year-over-year basis, increasing the Company’s total project count to 456 (including both operating and pre-operational assets).²

This expansion represented nearly 730 MW of additional total clean energy–generating and storage capacity across the country. As of March 31, 2023, Greenbacker was conducting business in 32 states, Canada, Puerto Rico, and Washington, DC.

Company closed on largest solar-plus-storage project to date

This growth encompassed another clean energy milestone for Greenbacker, which closed on the acquisition of its largest solar-plus-storage asset to date.

When completed, the pre-operational Lincoln Solar project, will have a solar energy–generating capacity of 80 MWac / 104 MWdc. Its battery storage system will have a total power capacity of 50 MW and be able to store up to 200 megawatt-hours (“MWh”) of clean energy onsite that it can deploy during times of peak demand or power outage, contributing to lower energy costs for consumers and improving grid resiliency.

With the project, located in Wyoming, Greenbacker continued to expand its clean energy presence in the Western region, as well as its co-located solar-plus-storage fleet—which now represents over 550 MWh of energy storage across the country.

Portfolio acquisition more than doubled solar fleet in Wisconsin, expanded solar footprint into Iowa

GREC continued to expand its solar footprint during the quarter, closing on nine assets in Wisconsin as part of a recently acquired 52 MW pre-operational portfolio with a project footprint spanning four states. These projects, which have all secured long-term PPAs, represent approximately 28 MW of clean-power production capacity, more than doubling the Company’s solar capacity in the state, which now tops 48 MW.

The portfolio also includes solar assets in Colorado and Maryland, boosting Greenbacker’s solar portfolio in the respective states to 118 MW and 40 MW, as well as the Company’s first solar project in Iowa: the 2 MW Maple City solar project.

Charles Wheeler, CEO of Greenbacker, said:

“Greenbacker continues to expand into new geographies and set new Company records, bringing more clean power to consumers, making further strides toward a clean energy future, and bringing additional attractive energy transition investment opportunities to market.”

Operational fleet continued to expand, supporting significant production increase

The power-production capacity of Greenbacker’s operating fleet of clean energy projects increased by 268 MW, representing year-over-year growth of 24%, as the Company moved under-construction projects into commercial operation and acquired new operational projects.

With this capacity growth, the Company’s fleet generated over 576,000 MWh of total clean power during the quarter, a 14% year-over-year increase that showcased continued production growth.

The table below summarizes the year-over-year expansion of Greenbacker’s portfolio.

Operating revenue of over $41 million in the quarter, driven by energy revenue

Greenbacker has also announced discrete first quarter financial information for its Independent Power Producer (“IPP”) and Investment Management (“IM”) business segments, the latter of which includes Greenbacker Capital Management (“GCM”) and its investment management platform.

Over the period, Greenbacker generated total operating revenue of $41.2 million, primarily from energy revenue within the IPP segment. Energy revenue was $37.8 million and included $28.8 million from our long-term PPAs.

In terms of PPA revenue, the Company’s operating solar fleet, which included 298 operating assets comprising 958 MW of capacity, generated $12.8 million from over 255,000 MWh of production. GREC’s operating wind fleet, which included 16 operating projects comprising 386 MW of capacity, generated $16.2 million from more than 305,000 MWh of production.

Adjusted EBITDA was $5.4 million for the quarter, largely driven by Adjusted EBITDA within the IPP segment of $15.6 million. Direct operating costs associated with capital raise efforts for certain of IM’s managed funds in their early stages and corporate expenses offset IPP results. The net loss attributable to Greenbacker was approximately $17.0 million.

Funds From Operations (“FFO”) was $(3.8) million for the period and represents the $5.4 million of Adjusted EBITDA less cash interest expense and distributions to our tax equity investors.

