By Eric Wesoff | Greentech Media
SolarCity is offering another $70.2 million in asset-backed notes.
Late last year, SolarCity executed on a solar financing milestone and offered a private placement of $54.4 million of an “aggregate principal amount of Solar Asset Backed Notes, Series 2013-1.”
That was one of the first times securitization was employed for distributed solar generation.
“Securitization is the practice of pooling disparate sources of debt and selling it as a package to investors on the secondary market,” as stated by GTM’s Stephen Lacey. Securitization improves liquidity and can spur demand (and could be applied to energy efficiency as well). It has the potential to lower the cost of solar financing while enlarging the finance pool. (Learn a lot more about this financial tool by reading our article, “The Encyclopedia of Solar Securitization.”)
If you’d like to discuss energy issues, contact Court Rich, director of Rose Law Group’s Renewable Energy Department at crich@roselawgroup.com
