SolaREIT, a fund that invests in solar real estate, has signed a $2 million deal with Prospect 14 and PTR Holdco as a developer partner. The deal includes a parcel of land where a 20 MW solar plant in Pennsylvania will be built.
“We’re excited to work with PTR Holdco and Prospect 14 to bring more solar energy to Pennsylvania,” says Laura Pagliarulo, president of SolaREIT. “Small, utility scale projects require large expanses of land and land purchases that tie-up capital can oftentimes deteriorate project economics. SolaREIT provides financial flexibility to both landowners and solar developers to ensure projects get built.”
The construction of the project, which is located in Franklin County in 2022, will likely start in the second quarter. SolaREIT arranged the purchase of the land pre-construction to allow the solar project to move forward.
“Prospect14 is in active development of 5 GW of solar assets. This represents over 100 landowners from very diverse economic backgrounds. Not all landowners fit into the traditional solar lease. Some require customized structures. SolaREIT armed us with optionality to approach landowners which increased transaction certainty,” mentions Carl Jackson, partner of Propect 14.
SolaREIT offers alternatives to developers and property owners that can lower their lease costs. Earlier this year, SolaREIT announced their Pre-Paid Solar Land Lease allowing solar developers to provide landowners with up-front payment for up to 40 years of lease payments while reducing developers’ lease costs and therefore ongoing operating expenses.
“We’re thrilled to partner with SolaREIT on this project,” comments Guy Winters of PTR Holdco. “SolarREIT’s innovative approach allowed us to maintain site control and satisfy our landowner as we pursue the necessary authorizations to build the project.