NEWS – FOR IMMEDIATE RELEASE
January 13, 2013
Charleston, SC. – Greener Product LLC. has recently introduced the Solar Capital Fund that provides for 100% project financing for renewable energy projects in excess of $5,000,000. The Solar team offers unique and proprietary financing solutions for project developers seeking financing for municipalities, schools, non-profits, government and companies having an interest in developing multiple solar power installations in the small (50 kW) to medium (1 MW) size range. The funding program is available to qualified projects in selected markets including Massachusetts, Connecticut, New York, New Jersey, Rhode Island, District of Columbia, Maryland, Delaware, Georgia, North Carolina and Tennessee.
The Solar Capital Fund is underwritten by US based Fortune 500 companies having extensive experience in financing renewable energy projects in the US and selected Internationally markets (Canada, Caribbean). The program provides both the construction and take-out financing for terms up to 30 years and at competitive rates i.e. 4% – 5% range depending on the credit worthiness of the project host.
• 100% financing of renewable energy project costs
• Transactions of $5 million with no upper limit
• Construction and take-out financing for terms up to 30 years
• Roof-top and ground mounted systems
• Small to Medium sized Municipal and School projects may be accommodated
• Tax benefits, depreciation, stay with the project developer
• Investment grade entity in the structure
Prior to the introduction of the Solar Capital Fund project developers commonly found project financing difficult due to a number of factors.
“Renewable energy projects are a unique asset” according to a Greener Product spokesman “where the future market value of the underlying asset collateral is difficult to establish and cash flows are difficult to project due to uncertain power production and the resultant revenue. Additionally project developers often lack access to equity funds “skin in the game” to satisfy the bank and lenders can only offer high coupon rates and limited amortization terms which puts additional economic pressure on the business case of the project.
THE SOLAR SMART SOLUTION
Commercial banks do not typically provide a viable source of project funding due to their attachment to long-standing underwriting practices of focusing on the value of the underlying asset, imposition of debt coverage ratios and demand for developer equity in the capital stack.
Project financing has typically been combined with some component of debt financing and private investor equity contribution, with the private investor’s motives driven primarily by tax-related benefits. The repetitive need to obtain and package Bank debt with private investor capital for each project has proven to be a significant impediment to the ability of the developer to fund new projects.
In light of these challenges, the team looked to practices already long in-place in the commercial property structured financing markets to provide a solution.
The approach relies on the credit quality of the project income stream, with virtually no emphasis on the nature of the renewable energy technology or physical assets. Solar Capital will provide 100% project cost debt financing, with extended amortizations out to 25 or even 30 years.
Finally; the Solar Capital Fund does not seek to obtain any portion of project tax benefits. This allows the project developer to capture, or barter, these benefits to their own gain.
In summary – the Solar Capital Fund Program is driven by the credit quality of the transaction lessee and transactional documents that provide bond investors with default protection.
For more information contact:
Tel: 843-576-0112 x 121
Greener Product LLC. Dba Solar Capital
Solar Capital is a financial services and project development company providing renewable energy solutions through photovoltaic (“PV”), solar thermal and wind technologies. The company levers its energy knowledge expertise, investment banking expertise and procurement processes to help municipalities, schools, non-profits, government and businesses maximize energy savings and reduce carbon emissions.