Combined residential/commercial fund structured for State of Connecticut’s
“Energize CT” Initiative.
July 31, 2013 – New York, NY – Reznick Capital Markets Securities (RCMS) and CohnReznick LLP have assisted with the successful closing of a one-of-a-kind financial structure – a levered and syndicated 5-yr partnership flip structure for a residential/commercial fund to be deployed in Connecticut.
The innovative public-private solar power leasing option for households and businesses, known as CT Solar Lease II, will comprise approximately 1,500 residential solar photovoltaic (PV) systems, 400 residential solar hot water systems and 40 commercial solar PV systems. The installations will be completed on residential and commercial rooftops over a two-year period, as applications from home and business owners are received. In total, nearly 14MW of solar PV and 4,600MMBtu of solar hot water systems will be placed into operation through the program.
Tim Kemper, CohnReznick partner and National Co-Leader of the firm’s Renewable Energy practice, said, “The CT Solar Lease II is a great example of the kind of innovative thinking we are seeing in solar energy financing today. Solar energy will continue to deliver tangible dividends for Connecticut – we were proud to be part of making this program a reality.”
Bert Hunter, CEFIA’s Chief Investment Officer, commented, “The advice and services provided by Reznick Capital Markets Securities and CohnReznick LLP in assisting CEFIA in the development of this innovative financing structure were quite simply invaluable. They ensured that CT Solar Lease II was established in a manner that supports the clean energy goals of the state of Connecticut and furthers the strategic objectives of Connecticut’s Green Bank—to leverage our limited public resources by attracting multiples of private capital investment that opens access to capital and drives deployment of clean energy.”
U.S. Bank is participating as the tax equity investor, in addition to a syndicate consisting of four regional lenders led by First Niagara Financial Group.
RCMS President Rob Sternthal said, “We’re very happy to be selected to advise CEFIA in bringing more solar energy options to Connecticut. Notably, this is the first residential tax fund to include debt in its structure, but our focus on renewable energy meant we were able to bring all the moving parts together to make it work.”