Israeli Firm Solara Acquires Australian Solar and Storage Projects for $1.7 Billion

Israeli renewable energy company Solara is expanding into Australia through a significant deal to acquire a portfolio of solar and storage projects. The company announced it has signed a memorandum of understanding, pending a definitive agreement, to purchase between 49% and 70% of a global renewable energy developer's Australian assets.

This acquisition marks Solara's entry into the Australian market, which it views as having substantial growth potential. Australia is recognized for its high sovereign credit rating and ambitious renewable energy targets, aiming to add approximately 40 gigawatts by 2030. The acquired portfolio includes around 200 megawatts of solar power and 550 megawatt-hours of energy storage capacity.

The deal is expected to be finalized by the end of 2026. The solar portion of the portfolio is already connected and generating revenue, with some projects having power purchase agreements with investment-grade companies. The storage component will be added according to development milestones. Solara plans to undertake this acquisition either independently or in partnership with an Israeli institutional investor.

The estimated equity value of the portfolio, on a 100% basis post-completion, is approximately 300 million Australian dollars (about 650 million shekels), with the purchase price being proportional to the stake acquired. The total enterprise value for the portfolio is estimated at 780 million Australian dollars (approximately 1.7 billion shekels).

Solara CEO Alon Segev stated that the deal represents a strategic entry into Australia's renewable energy market, highlighting the quality of the assets which combine solar and storage and benefit from existing contracts. He added that the acquisition aligns with the company's strategy to achieve double-digit returns on equity and expand its portfolio of high-quality, income-generating assets in strategic territories.

This move into Australia follows recent significant transactions by Solara, including securing financing for a wind project in Chile and acquiring a solar portfolio in Poland for approximately 175 million euros earlier this month.