Vivint Solar secures US$200 million loan to forestall ITC wind-down

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Vivint Solar has secured US$200 million loan that go towards stockpiling equipment to ensuring future projects qualify for the full federal investment tax credit (ITC).

The ITC is set to taper from 30% to 26% for PV projects that begin after 1 January.

Internal Revenue Service deems a project’s construction to have officially “begun” when five percent of its total cost has been spent. Purchasing equipment is one of the simplest ways project backers can meet that benchmark and qualify their project for the existing ITC rate.

This framework is informally dubbed the solar safe habour agreement.

The Utah-headquartered solar installer's loan will allow it to preserve the 30% ITC rate “well into 2021” according to chief commercial officer and head of capital markets Thomas Plagement.

The revolving asset-based loan and will also go towards refinancing a working capital facility set to mature in March 2020.

Lenders include affiliates of Bank of America Securities and Credit Suisse.

7X Energy and SunPower also recently unveiled major equipment stockpiling operations ahead of the imminent subsidy.

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