Spruce Power Buys Portfolio of 22,500 Solar Customer Contracts in its Largest-Ever Acquisition and First as a Public Company

-Deal grows Spruce's total customer contract base by 44% to over 72,000 systems-

-Portfolio expected to generate over $21 million of annual customer billings and about $18 million portfolio EBITDA -

-10 state deal expands Spruce Power into new markets of Washington and Oregon-

Spruce Power Holding Corporation (NYSE:SPRU) ("Spruce" or the "Company"), a leading owner and operator of distributed solar energy assets across the United States, today announced the acquisition of SS Holdings 2017, LLC and its subsidiaries (the "Spruce Power 4 Portfolio") from a US-based private equity firm. The acquisition closed on March 23, 2023.

The Spruce Power 4 Portfolio features the customer payment streams from approximately 22,500 residential solar contracts under which customers purchase the clean electricity generated by rooftop solar home power systems. The contracts are supported by high-quality residential solar systems across 10 states that were originated by the homebuilder Lennar Corporation and its legacy residential solar platform, SunStreet, between 2013 and 2020. The acquisition expands Spruce into two new markets, Washington and Oregon, while providing additional customers in California, Colorado, Florida, Nevada, Texas, Delaware, Maryland, and South Carolina.

The Spruce Power 4 Portfolio has an average remaining contract life of nearly 15 years. Consistent with Spruce's existing portfolio, underlying credit characteristics of the SEMTH Portfolio are strong with an average customer FICO score of approximately 740. The portfolio is expected to generate over $21 million of customer billings in 2023, and about $23 million of average annual billings over the next five years. Portfolio EBITDA, and contribution to Spruce's annual Cash Available for Debt Service ("CAFD"), is expected to exceed $18 million annually during that time.

Christian Fong, CEO of Spruce Power commented, "This acquisition is the largest in Spruce's corporate history. It grows our ownership of rooftop solar assets and contracts by about 44% overnight to more than 72,000 systems, demonstrating the power of our strategy to grow by acquisition while earning an attractive rate of return on our invested cash. Along with the $35 million we paid, we assumed $125 million of non-recourse project debt. With nearly $12 million in cash in the acquired business, our net Spruce balance sheet cash paid at closing was about $23 million. For future acquisitions, that leaves us with over $180 million of Spruce balance sheet cash. We expect this portfolio will make a large, positive and immediate impact on our financial and strategic outlook."

About Spruce Power

Spruce Power Holding Corporation (NYSE:SPRU) is a leading owner and operator of distributed solar energy assets across the United States. We provide subscription-based services that make it easy for homeowners to own and maintain rooftop solar and battery storage. Our as-a-service model allows consumers to access new technology without making a significant upfront investment or incurring maintenance costs. Our company owns over 70,000 rooftop solar assets and contracts across the United States. For additional information, please visit www.sprucepower.com.

Forward Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws. Forward-looking statements generally are accompanied by words such as "believe," "may," "will," "estimate," "continue," "anticipate," "intend," "expect," "should," "would," "plan," "predict," "potential," "seem," "seek," "future," "outlook," and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of management and are not predictions of actual performance. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from the forward looking statements, including but not limited to: expectations regarding the growth of the solar industry, home electrification, electric vehicles and distributed energy resources; the ability to successfully integrate XL Fleet and Spruce Power; the ability to identify and complete future acquisitions; the ability to develop and market new products and services; the effects of pending and future legislation; the highly competitive nature of the Company's business and markets; the ability to execute on and consummate business plans in anticipated time frames; litigation, complaints, product liability claims and/or adverse publicity; cost increases or shortages in the components or chassis necessary to support the Company's products and services; the introduction of new technologies; the impact of the COVID-19 pandemic on the Company's business, results of operations, financial condition, regulatory compliance and customer experience; the potential loss of certain significant customers; privacy and data protection laws, privacy or data breaches, or the loss of data; general economic, financial, legal, political and business conditions and changes in domestic and foreign markets; risks related to the rollout of the Company's business and the timing of expected business milestones; the effects of competition on the Company's future business; the availability of capital; and the other risks discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K filed on March 31, 2022, subsequent Quarterly Reports on Form 10-Q and other documents that the Company files with the SEC in the future. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. These forward-looking statements speak only as of the date hereof and the Company specifically disclaims any obligation to update these forward-looking statements.

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