Yesterday (June 23) Dividend Solar and Figtree Financing announced that they were merging and, as a combined entity under Dividend’s name, will already receive up to $200 million from LL Funds to grow the new entity. The merger is unique. For the first time it brings together a residential solar financing company with with a commercial Property Assessed Clean Energy (PACE) financing company.
“The combination of Dividend and Figtree allows our combined company to bring industry-leading financing products to a much broader group of home and business owners for solar and energy efficiency,” says Steve Michella, CEO of Dividend Solar. “From day one, we have focused on providing homeowners with a better experience when going solar, and this partnership accelerates our reach to help more customers save money with renewable energy.”
Dividend Solar finances residential solar in 28 states through solar installers. It offers solar loans to help homeowners go solar and its products offer performance guarantees, system monitoring and warranty management. The merger will allow Dividend to offer PACE financing, which hasn’t been used much in the residential solar market but is a popular tool to finance commercial solar projects.
“PACE is a unique offering that enables energy projects at an affordable price for customers who might otherwise not have had access to longer term financing,” says Mahesh Shah, CEO of Figtree. “It is one of the fastest growing financing products in the space, and we are excited to be joining forces with Dividend Solar to launch a complete solution for all property owners.”
Through PACE programs property owners can finance solar installations with long-term assessments paid through property taxes. As such PACE financing doesn’t carry credit requirements of loans or solar leasing options and can make financing much less expensive.
“We are excited to announce our partnership with LL Funds and with Figtree, which will allow our company to expand its financing program to include PACE and to accelerate our nationwide growth,” explained Eric White, president of Dividend Solar. “We can now offer a suite of products to our customers, creating a ‘one-stop shop’ where commercial and residential property owners can secure the upfront financing they need for renewable energy and efficiency upgrades.”
The funds from LL Funds will help fuel the new company’s growth. As part of the transaction Shivraj (Raj) Mundy, an operating partner with LL Funds, will join Dividend as its executive chairman. “The two companies are a very complementary fit, and together can achieve traction in the marketplace faster than either could on its own. Dividend will now launch a residential PACE program shortly in California before expanding it into the Company’s broader footprint,” Mundy offered as an example of the synergies created by the combined entity. There it will compete with some of the other companies offering PACE financed home solar.Tweet