Over $58 million capital raised in investment vehicles managed by GCM; AUM increased to approximately $3.1 billion

Greenbacker’s IM business segment continued to raise substantial additional capital from retail and institutional investors during the first quarter. The IM segment raised $58.1 million of new equity capital, on which GCM is entitled to collect management fees, bringing AUM³ to approximately $3.1 billion at the end of the period.

As of March 31, 2023, GCM served as the investment manager to four climate-focused funds. As a result of one of these funds (Greenbacker Renewable Energy Company II, LLC) reaching the $150 capital deployment milestone during the first quarter, management fees on that fund are now payable to GCM.

Company’s investments abate carbon emissions, conserve water, and support green jobs  

Greenbacker’s renewable energy and energy transition investment activities continued to deliver on ESG metrics. As of March 31, 2023, the Company’s clean energy assets had cumulatively produced over 6.7 million MWh of clean power since January 2016, abating nearly 4.8 million metric tons of carbon.⁴

The Company’s clean energy projects have saved nearly 4.5 billion gallons of water,⁵ compared to the amount of water needed to produce the same amount of power by burning coal, and its business activities will sustain more than 5,900 green jobs.⁶

David Sher, Director of Greenbacker, said:

“With the high quality of the cashflows generated by our investments—and the historic tailwinds our industry continues to experience—we believe Greenbacker remains well positioned to continue delivering ESG metrics, delivering value for our shareholders, and delivering on our mission to empower a sustainable world.”

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although Greenbacker believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Greenbacker undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in its expectations.

Non-GAAP Financial Measures

In addition to evaluating the Company’s performance on a U.S. GAAP basis, the Company now utilizes certain non-GAAP financial measures to analyze the operating performance of our segments as well as our consolidated business.  Each of these measures should not be considered in isolation from or as superior to or as a substitute for other financial measures determined in accordance with U.S. GAAP, such as net income (loss) or operating income (loss). The Company uses these non-GAAP financial measures to supplement its U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting its operations.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that the Company uses as a performance measure, as well as for internal planning purposes. We believe that Adjusted EBITDA is useful to management and investors in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis, as it includes adjustments relating to items that are not indicative on the ongoing operating performance of the business.

Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with U.S. GAAP. Adjusted EBITDA should not be considered in isolation from or as superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Funds From Operations

FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing operating performance of the business. FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment. 

The Company believes that the analysis and presentation of FFO will enhance our investor’s understanding of the ongoing performance of our operating business. The Company will consider FFO, in addition to other GAAP and non-GAAP measures, in assessing operating performance and as a proxy for growth in distribution coverage over the long term.

FFO should not be considered in isolation from or as a superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP.

General Disclosure

This information has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, or to participate in any trading or investment strategy. The information presented herein may involve Greenbacker’s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice.

Non-GAAP Reconciliations

Adjusted EBITDA

The following table reconciles Net loss attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA:

The Company defines Adjusted EBITDA as net income (loss) before: (i) interest expense; (ii) income taxes; (iii) depreciation expense; (iv) amortization expense (including contract amortization); (v) accretion; (vi) amounts attributable to our redeemable and non-redeemable noncontrolling interests; (vii) unrealized gains and losses on financial instruments; (viii) other income (loss); and (ix) foreign currency gain (loss). Additionally, the Company further adjusts for the following items described below:

• Share-based compensation is excluded from Adjusted EBITDA as it is different from other forms of compensation, as it is a non-cash expense and is highly variable. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a share-based compensation valuation methodology and underlying assumptions that may vary over time.
  
• The change in fair value of contingent consideration, which is related to Greenbacker’s acquisition of GCM and certain other affiliated companies, is excluded from Adjusted EBITDA, if any such change occurs during the period. The non-cash, mark-to-market adjustments are based on the expected achievement of revenue targets that are difficult to forecast and can be variable, making comparisons across historical and future quarters difficult to evaluate; and
  
• Other costs that are not consistently occurring, not reflective of expected future operating expense, and provide no insight into the fundamentals of current or past operations of our business are excluded from Adjusted EBITDA. This includes costs such as professional fees incurred as part of the transition to the Non-Investment Basis⁷ and other non-recurring costs unrelated to the ongoing operations of the Company.

