Distributed Sun announced the formation of sunFIVE, a solar tax equity fund. Managed by DSUN, sunFIVE will invest in commercial and industrial solar assets primarily with unrated credit off-takers. The fund closed its first transaction in July and plans to deploy $50 million in tax equity through Dec. 31, 2016.
In July, sunFIVE invested in a 1.8-MW photovoltaic project developed and constructed by GX Investment, a joint venture between ET Solar, an international PV manufacturer, and Jiangsu New Energy Development Company, Ltd. JSNE is a renewable energy developer and investor in China. The project will be owned and operated through a special purpose entity under the name Bakersfield 111 LLC. Power from the project will be sold through a 20-year, Power Purchase Agreement to Pacific Gas and Electric Co.
“Distributed Sun’s expert transactions team completed the required due diligence and investment swiftly,” said Boris Schubert, Group VP, Global Project Development of ET Solar. “We value their ‘get-the-deal-done’ attitude and their ability to overcome obstacles along the way. ET Solar would be pleased to work with Distributed Sun again.”
Jeff Weiss, Managing Director of DSUN, said, “We expect to see a growing demand for tax equity between now and the end of 2016 when the Investment Tax Credit is scheduled to stepdown. Those projects with commercial and industrial scale off-takers in the 500 kW to 5MW size range will increasingly need a unique, flexible and cost-effective tax equity investment option. DSUN’s dedicated tax equity funds are positioned to serve this industry segment.”
Have you checked out our YouTube page?
We have a ton video interviews and additional content on our YouTube page. Recently we debuted Power Forward! -- a collaboration with BayWa r.e. to discuss higher level industry topics as well as best practices / trends for running a solar business today.
Our longer running side project is The Pitch -- in which we have awkward discussions with solar manufacturers and suppliers about their new technology and ideas so that you don't have to. We've discusses everything from residential rail-less deck attaching and home solar financing to large-scale energy storage value stacking and utility-driven new home solar + storage microgrids.
We also post our Project of the Year announcements there! Interviews with this year's winners will be up starting the week of Nov. 8. Head there and subscribe today to stay on top of all this extra stuff.