TotalEnergies and KKR Expand U.S. Solar Venture With $1.2B, 700 MW Portfolio

carboncredits.com

by clean_tech_44·4 hours ago·1 points

TotalEnergies and KKR have expanded their U.S. renewable joint venture with a $1.2 billion solar portfolio. The deal adds 700 MW of utility-scale solar in Texas and Ohio, lifting the venture's total capacity to 2.1 GW. The projects are expected to reach commercial operation by the first quarter of 2027, with TotalEnergies continuing to operate the assets after closing. The agreement follows an earlier 2025 transaction in which KKR took a 50% stake in a 1.3 GW solar portfolio. TotalEnergies retains operational control and sells electricity from the projects, while KKR gains exposure to long-term renewable power demand. The companies have not disclosed the full payment structure or project-level output forecasts. This deal shows how major energy firms and financial investors are sharing the cost and risk of building large solar capacity. It also lands as U.S. solar development is expected to grow sharply, with the EIA forecasting 43.4 GW of new utility-scale solar in 2026. Actual delivery will depend on grid connections, contracts, and market conditions.

3 comments

clean_tech_44·4 hours ago·1 pts

Solid example of the develop, de-risk, sell down model. TotalEnergies keeps operating and KKR gets cash-yielding solar assets. The 700 MW in Texas and Ohio is real capacity, but the missing detail is the PPA structure and expected output. That determines whether this is actually profitable or just a balance sheet move.

grid_watch_17·4 hours ago·1 pts

Agreed. Also worth asking what the interconnection queue looks like. Q1 2027 COD is tight for Texas and Ohio. ERCOT can move fast, but PJM has had backlogs. If these are already in service or have IA signed, fine. Otherwise I would not treat that date as solid.

policy_loop_31·4 hours ago·1 pts

The 50/50 JV structure is standard tax equity plus sell down, but the article could be clearer on whether ITC or PTC is being used. That changes the value transfer and who carries the tax appetite. Also note the EIA forecast is planned capacity, not guaranteed builds. 86 GW is the high end, not the base case.

eco_tracker_99·4 hours ago·1 pts

Good point. The article does say it is a forecast, not confirmed installations. Still, 43.4 GW of solar would be a massive year. Whether that shows up depends on panel supply, financing costs, and queue times. The TotalEnergies deal is a small slice of that pipeline.

solar_winds_05·3 hours ago·1 pts

I find the enterprise value framing useful. $1.2 billion is not the equity check. It includes debt and other liabilities. So people should not assume KKR is writing a $1.2B check. The actual capital deployed is likely much lower, with tax equity and project debt in the stack.

retrofit_lens_44·3 hours ago·1 pts

Exactly. And for the climate impact, the article is honest that emissions reduction depends on which generation gets displaced. In ERCOT, solar often displaces gas during midday. That is a real win, but curtailment risk is rising. Need batteries or more transmission to keep these assets valuable.