Sol Systems is pleased to be the first to close a transaction in solar renewable energy credit (SREC) II, the newest iteration of the Massachusetts solar market. Under this agreement, Sol Systems will provide solar project financing via a prepaid SREC contract to EthoSolar, an Ontario-based solar power provider with over 600 systems installed in North America, for a 150 kilowatt (kW) solar energy project.
This landmark deal is the first prepaid SREC contract in the nascent Massachusetts SREC-II market, which will be promulgated on April 25. Sol Systems provided a Sol Upfront contract, issuing pre-payment to EthoSolar’s client for generation of SRECs in 2014 and 2015; this capital was key in pushing the project over the finish line in light of a tight deadline.
“Combining an upfront sale of a percentage of SRECS with other traditional and nontraditional solutions allowed us to negotiate an attractive financing solution from a local bank that has our client in the black from day one on this project. Sol Systems brought creativity and value that was outside the box,” said Ethan DeSota of EthoSolar.
SREC contracts are critical for solar project development on much of the East Coast. Since Massachusetts announced the closing of its first solar carve-out program (“SREC I”) in spring 2013, commercial solar project development has slowed as regulatory uncertainty loomed. Sol Systems brings certainty to the Massachusetts SREC II market by offering three and five-year fixed price SREC contracts, as well as prepaid options.
“SREC II was suffering from a lack of liquidity, and our team wanted to change that to ensure that the Massachusetts solar market would remain strong,” said Jason Cimpl, Portfolio Manager at Sol Systems. “We are proud to have worked with EthoSolar in this landmark transaction, and to help them with the financing they needed to make this project a reality.”
Sol Systems will continues to provide financial solutions to solar energy system owners, developers, and investors in Massachusetts, including tax equity, debt, takeout, and SREC solutions. For more information on those services, please reach out to our Project Finance Team at (888) 235-1538 x2 or firstname.lastname@example.org. To learn more about the Massachusetts solar market, please register for Sol Systems’ upcoming webinar with the Massachusetts Department of Energy Resources (DOER) and the Solar Energy Industries Association (SEIA).
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.
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