By: Pivot Energy
April 18 2022
Today, Pivot Energy is excited to announce the closing of a $190 million financing facility to support a multi-state portfolio of distributed generation solar projects. Silicon Valley Bank (SVB) will lead the debt facilities and Foss & Company (Foss) will make the tax equity investment. The 90 megawatt (MW) portfolio comprises over 40 solar projects, approximately 80% community solar, and 20% commercial and industrial (C&I) power purchase agreements (PPAs).
This is the first portfolio of projects Pivot will build, own, and operate since its strategic acquisition by ECP in June 2021. In addition to C&I PPAs, clients include community solar subscriptions for commercial clients, residents, and nearly 1,200 low-to-moderate income (LMI) households. The portfolio exhibits strategic diversity across project types, client offtake arrangements, and geographic reach with projects located in New York, Illinois, Colorado, Minnesota, California, and New Jersey. This diversity is beneficial both in bringing clean solar energy to more Americans and strengthening the portfolio's long-term financial outlook.
The debt transaction led by SVB includes a construction loan, tax equity bridge loan, and permanent loan -- which, coupled with the tax equity investment from Foss, will enable Pivot to fully construct, operate, and own this portfolio.
SVB is a global financial services provider with unique expertise in community solar financing, making them an ideal partner to serve as the lead arranger of the debt facility for this portfolio. Foss has additionally financed several strategic community solar portfolios with other community solar developers in recent years.
Bret Turner, Head of Project Finance, Business Development, and Innovation for Silicon Valley Bank, said, “We are excited to work with Pivot Energy to provide financing for this solar portfolio. Making solar accessible to more Americans is crucial in efforts to combat climate change, and the community solar subscriptions and PPA opportunities in this portfolio offer households and businesses an easy way to participate in the benefits of solar energy.”
Bryen Alperin, Director of Renewable Energy and Sustainable Technology at Foss & Company, said, “We are pleased to work with Pivot Energy as they launch this new portfolio. This portfolio will expand access to clean low-cost electricity for small businesses and households. This impactful investment furthers our goal of deploying tax equity into under-served segments of the market, while generating substantial environmental benefits.”
Tom Hunt, CEO of Pivot Energy, said, “SVB and Foss have been ideal partners for Pivot as we work to bring this portfolio to fruition. We are excited about the unique opportunity this presents as our first owned portfolio on a national scale. We look forward to our continued partnerships with SVB and Foss as we work to grow our solar footprint across the nation, positively contributing to the environment, our communities, and our investors.”
CohnReznick Capital acted as the exclusive financial advisor to Pivot Energy on the transaction. Stoel Rives acted as counsel for Pivot, Milbank acted as counsel for SVB, and Winthrop & Weinstine acted as counsel for Foss.
All projects in the portfolio will be managed through SunCentral, Pivot’s industry-leading proprietary community solar subscriber management and acquisition platform.
About Pivot Energy
Pivot Energy is a national solar provider that develops, finances, builds, owns, and manages solar and energy storage projects. Pivot offers a distributed energy platform that includes a range of services and software aimed at serving the full solar ecosystem. Pivot is a Certified B-Corporation that proudly follows a corporate strategy aimed at providing a positive impact on society as measured by Environmental stewardship, Social leadership, and responsible Governance (ESG) factors. Learn more at pivotenergy.net.
About Silicon Valley Bank
Silicon Valley Bank (SVB) helps innovative companies and investors move bold ideas forward, fast. SVB provides targeted financial services and expertise through its offices in innovation centers around the world. The bank's project finance group works with project owners, sponsors and investors to finance large residential, commercial and industrial, and utility-scale projects. Learn more at svb.com/industry-solutions/cleantech-and-sustainability.
About Foss & Company
Founded in 1983, Foss & Company is a national tax equity investor and fund sponsor that has deployed over $7 billion in tax equity on behalf of insurance, banking, and other large corporate clients into historic rehabilitation projects, renewable energy and advanced energy production facilities. Foss & Company is a full-service advisor with proven expertise in helping our partners navigate the world of tax equity investments. For additional information, visit www.fossandco.com.
Together, solar and storage offer the unique ability to lower both demand and energy portions of a customer’s electricity bill.