Open Energy, a solar financing solutions provider, has launched a lending exchange for commercial-scale solar developers and installers.
The Open Energy Finance Exchange gives developers access to more than $5 billion of U.S. solar financing capacity – a lending pool capable of doubling the current annual commercial solar sector’s installed capacity, the company says. Over 60 lenders compete on the finance exchange to provide developers and their clients financing terms for their projects or portfolios. Equipped with better financing terms, developers can move more quickly and get more projects financed, explains Open Energy.
The company says the finance exchange offers a loan quote tool, a way for developers and installers to get a financing estimate. The quote is the first step for developers to access the finance, and it applies to power purchase agreement (PPA)-based and direct-owned projects from 50 kW to 50 MW.
“More and more lenders, particularly banks, are interested in accessing commercial solar projects,” says Graham Smith, CEO of Open Energy. “Whether in the PPA market, where competition is pressing down on margins and where tax equity is still hard to source at competitive rates, or in the direct-to-customer market, it falls on the developer/installer to find the best deal on finance. Our financing exchange streamlines this process and helps developers access a large, liquid pool of low-cost capital.”
Over $75 million worth of deals are already active on the Open Energy Finance Exchange, and $35 million have been matched successfully. By the end of the year, Open Energy targets $250 million of solar financing matched between lenders and developers.