US Based Posigen, Provider Of Solar To Lower Income Households, Gets $100m Funding

Highlights :

  • Financing is a critical driver for solar adoption in the US, helping firms like PosiGen attract newer customers.
  • Low debt rates have supported faster adoption, and equity funding rounds have enabled firms to leverage for faster growth.

PosiGen, a leading New Orleans, US based provider of renewable energy and efficiency solutions for low-to-moderate income (LMI) households, has confirmed the close of a $100 million preferred equity financing. Magnetar Capital’s Energy & Infrastructure group was the lead investor in the financing and will nominate two new directors to join PosiGen’s Board of Directors. Existing PosiGen investors, including Emerson Collective, Irradiant Partners, Activate Capital, The Builders Fund, SJF Ventures, and The Kresge Foundation, also participated in the financing.

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This transaction provides significant growth capital for PosiGen to accelerate its efforts to close the clean energy affordability gap for LMI homeowners by delivering lower cost utility bills and the environmental benefits of clean energy through residential solar, storage and energy efficiency upgrades. PosiGen has served over 19,000 customers to date, with approximately 50% of that in communities of color, and is now positioned to rapidly scale. The company’s mission is to make solar available to everyone, regardless of income or credit score.

“Working with the Magnetar team to structure this transaction has reinforced our view that partnering with the right lead investor with extensive experience and strong relationships matters,” said Tom Neyhart, CEO of PosiGen. “As a company, we believe that serving LMI customers who will benefit the most from our solar plus energy efficiency offerings creates a virtuous cycle of value – making a difference in the lives and communities of the families we serve, while at the same time driving customer engagement and portfolio performance. Magnetar not only recognizes this market opportunity, but also has the knowledge and experience to help us bring it to scale. We are excited to partner with them to grow the PosiGen platform at a national level to achieve our shared vision.”

“We are excited to partner with the PosiGen team to support the company’s future growth and extend its leading market share in the LMI residential solar ecosystem,” said Eric Scheyer, Head of Energy and Infrastructure at Magnetar. “The opportunity to scale PosiGen’s operations into many underserved markets in the United States is significant. We look forward to working closely with the PosiGen management team and its Board of Directors to help them create value for PosiGen’s constituents and achieve PosiGen’s growth objectives in its solar and storage segments.”

Incidentally, GAF backs the solar roofs supplied by PosiGen.

The positive funding environment for firms like Posigen has enabled a much faster adoption and growth of the solar segment in the US, than expected by many experts. More importantly, higher adoption feeds into a virtuous cycle of enabling ever more people to join in as costs drop with market size and more innovation in the segment.

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