Pure Power Advisors has formed a new tax-equity fund known as the California Solar FIT Fund. The US$100 million tax-equity investment fund is geared towards ground-mounted solar projects throughout California and will supply funding for construction, completion, purchase and operation for qualified projects by means of a structured acquisition of projects from developers. The project acquisitions will use a financing structure influenced by Section 1603 Treasury grants or Section 48 energy tax credits.
“We are excited to offer the California solar marketplace a powerful new tool to help finance solar projects,” said Norris Lozano, CEO of Pure Power Advisors. “The California Solar FIT Fund will provide critical financing for ground-mount, utility-scale solar installations in investor-owned utility areas. The State of California has long been a leader in solar technology, and the California Solar FIT Fund will be important in helping the state reach its visionary renewable energy goals.”
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Projects in the fund will range between 1.5MW to 20MW in size. Using California Investor-Owned Utilities' tariff offers and proposed auction programs, the fund will combine and purchase ground-mounted solar PV projects. This method will allow developers to take advantage of communal negotiating power and greater financial efficiency.
Pure Power notes that the fund will include at least one equipment manufacturer as fund sponsor. The equipment manufacturer will be able to profit from a project pipeline of qualified facilities where it can use its technology and products. Additionally, fund sponsors will help to decrease the sales and marketing costs needed to obtain multiple and competitive projects.
Pure Power will also serve as fund manager and will oversee the RFQ process in order to choose qualified projects. The company is currently taking eligible projects into consideration for the fund and encouraging developers to submit their projects. Further information on the California FIT fund can be found here.