Earlier this year Sol Systems and Hannon Armstrong agreed to jointly originate, structure and fund up to $100 million of construction and term debt financing for developers and owners of distributed solar projects benefitting commercial, industrial, municipal, and utility customers throughout the United States and its territories. The first deploying was with Pristine Sun’s complex, 15-project portfolio valued at $54.7 million. The portfolio included a combination of sponsor equity and debt together with the 1603 cash grant. Individual project sizes within the portfolio ranged from 323 kW to 2.03 MW across eight counties in California.
“The resourcefulness, collaboration, and specialized knowledge required to manage the risks for this type of transaction are why the segment remains underserved,” said Yuri Horwitz, CEO of Sol Systems. “As more firms like Pristine Sun become savvy about assembling portfolios, this is likely to change,” he added.
Pristine Sun was the developer and sponsor of the 46,818 panels that total 13.67 MW (DC) or 10.747 MW (AC), and will produce 27,859,460 kWh in year one. This is equal to reducing annual greenhouse gas emissions from 4,044 passenger vehicles, or offsetting CO2 emissions from energy use from 1,753 homes for one year. 15 landowners across eight counties in California turned their unused land into a steady revenue stream from rent where the solar panels now reside.
One key factor in reducing risk on the long-term performance of the portfolio was the ability of Pristine Sun to secure a 12-year production guaranty to ensure that the project performance would be commensurate with investor expectations.
About Sol Systems
Sol Systems is a solar energy finance and investment firm. The company has facilitated financing for 165MW and over $600 million of distributed generation solar projects on behalf of Fortune 100 corporations, insurance companies, utilities, banks, family offices, and individuals. It has over $300 million in assets under management as of September 2014. Sol Systems provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers. The company’s tailored financial services range from tax structured investments and project acquisition, to debt financing and SREC portfolio management. For more information, please visit www.solsystemscompany.com.