August 5, 2016
NY Green Bank Announces $37 Million Solar Deal
Financing for Vivint Solar Will Support Thousands of New Solar Projects Across the State, Representing $167 Million in Private and Public Investment
NY Green Bank Deals - Resulting in $686 Million of Private and Public Investments to Date - Support New York's Clean Energy Standard and its Aggressive Mandate to Achieve 50% Renewables by 2030
NY Green Bank today announced the closing of a $37.5 million loan to Vivint Solar, which will result in approximately $167 million in new investment in New York's growing clean energy economy and will provide financing for thousands of new solar projects at homes across the state. NY Green Bank and its investments in clean energy are advancing the Governor's Clean Energy Standard to supply 50 percent of New York's electricity from renewable resources such as solar and wind by 2030.
New York Chairman of Energy and Finance Richard Kauffman said, "NY Green Bank's collaborative work with the private sector is already helping the state meet its aggressive renewable energy goals and grow a clean energy economy through its support of emerging clean energy markets. By working with Vivint Solar, New York will add even more solar onto its grid, building on the 600% growth of solar since 2011 we have already seen while creating a cleaner, more resilient and affordable energy system for all New Yorkers."
Vivint Solar is a residential solar developer with six offices and approximately 300 local employees in New York State. With the loan from NY Green Bank, the company is expected to continue to expand, adding to its existing New York projects totaling nearly 58 megawatts of solar on a total of approximately 8,250 New York homes. These solar systems will add to the more than 50,000 New York homes that have already installed solar.
With this latest deal, NY Green Bank has now closed 11 transactions, committing $158 million of its capital, stimulating almost $686 million in total investments in clean energy projects across the state. These projects are expected to reduce greenhouse gas emissions by 3.5 million metric tons - equivalent to taking 42,000 cars off the road for the next 18 years - and help the state achieve its goal of a 40% emissions reduction by 2030. With a $1 billion capitalization, NY Green Bank is the nation's largest green bank and is a critical component of Governor Cuomo's Reforming the Energy Vision (REV) strategy to build a clean, affordable and resilient energy system for all New Yorkers.
NY Green Bank is providing financing to Vivint through a consortium of capital providers led by Investec, an international specialist bank and asset manager, which is providing a total financing of $313 million to the company for residential projects nationwide.
"NY Green Bank is pleased to participate in this transaction alongside private sector financial institutions to provide financing to Vivint Solar, which will result in additional solar deployment in New York," said Alfred Griffin, President of NY Green Bank. "By addressing known financing gaps and expanding available financing options, we expect prices for clean energy solutions to be reduced for developers, homeowners and small business owners. We look forward to continuing to deploy clean energy capital solutions as solar, wind, battery storage, energy efficiency and other low-carbon technologies continue to expand throughout New York State in support of the Governor's 50% by 2030 Clean Energy Standard."
This deal represents a significant milestone for NY Green Bank, as it triggers authorization of release of NY Green Bank's next $150 million in funding from the Public Service Commission towards its $1 billion capitalization.
NY Green Bank is a division of the New York State Energy Research and Development Authority (NYSERDA) and a key component of New York's 10-year, $5.3 billion Clean Energy Fund (CEF) to accelerate the use of clean energy, reduce greenhouse gas emissions, increase energy efficiency, and spur economic development in New York State.
John B. Rhodes, President and CEO, NYSERDA, said, "NY Green Bank is accelerating private sector investment for clean energy projects into the State. This transaction underscores the value of the Green Bank in driving clean energy projects that advance Governor Cuomo's REV strategy and Clean Energy Standard goals to benefit all New Yorkers."
The loan is structured as a medium-term (five-year) note, and allows Vivint Solar to recycle capital that can be used for the installation of new residential solar systems in New York. Demonstrating that alternative markets may be accessed to finance residential solar portfolios will result in increased project development, as developers will have greater confidence in their ability to access capital.
"This loan contributes to our continued growth of installed megawatts in the State of New York, which is a significant portion of our overall business," said David Bywater, Interim CEO of Vivint Solar. "We're excited about new opportunities in New York and to be working with New York Green Bank as we grow and continue to make residential solar more available to New York Residents."
NY Green Bank's current active pipeline (i.e. deals where there is agreement in principle between parties and momentum to move the transaction toward final execution and closing) includes community solar; residential and commercial energy efficiency; residential solar, commercial and industrial solar; municipal, university, school and hospital energy efficiency; and microgrids.