Solara Enters Australian Market With $780 Million Solar and Storage Deal

Israeli renewable energy company Solara announced a binding memorandum of understanding to acquire a 49% stake in a portfolio of solar and storage projects in Australia, with an option to increase its holding to 70%. The total enterprise value of the portfolio is estimated at approximately AUD 780 million, with an equity value of around AUD 300 million post-construction. This acquisition represents a significant expansion for Solara, adding 200 megawatts of solar energy and 550 megawatts of storage capacity.

Some of the solar projects already have investment-grade power purchase agreements, while the remaining portfolio, primarily storage projects, is in commercial negotiation stages. Solara projects the portfolio will generate approximately AUD 82 million in EBITDA and AUD 65 million in FFO annually. The payment for the 49% stake in the solar portion is expected to be around AUD 100 million, with the storage portion payment due upon completion.

Solara is considering two financing options: a joint purchase with an Israeli institutional investor or independent financing. The company has an exclusivity period of three weeks, extendable up to 12 weeks, and the deal's completion, pending due diligence and regulatory approvals, is anticipated by the end of December 2026.

This move into Australia aligns with Solara's strategy of acquiring and improving income-generating energy assets in developed markets, capitalizing on the growing demand for electricity driven by the AI era. The company has recently made other international acquisitions, including 219 facilities in Poland for EUR 175 million and securing financing for its first wind project in Chile. Investors are focused on the financing structure and whether Solara will exercise its option to increase its stake to 70%, with answers expected within the upcoming exclusivity period.