Solar real estate investment fund SolaREIT has signed a $2 million solar land deal with developers PTR Holdco and Prospect 14. The deal concerns a parcel of land in Pennsylvania where a 20 MW solar facility will be built. Construction on the Franklin County project is expected to begin in the second quarter of 2022. SolaREIT structured the deal to purchase the land pre-construction, permitting the project to move forward.
“We’re excited to work with PTR Holdco and Prospect 14 to bring more solar energy to Pennsylvania. Small, utility scale projects require large expanses of land and land purchases that tie-up capital can oftentimes deteriorate project economics. SolaREIT provides financial flexibility to both landowners and solar developers to ensure projects get built,” said Laura Pagliarulo, President of SolaREIT.
Launched in late 2020, SolarREIT is a new model for financing solar land and allows landowners more options for compensation if their land is used to host solar farms, while at the same time benefitting developers through lower lease rates.
Prospect14 is in active development of 5 GW of solar assets, and this is representative of over 100 landowners with very different economic profiles, noted said Carl Jackson, Partner of Propect 14.
“Not every landowner fits into the traditional solar lease, some require bespoke structures that can be customized,” he stated.
While the majority of solar projects are on leased property, SolaREIT offers alternatives to developers and asset owners that reduce their lease costs. SolaREIT announced their “Pre-Paid Solar Land Lease” earlier this year, which allows solar developers to provide landowners with up-front payments for up to 40 years of lease payments while reducing developers’ ongoing lease costs and operation expenses.
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