Pivot Energy has closed a $190 million financing facility to support a multi-state portfolio of distributed generation solar projects. Silicon Valley Bank (SVB) will lead the debt facilities, and Foss & Co. will make the tax equity investment.
The 90 MW portfolio comprises over 40 solar projects – approximately 80% community solar and 20% commercial and industrial (C&I) power purchase agreements (PPA).
This is the first portfolio of projects Pivot will build, own and operate since its strategic acquisition by ECP in June 2021. In addition to C&I PPAs, clients include community solar subscriptions for commercial clients, residents, and nearly 1,200 low-to-moderate income (LMI) households. The portfolio exhibits strategic diversity across project types, client offtake arrangements and geographic reach with projects located in New York, Illinois, Colorado, Minnesota, California and New Jersey.
The debt transaction led by SVB includes a construction loan, tax equity bridge loan and permanent loan – which, coupled with the tax equity investment from Foss, will enable Pivot to fully construct, operate and own this portfolio.
“We are excited to work with Pivot Energy to provide financing for this solar portfolio,” says Bret Turner, head of project finance, business development and innovation for Silicon Valley Bank. “Making solar accessible to more Americans is crucial in efforts to combat climate change, and the community solar subscriptions and PPA opportunities in this portfolio offer households and businesses an easy way to participate in the benefits of solar energy.”
All projects in the portfolio will be managed through SunCentral, Pivot’s proprietary community solar subscriber management and acquisition platform.
“We are pleased to work with Pivot Energy as they launch this new portfolio,” comments Bryen Alperin, director of renewable energy and sustainable technology at Foss & Co. “This portfolio will expand access to clean low-cost electricity for small businesses and households. This impactful investment furthers our goal of deploying tax equity into under-served segments of the market, while generating substantial environmental benefits.”
CohnReznick Capital acted as the exclusive financial advisor to Pivot Energy on the transaction. Stoel Rives acted as counsel for Pivot, Milbank acted as counsel for SVB, and Winthrop & Weinstine acted as counsel for Foss.
“SVB and Foss have been ideal partners for Pivot as we work to bring this portfolio to fruition,” states Pivot Energy CEO Tom Hunt. “We are excited about the unique opportunity this presents as our first owned portfolio on a national scale. We look forward to our continued partnerships with SVB and Foss as we work to grow our solar footprint across the nation, positively contributing to the environment, our communities, and our investors.”