One way to help a transaction get done before a crucial vote is to bring some cash to the table. As everyone is on their way to Vegas for SPI, SolarCity ‘sold’ some of their future cash flows from 230MW for $305million dollars. A so called cash equity transaction which likely lets the company keep the long term potential value of the contracts in the case of renewals. 5 lenders made up part of the capital transaction that showed a weighted cost of capital of 7.4% which is a nice mark for the solar industry as a whole. In recent times, secondary markets for solar assets have traded above this number. A George Soros fund advised on the deal which will surely rile some of the GOP up on the ‘green’ topic as we enter the debates. Recall 4 years ago when Governor Mitt Romney got very close to calling Elon Musk a loser. Going forward, Sunrun and Vivint Solar will likely seek to replicate this with smaller portfolios or find a larger partner as well.
- Reuters: SolarCity raises $305 million in deal advised by Soros’ firm
- PV-Magazine: EnergySage market report shows big variations from national trends
- CleanTechnica: Meet The Men Who Put Solar Shingles On The Roof
- PV-Tech: US solar finance – three talking points
- CNBC: U.S. utility solar enjoys building boom in 2nd qtr but residential slows
- Fortune: Here’s Why Solar Farms Are Booming in the U.S.
- Solar Industry: Report – Whole Foods Sets Valuable Example For Retailers Going Solar
- Bloomberg: U.S. Solar Surged 43% in Second Quarter Led by Utility Projects
Opinion
Have a great day!
Yann