Hannon Armstrong Sustainable Infrastructure Capital, Inc., (“Hannon Armstrong,” NYSE: HASI), a capital provider for sustainable infrastructure assets, along with Sol Systems, LLC (“Sol Systems”), a renewable energy investment firm, today announced plans to originate, structure and fund up to $100 million of construction and term debt financing for developers and owners of distributed solar projects benefiting commercial, industrial, municipal and utility customers throughout the United States and its territories. With HASI’s capital resources and Sol Systems’ transactional expertise in distributed solar, the parties believe they are well-positioned to originate and fund loans for projects and portfolios in these sectors.
This new initiative will utilize HASI’s proven ability to fund multiple transactions on a programmatic basis, similar to HASI’s “Hannie Mae” program which funded over $3.0 billion in more than 400 transactions in the energy efficiency and distributed generation markets. By coupling HASI’s resources with Sol Systems’ network and capabilities in project sourcing, due diligence, and structuring, solar developers and owners will benefit from streamlined standardized documentation, predictability in execution, smaller loan size requirements, lower transaction costs, as well as flexible terms and tenors.
“With this programmatic finance solution for solar developers, we are looking to take the economic and documentation uncertainties out of the finance process and accelerate a developer’s ability to close on a project. Expanding our relationship with Sol Systems to include the origination and structuring of new debt financing opportunities for distributed solar developers is another step towards building a broad market position,” said Jeffrey Eckel, Hannon Armstrong’s President & CEO. “We believe this new offering will provide the distributed solar industry with a flexible source of capital for portfolios of smaller projects, along with the skilled staff needed to transact at scale, with speed.”
“The lack of financing for mid-sized distributed generation has been a critical barrier to the solar industry’s continued growth,” said Yuri Horwitz, CEO of Sol Systems. “There are few meaningful debt providers or products available, especially for commercial and industrial solar projects, and we are proud to work with such an accomplished partner to facilitate the deployment of capital in this underserved sector of the solar market.”
About Sol Systems
Sol Systems is a renewable energy finance firm that provides secure, sustainable investment opportunities to investor clients, and sophisticated project financing solutions to developers. Founded in 2008, Sol Systems focuses on meeting the industry’s most critical solar financing needs, including tax structured investments, capital placement, debt financing, and SREC portfolio management. To date, the company has facilitated financing for thousands of distributed generation solar projects and hundreds of millions in investment on behalf of Fortune 100 corporations, utilities, banks, family offices, and individuals. For more information, please visit www.solsystemscompany.com.
About Hannon Armstrong
Hannon Armstrong (NYSE:HASI) makes debt and equity investments in sustainable infrastructure projects. The Company focuses on profitable projects that increase energy efficiency, provide cleaner energy, positively impact the environment or make more efficient use of natural resources. HASI targets projects that have high credit quality obligors, fully contracted revenue streams and inherent economic value.
The Company, based in Annapolis, MD, has elected to be taxed as a real estate investment trust, or REIT, for federal income tax purposes beginning with the year ending December 31, 2013. To learn more, visit www.hannonarmstrong.com.