Market Update: 3.25.16
- pv magazine: Spruce Finance partners with Investec to finance 80MW of residential solar.
- Spruce Finance has engaged Investec to secure approximately $130 million in financing to support the development of around 80 MW of U.S. rooftop solar assets.
- Spruce Finance is a specialty finance company that offers solar financing in 18 states and water and energy efficiency home improvement financing in all 50 states.
- Vivint Solar and SolarCity both raise capital to finance development.
- Vivint Solar recently closed on a $200M loan. The loan is accessible in two tranches. The first is a shorter-term of $75 million priced at LIBOR plus 5.5%. The second is for a total of $125 million that can be drawn over time to fund future growth. If Vivint decides to draw on the second, pricing will increase to LIBOR plus 8.0%, and the term will extend to four years on the entire $200 million facility.
- Meanwhile, SolarCity closed on a $131M tax equity fund. This is the second fund that the company has closed in the quarter. The fund will be used to finance residential, commercial, and military solar projects.
- In spite of its aggressive financing/installation efforts, SolarCity has said it aims to produce positive cash flow by the end of 2016. The company is targeting 1.25GW of 2016 installations, up from 870MW in 2015.
- Bloomberg: SunEdison faces possibility of $1.4B default.
- SunEdison has already delayed the release of its 2015 annual report, twice. If the company fails to file the report by March 30, it must reach accommodations with lenders on at least $1.4B in loans and credit facilities or face a potential technical default.
- Ultimately, it is up to the banks to decide whether or not the company defaults. Lenders might grant SunEdison an extension to file its 2015 results, possibly in exchange for a higher interest rate or reducing the limit of the loans or credit facilities. The outcome may depend on the company’s financial position and relationships with banks. And it will all be avoided if SunEdison is able to file its results by the deadline.
- WSJ: Net metering changes pose threats to residential installers.
- More states may soon be following in Nevada’s footsteps. Utilities in Arizona, Colorado, Louisiana, Utah and many other states are currently proposing measures that include changing their net metering programs or raising the monthly fees charged to home solar users for hooking their equipment to the power grid.
- Overall, two dozen states are weighing changes to their incentives for rooftop solar power and other renewable-energy policies.
Written by Robert Bray, T-REX Associate