Solar Project Finance Opens Up to Institutional Investors
A new venture fund partners with institutional investors, project developers, and customers to build distributed clean energy generation plants and to sell the electricity and renewable energy credits to the host site under a power purchase agreement.
November 15, 2006
A MuniMae subsidiary announced today that it has syndicated the first institutional investment in solar energy project finance in the U.S.
MMA Renewable Ventures says it works with energy consumers, project developers and institutional investors to finance solar and other clean energy projects. The finance placement provides institutional investors with tax-credit equity investment opportunities.
It uses a business model somewhat similar to that of SunEdison or Mosier Creek Homes. MMA Renewable Ventures will finance the installation of solar power on a host's site, then sell the power to the host under a power purchase agreement. The host gets the renewable energy credits, while investors benefit from the solar-related tax credits.
The fund's first investment capitalizes a 901kW solar energy facility completed this month at Fetzer Vineyards, a long-time user of solar power.
(MMA Renewable Ventures is a wholly-owned subsidiary of MuniMae, NYSE: MMA)