The Company uses Segment Adjusted EBITDA to evaluate the financial performance of and allocate resources among our operating segments. Segment Adjusted EBITDA is determined for our segments consistent with the adjustments noted above but further excludes unallocated corporate expenses as these items are centrally controlled and are not directly attributable to any reportable segment.

The following table reconciles total Segment Adjusted EBITDA to Net loss attributable to Greenbacker Renewable Energy Company LLC:

Funds From Operations

The following table reconciles Net loss attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA and then to FFO:

FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing performance of the business.

FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment.

1  Past performance is not indicative of future results.

2 Total assets and megawatts statistics include those projects where the Company has contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”).

3 Total AUM includes GREC and GCM’s managed funds. AUM represents the underlying fair value of investments, determined generally in accordance with ASC 820, cash and cash equivalents and project level debt. These figures are unaudited and subject to change.  

4 When compared with a similar amount of power generation from fossil fuels. Carbon abatement is calculated using the EPA Greenhouse Gas Equivalencies Calculator which uses the Avoided Emissions and generation Tool (AVERT) US national weighted average CO₂ marginal emission rate to convert reductions of kilowatt-hours into avoided units of carbon dioxide emissions. 

5 Gallons of water saved are calculated based on Operational water consumption and withdrawal factors for electricity generating technologies: a review of existing literature – IOPscience, J Macknick et al 2012 Environ. Res. Lett. 7 045802.

6 Green jobs are calculated from the International Renewable Energy Agency‘s measurement that one megawatt of renewable power supports 4.6 jobs. Data is as of March 31, 2023.

7 We define “Non-Investment Basis” as “Non-investment company U.S. GAAP accounting the Company applied subsequent to the Acquisition” in the 10-Q.

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New York, NY, March 21, 2023 — Greenbacker Renewable Energy Company LLC (“GREC” or “Greenbacker”), a leading climate-focused investment manager and independent power producer, was recently named to the ImpactAssets 50 2023 (“IA 50”) list, a free publicly available, searchable database of impact investment fund managers for impact investors, family offices, corporations, foundations, and institutional investors.

“Greenbacker is honored to be recognized on such a prestigious list for our mission to empower a sustainable world by connecting individuals and institutions with investments in clean energy,” said Charles Wheeler, CEO of GREC. “As we continue to deliver for our investors, we’re proud to be part of this community of impact-driven fund managers whose business activities are changing our world for the better.”

In its twelfth year, the IA 50 continues to raise awareness of impact fund managers across impact areas, maturity, and geography, serving as a basis for deepening understanding of the field.

The IA 50 breaks out managers in three categories, including the core IA 50 list, IA 50 Emerging Impact Managers list and IA 50 Emeritus Impact Managers list. Across all three categories, a record 163 impact fund managers were included totaling $122.48 billion in assets, invested across a range of asset classes and impact themes. With well over a decade of sustainable infrastructure investment experience, Greenbacker was recognized in the core IA 50 category.

“This year’s IA 50 showcase is a watershed, as the industry continues to allocate more investable assets into social and environmental solutions with both time-tested strategies and creative, new approaches,” said Jed Emerson, ImpactAssets Senior Fellow, IA 50 Review Committee Chair and Chief Impact Officer at AlTi Global. “Established funds continue to impress, while new funds are bringing fresh approaches and insights that move the needle in critical areas through impact investing.”

