A Greener Shade of Khaki: How a Solar System for Military Housing Got Financed

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CIT Group releases a video that discusses how the company helped helped finance True Green Capital Management’s installation of a 12 MW solar energy system at Joint Military Base McGuire-Dix-Lakehurst in Burlington County, New Jersey. The project is one of the largest of its kind in the U.S.

We hear a lot about military solar projects, but not as much about how they’re financed. Today we got a financing angle on a solar installation that’s providing power for military housing in New Jersey.

CIT Group Inc. (NYSE:CIT) cit.com, a provider of financing and advisory services to small businesses and middle market companies, today released the video “A Greener Shade of Khaki.” The video takes a look at how CIT helped finance True Green Capital Management’s installation of a 12 MW solar energy system at Joint Military Base McGuire-Dix-Lakehurst in Burlington County. The project is one of the largest of its kind in the U.S.

 

Trinity Solar installed solar panels on the rooftops of the military housing. The energy generated is sold to the base housing community of over 2,100 military families at a rate cheaper than retail electricity prices. That gives the families at the base access to affordable, domestically produced renewable energy. The system is expected to generate 13.7 million kWh of clean, affordable electricity every year, accounting for over 30% of the community’s annual energy usage.

 

True Green Capital Management LLC, a New York-based private investment firm, is focused on investment opportunities in distributed renewable power. As the sole equity sponsor of the McGuire-Dix-Lakehurst solar project, True Green Capital first funded the development and engineering of the project. Then it considered lenders to provide senior secured project financing to install and operate the solar energy system.

 

“CIT was far and away the fastest prospective lender to understand the opportunity,” said Jeffrey Brown, a Founding Partner of True Green Capital Management. “Pursuing a highly structured transaction like this, without real precedent in the U.S. marketplace, required a depth of expertise in non-traditional energy, project finance and risk management.”

 

“We like to differentiate ourselves from our competition by providing value-added financing to our clients,” said Mike Lorusso, Group Head and Managing Director, CIT Corporate Finance, Energy. “So, the satisfaction we get from a transaction like this is to combine technical analysis, legal analysis and general due diligence to create an innovative, market-leading product.”