Sol-REIT and Source Renewables Announce Exclusive Partnership
Sol-REIT to finance over 100 megawatts of Community Solar; Source Renewables to Develop Clean Energy Solar Projects for Underserved Communities.
MIAMI–(BUSINESS WIRE)–#cleanenergyfinance–Sol-REIT, LLC announces an exclusive partnership to finance over 100 megawatts (MW) of community solar development projects, focused within the Northeastern United States, to bring solar to disadvantaged and underserved communities.
Source Renewables, a leader in financing, structuring, and a developer of solar and clean energy projects will develop the projects. Sol-REIT, the first firm to successfully implement the mortgage REIT (Real Estate Investment Trust) model in the solar industry, will provide capital to Source Renewables for construction and long-term financing of solar projects in their pipeline. This partnership disrupts a highly fragmented solar finance market that has traditionally disadvantaged and discouraged middle-market developers due to inequitable and typically inefficient access to capital.
“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,” stated 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 is first-of-its-kind. It 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 proven and robust 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 (PPAs) 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,” said Andrew Day, Partner and Founder of Source Renewables.
Source Renewables’ sister company, Source Power Company, enables clean energy access to communities in New York state by committing to the best, focused service with programs and projects targeted to both subscribers and developer sponsors. With its extensive management experience and unparalleled service, the company currently offers the lowest acquisition and operational costs available in the market. Project subscribers can receive benefits from the first day of enrollment, as opposed to waiting for the commercial operation date. Source Power Company 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, equal to a potential carbon offset of 3.15 million tons and equivalent to the combined emissions of 558,000 cars in a single year.
“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,” stated 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.”
Since 2016, Source Renewables has developed solar projects that produce enough energy to power a city of 20,000 for over 30 years. As one of the few providers sitting at the junction of electric supply and community solar, Source Power is uniquely positioned to help New York’s disadvantaged communities and the developers of community solar projects in taking advantage of this vital new program.
About Sol-REIT:
Sol-REIT revolutionizes clean energy financing by providing innovative construction-to-permanent loans for middle-market solar developments across North America. This segment is remarkably underserved in today’s renewable energy market.
Led by a team of industry experts experienced in solar development, real estate lending, REITs, and fixed income, Sol-REIT is the first investment vehicle to bring mortgage REITs to the renewables market.
In the process, Sol-REIT strives to play an important role in reducing the global carbon footprint.
By financing solar similar to real estate, Sol-REIT offers flexible financing for solar projects that matches the asset’s operational life while empowering solar developer entrepreneurs to become long-term owners of their own projects. Sol-REIT is currently financing individual solar projects with an average loan size of $5 million to $50 million. For more information, visit https://www.sol-reit.com
About Source Renewables
Source Renewables is a vertically integrated renewable energy company focused on the development and financing of distributed solar generation and energy storage projects throughout New York. Bolstering Source Renewables’ mission is its sister, Source Power Company, a regulated Energy Service Company, and Distributed Energy Resource Supplier. The combined entities pair retail energy supply with customer management for community distributed generation projects. This innovative approach is disrupting the energy industry by providing cost savings to retail energy customers while enhancing returns for its development partners. Source’s unique and creative solutions will help New York meet its renewable energy goals to reduce the local effects of climate change and strengthen the communities it serves.
About Source Power Company:
Source Power Company is a regulated Energy Service Company and Distributed Energy Resource Supplier in New York State. Source Power provides innovative solutions that pair energy supply with renewable energy generation, providing a unique value proposition to customers and advancing the state’s clean energy goals. With roots in the solar development industry through its sister company Source Renewables, Source Power sits strategically at the intersection of project finance, renewable generation, and energy supply. This allows Source Power to match solar generation with power consumers and use its vertical integration to ensure efficiencies are passed along to customers at competitive prices. Source Power represents a reboot of the retail energy industry and is on a mission to improve products and services, through advanced technology and superior customer experience, while helping the environment and strengthening the communities it serves. Find out more about Source Power Company on its website: https://sourcepowerco.com/.
Contacts
Media Contact:
Sid Robinson, APR
Sol-REIT / (909) 227-9589
press@geogram.com
Media Contact:
Alyssa Pfitscher
Source Renewables / 845-594-7290
alyssap@lansons.com