Greenbacker’s fleet of clean energy projects comprises 3.1 GW of generating capacity (including DIA 9 and other assets that are to be constructed). Since June 2016, Greenbacker’s real assets have produced over 6.1 million megawatt-hours¹ of clean energy, abating over 4.3 million metric tons of carbon.² Today these projects support over 5,200 green jobs.³

About Greenbacker Renewable Energy Company

Greenbacker Renewable Energy Company LLC is a publicly reporting, non-traded limited liability sustainable infrastructure company that both acquires and manages income-producing renewable energy and other energy-related businesses, including solar and wind farms, and provides asset management services to other renewable energy investment vehicles. We seek to acquire and operate high-quality projects that sell clean power under long-term contracts to high-creditworthy counterparties such as utilities, municipalities, and corporations. We are long-term owner-operators, who strive to be good stewards of the land and responsible members of the communities in which we operate. Greenbacker conducts its asset management business through its wholly owned subsidiary, Greenbacker Capital Management, LLC, an SEC-registered investment adviser. We believe our focus on power production and asset management creates value that we can then pass on to our shareholders—while facilitating the transition toward a clean energy future. For more information, please visit https://greenbackercapital.com.

About the ImpactAssets 50 

The IA 50 is the first publicly available database that provides a gateway into the world of impact investing for donors and/or investors and their financial advisors, offering an easy way to identify experienced impact investment firms and explore the landscape of potential investment opportunities. The IA 50 is intended to illustrate the breadth of impact investment fund managers operating today, though it is not a comprehensive list. Firms have been selected to demonstrate a wide range of impact investing activities across geographies, sectors and asset classes.

The IA 50 is not an index or investable platform and does not constitute an offering or solicitation to buy or sell securities or a private placement, or recommend specific products. Nor is this an endorsement of any of the listed fund managers. It is not a replacement for due diligence. To be considered for the IA 50 2023, fund managers needed to have at least $25 million in assets under management, more than three years of experience as a firm with impact investing, documented social and/or environmental impact and be available for US investment. Additional details on the selection process are available here.

The IA 50 Emerging Impact Managers list is intended to spotlight newer fund managers to watch that demonstrate potential to create meaningful impact. Criteria such as minimum track record or minimum assets under management may not be applicable. 

The IA 50 Emeritus Impact Managers list illuminates impact fund managers who have achieved consistent recognition on the IA 50. 

About ImpactAssets 

ImpactAssets is an impact investing trailblazer, dedicated to changing the trajectory of our planet’s future and improving the lives of all people. As a leading impact investing firm, we offer deep strategic expertise to help our clients define and execute on their impact goals. Founded in 2010, ImpactAssets increases flows of money to impact investing in partnership with our clients through our impact investment platform and field-building initiatives, including the IA 50 database of private debt and equity impact fund managers. ImpactAssets has more than $2 billion in assets in 1,700 donor advised fund accounts, working with purpose-driven individuals and their wealth managers, family offices, foundations and corporations. ImpactAssets is an independent 501(c)(3) organization.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although Greenbacker believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Greenbacker undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in its expectations.

1 Data is as of December 31, 2022.

2 EPA Greenhouse Gas Equivalencies Calculator. Data is as of December 31, 2022.

3 Green jobs are calculated from the International Renewable Energy Agency‘s measurement that one megawatt of renewable power supports 4.6 jobs. Data is as of December 31, 2022.

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Key Takeaways

• Greenbacker turned on largest operational project in Company history.
• Fleet added over 50 assets, representing nearly 500 MW, as it entered new market segment and geographies.
• Company’s best power generation year ever marked nearly 60% year-over-year production increase.
• Company’s newly defined business segments built additional foundations for future growth.
• Operating revenue of $111 million in Partial Year Period was driven by substantial energy revenue.
• Nearly $350 million capital raised in investment vehicles managed by GCM; AUM surpassed $3.0 billion.
• Company’s investments abate carbon emissions, conserve water, and support green jobs.

New York, NY, April 3, 2023 — Greenbacker Renewable Energy Company LLC (“Greenbacker,” “GREC,” or the “Company”), an independent power producer and a leading climate-focused investment manager, has announced financial results¹ for 2022, as well as historic year-over-year expansion that included the Company’s largest operational clean energy project to date and its first projects in a new segment of the fast-growing battery storage market.

