In an expansion to the scope of project types that are eligible for financing, Wunder, a financier in the small to midsize commercial solar market, has announced that it now services loan requests up to $1.5 million (previously capped at $1 million) and offers debt capital to third-party-owned systems.
According to the company, Wunder’s term loans were designed as a seven-year, nonrecourse option for commercial building owners looking to maximize returns on their solar investments, while managing cashflows.
Wunder’s flexible payment plan allows for borrowers to use available rebates and incentives to make early payments with no penalty. These payments trigger an automatic re-amortization of the remaining balance, lowering future payments, as well as the overall cost of financing. The most common prepayment is with the investment tax credit benefit, which, if used as an early payment in the first year of the loan, reduces subsequent payments by 30%.
Wunder sources its projects through a growing partner network of engineering, procurement and construction (EPC) contractors and developers across 27 states.
The recently announced product enhancements are a direct reflection of partner feedback, says Bryan Birsic, Wunder’s CEO.
“We launched a handful of software enhancements this fall, which really allowed our financing team to focus more on listening to our partners and improving the product and less on administrative tasks,” he says. “We began to notice that a number of our partners were using their own corporate tax appetite to offer a handful of PPAs per year.”
According to the company, high demand for a limited supply of tax equity investors makes it nearly impossible to find a third-party system owner for a one-off small commercial project.
Wunder says its recent product expansion allows for loans to be made directly to the SPV managing the system and to be paid back with revenues from the power purchase agreement and other incoming incentives. The nonrecourse loans provide some cashflow freedom for developers and EPCs building systems off their balance sheets.
Loans can also be used to refinance existing, unlevered systems, Wunder notes.