TotalEnergies has finalized an agreement to sell 50% of its solar projects portfolio in North America to global investment firm KKR for approximately $1 billion. This transaction is part of TotalEnergies’ broader strategy to divest half of its operational renewable assets. The portfolio being sold includes a combined installed capacity of 1.4 gigawatts (GW), which values the entire portfolio at $1.25 billion.
The French energy giant announced on Monday that it expects to receive $950 million at the closing of the sale, which is set to be completed shortly. The deal encompasses six utility-scale solar assets with a total capacity of 1.3 GW and 41 distributed generation assets totaling 140 MW, primarily located in the United States. The electricity generated by these projects has either been sold to third parties or will be commercialized by TotalEnergies.
In contrast to other European energy companies like BP and Shell, which have scaled back their investments in renewable energy, TotalEnergies aims for a 12% profitability target for its Integrated Power sector. This approach allows the company to divest up to 50% of its renewable assets once they reach their commercial operation date and are considered “de-risked.” This strategy positions TotalEnergies to maximize asset value while effectively managing associated risks.
Stéphane Michel, President of Gas, Renewables & Power at TotalEnergies, commented, “Aligned with our strategy, this transaction unlocks value from newly commissioned assets and further strengthens the profitability of our Integrated Power business.”
Despite this positive development for TotalEnergies, the U.S. solar market is facing potential challenges. Earlier this month, the Solar Energy Industries Association (SEIA) warned that the policies enacted during the Trump Administration could significantly slow down solar project developments in the coming years.
In a report highlighting the installation of nearly 18 GW of new capacity—including battery storage—during the first half of the year, SEIA indicated this accounted for 82% of all new capacity additions. However, the organization also cautioned that the One Big Beautiful Bill Act has substantially altered the medium-term outlook for the solar industry. As a result, the U.S. solar sector risks losing 44 GW in new capacity additions by 2030 due to current policy environments.
TotalEnergies’ recent transaction not only reflects its ongoing commitment to renewable energy but also highlights the shifting dynamics within the solar market, both in North America and globally. As the industry navigates new challenges, the focus remains on balancing profitability with sustainable energy development.