Greenbacker turned on largest operational project in Company history

Greenbacker surpassed a new milestone in the year, bringing online the largest operational renewable energy project in Company history: the 104 MWdc / 80 MWac Graphite Solar.

The project reached commercial operation in June and now produces clean energy that is sold via long-term power purchase agreement (“PPA”) to an investment-grade utility. On an annual basis, Graphite is expected to generate about 223 million kilowatt-hours of clean power—enough to offset carbon emissions equivalent to burning approximately 175 million pounds of coal.²

In addition to the local green jobs and over 273,000 construction labor hours the project supported, Greenbacker and its project partners have also invested in the Utah community that hosts Graphite with a scholarship program providing $75,000 to area students who plan to pursue their career goals locally after completing their education.

Greenbacker’s largest operating renewables project to date

Fleet added over 50 assets, representing nearly 500 MW, as it entered new market segment and geographies

Greenbacker’s clean energy project count (owned and managed) increased by 52 assets during 2022, representing approximately 500 MW of additional total clean energy–generating capacity, and growing the Company’s total project count to 456.³

With this growth, Greenbacker expanded its solar and wind energy presence into new territories, increasing the geographical footprint and diversification of its fleet. This included its first solar farm in Virginia, acquired through an affiliated investment vehicle, and its first wind energy project in Illinois—the 54 MWdc Panther Creek wind farm, which is now Greenbacker’s largest wind asset in the Midwestern region.

The Company also expanded its operational standalone battery storage portfolio to include its first pre-operational storage assets, with a pair of energy storage projects in New York City. As of the end of the year, Greenbacker was conducting business in 33 states, Canada, Puerto Rico, and Washington, DC.

Company’s best power generation year ever marked nearly 60% year-over-year production increase

Over the course of 2022, the power-production capacity of Greenbacker’s operating fleet of renewable energy projects increased by 178 MW, a year-over-year increase of 17%, as the Company moved under-construction projects into commercial operation and acquired new operational projects.

With this capacity growth, the Company’s fleet produced nearly 2.4 million megawatt-hours (“MWh”) of total clean energy during the year, a year-over-year increase of almost 60%. GREC’s total power production in 2022 nearly equaled the amount it generated over the previous two years combined (almost 2.5 million MWh).

This highlights Greenbacker’s considerable growth trend in recent years, given that both 2021 and 2020 were themselves periods of substantial power production increases. In 2021, the Company generated upwards of 1.4 million MWh of clean energy, following production of over 999,000 MWh in 2020, representing year-over-year increases of 49% and 61%, respectively.

The table below summarizes Greenbacker’s 2022 year-over-year operational portfolio expansion.

Company’s newly defined business segments built additional foundations for future growth

As a result of Greenbacker’s acquisition of Greenbacker Capital Management LLC (“GCM”) and certain other affiliated companies, the Company shifted the basis of its historical accounting and the underlying presentation of its financial results from investment company accounting to non-investment company accounting.  

Since this transition occurred during the Company’s second fiscal quarter and was prospective in nature, the 2022 financial results reflected in this press release are for performance under non-investment company accounting during the period beginning May 19, 2022 and ended December 31, 2022 (“the Partial Year Period”).

For the Partial Year Period, Greenbacker has presented financial information for its Independent Power Producer (“IPP”) and Investment Management (“IM”) business segments.

Charles Wheeler, CEO of Greenbacker, said:

“Our fleet had its best year of production in Company history, even as we paved the way for additional future growth and financial returns. Greenbacker’s decision to acquire GCM has opened the potential to generate significant long-term value for our shareholders, allowing us to diversify our business to capitalize on exciting opportunities in the energy transition asset class both today and in the years to come.”

