KKR Expands US Solar Venture With $1.2 Billion Portfolio

KKR and TotalEnergies are adding a $1.2 billion solar portfolio to their US joint venture, with projects in Texas and Ohio expected to begin operating by early 2027.

KKR is expanding its exposure to American power infrastructure.

The investment firm and TotalEnergies announced Monday an agreement to add 700 megawatts of solar capacity to their equally owned US joint venture.

The three projects, located in Texas and Ohio, carry a combined $1.2 billion enterprise value. They are expected to begin commercial operations by the first quarter of 2027, increasing the venture’s portfolio from 1.4 gigawatts to 2.1 gigawatts.

TotalEnergies will continue operating the assets. Completion of the transaction is expected in 2026, subject to customary conditions.

For KKR shareholders, the agreement adds another investment in assets capable of generating recurring electricity-sale income. Returns will depend on construction costs, operating performance and the prices secured for that power.

The investor takeaway: Watch whether the projects reach operation on schedule and deliver attractive returns on the capital invested.