Soltage raises $142M investment to fund a 110 MW solar portfolio of solar assets across the United States
Soltage LLC, a leading independent power producer headquartered in New Jersey, announced that it raised a $142M senior construction-to-term credit facility with Fifth Third Bank, National Association. The investment will fund a 110 megawatt (MW) solar portfolio of distributed utility-scale solar assets located across six states: Oregon, Illinois, Massachusetts, Rhode Island, North Carolina and South Carolina.
Fifth Third served as Administrative Agent and Lead Arranger for this financing with Silicon Valley Bank (SVB) as Joint Lead Arranger on the investment. Soltage, working in partnership with independent infrastructure investment firm Basalt Infrastructure Partners LLP (Basalt), are deploying this investment through their previously established Helios capital vehicle.
Shrips Ilango, Soltage Chief Financial Officer said:
“We are pleased to be working with Fifth Third and SVB on this portfolio of assets which will deliver low cost solar power to our customers, who now include power consumers in Oregon and Illinois. This transaction represents an expansion of our partnership with Fifth Third and further demonstrates the quality and bankability of a diverse portfolio of distributed solar assets to institutional investors.”
Eric Cohen, group head of Renewable Energy Finance at Fifth Third Bank said:
“Fifth Third is pleased to support a top-tier, reputable company in its efforts to build more distributed utility-scale projects across the country. The relationship with Soltage enables us to put our capital to work to benefit many of the markets we serve, as well as the planet as a whole.”
This project demonstrates a larger trend as top-tier infrastructure investment institutions continue to place capital into solar assets. The trend indicates that solar has matured into a long-term, stable, low risk investment class for mainstream investors. According to Bloomberg New Energy Finance, global investment in renewable energy totaled $282.2 billion in 2019 and is expected to reach $300 billion in 2020. The global solar market specifically is on pace to grow about 14 percent in 2020, with new installed capacity to reach 121-154 gigawatts.
Source: Press Release by Solgate. Photo credit: © Solgate. The Soltage PowerStation, located in Palmer, MA, is a 1.0 MW AC ground mount solar system, comprised of approximately 4,598 solar panels, that produces 1,735,490 kWh per year.
