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Hasi: Empowering the Future with HASI

Investing in sustainable infrastructure and the energy transition

NYSE:HASI
$26.86-2.89%
Updated: May 02, 2025
Investment Funds
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Bull & Bear Case

An overview of the main reasons to invest and the key risks involved.

Bull Case

Diversified Investment Portfolio

HASI’s broad portfolio across renewable energy and energy efficiency ensures stable cash flows and its long-term contracts provide a strong foundation for future growth.

Unique Business Model with Dual Revenue Streams

The combination of asset-based income and fee-based revenue provides HASI with a balanced and resilient financial model, offering consistent returns.

Growth in the Energy Transition Market

With the increasing demand for clean energy, HASI is well-positioned to capitalize on long-term growth in the energy transition sector.

Bear Case

Dependence on Debt and Equity Issuance

Hasi relies on debt and equity markets to fund new investments, meaning it could face challenges if market conditions tighten, potentially impacting growth.

Policy Risks

Changes in energy policies could negatively impact HASI’s revenue streams, particularly in areas dependent on government incentives.

Cyclical Nature of the Energy Market

The energy sector is sensitive to economic fluctuations and policy changes, meaning a downturn or policy shift could reduce demand for clean energy investments.

Executive Summary

Climate Focused Investor With Excellent Market Access and Capital to Deploy

HA Sustainable Infrastructure Capital (HASI) is a leading capital provider in the U.S. renewable energy sector, specializing in clean energy infrastructure and energy efficiency projects. With a diversified portfolio spanning renewable energy, energy storage, and sustainable transportation, HASI plays a critical role in financing the energy transition. Its investments provide long-term, contracted cash flows that generate stable returns.

The investment case for HASI is supported by its strong growth in assets, a unique business model that blends equity investments with securitizations, and its strategic partnerships with industry leaders such as KKR. The company offers a compelling opportunity for investors seeking consistent income and capital appreciation while contributing to the global shift toward sustainability. With a focus on low-risk investments in proven technologies and strong client relationships, HASI is positioned for long-term growth in the energy transition sector.

Investment Thesis

Overview of buy and sell case of the business.

Why Invest?

Key pieces of information about the business that you need to know about.

Diversified Investment Portfolio

HASI invests in a wide range of renewable energy projects, including solar, wind, energy storage, and energy efficiency solutions. The company’s portfolio is not limited to one energy source but spans across grid-connected, behind-the-meter, and fuel-based investments, providing a diversified exposure to the growing clean energy sector. This diversification reduces the risk while increasing the potential for long-term returns.

Unique Business Model with Dual Revenue Streams

HASI’s business model focuses on two key revenue streams: high-yield, on-balance sheet investments and lower-yield securitizations. The company invests in energy infrastructure assets and generates income through interest, rental income, and gains on the sale of securitized assets. HASI also benefits from its joint venture with KKR, earning fees for managing investments through its CarbonCount Holdings 1 (CCH1) platform, which helps boost its fee income potential.

Growth in the Energy Transition Market

HASI is uniquely positioned to capitalize on the increasing global demand for clean energy. With significant investments in renewable infrastructure and energy efficiency projects, HASI is directly involved in the U.S. energy transition, which is expected to require trillions of dollars in investment over the next few decades. The company’s strategic partnerships, such as its ongoing joint venture with KKR, enable it to leverage additional capital for expansion, positioning it to grow alongside the broader industry.

Catalysts

The key events that could drive investment opportunities and shift markets.

Near term

Securitization of Energy Efficiency Assets

HASI’s ability to securitize a portion of its portfolio generates immediate cash flows and allows the company to reinvest in new projects. Increased demand for these securitized assets from institutional investors could enhance revenue.

Growth of CCH1 Joint Venture

The performance and expansion of HASI’s partnership with KKR in the CarbonCount Holdings 1 vehicle could drive higher asset management fees and provide additional capital for growth.

Medium term

Emerging Technologies

U.S. energy demand is projected to increase by 20% by 2030, necessitating further deployment of existing technologies and the development of new clean energy technologies like nuclear fusion. These emerging technologies have significant growth potential but will require substantial financial investment for research, storage solutions, power plant construction, and distribution infrastructure, all of which HASI can be involved with.

Long term

ESG Trends

HASI's stock price is driven by the increasing demand for socially responsible and sustainable investments. As the world transitions to a low-carbon economy, HASI is poised to benefit from the multi-decade growth in clean energy investments, with a projected $10 trillion to be invested in the energy transition by 2050. The long-term need for greater investment in clean energy to meet Net-Zero 2050 goals will create a significant growth opportunity for HASI, especially if it maintains a competitive edge in the industry.

Diversification into New Sectors

HASI’s entry into new asset classes, such as data centers and advanced nuclear technologies, could open new revenue streams and increase the company’s addressable market.

Key Risks

Key pieces of information about the business risks that you need to know about.

Dependence on Debt and Equity Issuance

HASI relies on the debt and equity markets to finance its growth and investments. If market conditions tighten or capital markets become less accessible, the company could face challenges in securing the necessary funding for its projects, which may impact its ability to expand its portfolio and maintain growth.

