Between May 23 and 24 nearly $200 million in rooftop solar funding was unlocked through two new, separate rounds of financing. In separate announcements Spruce Finance and Vivint Solar announced new rounds of funding to bring no- and low-upfront cost solar to homeowners across the country.
Vivint Solar announced a $75 million tax equity investment fund with a new investor on May 23. The following day Spruce Finance, which is focussed on financing home solar and energy efficiency improvements, announced it closed a $120 million syndicated credit facility with Investec to support its growth.
It’s the first time Vivint Solar has announced a tax equity fund with this investor—the company did not disclose the investor’s name—and comes shortly after it parted ways with SunEdison, which has now filed for bankruptcy. The new facility will allow Vivint Solar to install more than 45 megawatts of residential solar energy systems ore more than 7,200 residential systems.
"We are very pleased to announce this new tax equity partnership," said Thomas Plagemann, Executive Vice President and Head of Capital Markets for Vivint Solar. "This investment fund demonstrates our continued ability to raise critical financing and the confidence of new investors to partner with Vivint Solar as a leading provider of residential solar in the United States."
Meanwhile Spruce and Investec closed on a $120 million syndicated credit facility. The company said it is its first syndicated back-leveraged credit facility and will support the growth of its solar leases and power purchase agreements.
“Our residential solar lease and PPA, solar lending, and efficiency lending businesses are growing more than 50 percent so far this year, compared to 20-30 percent average growth in the residential solar industry,” said Nat Kreamer, CEO of Spruce. “The capital markets have responded positively to that growth, and we expect to raise more financing for our solar and efficiency businesses from a variety of sources this year.”
The capital raises at both companies and other recent raises by some of the other larger rooftop solar companies show that interest in the residential market is strong. More importantly the interest is strong on the residential consumer side and on the financial side where it continues to attract more financiers and funds.Tweet