US solar real estate invt fund closes on $100 mn solar lease securitization

Highlights :

  • The expansion will significantly increase access to low-cost capital in the commercial and mid-sized solar development sector, including community solar, an official statement said.
  • SolaREIT’s land financing options, including the “Pre-Paid Solar Land Lease”, allow landowners to receive solar lease payments immediately—expanding financial flexibility and access to capital for both solar developers and landowners.

SolaREIT, a US solar real estate investment fund, has closed on a $100 million securitization of solar leases with Nuveen. The expansion will significantly increase access to low-cost capital in the commercial and mid-sized solar development sector, including community solar, its official statement said.

SolaREIT’s land financing options, including the “Pre-Paid Solar Land Lease”, allow landowners to receive solar lease payments immediately—expanding financial flexibility and access to capital for both solar developers and landowners.

“This investment confirms the strong interest from the largest and most progressive institutional investors in this sector. Community and commercial solar is in real need of increased financial options and access to more capital. No two projects are exactly the same, and for too long developers and landowners had very limited options in structuring effective solutions,” said Gautam Chandra, Managing Director of SolaREIT.

“SolaREIT’s solutions supported by Nuveen’s financing reduce the cost of solar and free-up developer capital to do more solar projects, accelerating overall solar adoption.”

Chris Miller, Managing Director at Nuveen, said, “The mid-sized and commercial solar sector has been underserved for years but holds tremendous promise. Increasing capital flexibility into this segment can have a significant impact on the market growth of solar, and ESG focused investments such as SolaREIT can help create value for our clients today and preserve value for tomorrow’s world.”

According to the IEA, net-zero emissions by 2050—the target set in the Paris Agreement requires solar and other clean energy transition-related investments to reach $4 trillion annually by 2030. Solar is a land-intensive technology; the National Renewable Energy Laboratory estimates that solar panels will cover 3 million acres by 2030.

SolaREIT offers opportunities for landowners to monetize their land holdings at better terms than traditional financing. Landowners typically use that capital for expanding their business or purchasing additional farmland. Increased financial flexibility for solar landowners and developers reduces costs, increases investment, and expands the number of landowners open to hosting solar projects.

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