Operating revenue of $111 million in Partial Year Period was driven by substantial energy revenue

Greenbacker generated total operating revenue of $111.0 million, primarily from energy revenue within the IPP segment, for the Partial Year Period. Energy revenue was $101.6 million and included $83.6 million from our long-term PPAs.

With respect to PPA revenue, the Company’s operating solar fleet, which included 285 operating assets comprising 834 MW of capacity, generated $39.6 million from nearly 1.1 million MWh of production. GREC’s operating wind fleet, which included 16 operating projects comprising 386 MW of capacity, generated $39.2 million from just under 1.2 million MWh of production.

Adjusted EBITDA was $26.4 million for the Partial Year Period, largely driven by Adjusted EBITDA within the IPP segment of $53.6 million. Direct operating costs associated with capital raise efforts for certain of IM’s managed funds in their early stages and corporate expenses offset IPP results. The net loss attributable to Greenbacker was approximately $0.7 million.

Funds From Operations (“FFO”) was $3.2 million for the period and represents the $26.4 million of Adjusted EBITDA less cash interest expense and distributions to our tax equity investors.

Nearly $350 million capital raised in investment vehicles managed by GCM; AUM surpassed $3.0 billion

Greenbacker’s IM segment experienced considerable momentum in its initiatives to raise additional capital from retail and institutional investors in 2022. Between May 19, 2022 and December 31, 2022, the IM business segment raised $348.5 million of new equity capital, on which GCM is entitled to collect management fees, boosting AUM⁴ to over $3.0 billion at the end of the period.

As of December 31, 2022, GCM served as the investment manager to four climate-focused funds.

Company’s investments abate carbon emissions, conserve water, and support green jobs  

Greenbacker’s renewable energy investment activities continued to deliver on ESG metrics. As of December 31, 2022, the Company’s renewable energy assets had cumulatively generated over 6.1 million MWh of clean power, abating more than 4.3 million metric tons of carbon since January 2016.⁵

The Company’s clean energy projects have saved nearly 4.1 billion gallons of water,⁶ compared to the amount of water needed to produce the same amount of power by burning coal, and its business activities will sustain more than 5,200 green jobs.⁷

David Sher, Director of Greenbacker, said:

“We believe market conditions will remain favorable to our investment strategy, especially given the inherent resiliency of our assets and the policy catalysts from the renewed focus on climate change at the federal and state levels, as well as decarbonization commitments from large corporations and utilities.”

The resilient nature of Greenbacker’s infrastructure assets—e.g., stable long-term cashflows, high-credit-quality counterparties, and inelastic demand—can offer investors the opportunity for both diversification and insulation from short-term volatility, while meeting long-term growth objectives.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors that may cause the actual results to differ materially from those anticipated at the time the forward-looking statements are made. Although Greenbacker believes the expectations reflected in such forward-looking statements are based upon reasonable assumptions, it can give no assurance that the expectations will be attained or that any deviation will not be material. Greenbacker undertakes no obligation to update any forward-looking statement contained herein to conform to actual results or changes in its expectations.

Non-GAAP Financial Measures

In addition to evaluating the Company’s performance on a U.S. GAAP basis, the Company now utilizes certain non-GAAP financial measures to analyze the operating performance of our segments as well as our consolidated business.  Each of these measures should not be considered in isolation from or as superior to or as a substitute for other financial measures determined in accordance with U.S. GAAP, such as net income (loss) or operating income (loss). The Company uses these non-GAAP financial measures to supplement its U.S. GAAP results in order to provide a more complete understanding of the factors and trends affecting its operations.

Adjusted EBITDA

Adjusted EBITDA is a non-GAAP financial measure that the Company uses as a performance measure, as well as for internal planning purposes. We believe that Adjusted EBITDA is useful to management and investors in providing a measure of core financial performance adjusted to allow for comparisons of results of operations across reporting periods on a consistent basis, as it includes adjustments relating to items that are not indicative on the ongoing operating performance of the business.

