38 Degrees North, a community solar and distributed renewable energy platform, has secured a growth equity investment from Climate Adaptive Infrastructure (CAI) and Kimmeridge Energy Management Company, raising its total capital to over $230 million. The company has also acquired U.S. Light Energy, which has a project pipeline of over 250 megawatts (MW).
This funding will help 38 Degrees North address the growing demand for efficient energy in the U.S., where electricity demand is projected to increase by 25% by 2030 and 78% by 2050, requiring an addition of 80 gigawatts (GW) of generation annually until 2045.
Since its 2015 founding, 38 Degrees North has managed over 400 MW in more than 100 projects, establishing itself as a reliable partner in states with strong community and distributed solar frameworks.
Counsel/support: Norton Rose Fulbright provided legal counsel to 38 Degrees North for the corporate raise and the acquisition of U.S. Light Energy. Kirkland & Ellis represented CAI and S2G, while Foley & Lardner advised Kimmeridge.
KEY QUOTES:
“With rapidly rising electricity prices due to the dramatic increases in power demand from data centers, A.I. and the electrification of transportation, it’s clear that we need to accelerate the deployment of local clean energy projects that provide homeowners and small and medium sized business owners with meaningful long-term savings. CAI and Kimmeridge’s support will be key to helping us unlock new opportunities with great development partners, landowners, and customers. We are thrilled to welcome them as strategic capital partners, and our acquisition of U.S. Light will also deepen our footprint in familiar and new markets to which we are excited to bring power and jobs.”
38 Degrees North Founders Ryan Bennett, Jake Carney and Chris Bailey
“This capital raise is a testament to the 38 Degrees North team’s experience, vision, and execution. Their ability to attract experienced institutional capital partners in this challenging market environment is a validation of the company’s differentiated approach to distributed renewable energy asset acquisition and development. We’re incredibly proud of the team’s progress to date and look forward to this next phase of growth alongside CAI and Kimmeridge.”
Priyanka Duvvuru, Principal at S2G Investments and 38 Degrees North Board Member
“At CAI, we are relentlessly focused on the macro trends driving the future of global infrastructure, and our investment in 38 Degrees North fits squarely into this mandate. As power demands surge and the grid becomes less stable, distributed generation plays an ever-greater role. We’ve watched this team execute over the years and are thrilled to join them at this important time. We’re excited to support one of the most capable operating teams in distributed renewables as they expand their footprint and bring more clean energy projects to communities across the country.”
Bill Green, Managing Partner at CAI
“We’re proud to support 38 Degrees North in this next chapter of growth. Our investment is grounded in a shared conviction that distributed-scale renewables will be a defining force in the next generation of energy infrastructure. In a market shaped by regulatory complexity and geographic fragmentation, 38 Degrees North has built a platform that can navigate and capitalize on that landscape with clarity and control.”
Henry Makansi, Managing Partner at Kimmeridge
