Reznick Capital Markets Securities (RCMS) and CohnReznick LLP have assisted in the completion of renewable energy tax equity and construction-to-term debt financing for Hudson Energy Solar, a subsidiary of green energy firm Just Energy, to install 9.6 MW of distributed generation (DG) photovoltaic solar (PV) facilities. The portfolio will provide a total of seven municipalities, school districts and non-profit organizations in New Jersey, as well as one local business in Massachusetts, with access to clean and cost-effective electricity.
The assets financed as part of the initial fund that closed at the end of 2012 are now fully operational. A second tranche closed in Q1 of this year for which the assets are expected to come online in Q2-Q3 of 2013.
Financing includes renewable energy tax equity from U.S. Bank, construction-to-term non-recourse debt from Seminole Financial Services, and equity provided by Hudson Energy Solar. The portfolio consists of solar DG assets combining rooftop, carport and ground-mount photovoltaic systems.
Hudson Energy Solar allows municipalities, local retailers, and school districts throughout the region to switch to clean solar power by developing and owning DG assets and entering into Power Purchase Agreements (PPAs) with its customers. Under long-term contracts ranging from 15-25 years, Hudson Energy Solar delivers financial benefits to its constituents, as well as helping further their social missions.
The RCMS team deployed an innovative financing approach to facilitate the investment, using a structure that combined both non-recourse debt and tax equity financing for a portfolio with Solar Renewable Energy Credits (SRECs).
RCMS President Rob Sternthal said, “We were able to guide both the lender and the tax equity provider through the process of placing project-level debt on a tax equity structure. Our structuring expertise played a crucial role in defining the parameters for the debt and assuring that this structure satisfied all sides of the transaction.”
CohnReznick partner Joel Cohn commented, “We were able to deliver a multi-service platform on this project – including structuring, providing valuation services and helping to facilitate the due diligence process for the developer.”
— Solar Builder magazine