Policy Risks

HASI’s operations and revenue streams are closely tied to government policies and incentives. Any changes in energy policies, such as the repeal or modification of subsidies and tax incentives for renewable energy projects, could negatively impact HASI's business, particularly in sectors reliant on these governmental incentives.

Cyclical Nature of the Energy Market

The energy sector is highly sensitive to economic fluctuations and policy changes. A downturn in economic activity or a shift in government policy could reduce demand for energy infrastructure investments. HASI’s performance is linked to the overall growth in the clean energy market, which is susceptible to changes in market conditions and regulatory environments.

Follow the Experts

Quickly navigate key insights from industry experts and leverage their knowledge and market intelligence.

International Energy Agency profile

International Energy Agency

Global Energy Consultancy

300k audience

Expert Insights

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Global investment in renewable power & grids overtook spending on fossil fuels for the first time in 2023 — a sign of the new energy economy that’s emerging But clean energy investment must grow much faster for the world to reach energy & climate goals
Jason Grumet profile

Jason Grumet

Chief Executive Officer, American Clean Power Association

6k audience

Expert Insights

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I’m celebrating Clean Power Week with the American Clean Power Association (ACP)! Our industry’s growth over the past two years is nothing short of remarkable.
GridPoint profile

GridPoint

Energy Consultant

7k audience

Expert Insights

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Many companies want to grow their sustainability efforts but are concerned about 💲. Our recent partnership and credit facility with @HASI_Inc , combined with our subscription-based model helps remove these financial barriers to building decarbonization.
Alli Gold Roberts profile

Alli Gold Roberts

Policy Director, U.S. Climate Alliance

2k audience

Expert Insights

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@CeresNews is here at #ClimateWeekNYC talking about how companies can maximize the historic federal investments to rapidly #decarbonize with @SiemensUSA @Microsoft @HASI_Inc & @Holcim!
Justin Guay profile

Justin Guay

Program Director, Quadrature Climate Foundation

4k audience

Expert Insights

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97% of all new electricity generation built in the US in the first half of this year was clean energy Almost all of it was solar, wind and batteries Here comes the sun 😎

Investor Materials

Access the most recent investor updates published by the company.

Key Documents

HASI and KKR Establish $2 Billion Strategic Partnership to Invest in Sustainable Infrastructure Projects

Article

ANNAPOLIS, Md. & NEW YORK--(BUSINESS WIRE)-- Hannon Armstrong Sustainable Infrastructure Capital, Inc. ("HASI," "we," "our" or the…...

External Insights

A curated collection of third-party content relevant to the company and sector to help inform your investment decision.

Clean Energy Supply

Team

Meet the experienced professionals leading our organization

What the Pro's Are Asking

Here are the questions that professional investors are asking before making an investment decision.

What gives HASI an advantage over traditional project financiers?

HASI's pipeline of 150 opportunities across 30 programme partners is a key differentiator. Whilst they generally compete with other financiers such as banks and investment funds, HASI's focus on impact investment gives them an edge with projects that require deep expertise in ESG areas. For example, HASI specialises in financing sustainable energy solutions like solar, wind, and energy efficiency. This focus provides them with a deeper understanding of the unique risks, incentives, and technical aspects of these projects compared to traditional financiers, who may lack the industry-specific knowledge.

How is U.S clean energy capacity expected to evolve?

Estimates are for total clean energy capacity to increase 5x by 2035 from 300GW in 2023 according to BloombergNEF. Solar power is expected to see the fastest growth among clean energy sources, with U.S. solar capacity projected to triple by 2030. Grid modernisation, the expanding role of hydrogen and other emerging technologies, the electrification of transportation and buildings, along with decarbonisation goals and policy initiatives, will all drive an increase in clean energy capacity.

What is carboncount and why does it matter?

CarbonCount is HASI's proprietary scoring tool for evaluating assets to determine the efficiency by which each dollar of invested capital avoids annual carbon emissions. It allows investors to assess the efficiency of HASI's projects and potential partners to assess project viability prior to investment. For example, HASI's energy efficiency department has a score of 1.57, whilst their solar division scores 0.45, demonstrating the impact the former is having on the environment. It is an intentionally simplified model designed to allow quick and objective comparison.

What are the key challenges HASI faces?

The key challenges HASI faces are increased competition and varying levels of political support. New players in the market will undoubtedly increase competitive tension in bidding processes to finance new projects. Financiers with lower costs of capital may be able to undercut HASI and secure access to projects HASI previously would have expected to participate in. HASI's moat of a high quality pipeline is a key mitigant to this risk, as evidenced by KKR's desire to partner with them. HASI themselves acknowledge they are benefiting from political tailwinds - for example the Inflation Reduction Act of 2022. Were this to change, HASI may find fewer projects in their pipeline and increased risk in the pipeline they do finance. HASI will need to ensure their risk tolerance doesn't overly increase in the face of fewer opportunities, to retain the quality of the portfolio.

What is the agreement with KKR?

In May 2024, HASI and KKR announced a venture aimed at investing up to $2 billion in “climate positive” sustainable infrastructure projects over the next 18 months. KKR cited HASI's pipeline as being highly complementary to their investment strategy which pleased shareholders - HASI shares rose over 16% higher on the news.