Sol-REIT LLC has entered into an exclusive partnership to finance more than 100 MW of community-based solar development projects in the Northeastern United States. This is to bring solar power to underserved and disadvantaged communities. Source Renewables will develop these projects. Source Renewables will be provided capital by Sol-REIT to finance construction and long-term financing for the 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 the opportunity to keep ownership beyond the Notice of Proceed (NTP), thereby improving their economics. Sol-REIT uses the REIT financial structure found in commercial real estate to empower solar developers. It also streamlines funding timelines through its proprietary fintech portfolio management software.
Sol-REIT, which finances solar projects in a similar manner to real estate, offers solid investor returns. These cash flows are backed with long-term power purchase arrangements (PPA) and high credit quality off-takers. Sol-REIT also aims to increase access to affordable, clean solar energy for all North American residents, businesses, and governments.
“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 provide a simplified billing solution that will greatly reduce community solar challenges. Source Renewables can be leased or sold by property owners. The firm will then design solar farms that meet all municipal zoning guidelines, as well as all federal and state environmental regulations.
This partnership is expected to facilitate the construction and operation of at least 100MW of solar projects in the next two years. “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.”
Image by Derek Sutton, Unsplash