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One way to help a transaction get done before a crucial vote is to bring some cash to the table. As everyone is on their way to Vegas for SPI, SolarCity ‘sold’ some of their future cash flows from 230MW for $305million dollars. A so called cash equity transaction which likely lets the company keep the long term potential value of the contracts in the case of renewals. 5 lenders made up part of the capital transaction that showed a weighted cost of capital of 7.4% which is a nice mark for the solar industry as a whole. In recent times, secondary markets for solar assets have traded above this number. A George Soros fund advised on the deal which will surely rile some of the GOP up on the ‘green’ topic as we enter the debates. Recall 4 years ago when Governor Mitt Romney got very close to calling Elon Musk a loser.  Going forward, Sunrun and Vivint Solar will likely seek to replicate this with smaller portfolios or find a larger partner as well.

Have a great day!

News

 

Have a great day!
Yann

You are likely on the way to SPI for a week of solar fun. We have now finished almost 3 quarters of 2016, a year that was supposed to bring uncertainty to the forefront. With the ITC extension everything has slowed down a bit, including the speed of interconnection applications being approved (a topic for another day). Policy and smart strategy will be key for businesses going forward, whether you are a module manufacturer, installer, developer or finance company; you have to understand how the outside factors impact your work. SPI is a good time to reset on your focus and see what everyone is working on. Of course I will be checking in to everyone remotely. If something interesting comes up, feel free to drop a line.

Have a great day!

News

 

Have a great day!
Yann