RE Royalties: Partnership Could Boost Project Volume to USD 67.5 Million

An opinion piece by Stefan Feulner (Apaton Finance GmbH).

RE Royalties is consistently driving its growth forward. The Canadian company is investing a third tranche of USD 1 million in Solaris Energy's solar portfolio, thereby increasing its total commitment to USD 4.8 million. At the same time, both companies signed a non-binding LOI that provides for the expansion of their collaboration to a royalty financing volume of up to USD 67.5 million.

In addition to the projects already financed, the pipeline includes another 96 solar projects with a total capacity of approximately 190 megawatts of direct current (MWDC) in the US. Each new financing deal secures long-term, revenue-based royalty payments for RE Royalties for an initial period of 25 years and beyond, for the entire operational life of the plants.

This latest announcement underscores the potential of a business model that has so far been rarely used in the energy sector. RE Royalties applies the royalty principle, familiar from the mining sector, to renewable energy. Instead of building solar or wind farms itself, the company provides capital to project developers and, in return, receives a share of future revenue. This model is complemented by secured bridge financing, the proceeds of which can be invested directly into new projects. This generates recurring cash flows without the high investment and operational risks associated with a traditional plant operator.

The market environment also plays into RE Royalties' favour. Global electricity demand is rising significantly due to AI data centers, electrification, and the expansion of energy infrastructure. In the US alone, solar, wind, and storage projects accounted for approximately 90% of newly installed electricity capacity in 2025.

The key figures also speak in the company's favour. Since its founding, more than CAD 83 million has been invested in 29 transactions, resulting in a portfolio of 135 projects in the areas of solar, wind, battery storage, hydropower, biogas, and energy efficiency. The average return on these investments is around 19%.

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