Spruce Power Holding Announces A Multi-Year Agreement To Sell Its Solar Renewable Energy Credits In New Jersey To A Fortune Global 50 Investment-Grade Energy Company. The Deal Is Expected To Generate About $10M In Fully-Hedged Revenue Through 2029

Spruce Power Holding Corporation (NYSE:SPRU) ("Spruce" or the "Company"), a leading owner and operator of distributed solar energy assets across the United States, announced a multi-year agreement to sell Spruce's Solar Renewable Energy Credits ("SRECs") in the state of New Jersey to an investment-grade energy sector counterparty that is ranked among the Fortune Global 50. The transaction is expected to generate approximately $10 million in fully-hedged revenue for Spruce through 2029. This partnership is part of a broader Spruce initiative to leverage the Company's platform and experience to capture the benefits of our SRECs.

Chris Hayes, Chief Executive Officer of Spruce said, "We view scaling SREC registration as a low cost, low risk opportunity to generate capital-light high margin, cash flow for the Company. This transaction is another example of Spruce's expertise in maximizing value from our assets while hedging against future price movements. The forward contract provides an important ongoing hedged revenue stream and reinforces the dependability of Spruce's cash flow generation."

Hayes concluded, "We believe the counterparty is utilizing Spruce's SRECs as a compliance instrument to hedge their electricity supply positions in the state of New Jersey. We anticipate similar opportunities may be available to Spruce in certain northeastern states as well as California, which we are actively pursuing."