PNC Energy Capital and Generate Capital are addressing an underserved market of mid-sized solar PV projects with an $85M sale leaseback facility for small- to medium-sized solar PV projects with high-credit counterparties. Generate Capital’s focus on smaller projects allows for less competition and a greater conversion yield. The addressable market for this product is up to $90B over the next 16 months. PNC is one of the largest players in renewable energy tax equity which, along with a competitive price, provides the credibility necessary to allow Generate to source projects more easily. Target projects range from 500kW to 5MW with capital costs of $1.5M to $15M.
- $5M investment
- 14% IRR ‘levered’
- 2-year payback period
- $5M contracted pipeline
