Commercial, Finance, Industrial, Solar, Sourcing Renewables - May 3, 2016
John Hancock inks $227M deal with SolarCity for portfolio including commercial, industrial projects
that collectively represent 201 MW of generation capacity.
The deal, which represents John Hancock's first cash equity transaction with SolarCity, according to a joint May 3 news release, supports the financial services entity's commitment to clean energy and sustainability. The portfolio is "representative sample" of SolarCity's current customer base, according to the solar company, which has been pushing further into the commercial and industrial solar market in recent months.
SolarCity said the commercial customers in the John Hancock portfolio include "a number of national brand retail locations." The projects were spread among 18 states with no single state representing more than 35% of the portfolio, and the vast majority of the installations were completed in 2015.
SolarCity monetizes the majority of 20-years of underlying cash flows — including solar renewable energy credits, or SRECs, associated with the projects — and retains ownership of the assets and continues to service the customers, according to the release. SolarCity retains a minority share of annual cash flows throughout the contract term as well as 99% of post-contract cash flows.
The transaction reportedly raised $3 of financing per watt of solar generation capacity for SolarCity including tax equity investments, upfront rebates and prepayments; a blend of $3.24/watt for residential projects and $2.35/watt for commercial projects.
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