Distributed generation (DG) projects expected to be completed in 2013 by SunEdison have received further financial support from asset-based financing firm, De Lage Landen, a subsidiary of Rabobank Group.
A sale-leaseback fund, established in December 2012, provided SunEdison with US$52.5 million for DG PV projects within the US. The new agreement takes the funding past US$100 million.
Chris Bailey, vice president of North America structured finance and corporate development at SunEdison said: “SunEdison is focused on driving industry and company growth, maximising the retained value of solar energy assets, and building our balance sheet to enable these goals. Our success with the initial fund and our expanded relationship with DLL contributes significantly to these goals.”
The DG market has markedly lagged behind the utility-scale and residential markets in the US. However, SunEdison has been keen to develop this sector, which could provide higher margins and quicker construction times than large-scale PV projects.
“Distributed generation is one of the fastest growing solar segments in the United States,” said Attila Toth, general manager, distributed generation for SunEdison. “This relationship with DLL is one of the many ways we are working to help new customers enter the market and grow our business.”
SunEdison has previously worked with Rabobank Group on project financing.
According to Phillip Jordan, vice president BW Research “Solar power makes economic sense for more and more homeowners and businesses in the US, but lack of up-front capital has prevented many would-be buyers from entering the market. My research indicates that increasing the availability of funding for distributed generation solar not only saves businesses money, but creates good paying jobs.”