Adjusted EBITDA is a performance measure used by management that is not calculated in accordance with U.S. GAAP. Adjusted EBITDA should not be considered in isolation from or as superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP. Additionally, our calculation of Adjusted EBITDA may not be comparable to similarly titled measures reported by other companies.

Funds From Operations

FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing operating performance of the business. FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment. 

The Company believes that the analysis and presentation of FFO will enhance our investor’s understanding of the ongoing performance of our operating business. The Company will consider FFO, in addition to other GAAP and non-GAAP measures, in assessing operating performance and as a proxy for growth in distribution coverage over the long term.

FFO should not be considered in isolation from or as a superior to or as a substitute for net income (loss), operating income (loss) or any other measure of financial performance calculated in accordance with U.S. GAAP.

General Disclosure

This information has been prepared solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell any security, or to participate in any trading or investment strategy. The information presented herein may involve Greenbacker’s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice.

Non-GAAP Reconciliations

Adjusted EBITDA

The following table reconciles Net income (loss) attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA:

The Company defines Adjusted EBITDA as net income (loss) before: (i) interest expense; (ii) income taxes; (iii) depreciation expense; (iv) amortization expense (including contract amortization); (v) accretion; (vi) amounts attributable to our redeemable and non-redeemable noncontrolling interests; (vii) unrealized gains and losses on financial instruments; (viii) other income (loss); and (ix) foreign currency gain (loss). Additionally, the Company further adjusts for the following items described below:

• Share-based compensation is excluded from Adjusted EBITDA as it is different from other forms of compensation, as it is a non-cash expense and is highly variable. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a share-based compensation valuation methodology and underlying assumptions that may vary over time.
• The change in fair value of contingent consideration, which is related to the Acquisition, is excluded from Adjusted EBITDA, if any such change occurs during the period. The non-cash, mark-to-market adjustments are based on the expected achievement of revenue targets that are difficult to forecast and can be variable, making comparisons across historical and future quarters difficult to evaluate; and
• Other costs that are not consistently occurring, not reflective of expected future operating expense, and provide no insight into the fundamentals of current or past operations of our business are excluded from Adjusted EBITDA. This includes costs such as professional fees incurred as part of the Acquisition and the change in status and other non-recurring costs unrelated to the ongoing operations of the Company.

The Company uses Segment Adjusted EBITDA to evaluate the financial performance of and allocate resources among our operating segments. Segment Adjusted EBITDA is determined for our segments consistent with the adjustments noted above but further excludes unallocated corporate expenses as these items are centrally controlled and are not directly attributable to any reportable segment.

The following table reconciles total Segment Adjusted EBITDA to Net income (loss) attributable to Greenbacker Renewable Energy Company LLC:

Funds From Operations

The following table reconciles Net income (loss) attributable to Greenbacker Renewable Energy Company LLC to Adjusted EBITDA and then to FFO:

FFO is a non-GAAP financial measure that the Company uses as a performance measure to analyze net earnings from operations without the effects of certain non-recurring items that are not indicative of the ongoing performance of the business.

FFO is calculated using Adjusted EBITDA less the impact of interest expense (excluding the non-cash component) and distributions to tax equity investors under the financing facilities associated with our IPP segment.

1 Past performance is not indicative of future results.

2 When compared with a similar amount of power generation from fossil fuels. Carbon abatement is calculated using the EPA Greenhouse Gas Equivalencies Calculator which uses the Avoided Emissions and generation Tool (AVERT) US national weighted average CO₂ marginal emission rate to convert reductions of kilowatt-hours into avoided units of carbon dioxide emissions.

3 Total assets and megawatts statistics include those projects where the Company has contracted for the acquisition of the project pursuant to a Membership Interest Purchase Agreement (“MIPA”).

