Sol Systems announces it has launched a financing partnership with Affordable Solar, a solar developer based in Albuquerque, New Mexico. Sol Systems has also closed financing for a 940 kW Affordable Solar project in Alamogordo, New Mexico.
Sol Systems, a boutique financial services firm that provides developers with project financing solutions, and Affordable Solar, a solar developer based in Albuquerque, New Mexico, today announced they have launched a new partnership to streamline financing for distributed solar energy projects.
Partnerships like this are important for the solar industry, since financing has been one of the biggest hurdles to making projects happen. Although solar is a relatively safe investment, it’s a new enough one that many banks and investment firms don’t yet understand its risks — or lack thereof.
Through the new partnership, Sol Systems will work closely with Affordable Solar and their national installer network to unearth, provide due diligence on, and refine projects before securing financing for each deal opportunity. The partnership will provide project development and analysis tools for Affordable Solar’s installer network, while opening up a broad range of finance options for the projects.
Sol Systems has already closed financing on two systems for Affordable Solar. Today the company announced the financial closing of a 940 kW solar energy system in Alamogordo, New Mexico. In the fall of 2013, Sol Systems also closed an 806 kW Affordable Solar project.
“The Alamogordo transaction was executed quickly and smoothly, and we are excited to extend our financing partnership to Affordable Solar’s installer network,” said Matthew Chou, Director of Project Finance at Sol Systems. “This partnership will expand our robust access to solar project pipeline and minimize the transaction costs that challenge commercial solar.”
“We are excited to continue our work with Sol Systems to bring more third-party financed distributed generation projects to fruition in 2014,” said Kevin Bassalleck, Director of Business Development for Affordable Solar. “Sol Systems’ expertise in solar project due diligence and financing make them an ideal partner in our efforts to secure financing for more of our installer network’s solar projects. We look forward to providing our installers with access to established project development resources, vetted legal documents, and experienced financing sources through our new partnership with Sol Systems. This new partnership will help our installer network develop more commercial projects efficiently and successfully.”
The Alamogordo project was funded with take-out financing from Sol Systems’ aggregate pool of diverse capital. To date, Sol Systems has facilitated financing for 85 MW of solar through a combination of its tax equity, take-out finance, debt, and solar renewable energy credit (SREC) portfolio management solutions.