Today, Sol Systems announced it has successfully financed Cornell University’s Snyder Road Solar Farm, consisting of a 2-MW array on eleven acres of Cornell property in the Town of Lansing. The capital sources for the transaction included sponsor equity from Building Energy Holding USA and a tax equity investment managed by Sol Systems.
High transaction costs associated with relatively smaller project opportunities pose a significant hurdle for middle market solar projects. This transaction marks Sol Systems’ ongoing initiative to bring new sources of tax equity to the solar asset class and streamline financing to grow this sector.
“If not done right, placing tax equity into one-off sub-5-MW deals can be challenging given transaction costs for these smaller deals,” said Yuri Horwitz, CEO of Sol Systems. “This is the second transaction we have financed with Building Energy, and the history of our partnership allowed for efficiency and a streamlined financing process” he added.
Building Energy was the developer and sponsor of the 6,778 panels that total 2.067 MW (DC) or 1.76 MW (AC), and will produce 2,388,357 kWh in year one. This is equal to reducing annual greenhouse gas emissions from 347 passenger vehicles, or offsetting CO2 emissions from electricity use from 277 homes for one year.
“We are proud to work in partnership with Sol Systems to secure the tax equity investment for the Cornell University’s Snyder Road Solar Farm” said Building Energy Managing Director Andrea Braccialarghe. “This project is the second investment into the mid-sized commercial solar market, we have managed together in this country in order to help customers, like Cornell, to find environmentally attractive solutions and align with their carbon reduction goals.”
In order to place the New York solar farm in service under a tight deadline, Sol Systems worked to rapidly close the transaction in just over one month from executing the term sheet.