4 Total AUM includes GREC and GCM’s managed funds.  AUM represents the underlying fair value of investments, determined generally in accordance with ASC 820, cash and cash equivalents and project level debt.  These figures are unaudited and subject to change.  

5 When compared with a similar amount of power generation from fossil fuels. Carbon abatement is calculated using the EPA Greenhouse Gas Equivalencies Calculator which uses the Avoided Emissions and generation Tool (AVERT) US national weighted average CO₂ marginal emission rate to convert reductions of kilowatt-hours into avoided units of carbon dioxide emissions. 

6 Gallons of water saved are calculated based on Operational water consumption and withdrawal factors for electricity generating technologies: a review of existing literature – IOPscience, J Macknick et al 2012 Environ. Res. Lett. 7 045802.

7 Green jobs are calculated from the International Renewable Energy Agency‘s measurement that one megawatt of renewable power supports 4.6 jobs. Data is as of December 31, 2022.

The post Greenbacker delivers 2022 results appeared first on Greenbacker Capital.

While no business is completely immune to broader macro events around it, we believe that the resiliency inherent in Greenbacker’s renewable infrastructure assets places us in a position to benefit from the flight to quality phenomenon generally associated with periods of market volatility. Moreover, our major banking relationships are with JPMorgan and CitiBank, two of the four largest banks in the US.

Given those partnerships and the resilient nature of our sustainable infrastructure investments, we believe in our ability to continue executing our strategy and delivering value for our shareholders.

An essential service provided by a well diversified fleet

Sustainable infrastructure assets like those in Greenbacker’s clean energy fleet provide communities and businesses with an essential service: electric power. The diversified nature of our assets—by way of technology type, geography, and counterparty—and our contractual arrangements for the sale of the electricity we generate means that our cashflows are generally insulated from changes in the broader economic environment.

Our fleet is generating electricity every day, which is then sold under long-term contracts to utilities, municipalities, and large corporations. Our current average contract is approximately 18 years. The price of that sale is typically agreed upfront on the basis that the counterparty will buy 100% of the power we produce. Because utilities and municipalities tend to operate as monopolies in their respective service areas, where they provide essential services to their customers, they also tend to enjoy high credit ratings. Additionally, we have intentionally diversified the technology (e.g., wind, solar, energy storage) and geography of our project fleet across the country so that we can minimize the impacts of local weather events and seasonality on our cashflows.

Direct exposure to SVB and Signature is immaterial to none at all

We have also been closely monitoring the situation surrounding SVB and Signature to ensure that we remain abreast of any developments that could impact Greenbacker or our broader business counterparty interests. So far, none of our counterparties have reported any material impacts, while Greenbacker’s own exposure ranges from negligible to none.

Our independent power production business segment had no deposits at either bank. Within our investment management business segment, Greenbacker Capital Management currently serves as the registered investment advisor to five funds. Four of those funds have no direct exposure to SVB or Signature, at either the fund level or across any of their investments or portfolio companies. Though one fund did have a small amount of non-FDIC insured cash on deposit with SVB, we believe the US government’s recent guaranty of deposits has mitigated the risk on that exposure.

Focusing on our mission

We will actively monitor the situation as it continues to evolve. At the same time, we will also remain focused on what we do best: empowering a sustainable world by connecting individuals and institutions with investments in clean energy.

Given the quality of the cashflows generated by our investments and the historic tailwinds our industry is enjoying from recent federal government initiatives designed to encourage investment in the sector, we believe Greenbacker remains well positioned to execute on that mission.

We believe that the stability and inherent resiliency of the sustainable infrastructure asset class continues to represent a compelling opportunity to investors looking for stable long-term returns and insulation from short-term volatility.

The information presented herein may involve Greenbacker’s views, estimates, assumptions, facts, and information from other sources that are believed to be accurate and reliable and are, as of the date this information is presented, subject to change without notice.

The post An open letter on the resilient nature of Greenbacker’s sustainable infrastructure investments appeared first on Greenbacker Capital.