Sol Systems successfully placed $15 million in tax equity into two 2.5 MW North Carolina projects on behalf of a Fortune 100 company. The financing arrangement marks the Fortune 100 company’s first investment in solar and provides the solar industry with a new source of tax equity.
The US solar industry is supported by a 30% investment tax credit that generally requires outside investors with profitable businesses to invest in projects, typically known as tax equity. Tax equity is currently the most critical limiting factor in solar project development, and has the potential to limit the growth of the industry in the coming years.
Similarly, although North Carolina has strong solar incentives, including a 35% state tax credit, it remains challenging for developers because state tax investors are difficult to secure. Solar investment tax credits compete directly with state tax credits for several other industries, and much of the 2012 and 2013 appetite has been consumed.
Sol Systems was able to arrange both the state and federal tax credit investor for these projects. “This investment from a non-traditional solar investor demonstrates that the solar asset class is now commanding the attention it deserves as an impactful, profitable, and stable investment,” noted Yuri Horwitz, CEO of Sol Systems. “If our industry is to continue the growth we have all worked so hard to achieve, we must continue to build and diversify the pool of investors.”
FLS Energy, a solar integrator and developer, built the two solar energy systems, which are located in Eastern North Carolina. Sol Systems provided project origination, third party underwriting and investment structuring and facilitated the entire financing arrangement, from project origination to financial close, in just three months. Sol Systems will also assist with post-construction asset management services.
About Sol Systems:
Sol Systems is a boutique financial services firm that offers investor clients direct access to the renewable energy asset class and provides developers with sophisticated project financing solutions. Founded in 2008, Sol Systems focuses on meeting the most critical needs of the industry, including SREC monetization, capital placement, tax equity, and New Market Tax Credits. To date, the company has arranged financing for thousands of projects and facilitated hundreds of millions in investment on behalf of Fortune 100 companies, private equity, family offices and individuals. For more information about Sol Systems project financing efforts, please visit www.solmarket.com.
About FLS Energy
FLS Energy is a full-spectrum solar energy company offering a complete, comprehensive package of services backed by nearly a decade of solar project development experience. With more than 100 successful solar energy projects in its portfolio, FLS Energy offers an innovative and creative approach to problem solving for its customers and investors that leads to thriving projects for varying industries and a diverse clientele. Learn more about how FLS Energy is making solar mainstream by visiting www.flsenergy.com.