RE Royalties: How the Company Is Rocking the Green Energy Transition

An opinion piece by André Will-Laudien (Apaton Finance GmbH).

Although the share price of this masterful financier of renewable energy projects has more than doubled since December 2025, the capital market has yet to really spotlight the RE Royalties story. Yet its "ESG-friendly business model" is certainly exciting. While the financial world keeps its eyes fixed on the industry giants, the Canadians are igniting the next stage of growth. The underlying concept is ingenious and cleverly borrowed from the commodities sector: The team provides developers of green energy projects with quick loans and, in return, secures a long-term stake in the electricity revenues. RE Royalties collects a share of the ongoing revenue for decades but is completely shielded from construction and operational risks. As soon as a loan is repaid, the money immediately goes toward the next project. This clever cycle has already catapulted the company past the magic mark of USD 100 million in financed projects.

The mega-deal with Solaris Energy demonstrates just how spectacularly this strategy can scale. Following a successful start with just under USD 5 million, a letter of intent is now on the table for a total volume of up to USD 67.5 million. With this, the company is not just buying into solar parks—it is securing access to a massive project pipeline of over 80 additional solar plants. The proceeds are partially secured for a quarter-century through minimum returns, which lends the entire venture a high degree of security. To optimally finance this growth spurt, management is working with PwC to explore strategic options ranging from co-investments to a full acquisition.

The current environment for such a business model could hardly be better, as the global demand for security of supply is driving the energy transition forward inexorably. Because government funding is far from sufficient, RE Royalties is closing a critical financing gap with private capital. It is bringing to fruition medium-sized projects that are too specialized for banks and too small for large investors. The visible impact ranges from solar installations at luxury resorts in Mexico to powering a hospital in the Maldives. Because it reinvests earnings directly into new contracts rather than distributing them quickly, revenue continues to flow steadily. On the stock market, this model, which has been tried and tested for 10 years, is still completely undervalued. Risk-conscious investors still have an opportunity to get in at RE Royalties' current valuation of around CAD 16 million. Extremely exciting!

Watch Talia Beckett speak with IIF host Lyndsay Malchuk and read the full article here.