Lars Norell: Yes. James, one of the most practical implications of community solar is that it works as a system size enhancement to us. Where with a very large commercial rooftop from a logistical building, we might be able to fit like a quarter or third of that roof with solar because that’s all that building consumes in terms of electricity. But the second that building is in a community solar state, we cannot fill the entire roof with a silver system and sell the excess power back into the community, which is an awesome way for us to take our natural flow in customer engagement and maximize the impact to Altus from each of those deals.
Julia Sears: I would add, on community solar, one of our key efforts here is democratizing power to our end users. And you can see if you go to our site or any one of our applications that we have to help acquire new community solar customers or service them as we do in Hawaii. We are trying to make sure that it’s accessible and digestible and reachable by all of our consumers. So we are prepared to support that with Lars and Gregg’s comments.
James West: Got it. Thanks, everybody.
Operator: Thank you. [Operator Instructions] Our next question is from the line of Chris Souther with B. Riley Securities. Please go ahead.
Chris Souther: Hi, guys. Thanks for taking my questions, here. Maybe just touch on the 3Q results a bit. There’s pretty rough weather in the Northeast during the quarter where your footprint is pretty large. I’m curious how asset performance tracked in the quarter versus your expectations? And I know you reiterated the guidance, I’m just curious how we’re kind of tracking within that EBITDA guidance given expected seasonality in the fourth quarter there?
Dustin Weber: Yes. Chris, this is Dustin. Thanks for the question. Yes, thanks for highlighting the weather, particularly in the Northeast where we do have a nice footprint. It was a little lighter than our expectations in Q3. Typically, as forecasted, Q2 and Q3 are going to be very similar from an expected Sunlight or a Radian standpoint, which, of course, tracks closely to generation. This year, we saw a slightly better irradiance [ph] in Q2. And as I just noted, slightly lower in Q3. So one of the things we like best about our business is the fact that we’re distributed across the country in 25 states and growing. And typically, what you get – when you have that diversified portfolio, is that weather can be good on the West Coast and that on the East Coast and things tend to cancel out over the portfolio and importantly, over the course of the year.
And so despite some light being a little light in Q3, it’s – our models allow for that level of variability, and that’s why we’re confident in reiterating our guidance range for the year.
Gregg Felton: Chris, I’d also add just something to add, just to Dustin’s points about geographic mix, which we have on Slide 5, we show the states that are most where we have sort of greatest presence today, but that is – excludes the impact of this 121 megawatt acquisition we announced, which is predominantly in the Carolinas. So that acquisition will be a nice diversifier or expand of our market presence as well.
Chris Souther: Definitely. That’s great. Great. And then on the construction facility, how should we think about the size of the construction pipeline that could essentially fund into about 200 megawatts. I’m curious how much construction and progress you have today, basically, how much capital that would kind of unlock potentially like overnight. I think you had about $89 million in construction in progress at the end of last year, but I’m just curious kind of where that stands today?
Dustin Weber: Yes. I’ll take that first, and then maybe Gregg can follow up. basically, one of the questions that we’re dealing with is to make sure that we remove bottlenecks that are preventing us or that would prevent us from getting to the growth of assets, adding importantly to our operating portfolio, which is where the revenue comes from, that we want to have. In construction funding would definitely represent the bottleneck and the size of the construction platform, the size of the development platform, sites of engineering. And so with the launch of this particular new construction facility, which we are deeply, deeply [indiscernible] with because it’s from the same source that our long-term funding comes from. One of those bottlenecks is removed.
And we, of course, also use cash on balance sheet to build, but both the size and the strength of our growing construction teams, engineering teams and development teams – and now the ready availability of construction funding is what allows us to grow our pipeline significantly from where we’re sitting right now in ’24 over the construction throughput of 23. Gregg?
Gregg Felton: Yes. The thing I’d add to that is that the facility that we announced this morning is unique relative to bank facilities. It’s $200 million of commitment. It’s multiyear. It actually – there is no commitment fee that we’re paying for that, which is excellent. As you saw on Slide 11, just to highlight, unlike a construction facility, there’s a lot more flexibility that we have to use that facility for equipment, for labor. So if you think about the inventory that we’re able to have – so it’s a bit of a working capital facility in addition to a construction facility. And there’s a lot more really flexibility. And given the fact that these are our long-term lenders, it’s also much more streamlined relative to dealing with a construction syndicate that’s bank-led and then rolling it into a different long-term financing partners.
So there are huge advantages in terms of reducing bottlenecks, as Lars described. And it’s also highly flexible in nature. So that $200 million commitment that we have, which again is multiyear, does allow us the runway to be able to plan for our next handful of years of construction growth.
Chris Souther: That’s good to hear. Thanks. Thanks.
Operator: Thank you. As there are no further questions, I would now hand the conference over to Gregg Felton for closing comments. Thanks, everyone. As you can tell, we’re well positioned to take advantage of the growth opportunity in front of us. And we believe the current dislocation is creating an opportunity for the company to accelerate our growth. We look forward to updating you further on our Q4 call. Thanks again.
Operator: Thank you. The conference of Altus Power has now concluded. Thank you for your participation. You may now disconnect your lines.+
