SolarCity, John Hancock come to terms on US$227 million cash equity deal

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email
The projects linked to the financial deal represent 201MW of generation capacity. Image: SolarCity

SolarCity announced that it has wrapped up its first cash equity transaction with John Hancock Financial.

John Hancock is set to invest US$227 million into a diversified portfolio of residential, commercial and industrial PV projects that represent 201MW of generation capacity.

SolarCity monetises a majority of 20-years of underlying cash flows, including solar renewable energy credits (SRECs) linked with the projects — and maintain ownership of the assets.

The deal raised US$3.00 of financing per watt of PV generation capacity for SolarCity, including tax equity investments, upfront rebates and prepayments — a mix of US$3.24/watt for residential projects and US$2.35 for commercial projects.

Radford Small, SolarCity's executive vice president of global capital markets, noted: “We're proud to partner with John Hancock, one of the most trusted brands in insurance and financial services, on this 20-year investment in our residential and commercial solar contracts. Cash equity enables SolarCity to monetize a high percentage of cash flows to maximize upfront financing proceeds. This transaction is an exciting addition and diversification of our long-term financing options for solar assets.” 

Recep Kendircioglu, managing director, power & infrastructure at John Hancock, added: “We are pleased to partner with SolarCity in this transaction which represents an excellent opportunity to acquire long-term, contracted cash flows in renewable energy. This investment further supports John Hancock's commitment to clean energy and sustainability.”

The projects linked to the transaction are spread across 18 states, with no single state representing over 35% of the portfolio. A large number of the installations were completed in 2015. 

Read Next

October 26, 2021
A Delaware judge has dismissed direct claims against Tesla CEO Elon Musk over his part in the US$2.6 billion acquisition of residential solar installer SolarCity
July 12, 2021
Elon Musk and Tesla’s court case regarding its acquisition of solar installer SolarCity has got underway in the US this week, with shareholders of the energy and automotive company alleging that fiduciary duties were breached when the deal was agreed.
December 9, 2020
Renewables developer BayWa r.e. has received a major capital injection of €530 million (US$642.3 million) through the sale of a 49% stake in the outfit to Energy Infrastructure Partners (EIP).
August 18, 2020
A judge has approved a US$60 million settlement for Tesla shareholders who challenged the company’s acquisition of installer SolarCity.
March 24, 2020
ACWA Power-led consortium taps six international and local lenders for US$275 million in senior debt.
March 20, 2020
Silicon Valley firm opts to close down facilities in California and New York following criticisms over staff exposure to pandemic, particularly at Fremont car-making facility.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
December 21, 2021
Free Webinar
Solar Media Events
February 1, 2022
London, UK
Solar Media Events
February 23, 2022
London, UK
Solar Media Events
March 23, 2022
Austin, Texas, USA
Solar Media Events
March 29, 2022
Lisbon, Portugal

PV TECH POWER VOLUME 29 OUT NOW—Get 35% off your first year

Solar’s 2030 blueprint