As the rooftop solar power market matures it’s able to attract more interest from investors. Case in point OneRoof Energy announced that it will sell 19.8 megawatts of its solar project assets through two new transactions, which should generate up to $61 million.
The residential solar installer announced the completion of the first tranches sale of $19 million on July 4. The company will sell the remaining $41 million in tranches through September 2016 as its projects in development are completed. Two third parties are purchasing the assets, according to OneRoof.
"The company is accelerating its efforts to partner with energy retailers and other home consumer service providers to complement their existing product lines with turnkey solar solutions,” said David Field, OneRoof CEO. The company offers solar loans, power purchase agreements and other financing options to homeowners.
OneRoof will use net proceeds of the sales to repay outstanding debts under its current construction loan facility as well as reducing the borrowing base of its senior loans, and outstanding development and installation costs for its under development projects.
"The company's model is to both own residential solar assets, as well as sell assets to third party investors, depending upon market and other conditions at the time,” Feld said. “This sale is consistent with our current plan to utilize capital to support strategic growth under our Solar 2.0 model.”
The company explained that its Solar 2.0 approach is part of its national growth strategy. Under that approach “OneRoof secures distribution and fulfillment partnerships with major consumer services providers with strong existing homeowner relationships,” the company said.
In the past OneRoof partnered with Black Coral Capital, among others as an investor. However in this case it did not name the third parties.
OneRoof isn’t the first rooftop solar company to create assets or sell part of their rooftop solar contracts as securities or assets. Other companies like SolarCity have created asset-backed securities to help them financed their growth.Tweet