Keystone Power Holdings LLC has established KPH Solar Farms Fund I, a new investment fund for small-scale solar projects.
Keystone says the fund will enable the company to expand its ownership into key U.S. markets, such as Maryland, Massachusetts, New Jersey, New York, Pennsylvania, South Carolina and Washington, D.C., by supporting small-scale solar power projects in addition to the medium-to-large projects that Keystone Power Holdings has financed previously. With an initial target volume of $35 million, Keystone expects to be able to finance more than 20 MW of additional small- to large-scale solar power projects through KPH Solar Farms Fund I.
“Clean energy financing has evolved as renewable and distributed energy resources have grown to play larger roles in the United States’ energy portfolio,” says William DePhillipo, co-founder of Keystone Power Holdings, LLC. “As both the electricity grid and clean energy financing continue to become increasingly decentralized, Keystone’s KPH Solar Farms Fund I will help to ease the transition by allowing small to medium size projects to utilize the same funding mechanisms that have typically been used to finance large-scale solar projects.”
According to Keystone, KPH Solar Farms Fund I has secured financial institutions to provide repeatable financing for eligible solar energy projects with capacities ranging from approximately 250 kW to 10 MW. The fund will provide 100% of the initial debt, equity, tax equity and construction financing. The investment fund will also be responsible for credit rating, financial analysis, administration and finance, as well as billing and collecting on power purchase agreements. KPH Construction Services LLC will act as project developer and will work with partners to execute the planning, engineering and design for eligible projects.
“This fund works with a wide variety of credits and deal structures, allowing us to finance a broader range of opportunities than many others in the solar industry,” says Anthony Fotopoulos, co-founder of Keystone Power Holdings LLC. “Many organizations that wish to diversify their energy consumption and enact the environmental benefits of renewables now have a new option that allows them to pursue those goals while reducing their bottom lines.”