Solar services company OneRoof Energy just refinanced a portfolio of its residential solar rooftops on 1,611 homes to the tune of $19.8 million. Under the refinancing Greenbacker Renewable Energy is purchasing the majority stake in the 12.1 megawatt portfolio, allowing OneRoof Energy to reinvest in expanding its ability to finance more solar rooftops.
"This transaction is consistent with our current plan to utilize capital to support strategic growth under our Solar 2.0 model, which is focused on being a low-cost, capital-light, residential solar fulfillment platform, focused on partnering with scalable and low-cost sales partners," stated David Field, OneRoof CEO.
OneRoof will use the proceeded from the sale to payback its senior loans with Goldenset Capital Partners. The remaining funds will be used for general working capital purposes, according to the company. The new sale builds on a previous sale of 20 megawatts of rooftop solar projects announced just last month (July 2016).
"The company is very excited to pay down its Senior Loans and terminate all related security interests. This financial restructuring will provide the company significant flexibility in its ability to source capital going forward," stated David Field, president and CEO of OneRoof.
The refinancing was structured as a special purpose vehicle (SPV) with Greenbacker as its managing member. OneRoof will retain a residual interest in the SPV and will continue to provide operation and maintenance services for its systems in the portfolio.
"Adding a large residential rooftop solar portfolio in partnership with OneRoof Energy Inc., who maintains an ongoing minority stake in the portfolio, adds significant diversification to Greenbacker's current portfolio of solar and wind assets," said Charles Wheeler, Greenbacker CEO. "This segment of the market has become increasingly sophisticated and opportunities for securitization of these portfolios provide significant upside potential. As we continue to grow our portfolio of alternative energy assets…we seek projects that will continue to broaden our revenue stream, providing more predictable returns for our investors." He added that the company already has more than $100 million in alternative energy assets.
It’s likely that more arrangements like this will happen. This type of arrangement can help a project financier like OneRoof secure funds for solar roof projects at lower interest rates and it’s ability to repay a loan ahead of schedule should also help it. At the same time it provides a long-term return on investment for Greenbacker’s clients, which include individual investors.Tweet