Today, Sol Systems announced it has successfully financed Cornell University’s Snyder Road Solar Farm, consisting of a 2MW array on eleven acres of Cornell property in the Town of Lansing. The capital sources for the transaction included development capital from Distributed Sun, sponsor equity from Building Energy Holding USA and a tax equity investment managed by Sol Systems.
High transaction costs associated with relatively smaller project opportunities pose a significant hurdle for middle market solar projects. This transaction marks Sol Systems’ ongoing initiative to bring new sources of tax equity to the solar asset class and streamline financing to grow this sector.
“If not done right, placing tax equity into one-off sub-5MW deals can be challenging given transaction costs for these smaller deals,” said Yuri Horwitz, CEO of Sol Systems. “This is the second transaction we have financed with Building Energy, and the history of our partnership allowed for efficiency and a streamlined financing process” he added.
The 6,778 panels totaled 2.067 MW (DC) or 1.76 MW (AC), and will produce 2,388,357 kWh in year one. This is equal to reducing annual greenhouse gas emissions from 347 passenger vehicles, or offsetting CO2 emissions from electricity use from 320 homes for one year.
“We are proud to work in partnership with Sol Systems to secure the tax equity investment for the Cornell University’s Snyder Road Solar Farm,” said Building Energy Managing Director Andrea Braccialarghe. “This project is the second investment into the mid-sized commercial solar market, we have managed together in this country in order to help customers, like Cornell, to find environmentally attractive solutions and align with their carbon reduction goals.”
In order to place the New York solar farm in service under a tight deadline, Sol Systems worked to rapidly close the transaction in just over one month from executing the term sheet.
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.