LGI ASX Solar Acquisition Strengthen Its Renewable Energy Growth Strategy

Highlights

• LGI will acquire 42MW of operating Queensland solar assets for AU$22.0 million.
• The assets could contribute annual EBITDA of approximately AU$2.1 million to AU$4.0 million.
• The acquisition increases LGI’s targeted medium-term energy pipeline to more than 120MW.

AU$22 Million Solar Acquisition Expands Portfolio

LGI Limited (ASX: LGI) announced on 6 October 2026 that it had entered into a binding agreement to acquire two operational, grid-connected solar farms in Queensland for AU$22.0 million. Following the announcement, LGI shares traded at a CMP of AU$2.100, representing a surge of 7.969%. The transaction covers 100% of Maryborough Solar Pty Ltd, which owns the Brigalow Solar Farm, and 100% of Chinchilla Solar Pty Ltd, operator of the Chinchilla Solar Farm. The assets are being acquired from IIG Solar Assets Pty Ltd ATF The IIG Solar Asset Trust, with no debt attached to the transaction.

Together, the assets provide 42MW of export capacity and strengthen LGI’s strategy of building a diversified renewable energy platform incorporating landfill biogas generation, solar and battery storage.

Operating Assets Add Scale and Generation Capacity

The Chinchilla Solar Farm, located at Baking Board in Queensland, has 19.9MW of installed capacity and 14.7MW of export capacity. It commenced commercial operations in 2019 and generated 20,981MWh during 2025.

Brigalow Solar Farm, situated at Yarranlea, has 34.5MW of installed capacity and 27.3MW of export capability. The facility began commercial operations in 2021 and recorded 2025 generation of 33,229MWh. Combined installed capacity across the two assets stands at 54.4MW, exceeding their 42MW export limit. Both sites also have more than 30 years remaining on their respective land leases.    

Earnings Contribution and Funding Structure

Based on current electricity prices, LGI estimates that the acquired portfolio could contribute annual EBITDA of approximately AU$2.1 million to AU$4.0 million. The outcome will depend on the timing of revenue synergies and successful implementation of the company’s proprietary Dynamic Asset Control System, or DACS. LGI expects around AU$1.6 million of FY27 EBITDA based on approximately nine months of ownership.   

 The AU$22.0 million purchase price will be funded through existing cash and LGI’s available debt facility. The consideration equates to roughly AU$0.5 million per MW of export capacity and is below the stated greenfield development cost of comparable solar assets. LGI intends to maintain net debt-to-EBITDA below 2x during its portfolio expansion.   

Battery Integration Creates Further Optionality

LGI plans to bring operation and maintenance activities for the solar farms in-house and deploy DACS across both locations to improve dispatch and electricity price outcomes.

The company is also assessing potential battery energy storage system integration. With installed solar capacity exceeding network export capacity, excess generation headroom could support battery charging and potentially improve the ability to capture higher-value periods in the electricity market.   

 Outlook: Renewable Pipeline Moves Beyond 120MW

Completion of the transaction is expected on 9 October 2026, with no shareholder approval required and no outstanding material conditions. Following the acquisition, LGI’s targeted medium-term strategic pipeline will increase from its previously announced 80MW high-conviction pipeline to more than 120MW of distributed renewable and dispatchable capacity.   

The acquisition provides LGI with greater operating scale, diversified generation exposure and additional battery-storage optionality. Future performance will depend on successful integration, DACS deployment, electricity market conditions and execution of the company’s broader renewable energy pipeline.

Note- All data presented is based on information available at the time of writing.

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