RE Royalties Ltd. Announces a $9 Million Royalty Investment in Solaris Energy’s U.S. Solar Portfolio
RE Royalties Ltd. (TSXV: RE, OTCQX: RROYF), a Vancouver‑based investment and financial consulting firm that specialises in renewable‑energy projects, has disclosed a substantial partnership with Solaris Energy Inc. The Canadian company will acquire a portfolio‑level royalty interest in two groups of distributed generation (DG) solar projects in the United States, with a total commitment of up to US $9.0 million.
Structure of the Deal
The transaction is split between two portfolios:
| Portfolio | Projects | Status | Geographic Scope |
|---|---|---|---|
| Portfolio 1 | 15 projects | 9 under construction, 6 in development | California, Maine, Delaware, New Hampshire, Colorado |
| Portfolio 2 | 9 projects | Composition may change during development | – |
The first portfolio is valued at US $4.8 million. RE Royalties will provide an initial payment of US $3.0 million upon signing, with the remaining US $1.8 million expected to be funded by the second quarter of 2026, contingent on meeting stipulated conditions. The second portfolio’s acquisition remains subject to satisfactory due‑diligence and customary closing conditions, with a target completion still within the calendar year.
Royalty Terms
The royalty will be structured as a 25‑year instrument that will persist for the remaining life of the projects in Portfolio 1. The royalty rate will be adjusted at each advance payment to secure a pre‑agreed minimum return over the 25‑year period. This approach aligns the interests of RE Royalties, Solaris, and the project developers, providing a predictable cash‑flow stream for all parties.
Strategic Rationale
Peter Leighton, COO of RE Royalties, emphasized that the deal underscores the company’s ongoing focus on partnerships with renewable‑energy developers and the acquisition of cash‑flow generating royalty interests in clean‑energy projects. He noted that distributed solar generation remains an attractive segment and that the capital infusion from RE Royalties will enable Solaris to leverage existing financial partnerships and expedite project financing.
Market Context
RE Royalties, with a market capitalisation of approximately CAD 12.19 million, trades on the TSX Venture Exchange. The company’s share price, which closed at CAD 0.305 on 7 January 2026, sits within a 52‑week range of CAD 0.22 to CAD 0.53. While the firm currently reports a negative price‑earnings ratio, the new investment reflects a strategic move to generate revenue streams through royalty structures rather than direct project ownership.
Forward Outlook
The partnership with Solaris Energy is poised to enhance RE Royalties’ portfolio of renewable‑energy assets and strengthen its position within the North American solar market. The successful completion of the remaining due‑diligence for Portfolio 2 and the subsequent funding of the second tranche will solidify the company’s exposure to a diversified set of U.S. solar projects, potentially improving its revenue stability and market perception.
The transaction, announced on 7 January 2026 via access newswire, is expected to unfold over the next few months, with key milestones including the second tranche payment and the formal closing of Portfolio 2. Investors and market observers will likely monitor the deal’s progress closely, as it represents a significant expansion of RE Royalties’ renewable‑energy royalty footprint.
