Sol-REIT LLC has signed an exclusive partnership to finance over 100 MW of community solar development projects, focused within the Northeastern United States, to bring solar to disadvantaged and underserved communities.
Source Renewables will develop the projects, while Sol-REIT will provide capital to Source Renewables for construction and long-term financing of solar projects in their pipeline.
“We are playing our part to address one of the greatest challenges in today’s solar energy market: access to capital for solar developers targeting projects in underserved communities,” states Mark Settles, CEO of Sol-REIT. “These underserved communities are those who need access to clean renewable energy the most, and Sol-REIT is helping to serve that need in this partnership with Source Renewables.”
Sol-REIT’s financial structure for renewable energy development provides access to construction capital and long-term financing for middle-market solar developers who seek to retain equity in their projects. This financing allows developers to maintain ownership beyond Notice-to-proceed (NTP), improving the economics for developers. Sol-REIT applies the REIT financial structure used in the commercial real estate industry to empower solar developers and streamline funding timelines via its proprietary fintech portfolio management system.
By financing solar projects in a similar model to real estate, Sol-REIT offers the potential of solid investor returns with predictable cash flows backed by long-term power purchase agreements (PPA) with high credit quality off-takers. Sol-REIT is also committed to democratizing the solar industry increasing access to affordable, clean energy to homes, businesses, and governmental entities across North America.
“We are excited to work with Sol-REIT to expand our efforts in providing access to clean energy for all residents in the Northeast region. This is a meaningful partnership between two companies that are committed to transforming the region and bringing over 100 MW of community solar infrastructure to underserved communities,” mentions Andrew Day, partner and founder of Source Renewables.
Source Renewables’ sister company, Source Power Co., enables clean energy access to communities in New York state by committing to programs and projects targeted to both subscribers and developer sponsors. Source Power can offer a streamlined billing solution, greatly reducing community solar challenges. Property owners can choose to sell or lease their land to Source Renewables. The firm then develops solar farms that are compliant with all municipal zoning guidelines as well as all federal, state and local environmental regulations.
Over the course of the next two years, this partnership is poised to facilitate the construction of at least 100 MW of solar projects. “In the current economic climate and the volatility of oil prices, solar and clean energy renewables are becoming increasingly critical to the stabilization of the energy markets,” comments New York State Sen. Kevin Parker. “The need for renewables, like the projects Sol-REIT finance and Source Renewables develop, are of vital importance to this region’s energy independence.”